LOS ANGELES, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), ESS Apparel Inc. – a garment sewing contractor based in Los Angeles, California – will pay $53,876 to 21 employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found ESS Apparel Inc. paid employees a flat amount for each piece they sewed, without regard to the number of hours that they worked. This practice resulted in minimum wage violations when those piece rates failed to cover all the hours employees worked at the federal minimum wage of $7.25 per hour, and in overtime violations when employees worked more than 40 hours in a workweek yet were not paid overtime. ESS Apparel also violated FLSA's recordkeeping requirements by failing to maintain complete and accurate time records. The majority of the employer's employees did not appear in the ESS Apparel's records and the employer paid them in cash.

"Employers must not allow unlawful labor practices that hurt hardworking employees and prevent law-abiding employers from competing on a level playing field," said Wage and Hour Division District Director Rodolfo Cortez, in San Diego, California. "Violations like these must be avoided."

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.

PHOENIX, AZ – The U.S. District Court in Arizona has banned one local farm labor contractor from doing business as a contractor permanently and ordered another to comply with all applicable laws in the future after a U.S. Department of Labor Wage and Hour Division (WHD) investigation revealed systemic violations of the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) and the labor provisions of the H-2A foreign guest worker program.

U.S. District Judge Susan Brnovich ordered Agro Cargo LLC and Christian Gomez Bueno to pay $48,771 in civil penalties and $26,229 in back wages they owe their employees. The judge also barred Jose Carlos Gomez, who is Gomez Bueno’s father and did business as Union Harvest, from ever again serving as a farm labor contractor. Finally, the judge defined clear requirements for future compliance for both father and son under MSPA and the H-2A program.

WHD investigators found that the defendants failed to provide employees with safe transportation, to pay employees all the wages they had earned when due, to maintain accurate records of hours employees worked under the H-2A program and MSPA, and to register all persons performing farm labor contractor activities on their behalf, among other violations. The investigation found egregious transportation safety violations, including that the buses used by Union Harvest had worn tires, missing mirrors, faulty lights, and inoperative horns. The investigation also found the employer used duct tape to hold together the steering column of one of the buses.

“The court sent a clear message to these contractors to either abide by the law or have their licenses revoked,” said Regional Solicitor Janet Herold, in San Francisco, California. “These two contractors endangered employee safety while also failing to pay them their full wages. The U.S. Department of Labor engages in extensive outreach and education efforts to provide employers in this industry the tools and information they need to comply with the law.” 

The consent judgment requires the defendants to provide notices to employees about their rights; permit WHD investigators to enter the fields to read the notices to employees and answer employees’ questions on company time; provide for annual and bi-annual trainings for supervisors; and to cooperate with the Department to secure liens on property.

MSPA protects migrant and seasonal agricultural employees by establishing employment standards related to wages, housing, transportation, disclosures, and recordkeeping. For general information on MSPA, please see the Employment Law Guide or the Wage and Hour Division’s MSPA fact sheet.

To operate legally as farm labor contractors, individuals and companies must register with the U.S. Department of Labor. Farm labor contractors that intend to house, transport, or drive a migrant or seasonal agricultural employee must meet special requirements. Application materials and instructions are available online.

Employees and employers with questions about MSPA or any of the federal laws administered by the Division should call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information also is available online at https://www.dol.gov/whd/.

MIAMI, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), AWA Security Inc. – a security company based in Miami, Florida – will pay $66,412 in back wages and liquidated damages to 23 employees for violating overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that AWA Security Inc. paid employees straight time rates for all the hours that they worked, failing to pay them overtime when they worked more than 40 hours in a workweek. The employer issued employees separate checks or cash payments at straight time for their overtime hours, rather than paying them time-and-one-half their regular rates as required by law. The employer also violated the recordkeeping requirements of the FLSA when it failed to maintain accurate time and payroll records.

"Employers are responsible for ensuring they pay employees properly for all the hours that they work," said Wage and Hour Division District Director Tony Pham, in Miami, 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. Costly violations like these can be avoided."

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.

SAIPAN, CNMI – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Saint Trading Co. Inc. – a hotel staffing agency based in Saipan, Commonwealth of the Northern Mariana Islands – will pay $163,327 in back wages and liquidated damages to 73 employees for violating the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). Additionally, WHD assessed $40,150 in penalties because of the repeat nature of the violations.

WHD investigators found Saint Trading Co. Inc. failed to combine hours that some employees worked at multiple locations during the workweek when determining whether overtime was due. This practice resulted in violations when workers' totals exceeded 40 hours per week, yet they were paid only straight time rates for the hours they worked at each separate location. The employer also violated the minimum wage requirements when it failed to reimburse employees for job-required medical exams, and food-handler trainings and certifications. The employer also failed to record or pay employees for the time they spent securing these items.

