U.S. Department of Labor Investigation Results in Federal Court Ordering Commercial Laundry to Pay $266,670 in Back Wages, Damages

News Release

U.S. Department of Labor Investigation Results in Federal Court Ordering Commercial Laundry to Pay $266,670 in Back Wages, Damages

LANDSDOWNE, PA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Central Laundry Inc. – based in Landsdowne, Pennsylvania – and its owner George Rengepes and business operator Jimmy Rengepes must pay $133,335 in back wages and an equal amount in liquidated damages to 32 employees to remedy violations of the Fair Labor Standards Act (FLSA).

The U.S. District Court for the Eastern District of Pennsylvania has granted, in part, a motion by the U.S. Department of Labor for summary judgment against Central Laundry Inc. U.S. District Judge Wendy J. Beetlestone concluded that the defendants – doing business as Olympic Linen and Liberty Laundry – willfully violated the minimum wage, overtime and recordkeeping provisions of the FLSA. WHD investigators found the employers repeatedly bounced payroll checks, paid some employees at rates below the federal minimum wage of $7.25 per hour, paid some employees straight time in cash for more than 40 hours worked in a workweek, and failed to keep FLSA-required records.

Judge Beetlestone also permanently enjoined the defendants from future minimum wage, overtime and recordkeeping FLSA violations.

"The U.S. Department of Labor's Wage and Hour Division will hold accountable employers that deliberately circumvent the requirements of the law," said Wage and Hour Division District Director James Cain, in Philadelphia, Pennsylvania.

"The defendants knew what the Fair Labor Standards Act required of them, yet they intentionally disregarded and violated those requirements repeatedly. In doing so, they not only deprived their employees of their hard-earned wages, they also undercut those competitors that choose to obey the law," said Adam Welsh, Counsel for Wage and Hour in the Philadelphia Regional Solicitor's Office.

Separately, the U.S. Court of Appeals for the Third Circuit issued a decision on October 1, 2019, regarding a previous action the Secretary of Labor had brought against Central Laundry for similar violations. In that case, the district court had awarded $478,539 to 20 employees, less than the amount the Secretary had sought. The Secretary appealed, arguing that the employer owed back wages to additional workers. The court found that 13 additional long-tenured laundry workers identified in employee testimony and Central Laundry's time records should have been included in the judgment.

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 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
November 12, 2019
Release Number
19-1781-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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U.S. Department of Labor Investigation Results in Wyoming Motel Owners Paying Employees $189,466 for Minimum Wage, Overtime Violations

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U.S. Department of Labor Investigation Results in Wyoming Motel Owners Paying Employees $189,466 for Minimum Wage, Overtime Violations

SALT LAKE CITY, UT – After an investigation by the U.S Department of Labor's Wage and Hour Division (WHD), Sunil and Parul Patel – owners of a Motel 6 and Super 8 motel in Riverton, Wyoming – will pay $189,466 to three employees for federal wage violations as part of a consent judgment lodged in the U.S. District Court for the District of Wyoming. Investigators found the employer violated overtime and minimum wage provisions of the Fair Labor Standards Act (FLSA).

The violations occurred when the employer paid front desk clerks flat weekly rates that – when divided by the number of hours they were working – resulted in the clerks receiving between $2.00 and $5.15 per hour. Additionally, the employer failed to keep records of the actual hours worked by the clerks and initially produced false records to WHD, before admitting to fabricating the records. WHD has investigated the employer four times previously.

In the consent judgment, the employer agreed to pay $94,733 in unpaid minimum wages and overtime pay to three front desk clerks, along with an equal additional amount in liquidated damages, for a total of $189,466. The agreement also permanently enjoins the employer from future violations of the FLSA, and the employer will pay a civil money penalty of $2,179.

"Employers must pay their employees for all the hours they work – including legally required minimum wage and overtime rates and maintain complete and accurate records. Failing to pay employees as the law requires short-changes them and puts law-abiding employers at a competitive disadvantage," said Wage and Hour Division Regional Administrator Betty Campbell in Dallas, Texas. "We encourage other employers to see this case as an opportunity to evaluate their own pay practices, ensure compliance and understand that providing false information to the U.S. Department of Labor is unacceptable and will not be tolerated."

