U.S. Department of Labor Investigation Results in Owner of Five Central Florida Hotels Paying $23,368 in Back Wages and Damages to Employees

News Release

U.S. Department of Labor Investigation Results in Owner of Five Central Florida Hotels Paying $23,368 in Back Wages and Damages to Employees

ST. PETERSBURG, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Michael Andoniades – the owner of five St. Petersburg, Florida, hotels – has paid $23,368 in back wages and liquidated damages to 30 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The five St. Petersburg hotels involved in the investigation are:

  • Hollander Hotel, 421 4th Ave. North;
  • Avalon Hotel LLC, 443 4th Ave. North;
  • Bay Plaza Hotel, 419 3rd Ave. North;
  • Mari Jean Hotel LLC, 2349 Central Ave.; and
  • Lenox Hotel LLC, 325 6th Ave. North.

WHD investigators determined that when employees worked at the Hollander Hotel and the Avalon Hotel during the same workweek, the employers failed to combine those hours when determining whether overtime was due. This practice resulted in overtime violations when those hours totaled more than 40, yet the employers failed to pay overtime – instead paying employees separately for the hours they worked at each location, at straight time. WHD also found that the employers incorrectly classified one salaried maintenance employee as exempt from the FLSA’s overtime requirements and subsequently failed to pay the worker overtime for hours worked beyond 40 in a workweek.

“Owners at establishments that share employees do not have the right to treat each establishment as separate from the others when determining an employee’s total hours and the wages that worker is rightfully due,” said Wage and Hour Division District Director James Schmidt, in Tampa, Florida. “The Wage and Hour Division is readily available to assist employers and employees in understanding their obligations and rights 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, 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 14, 2019
Release Number
19-1374-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Labor Department Investigation Results in Colorado Company Paying Back Wages, Damages For Wage Violations in Pennsylvania

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U.S. Labor Department Investigation Results in Colorado Company Paying Back Wages, Damages For Wage Violations in Pennsylvania

PITTSBURGH, PA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Huwa Enterprises – an environmental restoration company based in Keenesburg, Colorado – paid $9,174 in back wages, and an equal amount in liquidated damages for violating the overtime provisions of the Fair Labor Standards Act (FLSA) while performing reclamation services on pipelines in western Pennsylvania.

Investigators determined that – from December 28, 2015 to December 18, 2017 – Huwa Enterprises, doing business as Arnold’s Custom Seeding, was a subcontractor that provided reclamation services for newly installed, or replaced pipelines. Overtime violations occurred when the employer paid employees bonuses labeled as a “per diem” payment regardless of the employees’ travel status or distance from home to the worksite. For employees who did not have to travel to the job and had incurred no travel expenses, these payments did not constitute reimbursement and should have been included in the calculation when the employer determined overtime rates for these employees. Excluding these bonus payments resulted in the payment of overtime rates lower than those the law requires.

“The FLSA requires employers to calculate overtime pay accurately so employees are properly paid, and so that all employers compete on a level playing field,” said Wage and Hour Division District Office Director John DuMont, in Pittsburgh, Pennsylvania. “The results of this investigation should encourage other employers in this industry to examine their payroll practices to ensure they comply with the law. We encourage employers to reach out to us with questions, and to use the many tools we provide to explain their responsibilities.”

The counties in Pennsylvania in which the company performed this work included Allegheny, Armstrong, Beaver, Blair, Butler, Cambria, Clarion, Clearfield, Elk, Erie, Fayette, Greene, Indiana, Lawrence, McKean, Mercer, Somerset, Venango, Warren, Washington, and Westmoreland.

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

WHD is committed to providing employers with the tools they need to assist them in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.

For more information about the FLSA and other federal wage laws, call the Division's toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.
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 13, 2019
Release Number
19-1086-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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U.S. Department of Labor Investigation Results in Pennsylvania Manufacturer Paying $358,040 in Back Wages, Damages and Penalties

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U.S. Department of Labor Investigation Results in Pennsylvania Manufacturer Paying $358,040 in Back Wages, Damages and Penalties

PHILADELPHIA, PA - In a settlement reached with the U.S. Department of Labor’s Wage and Hour Division (WHD), Havpak Inc. will pay $158,230 in back wages and an equal amount in liquidated damages to 126 employees after a WHD investigation found overtime violations of the Fair Labor Standards Act (FLSA) at its facilities in King of Prussia and Malvern, Pennsylvania. The Erie, Pennsylvania-based packaging, assembly, and manufacturing employer will also pay a civil money penalty of $41,580 for the willfulness of the violations.

