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.

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.

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.

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.