U.S. Department of Labor Investigation Results in North Texas Subway Restaurants Paying $39,572 in Back Wages, Damages and Penalties

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U.S. Department of Labor Investigation Results in North Texas Subway Restaurants Paying $39,572 in Back Wages, Damages and Penalties

DALLAS, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Krunal Enterprise Inc. in Plano, Texas; Krunal Subs LLC in Richardson, Texas; and Krunal Foods LP in Plano, Texas – all with common ownership and doing business as Subway franchisees – have paid $18,151 in back wages and an equal amount in liquidated damages to 10 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).

WHD also collectively assessed all three locations with $3,270 in civil money penalties to settle violations of the FLSA’s child labor provisions.

WHD investigators found that the employers paid employees at their straight-time rates without regard to the number of hours that they worked. This practice resulted in violations when they worked more than 40 hours in a workweek but the employer failed to pay overtime. The Subway franchise operator also paid one employee only for 80 hours every pay period regardless of the number of hours actually worked, and employed 14- and 15-year-olds to work outside of the hours the law allows for such minors during the school year. Investigators also cited the employers for recordkeeping violations.

“The U.S. Department of Labor works diligently to ensure employers understand their obligations to pay their employees all the wages they have legally earned, and to comply with hours and occupational standards when employing minors,” said Wage and Hour Division District Director Jesus A. Valdez, in Dallas, Texas. “We encourage all employers to make use of the wide variety of information and tools we offer to help them operate in compliance, and to avoid violations like those found in this investigation.”

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.

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 laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by 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 14, 2019
Release Number
19-1786-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Investigation Results in Houston Restaurants Owner Paying $100,000 in Back Wages To Employees

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U.S. Department of Labor Investigation Results in Houston Restaurants Owner Paying $100,000 in Back Wages To Employees

HOUSTON, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the owner of a Houston-based enterprise that operates eight Tostada Regia restaurants in the Houston, Texas, area has paid $100,126 to 438 employees for violating the overtime and minimum wage requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer violated minimum wage requirements when it charged servers for radios that they used to communicate within the restaurant, and for uniforms with the restaurant’s logo. These deductions resulted in employees’ pay dipping below the federal minimum wage of $7.25 per hour. Additional minimum wage violations resulted when the employer failed to pay workers for short rest breaks, which the law requires to be paid as work time. Overtime violations occurred when the employer calculated overtime based on servers’ direct hourly cash rates, which in some instances were as low as $2.13 per hour, instead of the full federal minimum wage.

“We will continue to ensure that employees are paid all the wages they have legally earned, particularly in restaurants and other low-wage industries,” said Wage and Hour Division District Director Robin Mallett in Houston, Texas. “The results of this investigation should encourage other employers to evaluate their pay practices to ensure that they are in compliance with the law. We encourage all employers to call us, confidentially, to speak with a trained Wage and Hour professional to get their questions answered.”

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, electronic toolkits, and in-person visits to local WHD staff.

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 laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at ,www.dol.gov/whd including a search tool for workers who may be owed back wages collected by 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.

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Agency
Wage and Hour Division
Date
November 14, 2019
Release Number
19-1664-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Two Orlando, Florida, Restaurants to Pay Wages After U.S. Department of Labor Uncovers Overtime Violations

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Two Orlando, Florida, Restaurants to Pay Wages After U.S. Department of Labor Uncovers Overtime Violations

ORLANDO, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Chai BKK Inc. and Chai 99 Inc. – two Orlando, Florida-based restaurants owned by Hong Saeunong – will pay $27,000 in back wages to 17 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined Chai BKK Inc. – operating as Chai Thai Cuisine – and Chai 99 Inc. paid a flat rate per shift to kitchen employees without regard to the number of hours that they worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek but the employer did not pay them overtime. The employer also paid overtime to tipped employees when they exceeded 80 hours in a bi-weekly period, instead of after 40 hours in one week, as the law requires. Investigators also found the restaurants paid the tipped employees an incorrect overtime rate, paying time and one-half workers' direct cash wages instead of basing overtime on the full federal minimum wage of $7.25 per hour. Additional violations resulted when the employer failed to combine the hours individual employees worked across both locations during the same workweek to determine when overtime was due.

