U.S. Department of Labor Investigation Results in West Virginia Construction Company Paying $242,039 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in West Virginia Construction Company Paying $242,039 in Back Wages and Damages

NITRO, WV – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Apex Pipeline Service Inc. has entered into a consent judgment with the Department requiring payment of $121,019 in back wages, with an equal amount in liquidated damages, to 243 employees at its Nitro, West Virginia, facility.  The consent judgment was approved by the U.S. District Court for the Southern District of West Virginia-Charleston Division.

WHD investigators found that - from April 2016 to March 2018 - Apex Pipeline Service Inc. violated the Fair Labor Standards Act (FLSA). WHD determined that the employer misclassified field office managers and safety coordinators as exempt from overtime, and subsequently failed to pay them overtime when they worked more than 40 hours per week. Apex Pipeline Services Inc. provides construction services to the oil and gas industry. 

WHD also found the employer made per-diem payments to union employees based on their craft performed, regardless of the employees’ travel status or the distance from home to worksite. The employer also paid non-union employees per diem based on the employer’s own established rates. When an employer does not make payments to workers for legitimate travel, the law requires the employer to include those amounts in the employees’ regular rates when determining overtime payment. In neither case did the employer do so, resulting in payment of overtime at rates below those required by law. The employer also failed to maintain required records and to post a current FLSA poster.

“Our work continues to ensure that employees are paid the wages they have legally earned, and that employers compete on a level playing field,” said Wage and Hour District Director John DuMont in Pittsburgh, Pennsylvania. “The U.S. Department of Labor is committed to holding employers accountable when they fail to meet their responsibilities. We encourage all employers to reach out to us for compliance assistance.”

WHD is committed to providing employers with the tools they need to assist them in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other federal wage laws, call the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights. 

Agency
Wage and Hour Division
Date
December 23, 2019
Release Number
19-1126-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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Las Vegas Restaurant Company Pays $190,195 to 66 Employees For Overtime Violations Found by U.S. Department of Labor

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Las Vegas Restaurant Company Pays $190,195 to 66 Employees For Overtime Violations Found by U.S. Department of Labor

LAS VEGAS, NV – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Jesus Felipe Vazquez and Martha Vazquez – owners of a restaurant company with three locations in Las Vegas, Nevada – have paid $190,195 in back wages and damages to 66 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the owners of La Mojarra Loca #1, La Mojarra Loca #2, and La Mojarra Loca Grill, failed to pay required overtime when dishwashers, servers, cooks and food preparers worked more than 40 hours in a week, as required. Instead, they continued to pay employees their straight-time rates for the overtime hours, in cash. They also violated FLSA recordkeeping requirements by failing to maintain accurate payroll and time records for employees.

“Employers are responsible for ensuring employees receive all the wages they have legally earned, including overtime,” said Wage and Hour District Director Gaspar Montanez, in Las Vegas, Nevada. “Investigations like these ensure that employees get paid and that employers compete on a level playing field. In addition to our enforcement we continue our robust educational efforts to help employers understand their responsibilities and to help workers understand their rights.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices. In addition, WHD provides employers with compliance assistance resources related to overtime to help them comply with the FLSA.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
December 23, 2019
Release Number
19-1853-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Recovers $82,468 in Wages for Employees After Investigation Finds South Carolina Auto Parts Supplier Missed Several Payrolls

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U.S. Department of Labor Recovers $82,468 in Wages for Employees After Investigation Finds South Carolina Auto Parts Supplier Missed Several Payrolls

NORTH CHARLESTON, SC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Quality Vision LLC – an automotive parts supplier based in North Charleston, South Carolina – has paid $82,468 in wages to 24 employees for violating minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined Quality Vision LLC violated the FLSA when it missed payrolls covering several bi-weekly pay periods and failed to pay employees any wages for those workweeks.

“Employers are required by the Fair Labor Standards Act to pay their employees all the wages they have legally earned,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “Missed payrolls place undue hardships on employees, greatly affecting their ability to provide for themselves and their families. We encourage employers and employees to contact the Wage and Hour Division directly if they have questions about compliance with federal pay requirements.”

