U.S. Department of Labor Issues Three New Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues Three New Wage and Hour Opinion Letters

WASHINGTON, DC – The U.S. Department of Labor announced today that it has issued three new opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Consumer Credit Protection Act (CCPA). An opinion letter is an official, written opinion by the Department's Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the individual person or entity that requested the letter.

The opinion letters issued today are:

  • FMLA2019-3-A: Addressing whether an employer may delay designating paid leave as FMLA leave due to a collective bargaining agreement;
  • FLSA2019-13: Addressing the ordinary meaning of the phrase "not less than one month" for purposes of FLSA section 7(i)'s representative period requirement; and
  • CCPA2019-1: Addressing whether employers' contributions to employees' health savings accounts are earnings under the CCPA.

The Department offers a search function allowing users to search existing opinion letters by keyword, year, topic, and a variety of other filters; and encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The Division exercises its discretion in determining whether and how it will respond to each request. 

This release marks the 47th, 48th, and 49th opinion letters issued by WHD during this Administration.

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 10, 2019
Release Number
19-1626-NAT
Media Contact: Emily Weeks
Phone Number
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Nursing Care Facilities Pay $261,418 in Back Wages, Penalties, and Damages After U.S. Department of Labor Investigation

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Nursing Care Facilities Pay $261,418 in Back Wages, Penalties, and Damages After U.S. Department of Labor Investigation

PROVIDENCE, RI – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, three Rhode Island nursing care facilities have paid $192,622 in back wages and liquidated damages to 89 employees to resolve violations of the overtime and minimum wage provisions of the Fair Labor Standards Act (FLSA). The facilities also paid $68,796 in civil penalties, while their parent company has agreed to FLSA compliance at all its locations.

Centers for Care LLC - doing business as Centers Health Care, headquartered in the Bronx, New York - is the parent company for the three Rhode Island facilities:

  • Park View Operations Associates LLC, doing business as Park View Center for Rehabilitation & HealthCare, in Providence;
  • Bannister Center for Rehabilitation & Healthcare LLC, doing business as Bannister Center for Rehabilitation & Healthcare, in Providence; and
  • Shady Acres Operations Associates LLC, doing business as Kingston Center for Rehabilitation, in West Kingston.

WHD's investigation found that the Centers Health Care facilities violated the FLSA by only paying employees for scheduled hours. Work performed before and after scheduled shifts went unpaid. Investigators also determined that the employers failed to total weekly hours for employees who worked at both the Park View and Bannister centers during the same workweeks. This practice resulted in overtime violations when total hours exceeded 40, but the employers failed to pay overtime, instead paying for hours worked at each location separately, at straight time rates. Additional violations resulted when the employers failed to include shift differentials in employees' regular rates of pay when computing overtime, and accordingly paid for overtime hours at rates lower than those required by law.

The employers also failed to record and pay employees for all the hours that they worked due to erroneous time rounding practices. The Rhode Island nursing care facilities also failed to post the FLSA poster, as required.

The investigation resulted in an enterprise-wide settlement agreement, under which Centers for Care, owner and operator of some 50 nursing care facilities nationwide, agreed to compliance with the FLSA at all its locations.

"The Wage and Hour Division will conduct investigations and rigorously address violations to ensure employees are paid what they have earned, and that employers compete on a level playing field," said Wage and Hour Division District Director David Gerrain in Hartford, Connecticut. "We encourage all employers to make use of the many tools we provide to explain their responsibilities so that costly violations like those found in this investigation can be avoided."

WHD's Hartford District Office conducted the investigation. The Department's Regional Office of the Solicitor in Boston negotiated the settlement for WHD.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Employers can find compliance assistance resources related to WHD issues at https://www.dol.gov/whd/regs/compliance/ca_main.htm. 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.

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 5, 2019
Release Number
19-1352-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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Mississippi Healthcare Provider to Pay $147,622 in Wages After U.S. Department of Labor Finds Overtime Violations

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Mississippi Healthcare Provider to Pay $147,622 in Wages After U.S. Department of Labor Finds Overtime Violations

PICAYUNE, MS – Maxem Health Urgent Care will pay $147,622 in wages to 16 employees after the U.S. Department of Labor’s Wage and Hour Division (WHD) found the operator of two Mississippi health care facilities violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer – which operates Picayune Urgent Care Clinic LLC in Picayune, and Petal Urgent Care LLC in Petal – incorrectly classified nurse practitioners as independent contractors instead of employees and subsequently paid them at straight-time rates for all hours they worked, including when they worked more than 40 hours per week and were legally due overtime.

