MANCHESTER, NH – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), The Collectable Trader LLC – a motorcycle dealer based in Pembroke, New Hampshire – has paid $22,165 in back wages and an equal amount in liquidated damages to 59 current and former employees to resolve violations of the Fair Labor Standards Act (FLSA). 

The investigation of the motorcycle retailer - doing business as National Power Sports Distributors in Pembroke and Merrimack, New Hampshire - found the employer violated the FLSA by failing to pay overtime for all the hours employees worked beyond 40 in a workweek. Specifically, the employer's practice of failing to count short breaks and meal periods as worktime resulted in overtime violations when that unpaid time caused employees' total hours to exceed 40 in a week. The general sales manager's practice of altering the payroll records to reflect fewer hours than certain employees at the Pembroke location had actually worked led to additional violations.

"Employees must be paid for all hours they work, including short rest periods. Management cannot permit employees to work without compensation," said Wage and Hour Division Northern New England District Director Daniel Cronin in Manchester, New Hampshire. "We encourage employers to contact our Manchester office to better understand the law and to avoid violations. Trained Wage and Hour Division professionals are available to speak with callers confidentially to answer their questions."

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.

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

TARPON SPRINGS, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Arry's Roofing Services Inc. – a roofing company based in Tarpon Springs, Florida – has paid $75,710 in back wages to 144 employees for violating the overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined Arry's Roofing Services Inc. failed to include production bonuses paid to roofers in the calculation when determining those employees' overtime rates. By excluding these amounts and basing overtime only on the employees' hourly rates, the employer paid overtime at rates lower than those required by law. Investigators also found the employer incorrectly classified salaried office employees as exempt from overtime, and paid them flat salaries without regard to the number of hours they actually worked. In doing so, Arry's Roofing violated FLSA requirements when it failed to pay overtime when those employees worked more than 40 hours in a workweek. The employer also violated the FLSA's recordkeeping requirements when it failed to keep time records for the non-exempt salaried employees.

"Employers must familiarize themselves with their obligations to ensure they pay workers the wages they have legally earned," said Wage and Hour Division District Director James Schmidt, in Tampa, Florida. "The U.S. Department of Labor encourages employers to contact us if they have questions about overtime compliance for their hourly and salaried employees. We offer a wide variety of compliance assistance tools and stand ready to help employers. 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 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.

KISSIMMEE, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Brooks Hospitality Corp. – operator of the Comfort Suites Maingate East in Kissimmee, Florida, and Gemini Global, a Kissimmee-based hotel staffing agency – has paid $64,786 in back wages to 100 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Brooks Hospitality Corp. entered into an agreement with Gemini Global Inc. that resulted in both entities being responsible as employers of the housekeeping and food service employees under the FLSA. WHD found that Brooks Hospitality Corp. paid the employees it hired through Gemini Global straight-time for all the hours that they worked, resulting in overtime violations when the employers failed to pay the workers time-and-one-half when they worked more than 40 hours in a workweek. Brooks Hospitality also failed to include certain bonuses employees earned in the calculation when they determined workers' overtime rates. This exclusion resulted in employees being paid overtime rates lower than those required by law.

"The U.S. Department of Labor remains committed to ensuring employees receive all the wages they have rightfully earned," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "Employers must be aware of their responsibilities under the law and make sure to calculate their employees' pay correctly, and pay particular attention to overtime that is due once employees work more than 40 hours in a week. We encourage employers to call us any time or to use the many tools we offer to help them comply with the law, pay workers legally, and avoid violations."  

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.

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). 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:

• FLSA2019-7, addressing the calculation of overtime pay for nondiscretionary bonuses paid on a quarterly and annual basis.

• FLSA2019-8, addressing the application of the highly compensated employee exemption to paralegals employed by a trade organization. 

• FLSA2019-9, addressing permissible rounding practices for calculating an employee’s hours worked.

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.

