NORTH MYRTLE BEACH, SC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Benito's Brick Oven Pizza & Pasta – a North Myrtle Beach, South Carolina-based restaurant – has paid $54,355 in back wages and liquidated damages to 12 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the owner of Benito's Brick Oven Pizza & Pasta, Paul Himmelsbach, had set up a separate company named Benito's Pizza and Meatball Express LLC to handle deliveries for the restaurant. Both businesses operated out of the same location, shared employees, and had common ownership, making them a single enterprise. The employer violated the FLSA when it failed to combine the hours for employees who worked for both legal entities in the same work week when determining when overtime pay was due. 

"Employers need to familiarize themselves with the rules for calculating required overtime pay for all of the hours their employees work," said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. "A business with multiple locations must count all of an employee's weekly hours across the enterprise to determine whether overtime wages are due. We encourage employers to contact us with any questions they may have so that we may help them understand their obligations and to comply with 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. Employers can find additional compliance assistance information on the Wage and Hour Division website.

MIAMI, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Gorman General Contractors LLC – based in Oregon, Wisconsin – has paid $34,330 in back wages and fringe benefits to 20 employees for violating labor provisions of the Davis Bacon and Related Acts (DBRA).

Gorman General Contractors LLC subcontracted Miami-based Vitri Corp. to install windows and paint as part of the Modello Homes Project in Miami, Florida. WHD investigators found that subcontractor Vitri Corp. incorrectly classified employees as laborers when they actually performed work as painters. In doing so, the employer paid incorrect prevailing wage rates applicable to the less-skilled job categories and failed to pay the correct fringe benefit rates to the affected employees as required under the DBRA. Gorman General Contractors LLC paid the back wages owed after Vitri Corp. failed to pay and no longer worked at the site. Under DBRA, the prime contractor is responsible for the compliance and any wages owed by a subcontractor or lower-tier subcontractor.

"Contractors and subcontractors awarded federal contracts must understand that incorrectly classifying employees can lead to numerous violations," said Wage and Hour Division District Director Tony Pham, in Miami, Florida. "Owed back wages and fringe benefits associated with these errors can add up quickly. The U.S. Department of Labor offers employers a wide variety of tools and free prevailing wage seminars to help them understand their responsibilities."

The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

For more information about the DBRA and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. The Division also offers a search tool that allows users to determine if they are owed back wages collected by the Division.

DAVIDSON, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), North Harbor Club LLC – a restaurant based in Davidson, North Carolina – has paid $16,859 in back wages and liquidated damages to 18 employees for violating the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant violated minimum wage requirements when they deducted a portion of the employees' pay to purchase uniforms, which caused the workers' hourly wages to dip below the federal minimum wage of $7.25 per hour. Investigators also found the employer failed to pay one hourly employee overtime for hours worked over 40 in a workweek, due to the employer failing to combine the hours from shifts the employee worked as a busser and a food runner.

"Employers must understand their responsibilities and pay employees all of the wages they have legally earned," said Wage and Hour District Director Richard Blaylock, in Raleigh, North Carolina. "The work of the Wage and Hour Division protects workers' wages, and levels the playing field so that employers who follow the rules do not find themselves at an economic disadvantage to those who do not. 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 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.

BURLESON, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Rice Drywall Inc. – based in Burleson, Texas – has paid $354,763 in back wages to 558 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer contracted with several construction and temporary drywall labor providers – RRT Construction, Carreno Interiors, J & R Drywall Services Inc., and JAC Contractor Inc. – and misclassified those companies’ employees as independent contractors. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek but were paid only their straight time hourly rates without overtime. WHD determined that Rice Drywall Inc. and the subcontractors jointly employed those workers. The employer also failed to accurately record and maintain records of the hours these employees worked, also an FLSA violation.

“Our investigations frequently find violations that stem from employers improperly classifying employees as independent contractors and then failing to pay them overtime,” said Wage and Hour Division District Director Jesus A. Valdez, in Dallas, Texas. “Employers should use the results of this investigation as an opportunity to review their pay practices and should contact the Wage and Hour Division if they need clarification on the employment relationship or have any other questions 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.

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.

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

WHAT: Wage and Hour Division Prevailing Wage Seminar

WHEN: June 18-20, 2019
8:30 a.m. to 5:30 p.m. CDT

WHERE: Hilton Austin
500 East 4th St.
Austin, TX 78701

The training is a component of the Wage and Hour Division’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 Austin 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.

