U.S. Department of Labor Investigation Results in Maintenance Contractor Paying $70,000 in Back Wages, Penalties for H-2B Visa Violations

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U.S. Department of Labor Investigation Results in Maintenance Contractor Paying $70,000 in Back Wages, Penalties for H-2B Visa Violations

ODESSA, TX – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Juan Vizcaino – doing business as Vizcaino LP in Odessa, Texas – has paid $45,945 in back wages to 22 employees hired under the H-2B temporary visa program and two U.S. workers hired during the recruitment period for guest workers. The employer also has paid $24,120 in civil money penalties to settle the H-2B violations.

WHD found Juan Vizcaino violated provisions of the H-2B visa program after failing to record all the hours that employees worked. When the employer failed to count time spent by employees loading and unloading equipment before and after their scheduled shifts as work time, those unpaid hours resulted in Vizcaino failing to pay overtime when employees worked more than 40 hours in a workweek. The employer also failed to provide employees with required earnings statements on a regular basis.

WHD cited additional violations when Vizcaino employed workers outside the geographic area of intended employment that they specified in the temporary employment certification they filed with the Department when hiring the guest workers. The Department also cited Vizcaino for a Fair Labor Standards Act (FLSA) recordkeeping violation for failing to keep required payroll and time records.

"Time spent performing pre-shift duties such as loading equipment or cleaning up at the end of a workday must be recorded. Employees must be paid for all the hours that they work," said Wage and Hour Division District Director Evelyn Sanchez in Albuquerque, New Mexico. "Our efforts ensure that employers understand and abide by the provisions of the H-2B program to safeguard American employees against displacement while protecting foreign workers from being paid less than the wages they were promised."

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, or in-person visits with local WHD staff.

For more information about the FLSA, the H-2B visa program, and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at 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 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 1, 2019
Release Number
19-1516-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Finds Kentucky Restaurant Violated Federal Wage and Child Labor Laws

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U.S. Department of Labor Finds Kentucky Restaurant Violated Federal Wage and Child Labor Laws

FLORENCE, KY – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Zang Group Florence Mall Road LLC – operating as Skyline Chili Restaurant – has paid $6,065 in back wages to 26 employees for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The restaurant also paid a civil penalty of $4,992 for federal child labor violations.

WHD determined Skyline Chili allowed three employees younger than 16 years old to work more hours than permitted and to disassemble, clean, and assemble a power-driven slicer as part of their employment, a violation of FLSA child labor requirements. The employer also failed to pay employees the required federal minimum wage for all the hours that they worked and the correct overtime rate when they worked more than 40 hours in a workweek. The wage violations resulted from the employer’s practice of paying employees working in non-tipped jobs, such as drive-through attendants, the tipped-worker minimum wage of $2.13 per hour. The employer also violated FLSA recordkeeping requirements when it failed to maintain records of the number of hours employees worked, and failed to display the required FLSA poster.

“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 Karen Garnett, in Louisville, Kentucky. “The U.S. Department of Labor encourages all employers to review their employment obligations and to contact us for compliance assistance. Violations like the wage issues and the child labor violations found in this investigation can be avoided.”

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.

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
September 30, 2019
Release Number
19-1080-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Investigation Leads Louisiana Restaurant To Pay $238,300 in Back Wages and Damages to 222 Employees

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U.S. Department of Labor Investigation Leads Louisiana Restaurant To Pay $238,300 in Back Wages and Damages to 222 Employees

NEW ORLEANS, LA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Superior Seafood & Oyster Bar LLC - doing business as Superior Seafood and Oyster Bar New Orleans - and Superior Restaurant Group LLC have paid $238,300 in back wages and liquidated damages to 222 employees, for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer failed to combine the hours worked each week by employees who worked in more than one position. The employer did not combine the hours worked for employees who worked in more than one occupation to determine whether they worked more than 40 hours in the workweek and paid them straight time rates for hours which should have been paid at time and one half the regular rate. The employer also failed to include incentive bonuses earned by employees when determining their regular rates of pay to calculate overtime. Excluding those amounts resulted in the employer paying overtime at rates lower than those required by law. WHD also cited the employer for recordkeeping violations.

“Other employers in this industry should use the outcome of this case as an opportunity to review their own payroll practices and make sure they comply with the law,” said Wage and Hour Division District Director Troy Mouton in New Orleans, Louisiana. “The U.S. Department of Labor is committed to educating employers and improving compliance with federal wage laws to ensure workers receive the wages they have earned and that employers compete on a level playing field.”

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.

