CHATTANOOGA, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Chattanooga Restaurant Group LLC – operating as City Café Diner – will pay $153,740 in back wages and liquidated damages to 46 employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant paid some employees, including cooks, dishwashers, and bussers, flat salaries each workweek 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 yet were not paid overtime. The City Café Diner also failed to maintain records of the number of hours these employees worked each week, violating FLSA recordkeeping requirements.

"Paying a set salary does not excuse employers from having to pay overtime when employees work more than 40 hours per week," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "Employers must review their legal obligations and contact the Wage and Hour Division for compliance assistance. Violations like those 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 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.

FORT LAUDERDALE, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), ASAP Courier & Logistics LLC – based in Fort Lauderdale, Florida – has paid $64,027 in back wages to 160 employees for violating overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the delivery service company paid drivers flat daily rates without regard to how many hours they actually worked. This practice resulted in overtime violations when employees worked more than 40 hours in a workweek and the employer failed to pay overtime. When the employer did pay overtime to some employees, they failed to include non-discretionary bonuses in the calculation, resulting in payment of overtime at rates lower than those required by law. The employer's failure to maintain complete records of the number of hours employees worked also resulted in an FLSA recordkeeping violation.

"Employers are obligated to pay their employees the wages they have legally earned," said Wage and Hour Division District Director Tony Pham, in Miami, Florida. "Even if employees are paid day rates, they are typically still due overtime when they work more than 40 hours in a week. We encourage all employers to reach out to us and to use the variety of tools we offer to ensure that their pay practices comply with federal 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.

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.

HENDERSONVILLE, TN – Hearth Management LLC – the operator of a senior living and memory care facility in Hendersonville, Tennessee – has paid $81,008 in back wages and liquidated damages to 38 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The employer also paid a $10,719 civil money penalty for repeated violations.

WHD investigators found that Hearth Management LLC – operating as The Hearth at Hendersonville – deducted time from employees' timecards for meal breaks even when they worked through those breaks. These practices resulted in overtime violations when this unpaid time occurred in workweeks longer than 40 hours and the employees remained unpaid for this time. Investigators also found the facility failed to include on call and other non-discretionary bonuses when calculating employees' overtime rates. Excluding these amounts from the calculation, and basing overtime only on employees' hourly base rates led the employer to pay overtime at rates lower than those the law requires. The employer's failure to keep accurate records of the number of hours employees worked also resulted in an FLSA recordkeeping violation.

"The U.S. Department of Labor is committed to ensuring a level playing field for operators of these facilities and guaranteeing that employees receive the wages they legally earned," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "We encourage all employers to reach out to us for assistance and to use the variety of tools we offer to ensure that their pay practices comply with federal 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.

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.

BOCA RATON, FL – EMS Site Development LLC - a Boca Raton, Florida, engineering contractor – has paid $51,623 in wages to 61 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The WHD investigation found that the company – managed by Jude Endres and Raul Sherrer – violated overtime requirements when it paid office staff flat salaries without regard to the number of hours they had actually worked. This practice resulted in violations when those employees worked more than 40 hours in a workweek yet were not paid overtime. Additional violations resulted from the firm's practice of paying field staff overtime only when they exceeded 80 hours of work in two workweeks, instead of paying time-and-one-half after 40 hours in a single workweek as the law requires.

WHD also determined EMS Site Development LLC violated the overtime requirements of the FLSA when it failed to pay overtime to employees who also worked at EMS Rolloff Inc. – a second company owned and run by Sherrer. The violation resulted when employees' combined weekly hours on both payrolls exceeded 40, yet were paid straight-time rates with two separate checks for work completed at each company. WHD determined that both companies were part of the same enterprise, requiring those hours to be combined to determine overtime eligibility.

"Simply paying employees a salary does not mean that they are not entitled to overtime," said Wage and Hour Division Deputy Administrator Keith Sonderling. "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 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, 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.

LAURENS, SC – Alupress LLC – a manufacturing subsidiary of Alupress AG based in Laurens, South Carolina – has paid $34,538 to a former employee after the U.S. Department of Labor's Wage and Hour Division (WHD) found the employer violated the Family and Medical Leave Act (FMLA).

