Orange County Residential Care Home Operators Pays Workers $1,100,000 For Exploitive Working Conditions Resulting in Federal Violations

News Release

Orange County Residential Care Home Operators Pays Workers $1,100,000 For Exploitive Working Conditions Resulting in Federal Violations

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the U.S. District Court for the Central District of California entered a consent judgment resulting in two Orange County, California, residential care home operators paying $1,100,000 in back wages and liquidated damages to 66 employees for violations of the Fair Labor Standards Act (FLSA).

The final employee payments resolve a lawsuit related to working conditions at California care homes in Lake Forest and Mission Viejo, owned and operated by Lilibeth Ortiz and her husband Geraldo Ortiz. In addition to the couple, the suit included their businesses, namely Nuzon Corp., Margaret’s Villa Inc., Fil-Lyd Investments LLC and JuanJo Investments.

WHD investigators found the employer required employees to tend to clients with developmental disabilities at all hours of the day and night, resulting in employees working more than 87 hours per week. These long hours, combined with the employers’ practice of paying their employees a flat daily rate, resulted in employees receiving pay as low as $4 per hour for all the hours that they worked, a violation of FLSA’s minimum wage and overtime provisions.

Additionally, Lilibeth Ortiz and Geraldo Ortiz violated the FLSA’s anti-retaliation provisions during litigation. In one instance, shortly after settlement talks broke down, the defendants notified their live-in employees of pending eviction and later rescinded the notices after the Department responded promptly. In another instance, the defendants and their attorneys coerced employees into signing false or misleading statements about their working conditions. Evidence showed that Lilibeth Ortiz confronted employees individually to ensure that they would meet with her attorneys to help with her defense.

“Ensuring that workers receive all of the wages they have legally earned is a priority,” said Wage and Hour Administrator Cheryl Stanton. “The resolution of this case demonstrates our commitment to protecting workers, particularly in cases that involve retaliation or intimidation, and to leveling the playing field for employers who play by the rules.”

“In addition to subjecting employees to oppressive working conditions, the defendants attempted to silence workers and prevent them from exercising their rights,” said Regional Solicitor Janet Herold, in Los Angeles, California. “Enforcement of the Fair Labor Standards Act relies on brave employees who come forward. Thankfully, they did, notwithstanding the defendants’ concerted efforts at intimidation.” 

The judgment orders Lilibeth Ortiz and Geraldo Ortiz to take specific, affirmative steps to ensure FLSA compliance. The judgment requires the defendants to ensure accurate recording of the hours worked, with a time-clock system rather than handwritten timecards used previously. The defendants must also give employees notice of their rights under the FLSA in English and in Tagalog.

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
October 17, 2019
Release Number
19-922-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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Connecticut Restaurant Pays $39,314 in Back Wages and Damages After U.S. Department of Labor Investigates

News Release

Connecticut Restaurant Pays $39,314 in Back Wages and Damages After U.S. Department of Labor Investigates

HARTFORD, CT – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Nolita LLC – operating as Nolita Ristorante in East Hartford, Connecticut – and owner Vishal Sharma has paid $19,657 in back wages and an equal amount in liquidated damages to 14 current and former employees to resolve violations of the Fair Labor Standards Act (FLSA). 

The investigation found the employers violated FLSA minimum-wage provisions by failing to pay the federal minimum wage of $7.25 per hour for all the hours that they worked. Some dishwashers and front-of-the-house employees were paid flat weekly salaries in cash that failed to cover all the hours they worked at the minimum wage. This practice also resulted in overtime violations when those employees worked more than 40 hours in a workweek yet were not paid overtime. Additional minimum wage violations occurred when the employer failed to record or pay for all of the hours that some employees worked. The employers also violated recordkeeping requirements when they failed to keep accurate time and payroll records as required by law.

"Employers must pay their employees all the wages they have legally earned," said Wage and Hour District Director David R. Gerrain in Hartford, Connecticut. "Our goal is to ensure that employers have the tools they need to comply with the law, which levels the playing field for law-abiding competitors in the restaurant industry."