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
September 30, 2019
Release Number
19-1591-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor’s Payroll Audit Independent Determination Program Finds More Than $4 Million in Back Wages for 7,429 Employees

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U.S. Department of Labor’s Payroll Audit Independent Determination Program Finds More Than $4 Million in Back Wages for 7,429 Employees

WASHINGTON, D.C. – The U.S. Department of Labor's Payroll Audit Independent Determination (PAID) program has put more than $4 million in back wages into the hands of 7,429 employees since the program began last year. The Department's Wage and Hour Division (WHD), which administers this program, submitted a report today to the Senate Committee on Appropriations outlining PAID's performance to-date.

That report confirms the program's efficiencies – the actions take half the time of other compliance actions but yield ten times the back wages for employees. Since its launch in April 2018, self-audits concluded through PAID collected an average of more than four times what WHD found due for employees in a traditional investigation during that same time period. Actions concluded under this program required less than half the staffing resources of traditional WHD investigations, and found more than ten times the amount of back wages per staff hour invested.

"WHD launched the PAID program as a nationwide pilot with confidence that well-intentioned job creators would use it to do the right thing, get wages into the hands of their employees more quickly, and move forward in compliance," said Wage and Hour Division Administrator, Cheryl Stanton. "That is exactly what has happened. The efficiencies created by this program enable WHD to recover more wages for American workers by focusing on violators. PAID is a win for employees, employers and taxpayers."

The PAID program encourages employers to conduct audits and self-report any overtime or minimum wage violations they discover. WHD does not impose penalties or liquidated damages to finalize settlements for employers who choose to participate in the program, as they proactively work with WHD to resolve their compensation errors, and move quickly to provide 100 percent of the back wages due to their affected employees.

The report presents key findings from an analysis of qualitative and quantitative data collected during the implementation of the PAID program, starting April 1, 2018, through September 15, 2019, and suggests that self-audits have allowed WHD to increase back wages delivered to employees with minimal impact on existing priorities and resources . To that end, the agency is working to further the use of the tool in its operations, consistent with its goals, priorities, and data-driven practices. Testimonials from employees and employers benefitting from PAID continue to indicate that the results are overwhelmingly positive.

The PAID program does not limit WHD's ability to enforce federal laws, including the FLSA, the Family and Medical Leave Act, the Migrant and Seasonal Agricultural Worker Protection Act, labor provisions of several temporary visa programs, or the prevailing wage requirements of the Davis-Bacon and Related Acts and the McNamara-O'Hara Service Contract Act.

For more information about the PAID program, the FLSA, and other laws enforced by WHD, contact the Division's 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.

Agency
Wage and Hour Division
Date
September 26, 2019
Release Number
19-1706-NAT
Media Contact: Edwin Nieves
Phone Number
Media Contact: Grant Vaught
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U.S. Department of Labor Investigation Results in Federal Contractor Paying $178,784 in Back Wages to Employees at Georgia Work Site

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U.S. Department of Labor Investigation Results in Federal Contractor Paying $178,784 in Back Wages to Employees at Georgia Work Site

WARNER ROBINS, GA – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has led Red Cedar Enterprises Inc. to pay $178,784 in back wages and fringe benefits to eight employees after the employer violated provisions of the McNamara-O'Hara Service Contract Act (SCA), at a Robins Air Force Base work site in Warner Robins, Georgia.

WHD investigators determined the Miami, Oklahoma-based technical support services company incorrectly classified employees performing technical writer duties as production control clerks and other lower-paid job titles. These erroneous classifications resulted in the employer paying these employees at rates lower than those required by law for the work actually performed. WHD also found that Red Cedar Enterprises failed to pay the required fringe benefit rates to some employees after a contract amendment.

"Contractors that bid on government contracts must be aware of and adhere to all applicable laws when paying their employees," said Wage and Hour Division District Director Eric Williams, in Atlanta, Georgia. "We provide a number of tools to help employers understand and comply with the labor requirements on government contracts. Our education and enforcement work in this area levels the playing field for all contractors who perform work for the government."

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). Employers who discover FLSA 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
September 26, 2019
Release Number
19-1580-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Initiative Finds Minneapolis ‘Eat Street’ Restaurants Owe $367,359 in Back Wages and Damages to 162 Employees

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U.S. Department of Labor Initiative Finds Minneapolis ‘Eat Street’ Restaurants Owe $367,359 in Back Wages and Damages to 162 Employees

MINNEAPOLIS, MN – The U.S. Department of Labor's Wage and Hour Division (WHD) found violations of the Fair Labor Standards Act's (FLSA) overtime, minimum wage and record-keeping requirements at 15 restaurants in Minneapolis' "Eat Street" district during an education and enforcement initiative. The effort will recover $367,359 in back wages and liquidated damages for 162 employees.

