U.S. Department of Labor Investigation Recovers $82,398 in Back Wages

News Release

U.S. Department of Labor Investigation Recovers $82,398 in Back Wages

HUNTERSVILLE, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Brawi Inc. – operating as La Unica Mexican Restaurant in Huntersville, North Carolina – has paid $82,398 in back wages and liquidated damages to 10 employees for violating the overtime 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 violations when those employees worked more than 40 hours in a workweek but were not paid overtime. La Unica also failed to keep 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 to nonexempt employees who work more than 40 hours per week," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "Employers must familiarize themselves with federal wage laws to ensure their employees receive the wages they have rightfully earned. This investigation should serve as an opportunity for other employers to evaluate their pay practices to ensure that they are operating in compliance. Violations like these 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.

Agency
Wage and Hour Division
Date
June 20, 2019
Release Number
19-0976-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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North Carolina Retailer Pays $26,357 in Wages for Federal Overtime Violations Found by U.S. Department of Labor Investigation

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North Carolina Retailer Pays $26,357 in Wages for Federal Overtime Violations Found by U.S. Department of Labor Investigation

GREENSBORO, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Colmex Inc. - an Asheboro, North Carolina-based retailer of money orders and low-cost cell phones - has paid $26,357 in back wages to 18 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

Investigators found the employer – operating as Express Services in Greensboro, North Carolina – paid straight time to the employees, regardless of how many hours they worked. This resulted in violations when the employer failed to pay overtime to employees when they worked more than 40 hours in a workweek, as the law requires.

"Employees have a right to be paid all of the wages they have legally earned, for all of the hours they have worked," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "The U.S. Department of Labor works hard to ensure workers are paid what they deserve. Employers must fully understand their responsibilities under the FLSA and they are encouraged to contact us with any questions they may have about how to 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 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
June 20, 2019
Release Number
19-0973-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 Maine Grocery Store Paying $92,055 in Back Wages and Damages to 69 Employees

News Release

U.S. Department of Labor Investigation Results in Maine Grocery Store Paying $92,055 in Back Wages and Damages to 69 Employees

MANCHESTER, N.H. – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), H.B. Provisions Inc. – a grocery store based in Kennebunk, Maine – has paid $92,055 in back wages and liquidated damages to 69 employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA). The employer has also paid $20,752 in civil money penalties.

WHD investigators determined that H.B. Provisions violated FLSA overtime requirements when it paid workers straight-time rates, in cash, and off the books, for any hours they worked beyond 40 in a workweek. The law requires employers to pay for overtime hours at one-and-one-half times employees’ regular rates of pay. The employer also failed to record the overtime hours in their time records. The affected employees worked as cooks, cashiers, stockers, bakers, and non-exempt managers. In addition to the back wages and damages found due, WHD assessed the civil money penalty due to the willful nature of the violation.

"Ensuring that employers pay employees fully and correctly for all the hours that they work not only provides employees with the wages they are due, it also levels the playing field for those employers who are already complying with the law," said Wage and Hour Division Northern New England District Director Daniel Cronin in Manchester, New Hampshire. "Violations like those in this case can become very costly – and they are avoidable. We encourage employers to reach out to us for assistance."

The Department provides numerous resources and tools to help employers understand their responsibilities and 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 the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.

Agency
Office of the Solicitor
Date
June 19, 2019
Release Number
19-0632-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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Michigan Health Care Provider Pays $915,223 in Overtime Back Wages To 1,389 Employees after U.S. Department of Labor Investigation

News Release

Michigan Health Care Provider Pays $915,223 in Overtime Back Wages To 1,389 Employees after U.S. Department of Labor Investigation

BLOOMFIELD HILLS, MI – Six Beaumont Affiliated Health and Rehabilitation Centers in the metro-Detroit area has paid $915,223 in back wages to 1,389 employees after an investigation by the U.S. Department of Labor Wage and Hour Division (WHD) found the Centers in violations of the Fair Labor Standards Act (FLSA).

Investigators found the facilities - managed by Premier Healthcare Management Inc. in Bloomfield Hills, Michigan - failed to pay employees for time they worked during their meal breaks, and before and after their scheduled shifts. The employer automatically deducted meal breaks from employees' work time but, in fact, workers were often unable to take those breaks. Work performed prior to and after employees' scheduled shifts was neither recorded nor paid for.

"The U.S. Department of Labor is committed to ensuring that every employee receives the wages they have rightfully earned," said Wage and Hour District Director Timolin Mitchell, in Detroit. "Other employers should use the outcome of this investigation as an opportunity to review their own pay practices, and ensure that they are in compliance. 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."

In addition to paying the back wages, Premier Healthcare Management has agreed to conduct training for its employees, to provide WHD Fact Sheet #33 on Residential Care Facilities to all employees, and to conduct quarterly reviews of payroll and time records to ensure compliance with wage laws.