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 its toll-free helpline at 866-4US-WAGE (487-9243). 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.

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
October 16, 2019
Release Number
19-589-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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U.S. Department of Labor Investigation Results in Moline, Illinois, Restaurant Paying $78,970 in Back Wages to 33 Employees for Wage, Overtime Violations

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U.S. Department of Labor Investigation Results in Moline, Illinois, Restaurant Paying $78,970 in Back Wages to 33 Employees for Wage, Overtime Violations

MOLINE, IL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) Osaka Steak House Sushi & Hibachi Inc. – doing business as Osaka Buffet in Moline, Illinois – will pay $78,970 in back wages to 33 current and former employees for violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA.

WHD investigators found that the employer paid all employees flat weekly salaries, regardless of job type or the number of hours they worked in a workweek. In some instances, those salaries failed to cover all the hours that employees worked at the federal minimum wage of $7.25 per hour. Overtime violations occurred when the employer failed to pay overtime when these employees worked more than 40 hours in a workweek. Osaka Buffet also failed to maintain records of the number of hours employees worked and wage payments made to individual employees by both cash and check.

"Employers must pay their employees all the wages they have legally earned, and are required to maintain records of payments made to them – including those made in cash," said Wage and Hour Division District Director Jim Yochim, in St. Louis, Missouri. "Simply because a pay practice may appear to be common in an industry does not mean that it is legal. Other employers should use this investigation as an opportunity to review their own practices to ensure they comply with the law. We encourage them to contact us for assistance in understanding their responsibilities so that they can avoid violations like those found in this case."

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
October 15, 2019
Release Number
19-1752-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Conducting Survey of Highway Construction Projects to Ensure Delaware Employees Covered by Proper Wage Rates

News Release

U.S. Department of Labor Conducting Survey of Highway Construction Projects to Ensure Delaware Employees Covered by Proper Wage Rates

PHILADELPHIA, PA – To help establish prevailing wage rates, the U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a survey of highway construction projects in Delaware.

The survey includes wages paid on all highway construction projects – active between June 1, 2018, and May 31, 2019 – throughout the state of Delaware. The survey is not limited to federally funded construction projects. The information provided for this survey will be used to establish prevailing wage rates as required under the Davis-Bacon and Related Acts (DBRA).

"Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction employees where the work takes place," said Wage and Hour Division Regional Administrator Mark Watson, in Philadelphia, Pennsylvania. "The U.S. Department of Labor can best accomplish this goal with strong participation by the Delaware construction industry."

Without significant participation by contractors and other interested parties, wage rates may not fully reflect actual wages and wage determinations may be incomplete, which leads to requests for additional classifications. Wage data should be submitted for all projects meeting the criteria, regardless of funding sources.

Notification letters and data collection forms, known as WD-10s, are being sent to interested parties and contractors known to the WHD. Responses must be postmarked by March 27, 2020, to be included. To complete the survey electronically, visit www.dol.gov/whd/programs/dbra/wd10/index.htm.

You do not need to receive a letter to answer the survey. If you would like to participate, or have questions regarding the survey process or completing the WD-10 form, contact Angel A. Aguero at 267-687-4059.

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 laws 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 11, 2019
Release Number
19-1707-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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Las Vegas Drywall Company Will Pay $133,007 to 233 Employees For Overtime Violations Found by U.S. Department of Labor

News Release

Las Vegas Drywall Company Will Pay $133,007 to 233 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), Royal West Drywall Inc. – a residential drywall and paint company in Las Vegas, Nevada – will pay $133,007 in back wages to 233 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Royal West Drywall Inc. paid drywall installers and painters a piece rate, paying them according to the amount of product they installed, without regard to the number of hours they worked. This practice resulted in violations when these employees worked more than 40 hours in a workweek, but were not paid overtime. The employer also violated FLSA recordkeeping requirements by failing to record and maintain accurate payroll and time records for employees.