The employer also failed to combine the hours individual employees worked at both locations during the same workweek when determining when overtime was due. Maxem Health Urgent Care also deducted time from employees’ timecards for meal breaks even when they worked through those breaks. Those timekeeping practices led to overtime violations when the employees worked more than 40 hours in a workweek but the employer failed to pay overtime. Additionally, the employer failed to maintain accurate time and payroll records, as required by the FLSA.

“Employers are required to pay their employees the wages they have legally earned for all the hours that they have worked,” said Wage and Hour Division District Director Audrey Hall, in Jackson, Mississippi. “The Jackson Wage and Hour Division office is available to assist any employers in understanding their obligations. Violations like those found in this case 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 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
August 28, 2019
Release Number
19-1502-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Investigation Finds Mississippi Subcontractor Violated Federal Contract Requirements at Veterans Affairs Work Site

News Release

U.S. Department of Labor Investigation Finds Mississippi Subcontractor Violated Federal Contract Requirements at Veterans Affairs Work Site

BILOXI, MS – Doleac Electrical Co. Inc. – based in Hattiesburg, Mississippi – has paid $37,060 in back wages to 32 employees to remedy Fair Labor Standards Act (FLSA) and the Davis Bacon and Related Acts (DBRA) violations found by the U.S. Department of Labor's Wage and Hour Division (WHD).

The U.S. Department of Veterans Affairs awarded a contract to Roy Anderson Corp., which then subcontracted Doleac Electrical Co. Inc. to perform work on a project at the VA Medical Center in Biloxi, Mississippi. The WHD investigation found that Doleac Electrical Co. Inc. exceeded the permissible ratio of apprentices to journeymen on the job, resulting in apprentices being due the journeyman rate. The DBRA requirements allow employers to pay apprentices lower rates than journeymen employees, but requires a specific ratio of those worker categories to be maintained on the jobsite. The employer also failed to pay the required overtime rate to electrician apprentices who worked more than 40 hours in a workweek.

WHD found Doleac Electrical Co. Inc. paid some overtime-eligible employees straight time for travel time that should have been paid at overtime rates. The employer paid overtime employees only for hours worked at the jobsite, and did not include travel time when determining when overtime was due. The employer also failed to include Family and Medical Leave Act information in their employment handbook or new-hire packet.

"Employers are obligated to pay their employees the wages they have legally earned," said Wage and Hour Division District Director Audrey Hall, in Jackson, Mississippi. "The outcome of this investigation is a reminder for all employers to review their pay practices to confirm they comply with federal law. The U.S. Department of Labor offers employers a wide variety of tools and free prevailing wage seminars to help them understand their responsibilities."

The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

For more information about the FLSA, DBRA and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. The Division also offers a search tool that allows users to determine if they are 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
August 27, 2019
Release Number
19-1482-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Michigan Landscaping Company Pays $97,286 in Back Wages And $48,241 in Penalties for Violations of H-2B Visa Program

News Release

Michigan Landscaping Company Pays $97,286 in Back Wages And $48,241 in Penalties for Violations of H-2B Visa Program

TROY, MI – The U.S. Department of Labor has found Twin Pines Landscaping Inc. – based in Troy, Michigan – in violation of the Fair Labor Standards Act (FLSA) and the labor provisions of the H-2B temporary visa program. An investigation by the Department's Wage and Hour Division (WHD) found the landscaping company failed to pay overtime, failed to pay required prevailing wages, and offered more favorable employment terms to temporary foreign employees than to U.S. workers.

Specifically, WHD investigators found the landscaping company violated H-2B requirements when it:

  • Paid landscape laborers flat weekly salaries that failed to cover all of the hours that they worked at the required prevailing wage;
  • Failed to comply with the provision prohibiting preferential treatment of H-2B employees by offering foreign employees free housing, which was not advertised on the job order when recruiting U.S. workers; and
  • Failed to provide accurate earning statements.

The employer violated FLSA overtime requirements when it paid employees flat weekly salaries without regard to the number of hours they had actually worked. This practice resulted in violations when employees worked more than 40 hours in a workweek but the employer failed to pay overtime. 

Twin Pines paid 15 H-2B landscape laborers $97,286 in back wages to resolve the violations. In addition to the back wages, WHD assessed the employer $48,241 in civil money penalties.

"Any employer seeking to hire H-2B guest workers must abide by all of the program's requirements," said Wage and Hour Division District Director Timolin Mitchell, in Detroit, Michigan. "The Wage and Hour Division is committed to safeguarding American jobs, leveling the playing field for law-abiding employers and protecting vulnerable workers from being paid less than they are legally owed."