WASHINGTON, DC – The U.S. Department of Labor today announced the launch of additional plain-language, user-friendly compliance assistance materials to help employers, workers, and other stakeholders understand their responsibilities and their rights under federal labor law. The Department's Wage and Hour Division (WHD) added a number of publicly available presentations to its website, covering topics such as the Fair Labor Standards Act, federal child labor requirements, and employers' responsibilities to provide rest breaks and proper facilities for nursing mothers.

WHD provides these presentations as part of its ongoing efforts to modernize compliance assistance materials for employers and workers, and to provide easily accessible, plain-language information that will guide them to compliance. These tools offer a more streamlined design, and link to numerous additional resources and related information, including plain-language videos. These tools, in conjunction with worker.gov, employer.gov, and other recently released online tools, will ensure greater understanding of federal labor laws and regulations.

"The Wage and Hour Division believes in providing employers all the tools they need to understand their responsibilities and comply with the law," said Wage and Hour Division Administrator Cheryl M. Stanton. "We are committed to protecting American workers, and leveling the playing field for job creators who abide by the law. Compliance assistance and rigorous enforcement go hand-in-hand."

These materials join a host of other recently added content, including an enhanced digital version of the Handy Reference Guide to the Fair Labor Standards Act. This new online version of one of WHD's most popular publications assists American employers and workers with a simple, easy-to-follow resource that provides basic WHD information, as well as links to other resources. WHD also recently added electronic "Compliance Assistance Toolkits" to its resource lineup, providing compliance information on specific programs and industries in a one-stop format for download or distribution.

The Department's Office of Compliance Initiatives is part of the Office of the Assistant Secretary for Policy, and fosters a compliance assistance culture within the Department designed to complement its ongoing enforcement efforts. This office focuses on helping enforcement agencies more effectively use online resources to deliver information and compliance assistance to help the American people.

For more information about the laws enforced by the Wage and Hour Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

DALLAS, TX - The U.S. Department of Labor, in partnership with Southern Methodist University in Dallas, Texas, will host an informational outreach forum on June 27, 2019, for employers, employees, and members of the public  interested in a wide range of services provided by the Department and other agencies.

The event will include an introduction and an overview of the missions, responsibilities, and functions of agencies within the Department participating at the event, including: Employee Benefits Security Administration; Employment and Training Administration's Office of Apprenticeship; Occupational Safety and Health Administration; Office of Federal Contract Compliance Programs; Veterans' Employment and Training Service; Wage and Hour Division; and Women's Bureau. The Equal Employment Opportunity Commission and National Labor Relations Board will also participate in the Forum.

WHAT: 2019 Department of Labor Informational Outreach Forum

WHEN: June 27, 2019
11:30 a.m. to 4:30 p.m. CDT

WHERE: Southern Methodist University
James M. Collins Center
3150 Binkley Ave.
Dallas, TX 75205

Space is limited. Attendance is free, but pre-registration is required. Complete advance registration.

PHILADELPHIA, PA – LaserShip Inc. – a delivery company based in Vienna, Virginia – has entered into a settlement agreement with the U.S. Department of Labor requiring payment of $597,000 in back wages to 224 employees in Connecticut and New Jersey. 

Investigations conducted by the Department's Wage and Hour Division (WHD) exposed minimum wage, overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA) at LaserShip's facilities in Meriden, Connecticut, and East Brunswick, New Jersey.

WHD investigators determined that from March 20, 2014 through July 21, 2017 at its Meriden location, and April 2, 2016 through August 11, 2017 at its East Brunswick location, the employer improperly classified its courier drivers as independent contractors rather than employees, depriving certain drivers of FLSA protections. Drivers were responsible for paying for certain job-related expenses, including auto insurance, cargo insurance, scanners and gasoline, resulting in some employees earning less than the federal minimum wage of $7.25 per hour for each hour that they worked. The employer also failed to pay drivers overtime at one-and-one half-times their regular rates when they worked more than 40 hours in a workweek, as required by the FLSA. Additionally, the employer failed to pay New Jersey courier drivers who performed work in the warehouse for the time they spent doing so, resulting in unpaid overtime.

