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.

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.