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
November 12, 2019
Release Number
19-1880-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in Florida Painting Contractor Paying $107,890 in Wages for Overtime Violations

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U.S. Department of Labor Investigation Results in Florida Painting Contractor Paying $107,890 in Wages for Overtime Violations

ORLANDO, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Memos Painting & Drywall Inc. – based in Orlando, Florida – will pay $107,890 in back wages to 101 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the residential and commercial painting contractor violated the FLSA overtime requirements when the employer paid employees straight-time rates for all hours that they worked. This led to overtime violations when the employees worked more than 40 hours in a workweek but the employer did not pay overtime. Memos Painting & Drywall Inc. also failed to maintain accurate payroll records, a violation of the FLSA recordkeeping provision.

“Failing to pay required overtime shorts workers and puts an employer’s law-abiding competitors at an economic disadvantage,” said Wage and Hour District Director Daniel White, in Jacksonville, Florida. “The Jacksonville Wage and Hour Division office is available to help employers understand their obligations and avoid violations like those found in this case. We invite anyone with questions to call or visit us for assistance.”

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.

The mission of WHD 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
November 7, 2019
Release Number
19-1856-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Agricultural Employment Initiative Recovers $422,152 for Southern and Central California Workers

News Release

U.S. Department of Labor Agricultural Employment Initiative Recovers $422,152 for Southern and Central California Workers

LOS ANGELES, CA – The U.S. Department of Labor’s Wage and Hour Division recently concluded an agricultural employment focused educational and enforcement initiative that recovered $422,152 in back wages for 443 low-wage workers across California and assessed $85,168 in civil penalties primarily against growers in Central California.

Focused on compliance with transportation safety requirements, the initiative found widespread violations of the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), and of the labor provisions of the H-2A visa program at 10 facilities and among the farm labor contractors investigated. The initiative included a balance of inspections and enforcement activities with a robust outreach effort by WHD investigators to provide compliance assistance to growers and non-profits, and to educate workers.

"The U.S. Department of Labor will continue to be on the lookout to ensure agricultural workers are paid the wages they have legally earned, and are also provided safe working, housing and transportation conditions," said Wage and Hour Division Regional Administrator Ruben Rosalez, in San Francisco, California. "We are always available to assist employers in understanding their responsibilities under federal laws. We encourage all employers to take advantage of the free resources we provide and avoid costly penalties."

WHD investigators inspected onion-growing operations in the high desert around Lancaster and Palmdale before moving to strawberry harvest operations in the Santa Maria area. H-2A and MSPA violations included failing to pay the required minimum wage, missing paychecks, unlawfully rejecting U.S. workers, failing to provide safe housing, and failing to meet safe transportation requirements for workers.

The most significant violations occurred at JV Harvesting in Santa Maria, Manuel Perez Farming in San Luis Obispo, Savino Farms in Santa Maria, La Palma Farms in Santa Maria, Big F Company in Santa Maria, Rio Vista Corp. in Santa Maria, San Cristobal Manufacturing in Oxnard, and Aztec Harvesting in Fresno.

For more information about the MSPA, H-2A, and other laws enforced by WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). 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
November 4, 2019
Release Number
19-1721-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Announces Proposal to Expand Access To Bonuses for America’s Workers

News Release

U.S. Department of Labor Announces Proposal to Expand Access To Bonuses for America’s Workers

WASHINGTON DC – The U.S. Department of Labor's Wage and Hour Division (WHD) today announced a Notice of Proposed Rulemaking (NPRM) that would allow job creators to offer bonuses or other incentive-based pay to employees whose hours vary from week to week.

The proposal would revise the regulation for computing overtime compensation for salaried, non-exempt employees who work hours that vary each week (i.e., a fluctuating workweek) under the Fair Labor Standards Act (FLSA). It also clarifies that bonus and premium payments on top of fixed salaries are compatible with the fluctuating workweek method of compensation, and that supplemental payments must be included when calculating the regular rate of pay as appropriate under the FLSA. The proposal includes examples and minor revisions to make the rule easier to understand.

"This proposal offers more options for bonus pay and exemplifies the U.S. Department of Labor's commitment to reduce unnecessary burdens in order to benefit America's workers," said U.S. Secretary of Labor Eugene Scalia. "At a time when there are more job openings than job seekers, this proposal would allow America's workers to reap even more benefits from the competitive labor market."