The investigation recovered back wages for employees at Beaumont Affiliated Health and Rehabilitation Centers in West Bloomfield in West Bloomfield, Woodward Hills in Bloomfield Hills, Evergreen in Southfield, Shelby in Shelby Charter Township, as well as Shorepoint and the Shorepoint Village Assisted Living Facility, both located in Saint Clair Shores.

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). Information is also available at http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

Agency
Wage and Hour Division
Date
June 18, 2019
Release Number
19-0397-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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U.S. Department of Labor Investigations of Central Florida Restaurants Results in $83,577 in Back Wages For 91 Employees

News Release

U.S. Department of Labor Investigations of Central Florida Restaurants Results in $83,577 in Back Wages For 91 Employees

APOPKA, FL – After investigations by the U.S. Department of Labor's Wage and Hour Division (WHD), Rios Rodriguez Enterprises Inc. – owner of five Central Florida restaurants – will pay $83,577 in back wages to 91 employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The employer also paid $21,266 in civil money penalties for repeated violations.

Investigators found the employer failed to pay tipped employees the federal minimum wage for all the hours that they worked after their rounding practices resulted in time worked not being compensated. The employer also paid cooks flat salaries, without regard to the number of hours that they actually worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek, yet were not paid overtime. The employer's practice of paying overtime after 80 hours in two workweeks, instead of after 40 hours in a single workweek, resulted in additional overtime violations. The employer also failed to maintain accurate payroll and time records in violation of the FLSA's recordkeeping requirements.

"Employers must pay employees all the wages they have legally earned," said Wage and Hour District Director Daniel White, in Jacksonville. "We encourage employers to contact their local Wage and Hour Division office for the resources available to explain their responsibilities and how to avoid violations."

The investigations involved the following restaurants:

  • Rios Restaurant Group Inc. – operating as La Fiesta of Ormond Beach
  • Rios Rodriguez Enterprises Inc. – operating as La Fiesta of Port Orange
  • Saint Anejo Mexican Kitchen & Tequileria Inc. – operating as Saint Anejo Mexican Kitchen in Winter Springs
  • Agave Azul Mexican Cuisine Inc. – operating as Agave Azul Mexican Cuisine in Orlando
  • Agave Azul Winter Park LLC – operating as Agave Azul Mexican Cuisine in Winter Park

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
June 12, 2019
Release Number
19-0566-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Recovers $81,129 in Back Wages and Damages After Investigation Finds Wage Violations at Alabama Gulf Coast Restaurant

News Release

U.S. Department of Labor Recovers $81,129 in Back Wages and Damages After Investigation Finds Wage Violations at Alabama Gulf Coast Restaurant

ORANGE BEACH, AL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Bahama Bob's Beachside Café Inc. – a full-service restaurant based in Orange Beach, Alabama – has paid $81,129 in back wages and liquidated damages to 28 employees for violating overtime provisions of the Fair Labor Standards Act (FLSA).

WHD found that the employer violated the overtime requirements of the FLSA when it paid workers straight-time rates for all the hours that they worked, failing to pay overtime when they worked more than 40 hours in a workweek. In addition, the employer failed to maintain accurate time and payroll records, and failed to keep records for tipped employees. Investigators found that the employer hired some of the affected workers through an agreement with Gulf Coast Cleaners Inc., a Foley, Alabama, staffing company. The agreement made both companies being responsible as joint employers for the wages owed to those workers.

"Employers must pay employees all the wages they have legally earned for the work they performed," said Wage and Hour Division District Director Kenneth Stripling, in Birmingham, Alabama. "Our work also ensures employers who comply with the law are able to compete on a level playing field. 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.

Agency
Wage and Hour Division
Date
June 12, 2019
Release Number
19-0690-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 Georgia Granite Installer Paying $105,020 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Georgia Granite Installer Paying $105,020 in Back Wages and Damages

SUWANEE, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Granite Masters Inc. – a granite countertop installation company based in Suwanee, Georgia – will pay $105,020 in back wages and liquidated damages to 36 employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Granite Masters Inc. misclassified employees as independent contractors. This practice resulted in the employer paying straight time rates to overtime-eligible employees when they worked more than 40 hours in a workweek, rather than paying them overtime as required by law. WHD also found recordkeeping violations when the employer failed to maintain records of the number of hours employees worked.

WHD investigators learned of the employer's practices through its Employment Education and Outreach (EMPLEO) alliance. EMPLEO is an alliance of community and nongovernmental organizations; state, local, and federal agencies; and Hispanic consulates that provides information and assistance to Spanish-speaking employees and employers regarding their workplace rights and responsibilities.

"Collaboration with community organizations and other federal agencies through our Employment Education and Outreach alliance helps us ensure employees know their rights and receive the wages that they are lawfully owed," said Wage and Hour Division District Director Eric Williams, in Atlanta, Georgia. "We encourage employers to review their pay practices and contact us if they have questions so that they can avoid violations."

WHD provides a wide variety of compliance assistance tools to help employers understand their responsibilities and employees understand their rights.