In addition to paying the back wages, damages and penalty, Havpak will change its business practices to come into FLSA compliance in the future.

WHD investigators determined that – from May 30, 2015, to June 2, 2018 – Havpak used four temporary staffing agencies to staff an additional 50 to 100 employees on a daily basis to perform production work. They found that three Pennsylvania staffing agencies - DDT Packing Inc. and TTM Packing Inc., both in Philadelphia, and L&D Staffing in Springfield - paid temporary staff straight time for all of the hours that they worked, including those in excess of 40 hours in a workweek. The FLSA requires those hours to be paid as overtime, at time-and-one-half employees’ regular rates of pay. WHD determined Havpak Inc. to be a joint employer of the temporary staffing agencies’ employees, and liable for the overtime payments.

WHD also found that in some cases Havpak failed to include production bonuses into the calculation when determining employees’ overtime rates, resulting in payments at rates lower than those required by law. The employer also violated FLSA recordkeeping requirements when it failed to display a required FLSA poster at its facility.

“Using temporary staffing agencies does not absolve employers from their responsibilities under the law,” said Wage and Hour District Director James Cain in Philadelphia, Pennsylvania. “Employers must ensure that their employees are paid the minimum wage and required overtime rates. We encourage all employers to reach out to us and to use the many tools we offer to help them understand their responsibilities so they can avoid costly violations.”

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 federal wage laws, call the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.

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 Fderal minimum wage, overtime pay, recordkeeping, and child laborrequirements 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 13, 2019
Release Number
19-1060-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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U.S. Department of Labor Investigation Results in Los Angeles Business Owner Paying $58,695 to 27 Employees for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in Los Angeles Business Owner Paying $58,695 to 27 Employees for Overtime Violations

LOS ANGELES, CA – Barbara Batiste – a desserts and catering business owner in Los Angeles, California – will pay $58,695 to 27 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Batiste – who owns B Sweet LLC, Big Boi Restaurant, and a storage facility - paid employees straight-time rates for all the hours that they worked, without regard to whether they exceeded 40 in a workweek. This practice resulted in overtime violations when the employer failed to pay overtime to those employees who worked more than 40 hours in a workweek. Batiste also violated the FLSA’s recordkeeping requirements by failing to maintain accurate payroll and time records for employees.

“Employees must receive all the wages they have legally earned,” said Wage and Hour District Director Kimchi Bui, in Los Angeles, California. “Employers must comply with the law, and should make use of the many tools that the Wage and Hour Division makes available to explain their obligations. Investigations like this ensure that employees get paid 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. In addition, WHD provides employers with compliance assistance resources related to overtime to help them comply with the FLSA.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

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

Agency
Wage and Hour Division
Date
August 12, 2019
Release Number
19-1425-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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U.S. Department of Labor Recovers $17,266 in Back Wages and Damages After Investigation of Tampa-Area Restaurant

News Release

U.S. Department of Labor Recovers $17,266 in Back Wages and Damages After Investigation of Tampa-Area Restaurant

DUNEDIN, FL – Falzon Management Corp. – a restaurant operating as Kelly’s Chic-a-Boom Room in Dunedin, Florida – has paid $17,266 in back wages and liquidated damages to 48 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer failed to pay some employees for all the hours that they worked. The employer also paid overtime to tipped employees incorrectly by computing the rate based upon their direct cash wage, while the employer must base overtime instead on the full applicable minimum wage for those employees. In addition, the investigation found that the employer paid some employees straight time rates when they worked overtime, instead of paying time-and-one-half their regular rates of pay as the law requires.

Investigators also found Falzon Management Corp. failed to pay correct overtime rates to employees that worked multiple jobs within the restaurant at different rates of pay. This violation occurred when the employer regularly paid overtime based upon the lowest rate of pay for the affected employee, instead of the rate applicable to the job they performed when they worked the overtime hours, or to a weighted average of those rates.