"Employers are responsible for ensuring piece-rate 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 this ensure that employees get paid and that employers compete on a level playing field. Other employers in this industry should use the outcome of this investigation as an opportunity to examine their own pay practices, and to ensure that they comply with 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. 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
October 11, 2019
Release Number
19-1760-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in Aeronautical Federal Contractor Paying $951,456 to 1,109 Employees Nationwide

News Release

U.S. Department of Labor Investigation Results in Aeronautical Federal Contractor Paying $951,456 to 1,109 Employees Nationwide

POWAY, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), General Atomics Aeronautical Systems Inc. – a Poway, California-based federal contactor providing aircraft systems and services to the U.S. Army – will pay $951,456 to 1,109 employees nationwide for violating the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators determined General Atomics Aeronautical Systems Inc. violated the SCA when the employer failed to pay prevailing wages and required health and welfare benefits to employees performing services under two contracts with the U.S. Army. The employer paid aircraft mechanics, engineering technicians, and others hourly rates below those required, and failed to ensure that some workers received at least the equivalent of the hourly fringe benefit amount required under the SCA. The investigation focused originally on aircraft mechanics working in Adelanto, California, but expanded to all positions nationwide that provided services on either contract.

"Employers doing business with the federal government must ensure that they understand and abide by all applicable laws, and must ensure that employees receive legally required pay and benefits," said Wage and Hour Administrator Cheryl Stanton. "Enforcement of these requirements ensures a level playing field for contractors across the country, as well as for workers."

"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," said Wage and Hour District Director Daniel Pasquil, in West Covina, California. "Violations like those in this case can be avoided."

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.

For more information about the SCA, and other laws enforced by the Wage and Hour 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.

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, 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 11, 2019
Release Number
19-1728-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Investigation Results in West Virginia Laundry Service Paying $66,641 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in West Virginia Laundry Service Paying $66,641 in Back Wages and Damages

FAIRMONT, WV – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Superior Industrial Laundries Inc. – a commercial laundry facility based in Fairmont, West Virginia – has paid $66,641 in back wages and liquidated damages to 36 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Superior Industrial Laundries Inc. – doing business as Superior Laundries – misapplied an exemption from the FLSA's overtime requirements to its delivery drivers and certain sales staff. The employer paid the misclassified employees flat salaries, without regard to the number of hours that they actually worked. This practice resulted in violations when the employer failed to pay overtime when those employees worked more than 40 hours in a workweek. The employer also failed to keep records of daily and weekly work hours for these employees, in violation of the FLSA's recordkeeping requirements.

"Exemptions from the law's overtime requirements require very specific criteria to be met," said Wage and Hour Division Director John DuMont in Pittsburgh, Pennsylvania. "We invite all employers to use the wide variety of tools we offer to help them understand those criteria, and ultimately their responsibilities under the law. Employers or workers with questions can also call us, or visit any of our offices, to speak directly with a trained Wage and Hour professional."

The FLSA requires that covered, nonexempt employees be paid at least the minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates, including commissions, non-discretionary bonuses, and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.

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.

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
October 8, 2019
Release Number
19-1622-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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U.S. Department of Labor to Offer Seminar for Agricultural Employers, October 16 and 17, 2019

News Release

U.S. Department of Labor to Offer Seminar for Agricultural Employers, October 16 and 17, 2019

EDINBURG, TX – The U.S. Department of Labor’s Wage and Hour Division (WHD) will hold a compliance seminar for agricultural employers in Edinburg, Texas, on October 16 and 17, 2019. The seminar will offer employers, company managers, agents, human resources professionals, and other interested parties a chance to hear from and speak directly with federal and state agency representatives and other stakeholders on issues regarding the H-2A and H-2B Foreign Labor Certification programs, the Migrant and Seasonal Agricultural Worker Protection Act, and the Occupational Safety and Health Act of 1970. 