"Employees deserve to be paid the wages they have legally earned, and law abiding employers deserve not to find themselves at an economic disadvantage to competitors who break the law," said Wage and Hour District Director Daniel White, in Jacksonville, Florida. "The Wage and Hour Division offers a wealth of information to assist employers in complying with federal laws. We encourage all employers to take advantage of these resources and to reach out to us directly with any questions."

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
November 12, 2019
Release Number
19-1882-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Results in Injunction Against Illinois Restaurant for Repeated Violations of Federal Wage Laws

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U.S. Department of Labor Investigation Results in Injunction Against Illinois Restaurant for Repeated Violations of Federal Wage Laws

EAST PEORIA, IL – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation found violations of the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements, a federal judge has issued an injunction against Tequila’s Mexican Bar and Grill – based in Peoria, Illinois – and its owner Hector Munoz and manager Javier Munoz for repeated violations of federal recordkeeping requirements.

U.S. District Court Judge Michael M. Mihm in the Central District of Illinois, Peoria Division, issued the injunction after WHD investigators found the employer failed to record and pay employees for all of the hours they worked. By doing so, the employer violated minimum wage laws when the unpaid time allowed employee’s pay rates to fall below the federal minimum wage of $7.25 per hour. Overtime violations occurred when the employer paid straight time instead of the required time-and-one-half for hours employees worked beyond 40 in a workweek. In this third investigation of this employer, WHD also found ongoing significant recordkeeping violations, which contributed to the minimum wage and overtime violations.

WHD determined the employer owes $27,155 in back wages to 20 employees.

“Employers must maintain accurate payroll records that clearly detail employee’s hours, pay rates, pay received, and the purpose of any deductions taken, and must pay their employees all the wages they have legally earned,” said Wage and Hour Division District Director Jim Yochim, in St. Louis, Missouri. “Other employers should use this case as a reminder to review their own pay and recordkeeping practices. We encourage employers to contact us for assistance in understanding their responsibilities so that they can avoid violations like those found in this case.”

The court ordered the employer to maintain payroll records, provide each employee a pay statement detailing payroll dates; hours worked and paid; earnings at both regular and overtime rates; gross amount paid; and all deductions. The restaurant must also maintain records of employee personal data and post federal FLSA posters – in both English and Spanish – in an area visible to employees.

For more information about the FLSA and other laws enforced by WHD, 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 https://www.dol.gov/whd, including a search tool to use if you think you may be owed back wages collected by the Division.

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
19-1857-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Finds North Carolina Restaurant Violated Federal Minimum Wage and Overtime Laws

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U.S. Department of Labor Finds North Carolina Restaurant Violated Federal Minimum Wage and Overtime Laws

FUQUAY-VARINA, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), He’s Group Inc. – operating as King Chinese Buffet in Fuquay-Varina, North Carolina – will pay $45,077 in back wages and liquidated damages to eight employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found King Chinese Buffet paid kitchen staff flat salaries without regard to the number of hours that they actually worked. This practice led to minimum wage violations when those salaries failed to cover all of the hours they worked at the federal minimum wage of $7.25 per hour and overtime violations when the employer failed to pay these employees time and one-half when they worked more than 40 hours in a workweek. Investigators also found the employer allowed a wait staff employee to work for tips only, with no wages paid by the employer; made deductions from employees’ pay for recruitment and transportation fees that caused their pay to dip below minimum wage; and failed to maintain records of the number of hours worked by employees.

“Employers must pay workers the wages they have legally earned. These employees worked six days per week, often 12 hours per day,” said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. “The U.S. Department of Labor will continue to work to level the playing field so employers that follow the rules aren’t at an economic disadvantage to those that don’t. We encourage all employers to reach out to us for guidance, and to use the wide variety of tools we provide to help them comply with the law and avoid violations like those found in this case.”

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
19-1895-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Finds Three Chicago Area Companies Violated Child Labor Regulations After Minors Suffer Serious Injuries

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U.S. Department of Labor Finds Three Chicago Area Companies Violated Child Labor Regulations After Minors Suffer Serious Injuries

CHICAGO, IL – After investigations by the U.S. Department of Labor's Wage and Hour Division (WHD), it was determined that three Chicago-area companies – Maria V. Contracting, Prate Roofing & Installations LLC, and Red Line Management – violated the Child Labor Provisions of the Fair Labor Standards Act (FLSA). WHD has also assessed a total of $127,262 in civil money penalties against the companies under the Child Labor Enhanced Penalty Program (CLEPP) because three minors suffered substantial impairment during their unlawful employment.  

