SAN DIEGO, CA – Following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Central District of California has entered a consent judgment requiring Healthy Harvesting Inc. and Fernando Pineda Garcia to pay $79,153 in civil penalties for violations of the Migrant Seasonal Workers Protection Act (MSPA). The action stems from a vehicle accident where a van overturned, killing one worker and injuring six others in March 2017, near Calexico, California.

WHD investigators found Healthy Harvesting Inc. - a farm labor contractor - and owner Fernando Pineda Garcia failed to provide safe transportation to and from the fields for workers at Fisher Ranch. Under MSPA, farm labor contractors are required to protect workers from unqualified drivers and travel in unsafe vehicles.

The California Highway Patrol (CHP) determined that a blown tire combined with a missing seatbelt led to the tragedy. Investigators found that a second van tire was bald, and that two wheels were missing lug nuts leaving two wheels not fully secured to the vehicle. CHP also found the driver lacked a commercial driver's license and operated the vehicle with a suspended personal driver's license.

In addition to the payment, the consent judgment also requires Healthy Harvesting Inc. and Fernando Pineda Garcia to:

• Provide a notice to workers about their rights;
• Train supervisors and foremen on their obligations under MSPA; and
• Hire an independent monitor to report on defendants' compliance with MSPA.

"Farm labor contractors must provide safe transportation to workers to prevent these types of tragic and avoidable deaths in the future," said U.S. Department of Labor Regional Solicitor Janet Herold, in Los Angeles, California. "Farmworkers should not be putting their lives on the line simply by going to work, being transported to and from the fields by unqualified drivers using unsafe vehicles."

"The Wage and Hour Division provides multiple tools for agricultural employers describing their responsibilities to ensure they understand how to comply with the law," said Rodolfo Cortez, Wage and Hour Division District Director in San Diego, California. "We encourage all employers to reach out to us for confidential assistance at any time."

This is the second consent judgment entered by the court in this case. In July 2018, the court ordered Fisher Ranch LLC to pay $21,168 in back wages and $49,104 in civil money penalties.

To operate legally as farm labor contractors, individuals and companies must register with the U.S. Department of Labor. Farm labor contractors that intend to house, transport, or drive a migrant or seasonal agricultural worker must meet special requirements. Application materials and instructions are available online.

Employees and employers with questions about the MSPA or any of the federal laws administered by the Division should call the agency's toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information also is available online.

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 the 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, the 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.

PHOENIX, AZ – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Younger Brothers Companies – a contractor based in Peoria, Arizona – will pay $723,764 to 271 employees. WHD investigators found violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

Investigators found Younger Brothers Companies failed to pay employees required overtime rates when they worked more than 40 hours in a workweek. Specifically, the employer failed to include all production bonuses and commissions in employees' regular rates when computing their overtime rates. Excluding these amounts from the calculation resulted in workers being paid overtime at rates lower than those required by law. Additional overtime violations occurred when the employer failed to make any payment at all to some employees for hours they worked beyond 40 in a workweek. Failing to record those unpaid overtime hours also resulted in a FLSA recordkeeping violation.

"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 Eric Murray, in Phoenix, Arizona. "The U.S. Department of Labor provides many tools to help employers comply with the law. The results of this investigation should encourage other employers to examine their pay practices. Violations like those found in this case can be avoided."

Younger Brothers is a residential and commercial contractor, materials supplier, and building components manufacturer.

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.

Learn more about WHD compliance assistance resources for employers.

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 the 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, the 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.

INDIANA, PA – Indiana Country Club – based in Indiana, Pennsylvania – will pay $52,843 in back wages and an equal amount in liquidated damages, following a U.S. Department of Labor Wage and Hour Division (WHD) investigation that found minimum wage violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Indiana Country Club retained a portion of the tips earned by servers and bartenders yet failed to contribute those amounts to a valid tip pool, resulting in the employer paying employees less than the federal minimum wage. Due to the violation, the employer cannot claim a credit toward its minimum wage obligations for tips earned by workers, and must pay the full minimum wage to the affected employees.

"Although the employer claimed the tips they retained were service charges, our investigation determined they were, in fact, tips that belonged to the employees," said Wage and Hour Division District Office Director John DuMont, in Pittsburgh, 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. We encourage all employers to make use of the many tools we offer to be sure that they understand their responsibilities. Violations like those found in this investigation can be avoided."

