JACKSON, GA – Buckner's Family Restaurant LLC – a family restaurant based in Jackson, Georgia – has paid $100,326 in back wages and liquidated damages to 26 employees after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) found the employer violated the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD determined Buckner's Family Restaurant LLC paid employees straight-time rates for all the hours that they worked, without regard to whether they worked more than 40 hours in a work week. This practice resulted in violations when employees worked more than 40 hours in a workweek without being paid overtime, as the law requires. The restaurant also failed to maintain accurate records as required by the FLSA.

"Employers need to ensure that they pay employees all the wages they have legally earned," said Wage and Hour District Director Eric Williams, in Atlanta, Georgia. "We encourage all employers to make use of the resources we provide to help them understand their responsibilities under the law. Violations like those found in this case can quickly become costly, and 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.

TAMPA, FL – The U.S. Department of Labor's Wage and Hour Division (WHD) has debarred Pro-Fit Development Inc. – a development, construction, and roofing contractor based in Tampa, Florida – after an investigation found the employer violated requirements of the Davis Bacon and Related Acts (DBRA) and the Contract Work Hours and Safety Standards Act (CWHSSA). Debarment prohibits the employer from bidding on federally funded construction projects for three years.

WHD investigators determined that Pro-Fit Development Inc., as the prime contractor, failed to notify its subcontractors of their prevailing wage payment obligations in their contracts, and failed to provide them with wage determinations stating the specific prevailing wage rates employees must be paid. Failing to provide this information contributed to subcontractors classifying and paying employees in categories lower than those that corresponded to the work they actually performed. Subcontractors paid employees as general laborers when they actually performed more skilled labor as concrete finishers, masons, and carpenters, all of which require payment at higher rates. Pro-Fit Development Inc. and the subcontractors also failed to record and pay required rates to employees who worked in multiple positions for which different rates applied. These incorrect classifications resulted in the employers paying incorrect prevailing wage rates to the employees and subsequently incorrect overtime rates when they worked more than 40 hours in a workweek.

After Pro-Fit Development Inc. refused to pay $4,715 in back wages found due to 11 employees, WHD requested the Tampa Housing Authority withhold funds due to the contractor under the contract. The funds will instead be transferred to pay the employees who are owed wages. Pro-Fit had also been found not to have paid required prevailing wage rates in a 2017 investigation.

"All contractors and subcontractors must ensure they are thoroughly aware of all requirements associated with performing work on federally funded projects," said Wage and Hour Division District Director James Schmidt, in Tampa, Florida. "We offer a wide variety of tools to help employers understand their responsibilities, including a series of Prevailing Wage Seminars, currently underway across the country, where we offer free training for all interested stakeholders."

Pro-Fit Development Inc. was awarded the contract to construct the Cedar Point Apartment Property Redevelopment project funded from the U.S. Department of Housing and Urban Development and managed by the Tampa Housing Authority. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay employees 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, CWHSSA, 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 which allows users to determine if they are owed back wages collected by the Division.

SPANISH FORK, UT – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Leggings Live – operating as Legg-A-Licious – has paid a total of $84,048 in back wages, liquidated damages, and penalties to resolve violations of the Fair Labor Standards Act (FLSA) at the company's Spanish Fork, Utah, facility.

Investigators found the employer violated overtime, minimum wage, recordkeeping, child labor, and anti-retaliation provisions in the FLSA. WHD found Leggings Live violated child labor requirements by employing minors under the required minimum age of 14 years. The investigation found the employer terminated one worker's employment after they reported the illegal employment of minors to WHD.

In addition, WHD found violations resulting from Leggings Live's employment of these minors to work more hours than the law allows, and to work in jobs involving activities prohibited by law for workers less than 18 years old. Specifically, Leggings Live employed minors to load and unload merchandise from motor vehicles to stock the employer's warehouse.

The employer also violated FLSA minimum wage requirements when it failed to pay for all the hours one employee worked during one workweek. Overtime violations resulted from the firm's practice of paying employees straight time without regard to the number of hours they worked. Back wages were found due for five employees who worked more than 40 hours in some workweeks without being paid overtime.

"Employment standards for minors ensure that they gain a positive work experience that does not interfere with their education, health, and well-being. Child labor violations can be avoided when employers understand the rules," said Wage and Hour Division District Director Kevin Hunt in Salt Lake City, Utah. "In addition, employees should not have to fear retaliation when they exercise their rights under the law. The Wage and Hour Division will continue to use all available resources to enforce worker protections."

Leggings Live paid a total of $42,560 in back wages and liquidated damages to six employees, which included $33,664 to the employee terminated in retaliation for reporting the child labor violations. In addition, the employer paid $41,488 in civil money penalties for violating FLSA child labor provisions.

The U.S. Department of Labor 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 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.

SAN DIEGO, CA –  O-Fire Corp. – operating as Onami Seafood Buffet in San Diego, California – will pay $29,992 in back wages and liquidated damages to two employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer failed to pay two cooks overtime when they worked more than 40 hours in a workweek. Instead, O-Fire paid these workers flat salaries without regard to the number of hours that they worked. The underpaid employees worked 52 hours per week, on average. The employer also violated the recordkeeping requirements of the FLSA when it failed to accurately record the total number of hours employees actually worked.