“Employers should use the results of this investigation as an opportunity to examine their own pay practices to ensure that they comply with federal law,” said Wage and Hour Division District Director James Schmidt, in Tampa, Florida. “The Tampa Wage and Hour Division office is available to assist any employers in understanding their obligations. The employer in the case could have avoided these violations.”

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 9, 2019
Release Number
19-1371-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Investigation Results in Florida Restaurant Paying $28,998 in Back Wages, Damages, and Penalties for Wage Violations

News Release

U.S. Department of Labor Investigation Results in Florida Restaurant Paying $28,998 in Back Wages, Damages, and Penalties for Wage Violations

FORT LAUDERDALE, FL – Lallos441 LLC – the operator of Lallos Restaurant in Fort Lauderdale, Florida – has paid $17,443 in back wages and liquidated damages to 25 employees after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found the employer violated minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). The employer also paid $11,555 in civil money penalties for the willful nature of the violations.

WHD investigators determined Lallos441 LLC violated minimum wage requirements when it paid a tipped-employee a cash wage below the federal minimum wage of $7.25 per hour, and the employee received no tips. Additional minimum wage violations occurred when the employer failed to pay another employee for work performed in their final workweek, and when the employer paid a cashier an hourly rate less than the required federal minimum wage of $7.25 per hour. Overtime violations resulted from the employer’s practice of recording only up to 40 hours of work in their weekly payroll, and paying employees at straight time rates, in cash, off the record, for any additional hours that they worked. This failure to record the number of hours employees worked violated FLSA recordkeeping requirements.

“Employers must pay their employees for all the hours they work. Our efforts ensure that payments not only benefit the workers, but also help to level the playing field for employers who play by the rules,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “We encourage employers and employees to use the resources we provide to help them understand their legal responsibilities and rights. Wage and Hour Division professionals are available to provide confidential assistance to anyone who has questions.”

The Department offers numerous resources to ensure employers have the tools they need to understand th eir 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 9, 2019
Release Number
19-1372-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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South Florida Restaurant to Pay $88,074 in Wages to 8 Employees After U.S. Department of Labor Investigation Uncovers Violations

News Release

South Florida Restaurant to Pay $88,074 in Wages to 8 Employees After U.S. Department of Labor Investigation Uncovers Violations

COOPER CITY, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), South China Restaurant – based in Cooper City, Florida – will pay $88,074 in wages to eight employees for violating minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found South China Restaurant paid employees - including servers, bussers, and cooks - weekly or monthly salaries without regard to the number of hours that they actually worked. This practice resulted in minimum wage violations when those salaries failed to cover the number of hours employees had worked at the federal minimum wage of $7.25 per hour. Overtime violations resulted when employees worked more than 40 hours in a workweek and the employer failed to pay them overtime in addition to their salaries. WHD also found South China Restaurant failed to record the number of hours worked by cooks and did not post the required FLSA poster to notify employees of their rights under the law, resulting in recordkeeping violations.

“Employers are required to pay their employees the wages they have legally earned for all the hours that they work,” said Wage and Hour Division District Director Tony Pham, in Miami, Florida. “Our work continues to ensure that employees are paid as the law requires, and that employers compete on a level playing field. We encourage all employers to review their employment obligations and to contact the Wage and Hour Division for compliance assistance.”

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

For more information about the FLSA and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.
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 9, 2019
Release Number
19-1378-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Finds North Carolina Peanut Manufacturer Violated Federal Wage and Child Labor Laws

News Release

U.S. Department of Labor Finds North Carolina Peanut Manufacturer Violated Federal Wage and Child Labor Laws

SEVERN, NC - After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Severn Peanut Co. Inc. – a peanut manufacturer based in Severn, North Carolina – has paid $82,820 in back wages and liquidated damages to 100 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The employer also paid a civil penalty of $3,619 for federal child labor violations.

WHD found Severn Peanut Co. Inc. failed to pay employees for work they performed before or after their scheduled shifts after the employer adjusted the time records to reflect scheduled shift start and stop times, regardless of when employees actually began or stopped working. This practice resulted in overtime violations when this unpaid pre- and post-shift work time moved employees past 40 hours in the workweek, and overtime was not paid. By altering time records, the employer failed to maintain an accurate record of the number of hours employees had actually worked which led to recordkeeping violations.