"For far too long, job creators have faced uncertainty regarding their ability to provide bonus pay for workers with fluctuating workweeks," Wage and Hour Division Administrator Cheryl Stanton said. "This proposed rule will provide much-needed clarity for job creators who are looking for new ways to better compensate their workers."

This NPRM is available for public comment for 30 days. The Department encourages interested parties to submit comments on the proposed rule.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of America'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
November 4, 2019
Release Number
19-1922-NAT
Media Contact: Emily Weeks
Phone Number
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U.S. Department of Labor Delivers Record $322 Million in Recovered Wages For Workers in Fiscal Year 2019

News Release

U.S. Department of Labor Delivers Record $322 Million in Recovered Wages For Workers in Fiscal Year 2019

Department also sets new record for number of compliance assistance events

WASHINGTON, DC – The U.S. Department of Labor today announced that the Wage and Hour Division (WHD) recovered a record $322 million in wages owed to workers in Fiscal Year 2019. WHD also set a new record for compliance assistance events in FY 2019, holding more than 3,700 educational outreach events – including on-the-ground presentations and trainings – to help job creators understand their responsibilities under the law.

“Through rigorous enforcement and robust compliance assistance, the U.S. Department of Labor is committed to ensuring that workers receive the wages they have earned,” said U.S. Secretary of Labor Eugene Scalia. “These record-breaking numbers top the Department’s totals from last year, which also set records, and confirm our ongoing commitment to strong enforcement and to providing employers with the tools they need to comply with the law.”

“We are delivering a level playing field for employers and employees alike,” said Wage and Hour Division Administrator Cheryl Stanton. “We are delivering more back wages for workers than ever before, and we are steadfastly eliminating any unfair economic advantage employers may try to gain by skirting the rules. We are protecting those who do the right thing, pay their employees what they have legally earned, and operate in compliance.”

WHD is constantly improving and expanding a data-driven approach coupled with stakeholder engagement allows the Agency to identify accurately the industries and sectors in which to focus resources most efficiently. A new Office of Enterprise Data and Analytics launched this month will ensure WHD uses the most cutting-edge tools and data sources available to guide decision making and secure the largest possible impact.

Visit www.dol.gov/whd for additional information about WHD’s work. Employers and employees are encouraged to contact WHD at 866-4US-WAGE with any compliance questions or for further information.

The mission of WHD 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 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
October 28, 2019
Release Number
19-1883-NAT
Media Contact: Edwin Nieves
Phone Number
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U.S. Department of Labor Investigation Results in Kentucky Lawn Service Company Paying $100,000 in Back Wages, Damages and Penalties

News Release

U.S. Department of Labor Investigation Results in Kentucky Lawn Service Company Paying $100,000 in Back Wages, Damages and Penalties

LOUISVILLE, KY After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Michael Osbourn – the owner of Mike Osbourn Lawn Care Inc. – will pay $76,067 in back wages and liquidated damages to 69 employees. The U.S. District Court for the Western District of Kentucky issued a consent judgment against the Shepherdsville, Kentucky-based employer for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The employer will also pay $23,932 in civil money penalties.

WHD investigators determined the employer paid and reported the first 40 hours of each employee’s weekly hours on payroll, then paid for any additional hours in cash or with a separate check, all at straight-time rates. By doing so, he failed to pay overtime to employees who worked more than 40 hours in a workweek. WHD also found that Osbourn made illegal deductions from employees’ pay for uniforms and equipment repair that brought their wages below the federal minimum wage.

The Kentucky Labor Cabinet investigated Mike Osbourn Lawn Care Inc. in 2015 and found similar overtime violations. After receiving written notice of the violations, the employer failed to come into compliance. A previous state investigation led to the Department to allege that the violations were willful.

In addition to paying back wages, damages and penalties, Osbourn entered into the consent order and agreed to be permanently enjoined from violating the FLSA and to be monitored by a third party for a period of three years. Osbourn also agreed to secure a bond to ensure the payment of the back wages, liquidated damages, and civil money penalties.

“The result of this investigation and litigation will ensure that willful violators comply with federal law and wages are returned to the employees who legally earned them,” said Wage and Hour Division District Director Karen Garnett, in Louisville, Kentucky. “The Wage and Hour Division will continue to use all of its enforcement tools to secure the wages of hard-working employees and to level the playing field for employers who play by the rules.”