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
August 27, 2019
Release Number
19-1457-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 Three Mississippi Restaurants Paying $50,338 in Wages

News Release

U.S. Department of Labor Investigation Results in Three Mississippi Restaurants Paying $50,338 in Wages

JACKSON, MS – Three restaurants in Madison, Ridgeland, and Flowood, Mississippi, have paid $50,338 in back wages to 229 employees after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) determined the employers violated requirements of the Fair Labor Standards Act (FLSA).

WHD investigated Primos Restaurants Inc. – owned by Peter Don Primos and operating as Primos Café – and found the employers allowed supervisors and managers to participate in the tipped employees' tip pool. The FLSA prohibits managers and supervisors from participating in tip pools and provides enforcement authority to recover all tips unlawfully kept by the employers. Investigators also found the restaurants failed to maintain accurate records of the number of hours employees worked which led to recordkeeping violations.

"Employers must understand their responsibilities and pay employees all of the wages they have legally earned," said Wage and Hour District Director Audrey Hall, in Jackson, Mississippi. "We encourage all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance. By doing so, employers can ensure all employees are paid properly 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
August 27, 2019
Release Number
19-1489-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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Lockheed Martin Corp. Pays $327,271 in Back Wages and Damages To Employees at Florida Work Site after U.S. Department of Labor Investigation

News Release

Lockheed Martin Corp. Pays $327,271 in Back Wages and Damages To Employees at Florida Work Site after U.S. Department of Labor Investigation

CRESTVIEW, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Lockheed Martin Corp. has paid $327,271 in back wages and liquidated damages to 20 employees for violating provisions of the Fair Labor Standards Act (FLSA) and the McNamara-O'Hara Service Contract Act (SCA) at a Crestview, Florida, work site.

WHD investigators determined the company erroneously classified some employees as exempt from FLSA overtime requirements, and paid them flat weekly salaries without regard to the number of hours they actually 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 in addition to those salaries. The employer also violated the recordkeeping provision of the FLSA when it failed to keep accurate records of the number of hours worked by some employees.

WHD also found Lockheed Martin Corp. violated the requirements of the SCA when the amounts paid to those salaried workers fell below the hourly rates and fringe benefits required by law for workers on the employer's contract with the U.S. Department of Defense.

"Paying employees a fixed salary does not necessarily mean that they are not entitled to overtime," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "Employers need to understand their responsibilities and ensure their pay practices comply with the law. The Wage and Hour Division works to ensure employees receive the wages they have rightfully earned, and we encourage all employers to reach out to us and use the variety of tools we offer."

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 FLSA, 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
August 26, 2019
Release Number
19-1470-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Mississippi Head Start Agency Pays $62,603 in Back Wages to 33 Employees After U.S. Department of Labor Investigation Finds Overtime Violations

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Mississippi Head Start Agency Pays $62,603 in Back Wages to 33 Employees After U.S. Department of Labor Investigation Finds Overtime Violations

NATCHEZ, MS – AJFC Community Action Inc. – a Natchez, Mississippi-based non-profit agency providing Head Start services to children – has paid $62,603 in back wages to 33 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation identified overtime violations of the Fair Labor Standards Act (FLSA).

The WHD investigation found that AJFC Community Action Inc. failed to total the number of hours worked each week by employees working dual positions. As a result, the employer failed to pay those employees overtime when they worked a combined total of more than 40 hours in a workweek. WHD also found AJFC Community Action violated the same overtime provision at two of its other Mississippi locations, AJFC in Woodville and Fayette Head Start Center in Fayette.

"The resolution of this case should serve as an opportunity for other employers to review their pay practices to ensure that they comply with federal law, and that employees are paid what they have legally earned," said Wage and Hour District Director Audrey Hall, in Jackson, Mississippi. "The Wage and Hour Division encourages all employers and employees to make use of the valuable resources that we provide to help them understand their rights and obligations under the law."

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
August 26, 2019
Release Number
19-1500-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Florida Agriculture Employer Pays Wages and Damages After U.S. Department of Labor Uncovers Wage Violations

News Release

Florida Agriculture Employer Pays Wages and Damages After U.S. Department of Labor Uncovers Wage Violations

MOUNT DORA, FL - After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), AG Labor LLC – based in Plant City, Florida – has paid $16,332 in back wages and damages to 44 employees for violating requirements of the Fair Labor Standards Act (FLSA) and the H-2A visa program. The employer also paid $2,082 in civil money penalties for the H-2A violations.