WHD investigators found that Alupress LLC terminated the worker's employment after he requested leave for an FMLA-qualifying health condition and was denied. The employers failed to provide him with a notice of eligibility and failed to follow required procedures regarding the designation of FMLA leave. The employer also failed to provide the employee with a written notification detailing his obligations under the FMLA, and the consequences for failing to meet those obligations. Additionally, Alupress LLC failed to keep records of the FMLA request, as required by law.

Alupress LLC paid the employee for lost wages, medical bills, and health insurance premiums incurred as a result of his unlawful termination.

"Many Americans rely on the Family and Medical Leave Act for critically needed workplace flexibility precisely when they need it the most," said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. "The U.S. Department of Labor is committed to enforcing the law and educating employers to ensure employees are not prevented from exercising their FMLA rights. We encourage employers to reach out to us with questions so that violations like those in this case can be avoided."

For more information about the FMLA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information, such as FMLA Employee and FMLA Employer guides, is also available at https://www.dol.gov/whd.

LOS ANGELES, CA – Login Consulting Services Inc. – a staffing and recruitment company based in El Segundo, California – has paid $58,815 to two employees after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found violations of the H-1B foreign labor certification program.

WHD investigators found the employer illegally charged one employee for visa petition fees, which the law requires the employer to pay. The employer also “benched” that worker, a term used to describe when an employer fails to pay an H-1B employee when work is slow, for example. The investigation also found that the employer paid another employee less than the hourly rate guaranteed in the Labor Conditions Application they submitted when applying to the H-1B program, resulting in another violation.

“Employers who wish to hire guest workers must fully familiarize themselves with the H-1B foreign labor certification program. The program is there to help American companies find the highly skilled talent they need when there is a shortage of U.S. workers,” said Wage and Hour Division District Director Kimchi Bui, in Los Angeles, California. “The resolution of this case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and ensure no one is being paid less than they are legally owed.”

Login Consulting Services Inc. provides services to private corporations, technology firms, and state and local government agencies. Those recruited and employed by the firm primarily serve in positions relating to software development, computer engineering, and business data analysis.

To deter and detect abuse, U.S. Citizenship and Immigration Services has established an email address to enable individuals (including both American workers and H-1B workers who suspect they or others may be the victim of H-1B fraud or abuse) to submit tips, alleged violations, and other relevant information about potential H-1B fraud or abuse. Individuals also can report allegations of H-1B violations by submitting Form WH-4 to the Division.

Learn more information about the Department’s foreign labor certification program. Learn more about enforcement of the nondiscrimination requirements of the H-1B program.

STERLING, IL – Rock River Valley Self Help Enterprises Inc. – based in Sterling, Illinois – will pay 215 current and former employees with disabilities nearly $574,000 in back wages as part of its agreement to resolve issues uncovered by a U.S. Department of Labor Wage and Hour Division (WHD) investigation under Section 14(c) of the Fair Labor Standards Act (FLSA).  

Section 14(c) of the FLSA is designed to keep job opportunities for employees with disabilities when their disability affects their productive capacity for the work being performed. Under the Section 14(c) provisions, after applying for and receiving a certificate from WHD, the employer may gauge their employees' productivity and calculate the appropriate subminimum wage as a percentage of the rate for experienced employees performing similar jobs in the area.

WHD found that the company – a nonprofit work center that does business as Self Help Enterprises and provides assembly, packaging, and recycling jobs for individuals with disabilities – failed to pay employees correctly as required by Section 14(c) and attempted to mislead and obstruct WHD's investigation by concealing information and hiding work that had not been properly time studied. Due to the nature of the violations and Self Help Enterprises' repeated failure to demonstrate its compliance with the requirements of the law, WHD revoked Self Help Enterprises' subminimum wage certificate in April 2018 and denied its applications to renew its certificate authority.

Self Help Enterprises appealed the decision to revoke its current certificate and deny its applications for renewal, and has subsequently worked with the Department to address compliance concerns. WHD Administrator Cheryl Stanton approved a comprehensive settlement agreement with the firm that resolves all remaining issues in this case. By the terms of the agreement, Self Help Enterprises will:

• Pay $573,836 in back wages to employees with disabilities;
• Provide benefits counseling to employees receiving back wages to ensure those payments do not unduly impact employees' benefits;
• Conduct training for staff on the requirements of Section 14(c);
• Retain an outside consultant to assist with compliance; and
• Submit additional documentation, demonstrating its ability to comply with all requirements, should it elect to re-apply for a Section 14(c) certificate.