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
October 25, 2019
Release Number
19-1514-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Finds Federal Contractor Violated Wage Law in Georgia

News Release

U.S. Department of Labor Investigation Finds Federal Contractor Violated Wage Law in Georgia

ALBANY, GA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), XOtech LLC – a federal contractor based in Tyrone, Georgia – has paid $43,224 in back wages to five employees for violating requirements of the McNamara-O’Hara Service Contract Act (SCA), at the Marine Corps Logistics Base in Albany, Georgia.

WHD investigators determined XOtech LLC incorrectly classified some employees performing work on XOtech LLC’s contract, erroneously considering them to belong in job categories paid lower rates than those applicable to the work they actually performed. This misclassification caused the employer to pay prevailing wage rates lower than those the law requires. The employer also failed to record classifications and rates of pay required for the classes of employees accurately. 

Contractors and subcontractors awarded federal contracts must understand that incorrectly classifying employees can lead to numerous violations,” said Wage and Hour Division District Director Eric Williams, in Atlanta, Georgia. “The U.S. Department of Labor offers employers a wide variety of tools and free prevailing wage seminars to help them understand their responsibilities.”

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 FLSA, SCA and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). 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
October 25, 2019
Release Number
19-1506-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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Tennessee Butcher, Restaurant Pays $88,276 in Wages, Damages and Penalties After U.S. Department of Labor Finds Wage, Child Labor Violations

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Tennessee Butcher, Restaurant Pays $88,276 in Wages, Damages and Penalties After U.S. Department of Labor Finds Wage, Child Labor Violations

SUMMERTOWN, TN After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Shaffer Farms Custom Meats LLC and Shaffer Farms Texas Bar-B-Q restaurant has paid $69,514 in back wages and liquidated damages to 21 employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The Summertown, Tennessee-based butcher and restaurant will also pay a civil penalty of $18,762 for the willful nature of the wage violations and for federal child labor violations.

WHD investigators found the employer violated the overtime requirements of the FLSA when it paid workers for their first 40 hours of each workweek as regular pay, but then instead of paying overtime, coded any additional hours as a “bonus,” paid straight time rates. The employer paid one employee for their first 40 hours on the payroll, but then paid for additional hours at straight time, as an “independent contractor.” The employer also failed to include certain production bonuses employees earned in the calculation when they determined workers’ overtime rates. This exclusion resulted in employees being paid overtime rates lower than those required by law.

Additionally, WHD found that Shaffer Farms employed an employee younger than 18-years-old as a butcher, where he performed multiple functions prohibited by FLSA child labor requirements. Investigators found the minor operated a power-driven hoisting apparatus, a power-driven meat grinder, a meat slicer, and a power driven commercial meat saw, all of which are prohibited for workers under 18. The employer also failed to maintain required time and payroll records, resulting in recordkeeping violations.

“Child labor laws exist to strike a balance between providing meaningful work experience for young people and keeping them safe on the job,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “Our wage laws ensure that employees are paid for their work, and that employers compete on a level playing field. Investigations like this one send a clear message that employers must be vigilant about compliance with all of their legal responsibilities. We encourage all employers to review their obligations and to contact us for compliance assistance.”

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, child labor, 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
October 24, 2019
Release Number
19-1791-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Recovers $27,959 in Wages for South Carolina Real Estate Developer’s Employees after Finding Overtime Violations

News Release

U.S. Department of Labor Recovers $27,959 in Wages for South Carolina Real Estate Developer’s Employees after Finding Overtime Violations

NORTH AUGUSTA, SC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), TR Sales Plantation – a real estate developer in North Augusta, South Carolina – has paid $27,959 in back wages to eight employees for overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that TR Sales Plantation paid a straight-time hourly rate to employees, regardless of the number of hours they worked. This resulted in an overtime violation when the employer failed to pay overtime to employees when they worked more than 40 hours in the workweek. In addition, the WHD investigation found that TR Sales Plantation violated the recordkeeping provision of the FLSA.

"The results of this investigation should serve as an opportunity for other employers in this industry to examine their pay practices to ensure that they comply with federal law," said Wage and Hour District Director Jamie Benefiel, in Columbia, South Carolina. "The U.S. Department of Labor encourages all employers and employees to contact us with any questions they may have and to make use of the valuable resources we provide to help them understand their rights and obligations under the law. Violations like those found in this case can be avoided."

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
October 24, 2019
Release Number
19-1507-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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