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.

The mission of WHD 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.

INDIANAPOLIS, IN – The U.S. Department of Labor's Wage and Hour Division (WHD) will offer a compliance seminar in Indianapolis, Indiana, 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: August 27-29, 2019
9:00 a.m. to 5:30 p.m. EDT

WHERE: Lucas Oil Stadium
500 South Capitol Avenue
Indianapolis, IN 46225

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 Indianapolis 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.

WASHINGTON, DC – The U.S. Department of Labor announced today that it has issued a new opinion letter that addresses 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 letter issued today, FLSA2019-10, addresses the compensability of time spent in a truck's sleeper berth while otherwise relieved from duty. Significantly, this opinion letter provides new guidance. Under prior guidance, WHD interpreted the relevant regulations to mean that while sleeping time may be excluded from hours worked where "adequate facilities" were furnished, only up to 8 hours of sleeping time may be excluded in a trip 24 hours or longer, and no sleeping time may be excluded for trips under 24 hours. WHD has now concluded that this interpretation is unnecessarily burdensome for employers and instead adopts a straightforward reading of the plain language of the applicable regulation, under which the time drivers are relieved of all duties and permitted to sleep in a sleeper berth is presumptively non-working time that is not compensable. There may be circumstances, however, where a driver who retires to a sleeping berth is unable to use the time effectively for his or her own purposes. For example, a driver who is required to remain on call or do paperwork in the sleeping berth may be unable to effectively sleep or engage in personal activities; in such cases, the time is compensable 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. 

This marks the 43rd opinion letter 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.

HICKORY, NC – Nara Japanese Restaurant LLC – a restaurant based in Hickory, North Carolina – has paid $28,779 in back wages to 20 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found Nara Japanese Restaurant LLC paid kitchen staff flat daily rates regardless the number of hours the employees actually worked. By doing so, the employer violated minimum wage requirements when those flat rates failed to cover all the employees' hours at the federal minimum wage of $7.25 per hour. In addition, the employer made illegal credit-card fee deductions from servers' tips that caused them to earn less than the minimum wage. The employer also failed to pay overtime when employees worked over 40 hours in a workweek, and violated the FLSA recordkeeping requirements by failing to maintain records of the number of hours employees worked each workweek.

"Employers must not ignore the requirements of federal labor laws," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "The U.S. Department of Labor will continue to work to level the playing field so that employers who follow the rules don't find themselves at an economic disadvantage to those who do not. We encourage all employers to reach out to us for guidance, and to use the wide variety of tools we provide to help them comply with the law 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.

VALDOSTA, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Lowndes Advocacy Resource Center Inc. – operating as LARC Inc. in Valdosta, Georgia – will pay $157,473 in back wages to 130 employees for failing to meet the requirements of Section 14(c) of the Fair Labor Standards Act (FLSA). LARC Inc. also violated the Workforce Innovation Opportunity Act (WIOA).

WHD found that LARC Inc. incorrectly rounded two of the prevailing wage rates it used to determine employees' pay, resulting in underpayment under the FLSA. The employer also deducted break times of 15 minutes from the daily work hours of some employees, and failed to count travel time and time employees spent donning personal protection equipment as work time. Each of these instances of unrecorded work time resulted in underpayment to employees. The inaccurate records of employees' work hours also resulted in a recordkeeping violation.

WIOA requires that individuals with disabilities age 24 or younger complete pre-employment transition services, vocational rehabilitation services, and career counseling, information, and referral services before consideration for work at sub-minimum wages under the FLSA's Section 14(c). WHD found that the center failed to provide the documentation showing all three of the requirements had been completed by the designated state unit prior to employees being paid a sub-minimum wage.

"The U.S. Department of Labor is committed to ensuring that all workers receive the wages legally due to them, and to protecting workers with disabilities from exploitation in the workplace. We will continue to provide education and tools to employers to help them understand their responsibilities and how to comply with the law," said Wage and Hour District Director Eric Williams, in Atlanta, Georgia. "We encourage employers to reach out to their local Wage and Hour Division office for assistance in avoiding potential violations."

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

For more information about the FLSA, Section 14(c), 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.

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.