The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

For more information about the FLSA and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act, and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
December 19, 2019
Release Number
19-1813-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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American Samoa Power Authority to Pay Employees $110,865 After U.S. Department of Labor Finds Overtime Violations

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American Samoa Power Authority to Pay Employees $110,865 After U.S. Department of Labor Finds Overtime Violations

HONOLULU, HI – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the American Samoa Power Authority – an American Samoa public utility – will pay $110,865 to 180 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the American Samoa Power Authority altered employees' time records to cap shifts at eight hours each day, regardless of the number of hours they actually worked. When employees worked late and punched out after their scheduled shift ending times, the employer changed the time records to remove the extra hours. This practice resulted in unpaid time, and in overtime violations when employees worked more than 40 hours in a workweek. The inaccurate timekeeping also violated FLSA recordkeeping requirements.

"Employers must record and pay employees for all the time that they work, including overtime," said Wage and Hour Division District Director Terence Trotter in Honolulu, Hawaii. "The U.S. Department of Labor is committed to educating employers and improving compliance with federal wage laws to ensure workers receive the wages they have earned and that employers compete on a level playing field. Other employers should use this as an opportunity to evaluate their own pay practices to ensure they comply with the law."

The American Samoa Power Authority provides electricity, water, wastewater and solid waste service to more than 60,000 residents of American Samoa's islands and atolls.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
December 17, 2019
Release Number
19-2119-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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Fairfield County Restaurants Pay $116,087 in Back Wages and Liquidated Damages to 35 Employees After U.S. Department of Labor Investigation

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Fairfield County Restaurants Pay $116,087 in Back Wages and Liquidated Damages to 35 Employees After U.S. Department of Labor Investigation

HARTFORD, CT – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), four Fairfield County, Connecticut, restaurants and their owners have paid a total of $116,087 in back wages and liquidated damages to 35 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD found the restaurants - Garelick & Herbs of Westport Inc., Garelick & Herbs of Greenwich, Inc., Garelick & Herbs of New Canaan Inc., and Garelick & Herbs of Saugatuck Inc. - and owners, Jason A. Garelick and Paola V. Garelick, violated FLSA overtime requirements when they paid hourly employees straight time rates for hours they worked beyond 40 in a workweek. They also paid kitchen staff on a shift or salary basis, resulting in additional overtime violations when these employees worked more than 40 hours per week yet were not paid overtime. WHD also cited the employers for recordkeeping violations for failing to maintain records of the number of hours worked by kitchen employees.

“Employees must receive all the wages they have earned,” said Wage and Hour Division District Director David R. Gerrain, in Hartford, Connecticut. “These types of violations can be avoided. We encourage employers to reach out to us for information and assistance in understanding their responsibilities.”

In addition to the back wages and damages, the employers agreed to comply with the FLSA, adopt and distribute to all employees a written leave and overtime policy, and to provide FLSA compliance training to all managers at all their restaurants.

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
December 19, 2019
Release Number
19-702-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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New Hampshire Resort Pays $124,999 in Back Wages and Penalties To Resolve H-2B Violations Found By U.S. Department of Labor

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New Hampshire Resort Pays $124,999 in Back Wages and Penalties To Resolve H-2B Violations Found By U.S. Department of Labor

MANCHESTER, NH – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), The NASWA Motor Inn Inc. – doing business as The NASWA Resort in Laconia, New Hampshire – has paid a total of $64,449 in back wages to 64 employees and $60,550 in civil money penalties to resolve violations of the H-2B non-immigrant visa program.

WHD investigators found that the resort failed to comply with several requirements of the H-2B visa program, which permits employers to hire temporarily non-immigrant foreign workers to perform nonagricultural labor or services in the U.S. for a limited time.

The NASWA Resort failed to offer the same terms and working conditions to U.S. job applicants that it provided to H-2B employees during 2016 and 2017. In its job advertisement, the NASWA Resort stated that employees would be required to pay for housing and a security deposit, but did not require H-2B employees to pay the security deposit and did not require all H-2B employees to pay for housing. The advertisement offered 35 weekly hours, significantly less than the 2016 and 2017 actual weekly averages of 48 and 45, respectively. It also failed to include the availability of a higher rate of pay in the job advertisement.

Additional violations included:

  • Placing H-2B employees in job classifications outside of those included on the employer’s approved applications, and paying workers in those categories less than the required wages;
  • Requiring the foreign employees to pay their own visa fees;
  • Using a recruiter who charged 44 of the foreign employees registration and processing fees;
  • Failing to provide the required job information to all foreign employees when required;
  • Failing to reimburse employees the required amount for travel to the resort and back to their home countries;
  • Overcharging foreign employees for housing; and
  • Failing to display the H-2B notice of employees’ rights poster.