"Employers are responsible for ensuring not only that they pay employees all the wages they have legally earned, but also for keeping accurate records of their hours," said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. "The U.S. Department of Labor provides many tools to help employers in the restaurant industry comply with the law, and we encourage employers and employees alike to contact us for assistance. Violations like these can 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.

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NEW YORK, NY – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Chad C. Brown Inc. and owner Chad Brown will pay a total of $1,617,673 in back wages, liquidated damages, and civil penalties for willful violations of the Fair Labor Standards Act (FLSA) and the labor provisions of the H-2B non-immigrant visa program.

WHD investigators found that the thoroughbred horse racing trainer and the company violated the FLSA by failing to pay grooms and hot walkers at Elmont and Saratoga, New York, among other locations, overtime wages for all hours when they worked more than 40 hours in a workweek and failing to keep required time and payroll records.

The H-2B program violations resulted from Chad C. Brown Inc.:

• Failing to pay the H-2B employees the wages they were offered;
• Collecting payment from employees for visa costs, which should be paid by the employer;
• Failing to reimburse employees' transportation and subsistence costs for travel from their home countries;
• Misrepresenting to employees the place of employment and  job terms and conditions, such as the availability of free housing;
• Failing to disclose required information in a language understood by the employees; and
• Failing to post a notice of employees' H-2B rights.

A complaint and consent judgment filed with the U.S. District Court for the Eastern District of New York orders the defendants to pay $575,233 - $287,616 in back wages and an equal amount in liquidated damages - to 150 employees and pay $46,776 in civil penalties to WHD for the FLSA violations. The judgment also requires them to designate a compliance officer for pay practices, implement and use an electronic timekeeping system to ensure accurate tracking of employees' work hours, and train certain supervisory employees on the requirements of the FLSA and the H-2B provisions of the Immigration and Nationality Act (INA).

An H-2B stipulation and compliance agreement separately requires Chad C. Brown Inc. to pay $918,682 in H-2B back wages to 86 employees and $76,981 in civil penalties to WHD. The company also agrees to institute and maintain a comprehensive H-2B compliance program. In addition to the consent judgment's requirements, it will designate a compliance officer to ensure compliance with the H-2B program throughout the season, and conduct orientation sessions to inform employees of the timekeeping system and their H-2B rights.

"The U.S. Department of Labor ensures labor laws are followed to protect workers and offers employers extensive assistance to ensure that they understand their responsibilities," said Wage and Hour Division Long Island District Director David An. "Employers must understand and abide by the H-2B program's provisions to prevent foreign workers from being paid less than the wages they were promised. Our enforcement ensures required payments, protects American jobs, and levels the playing field for law-abiding employers."

"These legal actions demonstrate the U.S. Department of Labor's commitment to take all steps necessary to ensure employees receive the wages that they have rightfully earned and that employers who violate laws do not gain an unfair advantage over law-abiding competitors," said Regional Solicitor of Labor Jeffrey S. Rogoff.

The Division's Long Island District Office conducted the investigations. Trial attorneys Jason Glick and Molly Theobald from the Department's Office of the Solicitor in New York litigated the case.

For more information about the FLSA and other laws enforced by WHD, including the H-2B provisions of the INA, 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.

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Acosta v. Chad C. Brown Inc., d/b/a Chad Brown Racing, d/b/a Chad Brown Racing Stables Inc., and Chad C. Brown, an individual
Civil Action Number:  19-cv-1941

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HARTFORD, CT – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, three restaurants in Fairfield County, Connecticut, have paid $180,007 in back wages and liquidated damages to 49 employees to resolve violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Frank Marchetti and Michael Marchetti manage all three restaurants – Old Greenwich Restaurant Corp. d/b/a Osteria Applausi; Stamp Restaurant Corporation d/b/a Columbus Park Trattoria; and T & S Restaurant Corp. d/b/a Tarantino Restaurant.

WHD investigators found the restaurants:

• Failed to combine total weekly work hours for individual employees who worked at multiple locations when determining whether overtime was due;
• Incorrectly calculated overtime pay for front of the house tipped wait staff, basing their overtime rates only on the workers' direct cash wages, instead of the employees' regular rates of pay;
• Failed to pay the required overtime premium to back of the house kitchen employees, instead paying them flat salaries without regard to the number of hours they actually worked; and
• Failed to keep complete and accurate time and payroll records that represented a true accounting of employees' work hours.

"Employers must pay employees correctly for all the hours that they work. Failure to do so deprives employees of the wages they've earned and places law-abiding employers at a competitive disadvantage," said Wage and Hour Division District Director David Gerrain, in Hartford, Connecticut. "These types of violations can be avoided. We encourage employers to reach out to us for information and 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.

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NEW ORLEANS, LA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Gomez Drywall Contractors Inc. – based in Fort Walton Beach, Florida, and operating in Louisiana since 2017 – has paid $178,766 in back wages to 108 employees for violating the Fair Labor Standards Act's (FLSA) overtime and recordkeeping requirements.