WHAT U.S. Department of Labor Compliance Assistance Training for Agricultural Employers
WHEN October 16 and 17, 2019
8:00 a.m. to 4:30 p.m. CDT
WHERE UT Rio Grande Valley
Community Engagement and Student Success (CESS) Bldg.
1407 E. Freddy Gonzalez Drive
Edinburg, Texas 78539

The seminar offers a one-stop training opportunity for attendees to better understand H-2A and H-2B worker visa programs, including wages, recordkeeping, safety and health, housing and transportation and worksite enforcement. In addition to Wage and Hour Division officials, representatives from the Department’s Occupational Safety and Health Administration, the Internal Revenue Service, Social Security Administration, Texas Department of Public Safety, Texas Department of Agriculture, Texas Workforce Solutions, and the U.S. Department of Agriculture are scheduled to attend.

The event is part of WHD’s ongoing effort to increase awareness and improve compliance with agricultural labor law requirements. Attendance is free, but pre-registration is required. For more information and to register, call 956-682-4631.

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 8, 2019
Release Number
19-1700-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Southern California Security Service to Pay Employees $309,189 For Overtime Violations Following U.S. Department of Labor Investigation

News Release

Southern California Security Service to Pay Employees $309,189 For Overtime Violations Following U.S. Department of Labor Investigation

WEST COVINA, CA – After a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation, GI Security Inc. – based in West Covina, California – will pay $309,189 to 126 employees for violating the overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found GI Security Inc. failed to pay employees overtime when they worked more than 40 hours in a workweek. Instead, the employer paid employees for their first 80 hours of work each pay period on the payroll, and paid for remaining hours in cash, at straight time rates. The Whittier, California-based employer also failed to record accurately the total number of hours employees actually worked, a violation of FLSA recordkeeping requirements.

"Employers are responsible for ensuring that they pay all employees the wages they have legally earned, and for keeping accurate records of the number of hours they work," said Wage and Hour Division District Director Danny Pasquil, in West Covina, California. "Other employers should use the outcome of this case as an opportunity to review their own pay practices to ensure that they comply with the law. Violations like those in this case can be avoided."

GI Security Inc. provides armed and unarmed security guard services for events throughout Santa Barbara, Ventura, Los Angeles, Riverside and Orange counties.

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.

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
October 8, 2019
Release Number
19-1704-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Issues Notice of Proposed Rulemaking for Tipped Employees

News Release

U.S. Department of Labor Issues Notice of Proposed Rulemaking for Tipped Employees

WASHINGTON, DC – The U.S. Department of Labor announced a proposed rule for tip provisions of the Fair Labor Standards Act (FLSA) implementing provisions of the Consolidated Appropriations Act of 2018 (CAA). The proposal would also codify existing Wage and Hour Division (WHD) guidance into a rule.

The CAA prohibits employers from keeping employees' tips. During the development of those provisions, the Department provided technical assistance to Members of Congress. The Department's proposed rule would allow employers who do not take a tip credit to establish a tip pool to be shared between workers who receive tips and are paid the full minimum wage and employees that do not traditionally receive tips, such as dishwashers and cooks.

The proposed rule would not impact regulations providing that employers who take a tip credit may only have a tip pool among traditionally tipped employees. An employer may take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (currently $2.13 per hour) and the federal minimum wage. Establishments utilizing a tip credit may only have a tip pool among traditionally tipped employees.

Additionally, the proposed rule reflects the Department's guidance that an employer may take a tip credit for any amount of time an employee in a tipped occupation performs related non-tipped duties with tipped duties. For the employer to use the tip credit, the employee must perform non-tipped duties contemporaneous with, or within a reasonable time immediately before or after, performing the tipped duties. The proposed regulation also addresses which non-tipped duties are related to a tip-producing occupation.

"The proposed rule shows the Department's commitment to ensure that employees' tips are not stolen," said Wage and Hour Administrator Cheryl Stanton. "This proposal offers a clear pathway for both employers and employees to legally operate a tip pool. The Department is also seeking to add further guidelines in order to complement congressional action and solidify current guidance with the benefit of public input through notice and comment rulemaking."

This NPRM is available for review and public comment for 60 days. The Department encourages interested parties to submit comments on the proposed rule. The NPRM, along with the procedures for submitting comments, can be found at the WHD's Proposed Rule website.

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
October 7, 2019
Release Number
19-1800-NAT
Media Contact: Emily Weeks
Phone Number
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