"Self Help Enterprises' pay practices denied employees with disabilities the wages they rightfully earned," said Wage and Hour Division Administrator Cheryl Stanton. "As a result of the investigation and actions in this case, this employer has agreed to correct all violation issues and to pay these workers the back wages they deserve."

The Department has taken proactive steps to assist Self Help Enterprises' employees who may be impacted and require additional assistance. In coordination with federal and state partners, the Department's Office of Disability Employment Policy and the Employment and Training Administration have worked with local, state, and federal agencies to identify resources and support for the affected employees in Self Help Enterprises' geographic region, should they be needed. Additionally, law enforcement agencies were notified of this action.

For more information about Section 14(c), the FLSA, or other federal labor laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

ASHEVILLE, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Biltmore Co. – operating as Biltmore Workforce Management Inc. and based in Asheville, North Carolina – has paid $6,938 in back wages to a U.S. applicant for violating labor provisions of the H-2B visa program. The employer also paid a civil penalty of $24,076 assessed by WHD.

WHD determined that even though one U.S. applicant applied for and maintained his interest in a cook position with the Biltmore Estate, the company considered him overqualified and did not hire him, hiring instead a guest worker through the H-2B visa program. This action resulted in a violation of the H-2B program's labor provisions, which mandate that participating employers must hire qualified U.S. workers over non-immigrant applicants.

WHD also found the employer failed to disclose to U.S. applicants that a reduced weekly housing rate was available to employees that participated in a housing committee. Biltmore Co. offered the reduced rate - that qualified as an additional benefit - only to non-immigrant employees.

"Employers need to be aware that failure to meet any of their obligations under the H-2B program may result in the assessment of civil money penalties, debarment from the program, reinstatement of displaced U.S. workers, and payment of back wages," said Wage and Hour District Director Richard Blaylock, in Raleigh, North Carolina. "The U.S. Department of Labor's efforts ensure that employers understand and abide by the requirements of the program to safeguard American workers against displacement while protecting foreign workers from being paid less than the wages they were promised. We encourages all employers to reach out to their local Wage and Hour Division office for assistance about how to comply and to avoid violations."

For more information about the H-2B program and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

COLUMBUS, OH – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Good Hands Supported Living LTD – based in Columbus, Ohio – has paid $230,696 in back wages to 74 employees. WHD found the rehabilitation center and home health care agency violated the Fair Labor Standards Act's (FLSA) overtime and recordkeeping provisions.

Investigators found the employer failed to pay employees overtime at time-and-one-half their regular rates when they worked more than 40 hours in a workweek. Instead, the employer paid workers straight time regardless of the number of hours that they worked. The employer also failed to maintain accurate payroll records, resulting in a recordkeeping violation.

"The U.S. Department of Labor is committed to ensuring that every employee receives the wages they have rightfully earned and that employers in all industries comply with the law," said Wage and Hour District Director George Victory, in Columbus, Ohio. "We encourage employers to contact us for guidance, and to use the wide variety of tools we offer to help them fully understand their responsibilities."

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.

SACRAMENTO, CA – The U.S. Department of Labor's Wage and Hour Division (WHD) will offer a compliance seminar in Sacramento, California, for contractors, unions, workers, and other interested parties to provide information on the rules governing federal prevailing wage requirements. The event will offer training on labor standards for federally funded construction and federal service contracts.

WHAT: Wage and Hour Division Prevailing Wage Seminar

WHEN: July 23-25, 2019
9:00 a.m. to 5:00 p.m. PDT

WHERE: Hilton Sacramento Arden West
2200 Harvard St.
Sacramento, CA 95815

The training is a component of WHD's ongoing effort to increase awareness and enhanced compliance with federal prevailing wage requirements.

Attendance is free, but pre-registration is required. Registration can be completed through the online registration link for the Sacramento Prevailing Wage Seminar.

For more information on the Davis-Bacon Act, the Service Contract Act, and other federal wage laws related to government contracts administered by the Wage and Hour Division, call the department's toll-free helpline at 866-4US-WAGE (487-9243) or visit the agency's website at https://dol.gov/whd.