Investigators found minimum wage and overtime violations at establishments including: Rainbow Chinese Restaurant & Bar; Black Sheep Pizza; Salsa a La Salsa (Global Market); Salsa a La Salsa (Nicollet Avenue); Marissa's Supermarket & Bakery; El Nuevo Mariachi; Eat Street Social; Los Maizales and Pancho Villa Minneapolis.

WHD conducted the initiative to educate employers, address common FLSA violations, and improve compliance with federal wage laws in the grocery and restaurant industries in the Midwest.

"Initiatives like this one help us collaborate with an industry, determine the root causes of wage violations, and provide compliance assistance that educates employers and helps protect employees," said Wage and Hour District Director David King, in Minneapolis, Minnesota. "The U.S. Department of Labor is committed to ensuring that workers take home the pay they have rightfully earned, and to providing a level playing field for employers who play by the rules. "We balance rigorous enforcement with robust education and outreach in an effort to help employers avoid violations like those found in these investigations."

In 2018, WHD's education and enforcement initiative included outreach at more than 30 educational events for the Minneapolis' restaurant industry, as well as outreach to industry associations, one-on-one consultations with employers, seminars for small business owners, training for payroll associations and collaboration with worker task forces.

Investigations commonly find violations such as:

  • Paying employees fixed salaries without regard to the number of hours they actually worked, resulting in violations when they worked more than 40 hours in a work week yet were not paid overtime;
  • Paying for overtime hours at straight time rates, in cash;
  • Failing to pay for overtime hours worked in one week, and instead paying them out in shorter, subsequent workweeks at straight time;
  • Shaving hours from employees' time and illegally rounding partial hours;
  • Failing to count short work breaks as work time; and
  • Failing to maintain required time and payroll records.

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
September 25, 2019
Release Number
19-1460-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Fines New Orleans Restaurant For Violating Child Labor Laws After Minor Suffers Oil Burns

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U.S. Department of Labor Fines New Orleans Restaurant For Violating Child Labor Laws After Minor Suffers Oil Burns

NEW ORLEANS, LA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Jacques-Imo Café – a restaurant based in New Orleans, Louisiana – has paid $55,288 in civil money penalties for violating multiple child labor provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant violated child labor provisions by employing a 13-year-old, which is below the minimum employment age of 14 years. This minor suffered third-degree burns over more than a third of his body when he tripped and fell as he carried hot oil which he emptied from the kitchen's deep fryer. The FLSA prohibits minor employees from cleaning fryers when the oil temperature exceeds 100 degrees. The investigation also found that this minor, along with a 15-year-old employee, worked beyond the hours permitted for employees less than 16 years old. These minors worked past the evening hour limit of 7:00 p.m. during the school year, or 9:00 p.m. from June 1 through Labor Day, when they worked as late as 1:00 a.m. The minors also worked more than 40 hours per week, more than 8 hours on a non-school day, more than 3 hours on a day when school is in session, all in violation of the law.

"The child labor provisions of the FLSA ensure minors gain a positive work experience that does not hinder their education and well-being," said Wage and Hour Division District Director Troy Mouton in New Orleans, Louisiana. "Companies can avoid child labor violations, penalties, and injuries by understanding and abiding by the FLSA's child labor provisions. We encourage employers to reach out to us with any questions and to take advantage of the many tools available to them to help them comply with the law."

Children under 14 who are covered by the FLSA may not be employed in non-agricultural occupations. Youth under 18 are prohibited from operating, setting up, adjusting, repairing, oiling, or cleaning machines deemed hazardous by the Secretary of Labor. Youth ages 14 and 15 may be employed outside school hours in a variety of non-manufacturing and non-hazardous jobs for limited periods of time and under specified conditions.

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.

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
September 24, 2019
Release Number
19-1436-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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U.S. Department of Labor Issues Final Overtime Rule

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U.S. Department of Labor Issues Final Overtime Rule

WASHINGTON, DC – Today the U.S. Department of Labor announced a final rule to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA).

"For the first time in over 15 years, America's workers will have an update to overtime regulations that will put overtime pay into the pockets of more than a million working Americans," Acting U.S. Secretary of Labor Patrick Pizzella said. "This rule brings a commonsense approach that offers consistency and certainty for employers as well as clarity and prosperity for American workers."

"Today's rule is a thoughtful product informed by public comment, listening sessions, and long-standing calculations," Wage and Hour Division Administrator Cheryl Stanton remarked. "The Wage and Hour Division now turns to help employers comply and ensure that workers will be receiving their overtime pay."