“The Wage and Hour Division will always ensure that employers who use this program follow all of its requirements. Our work in this area safeguards American jobs, levels the playing field for law-abiding employers, and protects vulnerable workers from being paid less than they are legally owed,” said Daniel Cronin, the Wage and Hour Division’s Northern New England District Director.

WHD’s Northern New England District Office conducted the investigation. The Department’s Regional Office of the Solicitor in Boston negotiated the settlement for WHD.

WHD is distributing back wage payments to many employees who worked during the 2016 and 2017 seasons. Employees may contact the District Office at 603-666-7716 to determine whether they are due back wages and to make payment arrangements, which will require identity verification.

“The U.S. Department of Labor will continue to hold employers accountable when they employ workers outside of the approved job classifications and fail to pay the required wage rates,” said Mark Pedulla, Counsel for Wage and Hour Programs in the office of the Regional Solicitor of Labor in Boston.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

 

Agency
Wage and Hour Division
Date
December 18, 2019
Release Number
19-1419-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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U.S. Department of Labor Recovers Nearly $200,000 for Mail Haulers After Investigation Finds Company Violated Federal Labor Laws

News Release

U.S. Department of Labor Recovers Nearly $200,000 for Mail Haulers After Investigation Finds Company Violated Federal Labor Laws

ORANGE, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), C&W Trucking Inc. – a contractor for the U.S. Postal Service (USPS) based in Orange, California – will pay $199,010 to 56 employees for violations of federal contract requirements of the McNamara-O'Hara Service Contract Act (SCA) and the Fair Labor Standards Act (FLSA).

WHD investigators determined that C&W Trucking Inc. owed employees $199,010 in unpaid prevailing wages and required health and welfare benefits. Investigators found the contractor, which hauls mail under a USPS contract, failed to pay drivers for time they spent working before and after their shifts, performing tasks such as vehicle inspections, driving to and from the post office and fueling company vehicles. The employer also violated FLSA's recordkeeping requirements by failing to record accurately the time employees actually worked.

Investigators found the employer also failed to pay employees required fringe benefits after incorrectly classifying and paying several drivers as independent contractors.

"No contractor should gain an economic advantage by paying employees below the wages and fringe benefits required when doing business with the federal government," said Wage and Hour Division District Director Rodolfo Cortez, in San Diego, California. "We urge contractors to call the U.S. Department of Labor for assistance, and to use the tools we provide to help them comply with the law."

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor's collective bargaining agreement.

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

For more information about the SCA, and other laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243).  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
December 16, 2019
Release Number
19-2052-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Finds Mississippi-based Agricultural Employer Violated Guest Worker Visa Program Requirements in Florida

News Release

U.S. Department of Labor Finds Mississippi-based Agricultural Employer Violated Guest Worker Visa Program Requirements in Florida

MIAMI, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), H-2A Complete II Inc. – an H-2A staffing company providing workers in the Indian River and Highlands County areas of Florida and operating as H-2A Complete – has paid $47,154 in wages to 66 employees for violating requirements of the H-2A visa program.

WHD investigators determined the Southaven, Mississippi-based employer provided only dinner to workers, forcing them to buy their own breakfast and lunch, which caused their out-of-pocket expenses to exceed the amount stated on the job order that the staffing company used to secure the workers. The H-2A program requires employers to provide at least three meals per day at no more than the Department’s specified cost to employees.

“Agricultural employers that bring in temporary guest workers on H-2A visas must comply with all the provisions of the program, including all transportation, wage and housing requirements,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “When employers fail to obey the law, like they did in this case, their violations affect the welfare of their employees and create an unfair advantage over their competitors. We offer a wealth of compliance information readily available to help employers and farm labor contractors understand their obligations under the law.”

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

For more information about the H-2A visa program and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/agencies/whd, including a search tool for workers who may be owed back wages collected by WHD.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights. 