In 2013, WHD found the employer violated similar FLSA provisions by failing to pay employees for all the hours they worked, including time they spent working before and after their scheduled shifts, and during their unpaid meal breaks. Investigators at that time also found the employer failed to combine all the hours worked at multiple job sites for purposes of determining and paying overtime hours – a practice found to be ongoing in the current investigation. These violations resulted in Saint Trading paying $23,745 in back wages following the previous investigation.

"Employers that continue to operate in violation of federal labor laws can be subject to significant civil money penalties in addition to back wages and liquidates damages owed to employees," said Wage and Hour Division District Director Terence Trotter, in Honolulu, Hawaii. "The U.S. Department of Labor is committed to ensuring a level playing field for law-abiding employers, and urges all employers to use the tools we offer to understand their responsibilities and avoid costly violations."

Employers that 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 Wage and Hour Division, contact the Division's 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.

PANAMA CITY BEACH, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), By The Sea Resorts Inc. – based in Panama City Beach, Florida – will pay $38,513 in back wages to 78 guest workers for violating overtime requirements of the Fair Labor Standards Act (FLSA) and labor provisions of the H-2B visa program. In total, $7,304 in back wages were found as a result of FLSA violations, while $31,209 in back wages were found for H-2B violations.By The Sea Resorts Inc. also paid a civil penalty of $12,695.

By The Sea Resorts Inc. manages resorts and restaurants in the Panama City Beach area that include Beachbreak, Legacy, Shalimar Retreat Center, Sugar Sands, Chateau, and Ocean Breeze. WHD investigators found the employer hired 117 Jamaican employees to work as housekeepers under the H-2B visa program. The employer violated the H-2B provisions by placing those employees in occupations not listed on the temporary employment certification that they submitted, such as front desk personnel, dishwashers, and bartenders, while paying them as housekeepers.

WHD also determined By The Sea Resorts Inc. automatically made deductions from workers' time for meal breaks regardless of whether or not they actually took those breaks. These deductions led to FLSA overtime violations when the employer deducted time for breaks that workers did not take and this unpaid and un-recorded time resulted in the employees working more than 40 hours in a workweek.

"Employers seeking H-2B workers must abide by all of the program's requirements, including placing those workers only in occupations listed in their employment certifications," said Wage and Hour District Director Daniel White, in Jacksonville. "The U.S. Department of Labor will continue to safeguard American jobs and level the playing field for law-abiding employers. We encourage employers to contact the Wage and Hour Division by phone, online, or to attend any of our many outreach events for assistance and to learn more about their responsibilities."

For more information about the H-2B and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover FLSA overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at http://www.dol.gov/whd.

ATLANTA, GA – The U.S. Department of Labor's Wage and Hour Division (WHD) is currently engaged in an education and enforcement initiative to boost compliance in the Southeast's agricultural industry, educate stakeholders, employers, and employees about federal wage laws, and to provide employers with compliance assistance.

Working with stakeholder organizations in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee, WHD identifies the best methods for raising awareness among industry employers and provides them the tools they need to comply with applicable laws. As part of the initiative, WHD representatives have participated in regional events hosted by local fruit and vegetable growers associations and farm bureaus. In the months ahead, outreach efforts will extend to various commodity groups, trade associations, agricultural extension agents, and other governmental agencies to share information on various programs' requirements.

Compliance assistance and enforcement work hand in hand,as the division continues to focus on decreasing violations in the Southeast's agricultural industry. From January 2018 through March 2019, WHD investigators found violations in 90% of the 345 investigations of agricultural employers they concluded. In all, these investigations found employers owed more than $1.3 million to more than 3,800 employees, and led the Division to assess more than $1.9 million in civil money penalties. WHD has recommended that 20 Southeast growers and farm labor contractors be debarred from participating in the H-2A temporary labor certification agricultural program. 

"The U.S. Department of Labor is committed to ensuring that agriculture industry employees receive all the wages they have legally earned, that their employers comply with the rules, and that the playing field remains level for law-abiding employers," said Wage and Hour Division Regional Administrator Juan Coria, in Atlanta, Georgia. "Our outreach staff is available throughout the Southeast to equip employers and associations with compliance assistance resources, answer their questions, and help them avoid costly violations. We encourage them to call us for assistance."

WHD may suspend, revoke, or withhold renewal of farm labor certificates for contractors that have committed multiple violations under the Migrant Seasonal Protection Act (MSPA) or that fail to comply with a final order requiring the payment of a civil money penalty as a result of a violation. Employers are encouraged to review the MSPA ineligible farm labor contractor and H-2A debarment lists prior to contracting for labor.

The Division offers multiple compliance assistance resources to provide employers the tools they need to comply with the law. The Division encourages employers to contact them to find out about upcoming compliance assistance events, to request information, or to ask specific questions. All calls are confidential.