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
June 12, 2019
Release Number
19-0692-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Investigation Results in Federal Contractor Paying Over $1.5 Million in Wages for Service Contract Act Violations

News Release

U.S. Department of Labor Investigation Results in Federal Contractor Paying Over $1.5 Million in Wages for Service Contract Act Violations

CAMP LEJEUNE, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Apex Systems LLC – a staffing agency and government subcontractor at Camp Lejeune, North Carolina – has paid $1,523,137 in back wages to 209 employees for violating provisions of the Fair Labor Standards Act (FLSA) and the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators determined that Glen Allen, Virginia-based agency failed to pay employees the prevailing wage rates required for the work they performed, in violation of the SCA. The agency was operating as a subcontractor to Perspecta Inc. on information technology contracts at military bases in 17 states. Apex incorrectly categorized and paid the employees as computer operators when they actually performed the work of personal computer support technicians, which requires the payment of higher rates. Apex also failed to pay employees the fringe benefits required by the SCA. These incorrect wage rates resulted in an overtime violation under the FLSA when the subcontractor based their time-and-one-half calculations on the incorrect prevailing rates. The employer also failed to maintain records of the required SCA wage rates, vacation, and holiday pay, a recordkeeping violation.

After the initial investigation, the Department directed Apex Systems LLC to conduct a verifiable review of their records, company-wide, to ensure enterprise-wide compliance with regard to wage payments to personal computer support technicians. Apex Systems LLC cooperated fully in this effort, and the Department worked closely with company executives and their counsel to complete the review.

"When employers receive federal funds as contractors or subcontractors to provide services for the government, they must comply with all applicable laws, including ensuring employees receive required wages and fringe benefits," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "After these violations were brought to the attention of Apex Systems, they cooperated to address the job misclassifications throughout 17 states in order to rectify the violation. The U.S. Department of Labor encourages all employers to reach out to their local Wage and Hour Division office for information about how to comply, and to avoid violations. In North Carolina employers may reach us at 919-790-2741."

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor's collective bargaining agreement.

For more information about the FLSA, SCA, and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover 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
June 12, 2019
Release Number
19-0509-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Cites Georgia Water Services Company After Employee Suffers Heat-Related Injury at Key West, Florida, Worksite

News Release

U.S. Department of Labor Cites Georgia Water Services Company After Employee Suffers Heat-Related Injury at Key West, Florida, Worksite

KEY WEST, FL – The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has cited Evoqua Water Technologies LLC – based in Thomasville, Georgia – for failing to protect employees working in excessive heat. The company faces $21,311 in penalties, including the maximum penalty allowed by law for the heat-related violation.

An employee suffered heat exhaustion and was hospitalized after working in direct sunlight and wearing required protective clothing during welding and fabrication work at a Key West, Florida, worksite. On the day of the hospitalization, the heat index ranged between 83 and 88 degrees. OSHA cited the employer for failing to protect workers exposed to outdoor heat hazards, and failing to report a hospitalization within 24 hours, as required.

"Employers must take proper precautions when employees are working outdoors in excessive heat conditions, including ensuring that workers have access to water, and take frequent rest breaks in cool shaded areas," said OSHA Area Director Condell Eastmond, in Fort Lauderdale, Florida.

The company has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA's area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

OSHA conducts training and outreach on heat-related workplace hazards every spring and summer. Information on establishing a heat illness prevention program, a video on protecting workers from heat illness, and resources with other suggested best practices are available on OSHA's heat illness prevention page.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to help ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education, and assistance. For more information, visit https://www.osha.gov.

Agency
Occupational Safety & Health Administration
Date
June 11, 2019
Release Number
19-0849-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Investigation Finds Federal Contractor Violated Prevailing Wage Law at Tyndall Air Force Base

News Release

U.S. Department of Labor Investigation Finds Federal Contractor Violated Prevailing Wage Law at Tyndall Air Force Base

PANAMA CITY, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Coqui Disposal Services LLC – a disposal and janitorial service company and federal contractor at Tyndall Air Force Base in Panama City, Florida, an area significantly affected by Hurricane Michael – has paid $22,335 in back wages to 46 employees for violating requirements of the McNamara-O'Hara Service Contract Act (SCA).  

WHD investigators found that Coqui Disposal Services LLC violated the SCA by failing to pay janitorial employees the increased prevailing wage rates required after the contract renewed for the work they performed. The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor's collective bargaining agreement. Coqui continued to pay previously applicable rates to workers instead of the increased rates contained in the renewed version of their contract.

"When contractors and subcontractors receive federal funds to provide services for the government, they must comply with all applicable laws, including ensuring employees receive required wages," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "The Division provides a wide variety of compliance assistance tools to help employers understand their responsibilities and employees understand their rights."

For more information about the SCA, and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd. Employers can find additional compliance assistance information on the Wage and Hour Division website.

Agency
Wage and Hour Division
Date
June 11, 2019
Release Number
19-0851-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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