Agency
Wage and Hour Division
Date
December 13, 2019
Release Number
19-2117-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Finds Guam Bakeries Violated Federal Overtime Law

News Release

U.S. Department of Labor Investigation Finds Guam Bakeries Violated Federal Overtime Law

DEDEDO, GU – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), two Guam bakeries – New Fresh Bread Bakeshop in Dededo and Café Panadero in Yigo – will pay $108,929 in back wages and liquidated damages to 20 employees for violations of the Fair Labor Standards Act's (FLSA) overtime requirements. WHD has also assessed $7,535 in civil penalties against the employer.

WHD investigators found the bakeries and their owner, Zenaida Milano, failed to pay employees overtime at time-and-one-half their regular rates of pay when they worked beyond 40 hours in a workweek, as the law requires. Instead, Milano continued to pay employees their straight time rates for the overtime hours. The employer acknowledged not paying overtime, and told investigators that employees agreed with the arrangement in order to secure more hours of work. 

"Federal law prohibits an employer from entering into any agreement with employees to waive their right to overtime pay," said Wage and Hour District Director Terence Trotter in Honolulu, Hawaii. "Simply because an employee may agree to a particular arrangement does not make it legal. Our work to enforce these requirements ensures workers receive all the wages they have legally earned, and levels the playing field for employers."

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices. In addition, WHD provides employers with compliance assistance resources related to overtime to help them comply with the FLSA.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
December 10, 2019
Release Number
19-2048-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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CORRECTED: U.S. Department of Labor Final Rule Makes It Easier to Offer Perks to Workers

News Release

CORRECTED: U.S. Department of Labor Final Rule Makes It Easier to Offer Perks to Workers

WASHINGTON, DC – The U.S. Department of Labor today announced a final rule that will allow employers to more easily offer perks and benefits to their employees.

The rule released today marks the first significant update to the regulations governing regular rate requirements under the Fair Labor Standards Act (FLSA) in over 50 years. Those requirements define what forms of payment employers include and exclude in the FLSA's "time and one-half" calculation when determining overtime rates.

The previous regulatory landscape left employers uncertain about the role that perks and benefits play when calculating the regular rate of pay. The new rule clarifies which perks and benefits must be included in the regular rate of pay, as well as which perks and benefits an employer may provide without including them in the regular rate of pay.

"This final rule encourages employers to invest in the American workforce, to the benefit of their employees," U.S. Labor Secretary Eugene Scalia said. "In a robust economy with a million more open jobs than job seekers, we must allow employers to offer perks and benefits that will attract talent for open jobs and compensate employees for their hard work. This rule is an important step in that direction."

"The regular rate final rule provides clarity that allows employers to provide more benefits to their employees without unknown overtime consequences or litigation," said Cheryl M. Stanton, Administrator for the Department's Wage and Hour Division. "Allowing employers to offer more perks at work provides a positive path forward for employers and employees alike."

Specifically, the final rule clarifies that employers may offer the following perks and benefits to employees without risk of additional overtime liability:

  • the cost of providing certain parking benefits, wellness programs, onsite specialist treatment, gym access and fitness classes, employee discounts on retail goods and services, certain tuition benefits (whether paid to an employee, an education provider, or a student-loan program), and adoption assistance;
  • payments for unused paid leave, including paid sick leave or paid time off;
  • payments of certain penalties required under state and local scheduling laws;
  • reimbursed expenses including cellphone plans, credentialing exam fees, organization membership dues, and travel, even if not incurred "solely" for the employer's benefit; and clarifies that reimbursements that do not exceed the maximum travel reimbursement under the Federal Travel Regulation System or the optional IRS substantiation amounts for travel expenses are per se "reasonable payments";
  • certain sign-on bonuses and certain longevity bonuses;
  • the cost of office coffee and snacks to employees as gifts;
  • discretionary bonuses, by clarifying that the label given a bonus does not determine whether it is discretionary and providing additional examples and;
  • contributions to benefit plans for accident, unemployment, legal services, or other events that could cause future financial hardship or expense.

The final rule also includes additional clarification about other forms of compensation, including payment for meal periods and "call back" pay. It can be viewed here and will take effect 30 days after its publication in the Federal Register.

More information about the final rule, including FAQs and a Fact Sheet, is available here.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

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Editor's Note: This release was edited to correct the effective date of the rule.

Agency
Wage and Hour Division
Date
December 12, 2019
Release Number
19-2197-NAT
Media Contact: Emily Weeks
Phone Number
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