For more information about MSPA, H-2A and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

TROY, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) found violations of the labor provisions of the H-1B visa program, Populus Group – based in Troy, Michigan – will pay $1,145,256 in back wages to 594 employees.

The H-1B visa program permits American employers to employ nonimmigrants to work temporarily in specialized occupations in the U.S when they cannot otherwise obtain needed business skills and abilities from the U.S. workforce.

WHD investigators found that the employment services company failed to pay H-1B employees required wages when worksites were shut down for holidays. In addition to paying the back wages, Populus Group will review past and current payroll records to ensure compliance with program requirements.

“The intent of the H-1B foreign labor certification program is to help American companies find the highly skilled talent they need when they can prove that a shortage of U.S. workers exists,” said Wage and Hour District Director Timolin Mitchell in Detroit, Michigan. “The resolution of this case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and ensure no one is being paid less than they are legally owed.”

The law establishes certain standards in order to protect similarly employed U.S. workers from being adversely affected by the employment of the nonimmigrant workers, as well as to protect the H-1B nonimmigrant workers. Employers must attest to the Department that they will pay wages to the H-1B nonimmigrant workers at least equal to the actual wage paid by the employer to other workers with similar experience and qualifications for the job in question, or the prevailing wage for the occupation in the area of intended employment – whichever is greater.

For more information about wage laws enforced by WHD, 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 WHD.

NASHVILLE, TN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Capstone Pediatrics PLLC – a Nashville, Tennessee-based pediatric clinic enterprise – will pay $92,510 in back wages to 31 employees for violating the overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined Capstone Pediatrics PLLC – owned by Dr. Gary Griffieth and Winnie Toliver – failed to provide payment to employees on their scheduled paydays on multiple occasions. The employer also issued paychecks on some occasions without sufficient funds in their payroll accounts to cover the amounts of those checks, resulting in the checks being returned and associated fees being charged to the employees by their banks. These practices resulted in minimum wage violations when Capstone did not pay employees for the hours they had worked, and in overtime violations when those unpaid workweeks exceeded 40 hours.

The employer also incorrectly classified one employee as an independent contractor and paid that employee straight-time rates without regard to the number of hours actually worked. This practice resulted in additional overtime violations when that employee exceeded 40 hours in a workweek yet was not paid overtime. The employer also failed to document the total number of hours worked by the incorrectly classified employee.

"Employers have a non-negotiable duty to pay their employees the wages they are due in a timely manner," said Wage and Hour District Director Nettie Lewis, in Nashville. "The U.S. Department of Labor will continue to work to ensure that employers uphold their legal responsibilities to pay their employees. We encourage all employers to make use of the resources we provide to help them understand their responsibilities and operate in compliance with the law."

Capstone Pediatrics PLLC owned and operated 10 clinics throughout middle Tennessee in Brentwood, Clarksville, Lebanon, Murfreesboro, Nashville, and Smyrna. During the investigation, seven locations were closed.

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.

SIMPSONVILLE, SC – LCV Jalisco Inc. – a restaurant based in Simpsonville, South Carolina – has paid $92,670 in back wages to nine employees after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) found the employer violated the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD determined LCV Jalisco Inc. – operating as El Jalisco Mexican Restaurant – violated the minimum wage and overtime requirements of the FLSA when it failed to pay any wages to two servers, instead employing them to work only for tips. WHD also found the restaurant violated the overtime provisions of the FLSA when it failed to pay other employees time-and-a-half for any hours they worked over 40 in a workweek. In addition, LCV Jalisco Inc. failed to maintain accurate records of the number of hours employees worked, and failed to display an FLSA poster at the establishment.

"Employers must pay their employees for all the hours they have worked. Our efforts ensure that payments not only benefit the workers, but also help to level the playing field for employers who play by the rules," said Wage and Hour District Director Jamie Benefiel, in Columbia, South Carolina. "We encourage all employers and employees to make use of the resources we provide to help them understand their responsibilities and rights under the law. Trained Wage and Hour professionals are available to provide confidential assistance to anyone who has questions."

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.

WAYNESVILLE, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Vandelay Stone Tops Inc. – a granite and quartz countertop installation company based in Waynesville, North Carolina – has paid $23,348 in back wages and liquidated damages to 13 employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found Vandelay Stone Tops Inc. paid employees straight-time rates for all the hours they worked, failing to pay overtime when they worked more than 40 hours in a workweek. The FLSA requires employers to pay overtime at time-and-one-half employees' regular rates of pay for hours they work beyond 40 in a workweek.

"Employers must pay employees all the wages they have earned for all the hours they have worked," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "We encourage employers to review their pay practices and contact us if they have questions so that they can avoid costly 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.