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.

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.

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.

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.

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.

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.

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.

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.

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.