"By improperly classifying its drivers, LaserShip Inc. denied these employees the wages they rightfully and legally earned," said Wage and Hour Division Regional Administrator Mark Watson in Philadelphia, Pennsylvania. "The Wage and Hour Division works to ensure that employees are aware of their rights, and helps employers understand their obligations and to come into compliance with the law. Violations like those in this case can be avoided."

WHD's Hartford, Connecticut, and Southern New Jersey district offices conducted the investigations. Boston Wage and Hour Counsel Mark Pedulla, and Senior Trial Attorneys Susan Salzberg and James Wong, of the Department's Boston and New York regional solicitor's offices, respectively, negotiated the settlement agreement.

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.

LAS VEGAS, NV – Dr. Dhaval Shah – of Las Vegas, Nevada – will pay $43,247 in back wages and liquidated damages to 51 employees after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found violations of the overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found Dr. Shah failed to pay his employees overtime when they worked more than 40 hours in a workweek. Instead, Shah paid them straight time hourly rates without regard to the number of hours that they worked. On average, the underpaid employees worked 52 hours per week.

“Employers are responsible for ensuring that they pay employees all the wages they have legally earned and for keeping accurate records of their hours,” said Wage and Hour Division District Director Gaspar Montanez, in Las Vegas, Nevada. “The U.S. Department of Labor provides many tools to help employers comply with the law, and avoid violations like those found in this investigation. Employers should review their pay practices to ensure that they are in compliance, and call us, confidentially, with any questions at 866-4US-WAGE.”

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. Employers can find additional compliance assistance information and materials on the WHD website.

RALEIGH, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Dr. Michael C. Kretchmer – a Raleigh, North Carolina-based surgical dentist – has paid $8,656 in back wages and liquidated damages to 13 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined Dr. Michael C. Kretchmer – operating as Tar Heel Periodontics and Implant Dentistry – paid employees straight time rates for all the hours that they worked, without regard to the total number of hours they worked in a workweek. This practice resulted in violations when employees worked more than 40 hours in a workweek and were not paid overtime.

"Employers have a responsibility to ensure employees are paid what they have earned in accordance with federal labor laws," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "Compliance with the law is not optional. The U.S. Department of Labor provides resources and compliance training to assist employers and employees in understanding their duties and rights under the law."

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.

PHILADELPHIA, PA - Rockford Corp. – a natural gas pipeline construction company in Montrose, Pennsylvania – has entered into a consent judgment with the U.S. Department of Labor requiring payment of $177,466 in back wages, with an equal amount in liquidated damages, to 306 employees across the nation. The United States District Court for the Middle District of Pennsylvania approved the consent judgment on June 6, 2019.

An investigation by the Department's Wage and Hour Division (WHD) eventually led to wider review and the discovery of overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA) at the employer's locations nationwide.

WHD investigators determined that, from March 13, 2016 through October 28, 2018, the employer failed to pay required overtime to equipment operators, welders, and helpers. Specifically, Rockford Corp. made additional payments to these employees beyond their base hourly rates, but failed to factor these payments into their regular rates to calculate proper overtime compensation. Rockford labeled these payments as "per diems," but the investigation revealed that these payments had no relationship to any travel or work-related expenses employees actually incurred. Excluding these payments from employees' regular rates resulted in them being paid overtime at rates lower than those required by law. The employer also failed to maintain accurate records as required by the FLSA.

"Employees must be fully compensated for the all of the hours they work as the law requires," said Wage and Hour Division District Office Director Alfonso Gristina, in Wilkes-Barre, Pennsylvania. "The Wage and Hour Division offers many resources to ensure employees are aware of their rights and to help employers comply with the law. Costly violations like those found in this investigation can be avoided."

Headquartered in Beaverton, Oregon, Rockford Corp. specializes in mainline work, compressor stations, and metering facilities. In addition to paying the back wages and damages, the employer has agreed to correct the violations and the consent judgment permanently enjoins the employer from violating the FLSA in the future.

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

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

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