WHD investigators found AG Labor LLC – owned by Julio Cruz – violated the labor provisions of the H-2A visa program by failing to meet safety and health requirements for housing guest workers. The agricultural employer also failed to satisfy program requirements when it failed to list all of the job sites where employees would perform work when it submitted its request for workers. AG Labor also failed to pay some employees required wages for compensable time they spent traveling to and from work sites.

WHD found that AG Labor LLC employees were ineligible for an agricultural exemption the employer claimed from overtime requirements, and that it consequently failed to pay employees time-and-one-half for hours they worked beyond 40 in a workweek. The investigation determined the employees working in the employer's packinghouse co-mingled produce grown by other farmers. The agricultural exemption from the FLSA's overtime requirements applies to employees involved in processing or packaging products grown only by that employer. Once employees packed goods brought in from other suppliers, the exemption did not apply, and they were due overtime.

"The Wage and Hour Division works to ensure agricultural workers receive the wages they have legally earned," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "We staff offices throughout the country to assist employers and to help them understand their obligations and responsibilities under federal laws. We encourage all employers to take advantage of these free resources and avoid costly penalties."

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, the H-2A visa program, 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
August 26, 2019
Release Number
19-1497-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigations Find Overtime Wage And Child Labor Violations at 11 Central Florida Pizzerias

News Release

U.S. Department of Labor Investigations Find Overtime Wage And Child Labor Violations at 11 Central Florida Pizzerias

ORLANDO, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Flipper's Pizza T. & B. Inc. – operating 11 Central Florida Flippers Pizzeria restaurants – has paid $27,425 in back wages to 70 employees for violating the overtime provisions of the Fair Labor Standards Act (FLSA). The employer also paid $1,810 in civil money penalties for a child labor violation.

WHD investigators found the employer paid overtime-eligible assistant managers flat weekly salaries, without regard to the number of hours that they actually worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek but were not paid overtime in addition to those salaries. Additional overtime violations resulted when the employer calculated overtime for tipped employees incorrectly, basing those rates on servers' cash rates only. The law requires employers to pay tipped workers overtime at time-and-one-half of at least the federal minimum wage of $7.25 per hour. WHD also found the employer employed a 17-year-old minor to operate a motor vehicle to make deliveries, a violation of FLSA child labor requirements. The employer also failed to maintain accurate payroll records.

"Businesses employing minors have a special responsibility to ensure the safety of these workers by not having them perform any duties deemed hazardous," said Wage and Hour District Director Daniel White, in Jacksonville, Florida. "The Wage and Hour Division staffs local offices and provides online resources to assist employers in complying with the law. We encourage all employers to take advantage of these free compliance assistance resources, and to reach out to us with any questions."

WHD investigators found the violations at the following restaurant locations:

Employer Name

Operating As

Location

Flippers Pizza T.&B. Inc.

Flippers Pizzeria

11321 Satellite Blvd., Orlando

Flippers Pizzeria #5 Inc.

Flippers Pizzeria  Kirkman/Universal

4774 S. Kirkman Road, Orlando

Flippers Pizzeria #7 Inc.

Flippers Pizzeria Town/Celebration

5770 W. Hwy. 192, Kissimmee

Flippers Pizzeria #9 Inc.

Flippers Pizzeria Lake Buena Vista/Disney

12535 SR 535, Orlando

Flippers Pizzeria #10 LLC

Flippers Pizzeria Rialto/Dr. Phillips

7339 W. Sand Lake Road, Orlando

Flippers Pizzeria #11 LLC

Flippers Pizzeria Rolling Oaks/W192

3216 Rolling Oaks Blvd., Kissimmee

Flippers Pizzeria #12 LLC

Flippers Pizzeria SoDo

80 W. Grant Street, Orlando

Flippers Pizzeria #14 LLC

Flippers Pizzeria Clermont Crossings

2523 Hwy. 27, Clermont

Flippers Pizzeria #15 LLC

Flippers Pizzeria UCF

4498 N. Alafaya Trail, Orlando

Flippers Pizzeria #17 LLC

Flippers Pizzeria SeaWorld/S.I-Drive

11062 S. International Drive, Orlando

Flippers Pizzeria #18 LLC

Flippers Pizzeria Westside Shoppes/Windermere

6256 Old Brick Road, Windermere

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

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

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

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

Agency
Wage and Hour Division
Date
August 26, 2019
Release Number
19-1483-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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