WHD investigators found the framing and drywall construction company violated FLSA overtime requirements when the employer misclassified workers as independent contractors and subsequently failed to pay them overtime when they worked more than 40 hours in a workweek. The law requires payment for overtime hours at time and one-half employees' regular rates. Recordkeeping violations occurred when the employer failed to maintain time and payroll records as required by the FLSA.

The investigation also revealed that workers employed primarily by Gomez Drywall Contractors Inc. were also jointly employed by general contractor RSL Contractors LTD of Spring, Texas, who hired Gomez Drywall Contractors Inc. as a subcontractor. RSL cooperated in the investigation and agreed to release payments due to Gomez Drywall Contractors Inc. directly to the Department of Labor. 

Pursuant to an agreement between the U.S. Department of Labor and the Louisiana Workforce Commission (LWC), LWC auditors also participated in this investigation and contributed to its resolution.

"Violations like those found in this case are common in this industry, and are avoidable," said Wage and Hour Division District Director Troy Mouton, in New Orleans. "The Wage and Hour Division is committed to ensuring that employees receive the wages they've earned and that employers compete on a level playing field."  

The Department of Labor 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 https://www.dol.gov/whd/ including a search tool for workers who may be owed back wages collected by WHD.

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RALEIGH, NC – Securing Our Country LLC (SOC) - based in Chantilly, Virginia, and operating as Day & Zimmerman Federal Services - has paid $195,513 in back wages and fringe benefits to 22 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated requirements of the Fair Labor Standards Act (FLSA) and the McNamara-O'Hara Service Contract Act (SCA).

WHD determined the employer incorrectly classified employees providing information technology work at two North Carolina Marine Corps installations - Air Station Cherry Point in Havelock and Camp Lejeune in Jacksonville - which led SOC to pay prevailing wage rates lower than those required by law. The employer also failed to keep accurate records reflecting the required SCA wage rates and the correct work classifications. In addition, WHD found that SOC failed to pay the appropriate overtime rates as a result of paying the wrong prevailing wage rate.

"Contractors and subcontractors awarded federal contracts must classify their employees accurately and pay the required prevailing wage rates that apply to those classifications, including fringe benefits," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "The U.S. Department of Labor works to make sure that employees receive the wages they have rightfully earned, and offers employers a wide variety of tools, including free prevailing wage seminars, to help them understand their responsibilities."

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 FLSA 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.

CLARKSVILLE, TN – Hankook Tire Manufacturing Tennessee LP – based in Clarksville, Tennessee, and a subsidiary of Hankook Tire America Corp. – has paid $659,268 in back wages and liquidated damages to 136 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer failed to pay some employees overtime until after they had worked 45 hours in a workweek. The law requires overtime at time and one-half an employee's regular rate of pay when they work beyond 40 hours per week. When the employer did pay overtime, it failed to include shift differentials and additional hourly bonuses when calculating employees' overtime rates. These exclusions resulted in the employer paying overtime at rates lower than those required by law. WHD also found that Hankook violated FLSA recordkeeping requirements by failing to display the federal FLSA poster, as required.

"Employers must pay employees all of the wages they have legally earned," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "The result of this investigation serves as a reminder to all employers to review their legal obligations and to contact the Wage and Hour Division for compliance assistance. Violations like those in this case 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.

SAN JUAN, PR – The U.S. District Court for the District of Puerto Rico has found Special Police Force Corp. – a security company based in Bayamon, Puerto Rico – and its owner Hector Rivera Ortiz liable for violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

Following a four-day trial, the court ordered Rivera to pay $324,492, made up of $162,246 in back wages and an equal amount liquidated damages, to 212 former employees. The order also enjoined him from future FLSA violations. This judgment follows a similar February 2018 summary judgment decision against Special Police Force Corp.

The litigation by the U.S. Department of Labor's Office of the Solicitor follows an investigation by the Department's Wage and Hour Division (WHD), which found the company and Rivera failed to pay the minimum wage of $7.25 to some employees when they deducted the cost of uniforms from the employees' pay. They also failed to pay the time-and-one-half overtime wage rate to employees who worked more than 40 hours in a workweek and failed to maintain complete employee payroll records.

"Violations like these can and should be prevented in the first place through knowledge of and adherence to the Fair Labor Standards Act. We encourage employers to contact us with any questions they may have and to use the variety of compliance assistance tools we offer to help them understand their obligations and comply with the law," said Wage and Hour Division Caribbean District Director Jose Vazquez.

"The U.S. Department of Labor will use all appropriate and available legal tools to enforce the law, so that workers can receive the wages to which they are legally entitled and employers who violate the law do not gain an unfair economic advantage over law-abiding competitors," said Regional Solicitor of Labor Jeffrey S. Rogoff.

WHD's Caribbean District Office conducted the original investigation. Attorneys Susan Jacobs and Jason Glick of the New York regional solicitor's office litigated the case for the Department.

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). 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 http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

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Acosta v. Special Police Force Corp., et. al.
Civil Action Numbers: 15-cv-01506-CVR

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