WHD opened the investigations after receiving referrals from the Department's Occupational Safety and Health Administration (OSHA) regarding injuries suffered by minors employed in positions that violate "Hazardous Occupation Orders," which prohibit specific jobs for workers under 18.

"The Child Labor Standards specifically prohibit minors from working with equipment and in jobs that expose them to hazards. In each of these cases, minor employees suffered serious injuries because they were assigned tasks – such as working on roofs, and operating forklifts or other dangerous machinery – that violate employment rules for minors," said Wage and Hour Division District Director Tom Gauza in Chicago, Illinois. "The U.S. Department of Labor's Wage and Hour Division is committed to ensuring minors and their parents are aware of the child labor rules and that employers comply. We encourage employment opportunities for minors, but they must be safe."

WHD assessed civil money penalties of $63,814 to Maria V. Contracting after investigators found a minor employed by the company suffered electrical shock and serious burns when he fell 25 feet from an excavator bucket while cutting power lines. He also sustained fractures to his right femur and patella bone. Investigators found the company violated Child Labor standards by allowing a minor to drive a company pick-up, work on roofs, conduct demolition tasks and work around power-driven hoisting apparatus.

WHD assessed Prate Roofing & Installations LLC with $16,742 in civil money penalties after the Wauconda, Illinois, employer allowed a 16-year-old worker to engage in roofing activities. Investigators found that, while working on a roof, he fell approximately 25 feet through a skylight onto a concrete floor. OSHA investigators determined the minor was not attached to safety cord or wearing a helmet. He suffered a burst fracture in his spine and a fracture dislocation of the ankle requiring emergency surgeries and several months of rehabilitation.

WHD assessed Red Line Management with $46,706 in civil money penalties after a 17-year-old employee suffered multiple injuries when he fell more than 6 feet while riding on top of a forklift to steady the load. The fall resulted in a chest contusion, fractured left arm, torn left rotator cuff and torn ligaments in both knees that required multiple surgeries and months of rehabilitation. Investigators found the minor was operating forklifts, a prohibited occupation for minors, about 75 percent of his time on the job.

The CLEPP provides for civil money assessments of $11,000 to $50,000 for each employee who was the subject of a violation of the child labor regulations and suffered permanent loss, permanent paralysis, or substantial impairment because of their employment.

For more information about the child labor standards, the FLSA, and other laws enforced by WHD, 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 https://www.dol.gov/whd, including a search tool to use if you think you may be owed back wages collected by the Division.

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
19-1780-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Investigation Results in Pennsylvania Restaurant Paying Back Wages, Damages in Settlement Agreement

News Release

U.S. Department of Labor Investigation Results in Pennsylvania Restaurant Paying Back Wages, Damages in Settlement Agreement

HATFIELD, PA – In a consent judgment filed in the U.S. District Court for the Eastern District of Pennsylvania, Via Marconi Pizza Pub Inc. – a bar and restaurant based in Hatfield, Pennsylvania – will pay $362,988 in back wages and liquidated damages to 25 employees for overtime violations of the Fair Labor Standards Act (FLSA) found by the U.S. Department of Labor's Wage and Hour Division (WHD). WHD also assessed a $21,398 civil monetary penalty due to the willful nature of the violations.

WHD investigators determined that – from July 2, 2016, to March 23, 2019 – Via Marconi Pizza Pub Inc. violated the FLSA when it failed to pay kitchen employees overtime when they worked more than 40 hours in a workweek. Instead, the employer continued to pay straight-time rates, sometimes in unrecorded cash, for overtime hours. The employer also failed to maintain required records of the number of hours employees worked.

"This employer failed to pay overtime to kitchen staff who regularly worked 46 to 73 hours per week. Our work ensures that employees are paid all the wages they have legally earned," said Wage and Hour District Director James Cain, in Philadelphia, Pennsylvania. "This case should remind other employers to evaluate their own practices to ensure they comply with the law. Violations and penalties like those in this case can be avoided."

In addition to paying the back wages, damages and penalty, the judgment prohibits Via Marconi Pizza Pub Inc. from future violations of any FLSA provisions.

"This legal action and consent judgment will help to ensure that these employees are paid at least the minimum wage and overtime, and that employers in the restaurant industry operate on a level playing field," said Philadelphia Regional Solicitor Oscar L. Hampton III.

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 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
19-1902-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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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

News Release

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

News Release

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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