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

WHAT: Wage and Hour Division Prevailing Wage Seminar

WHEN: June 25-27, 2019
9:00 a.m. to 5:00 p.m. ADT

WHERE: Anchorage Marriott Downtown
820 West 7th Avenue
Anchorage, AK 99501

The training is a component of the Wage and Hour Division’s ongoing effort to increase awareness and enhanced compliance with federal prevailing wage requirements.

Attendance is free, but preregistration is required. Registration can be completed through the online registration link for the Anchorage 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.

LUBBOCK, TX – After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), Shiprock Enterprise LTD and Junior Senior Inc. - operator of two Subway franchises in Lubbock, Texas - has paid $79,999 in back wages and liquidated damages to 52 employees for violating the Fair Labor Standards Act’s (FLSA) overtime requirements.

WHD investigations at Subway locations on East Slaton Road and Frankford Avenue found the employer systemically violated FLSA overtime requirements when it made deductions from salaried managers’ pay when they worked less than a full day. The employer claimed an exemption from the FLSA’s overtime requirements for its salaried managers. A requirement for that exemption is that employees must be paid a guaranteed salary each workweek. The employer’s practice of reducing managers’ salaries invalidated that exemption, making them eligible for overtime. Most managers worked between 55 and 60 hours per week.  

“Employers should be aware that claiming an exemption from overtime requires that all of the criteria are met – failing to follow the rules can result in costly violations,” said Wage and Hour Division District Director Evelyn Sanchez in Albuquerque, New Mexico. “The result of this investigation should encourage other employers to evaluate their pay practices to ensure that they are in compliance. We encourage all employers to call us, confidentially, to speak with a trained Wage and Hour professional to get their questions answered.”  

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, electronic toolkits, 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. Employers can find additional compliance assistance information on the Wage and Hour Division website.

RALEIGH, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Demetrio Inc. – operating as El Pollo Rico Restaurant in Raleigh, North Carolina – has paid $48,248 in back wages and liquidated damages to 32 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant paid hourly employees straight time rates without regard to the total number of hours that they worked. This practice resulted in overtime violations when employees worked more than 40 hours in a workweek yet were not paid overtime. The FLSA requires employers to pay workers one-and-one-half times their regular rates of pay for overtime hours. 

Demetrio Inc. also violated FLSA recordkeeping requirements when it failed to maintain accurate records that included the total number of hours employees had worked, full names and home addresses of all employees, the day and time each employee’s workweek began, hours worked daily and weekly, and regular hourly rates of pay for any week in which overtime compensation was due.

“Employers do not have the right to ignore the requirements of federal law,” said Wage and Hour District Director Richard Blaylock, in Raleigh, North Carolina. “Companies must meet their obligation to pay their employees the wages they have legally earned. 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.”

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. Employers can find additional compliance assistance information on the Wage and Hour Division website.

JACKSONVILLE, FL – After an investigation by the U.S Department of Labor’s Wage and Hour Division (WHD), Gulf Breeze Landscaping LLC – based in Gautier, Mississippi – has paid $44,832 in back wages and liquidated damages to 11 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that Gulf Breeze Landscaping LLC paid only straight-time rates to employees without regard to how many hours they worked. This practice resulted in overtime violations when the employer failed to pay time-and-a-half for hours employees worked beyond 40 in a workweek, as the law requires.

“Employers are responsible for ensuring they pay employees properly for all the hours that they work,” said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. “We encourage employers to contact us with any questions they may have, and to use the variety of tools we offer to help them understand their obligations and to comply with the law. Violations like these can be avoided.”

Gulf Breeze Landscaping worked in Florida’s Walton, Holmes, Washington, and Jackson counties on recovery efforts in the aftermath of Hurricane Michael. 

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.

SAN DIEGO, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), JEM Unlimited Iron Inc. – a welding company based in Anaheim, California – will pay $529,186 to 145 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found JEM Unlimited Iron Inc. paid overtime at time-and-one-half employees' regular rates of pay when they worked three hours of overtime or less. When employees worked more than three hours of overtime, the employer paid for half of the overtime hours in unrecorded cash at straight time rates, and paid the remaining half on the payroll at the required rates.

The employer also violated FLSA's record-keeping requirements by failing to keep complete and accurate time records.

"Employees must be paid all the wages they have legally earned, including overtime, so that employers who comply with the law compete on a level economic playing field," said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. "Violations like these must be avoided. The U.S. Department of Labor provides many tools to help employers comply with the law, and will continue to enforce the law rigorously."

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.