In addition, WHD found that Severn Peanut Co. Inc. allowed two minor employees to engage in a prohibited hazardous occupation when they cleaned parts in various plant machinery, a violation of FLSA child labor requirements.

“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 Richard Blaylock, in Raleigh, North Carolina. “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 as well as the child labor violations found in this investigation can be avoided.”

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.

Agency
Wage and Hour Division
Date
August 8, 2019
Release Number
19-975-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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CORRECTED: U.S. Department of Labor Finds South Carolina Resort Violated Federal Work Visa Program Requirements by Failing to Hire Qualified U.S. Worker

News Release

CORRECTED: U.S. Department of Labor Finds South Carolina Resort Violated Federal Work Visa Program Requirements by Failing to Hire Qualified U.S. Worker

BLUFFTON, SC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Montage Hotels & Resorts LLC – operating as Montage Palmetto Bluff in Bluffton, South Carolina – has paid $8,301 in wages to an employee for violating labor provisions of the H-2B visa program. The Laguna Beach, California-based employer also paid a civil penalty of $8,301 assessed by WHD for the violation.

WHD determined the employer failed to meet a condition of their contract for participating in the visa program when they failed to hire a qualified U.S. worker who had applied for a job as a cook at the resort. As a result of the investigation, Montage Hotels & Resorts hired the employee and paid her wages she would have earned from the start of the employer’s H-2B contract.

“The U.S. Department of Labor will continue to safeguard American jobs and level the playing field for law-abiding employers. Companies looking to participate in the H-2B visa program must ensure they do not bypass qualified American workers in favor of non-immigrant workers,” said Wage and Hour District Director Jamie Benefiel, in Columbia, South Carolina. “We encourage employers to contact the Wage and Hour Division by phone or online, or to attend any of our many outreach events for assistance and to learn more about their responsibilities. Violations like those found in this case can be avoided.”

For more information about the H-2B and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover Fair Labor Standards Act (FLSA) overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at http://www.dol.gov/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation’s workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the 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 U.S.; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights. 

Editor’s Note: This news release has been corrected to clarify that WHD did not find that the employer’s H-2B agent, Practical Employee Solutions, unlawfully charged visa fees to the non-immigrant guest employees.    

Agency
Wage and Hour Division
Date
August 5, 2019
Release Number
19-838-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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Best Western Hotel in Tennessee Pays $63,419 in Back Wages, Damages, And Penalties after U.S. Department of Labor Finds Wage Violations

News Release

Best Western Hotel in Tennessee Pays $63,419 in Back Wages, Damages, And Penalties after U.S. Department of Labor Finds Wage Violations

JOHNSON CITY, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), S&S Hospitality LLC – operator of the Best Western Hotel & Conference Center in Johnson City, Tennessee – has paid $56,999 in back wages and liquidated damages to 15 employees for violating the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). The employer also paid $6,420 in civil money penalties for the willful and repeat nature of the violations.

A WHD investigation determined that S&S Hospitality LLC violated minimum wage requirements when it manipulated payroll records to reduce the number of work hours it recorded and paid to employees, leaving some hours unpaid. The employer further violated minimum wage requirements when it paid a husband-and-wife cleaning crew only for the hours worked by one member of that team. Additional minimum wage violations resulted when the employer failed to pay a former employee for all of the hours accumulated during their final workweek with the company. The employer’s practice of manipulating payroll records to reflect workweeks of 40 hours or fewer, despite employees working beyond 40 hours, resulted in overtime violations when those overtime hours went unpaid. Erroneous rounding practices led to records reflecting fewer hours than were actually worked, and to further overtime violations.  The manipulation of the time records resulted in the employer failing to keep an accurate record of all the hours employees worked, in violation of FLSA recordkeeping requirements.

“The U.S. Department of Labor remains committed to ensuring employees receive all the wages they have rightfully earned and that employers compete on a level playing field,” said Wage and Hour District Director Nettie Lewis, in Nashville, Tennessee. “Other employers should use the back wages, damages and penalties found due in this case as an opportunity to review their own pay practices to ensure they comply with the law.”

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

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 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
August 5, 2019
Release Number
19-1322-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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