The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA's minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level. The new thresholds account for growth in employee earnings since the currently enforced thresholds were set in 2004. In the final rule, the Department is:

  • raising the "standard salary level" from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • raising the total annual compensation level for "highly compensated employees (HCE)" from the currently-enforced level of $100,000 to $107,432 per year;
  • allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
  • revising the special salary levels for workers in U.S. territories and in the motion picture industry.

The final rule will be effective on January 1, 2020.

The increases to the salary thresholds are long overdue in light of wage and salary growth since 2004. Nearly every person who commented on the Department's 2017 Request for Information, participated at listening sessions in 2018 regarding the regulations, or commented on the Notice of Proposed Rulemaking agreed that the thresholds needed to be updated for this reason.

The Department estimates that 1.2 million additional workers will be entitled to minimum wage and overtime pay as a result of the increase to the standard salary level. The Department also estimates that an additional 101,800 workers will be entitled to overtime pay as a result of the increase to the HCE compensation level.

A 2016 final rule to change the overtime thresholds was enjoined by the U.S. District Court for the Eastern District of Texas on November 22, 2016, and was subsequently invalidated by that court. As of November 6, 2017, the U.S. Court of Appeals for the Fifth Circuit has held the appeal in abeyance pending further rulemaking regarding a revised salary threshold. As the 2016 final rule was invalidated, the Department has consistently enforced the 2004 level throughout the last 15 years.

More information about the final rule is available at https://www.dol.gov/whd/overtime2019/.

The Wage and Hour Division's (WHD) 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
September 24, 2019
Release Number
19-1715-NAT
Media Contact: Emily Weeks
Phone Number
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Texas Construction Company Pays Back Wages to Misclassified Employees After U.S. Department of Labor Investigation Finds Violations

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Texas Construction Company Pays Back Wages to Misclassified Employees After U.S. Department of Labor Investigation Finds Violations

SPRING, TX – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Aztec Construction Inc. – doing business as RSP Aztec Construction Inc. in Spring, Texas – has paid $25,380 in back wages to five employees for violating the Fair Labor Standards Act's (FLSA) overtime requirements.

WHD investigators found the employer classified its employees improperly as independent contractors, leading to overtime violations when the employer paid straight-time rates after employees worked more than 40 hours in a week. The law requires the employer pay time-and-one-half an employee's regular rate of pay for hours the employees work over 40 in a workweek. Aztec Construction also failed to keep required time and payroll records, violating federal recordkeeping provisions.

"Improperly categorizing employees as independent contractors can lead to costly overtime violations that simultaneously short employees and create unfair competition for employers who obey the law," said Wage and Hour Division District Director Robin Mallett in Houston, Texas. "We encourage all employers to review our information online or come to our office for assistance in understanding their obligations under the law."

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, electronic toolkits, 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.

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 U.S.; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
September 23, 2019
Release Number
19-1569-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Investigation Results in Georgia Contractor Paying $58,838 Penalty for Child Labor Violation

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U.S. Department of Labor Investigation Results in Georgia Contractor Paying $58,838 Penalty for Child Labor Violation

OCHLOCKNEE, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Rite-A-Way Mowers LLC – a Buena Vista, Georgia-based mowing contractor – has paid a civil penalty of $58,383 violating federal child labor laws when it employed a 15-year-old to operate a power-driven weed cutter. The minor drowned while clearing brush along Georgia's Ochlockonee River.

WHD's investigation found the employer violated the Fair Labor Standards Act's (FLSA) child labor requirements when it employed the teen to operate equipment prohibited for use by workers less than 16-years-old. Regulations specifically prohibit employers from employing 14- and 15-year olds in occupations that involve operating any power-driven machinery, including weed-cutters. Investigators also determined that Rite-A-Way Mowers employed the minor to work outside of the restricted hours allowed for 14- and 15-year-old workers, and for more hours than allowed by law when school is in session. At the time of the incident, school was in session in the district the minor would have attended.

"This case offers a sobering and sad reminder of the importance of the child labor provisions of the Fair Labor Standards Act, and why the safety of young workers remains a priority for the U.S. Department of Labor's Wage and Hour Division," said Wage and Hour Division District Director Eric Williams, in Atlanta, Georgia. "Employers must fully understand their obligations to ensure minors work in a safe environment. We encourage those companies that employ minors to review child labor laws, and to contact us for further assistance. This tragic death underscores why compliance is not optional."

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.

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Agency
Wage and Hour Division
Date
September 20, 2019
Release Number
19-1647-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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