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.

LUBBOCK, TX – After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), Shiprock Enterprise LTD and Junior Senior Inc. - operator of two Subway franchises in Lubbock, Texas - has paid $79,999 in back wages and liquidated damages to 52 employees for violating the Fair Labor Standards Act’s (FLSA) overtime requirements.

WHD investigations at Subway locations on East Slaton Road and Frankford Avenue found the employer systemically violated FLSA overtime requirements when it made deductions from salaried managers’ pay when they worked less than a full day. The employer claimed an exemption from the FLSA’s overtime requirements for its salaried managers. A requirement for that exemption is that employees must be paid a guaranteed salary each workweek. The employer’s practice of reducing managers’ salaries invalidated that exemption, making them eligible for overtime. Most managers worked between 55 and 60 hours per week.  

“Employers should be aware that claiming an exemption from overtime requires that all of the criteria are met – failing to follow the rules can result in costly violations,” said Wage and Hour Division District Director Evelyn Sanchez in Albuquerque, New Mexico. “The result of this investigation should encourage other employers to evaluate their pay practices to ensure that they are in compliance. We encourage all employers to call us, confidentially, to speak with a trained Wage and Hour professional to get their questions answered.”  

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, electronic toolkits, 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. Employers can find additional compliance assistance information on the Wage and Hour Division website.

RALEIGH, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Demetrio Inc. – operating as El Pollo Rico Restaurant in Raleigh, North Carolina – has paid $48,248 in back wages and liquidated damages to 32 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant paid hourly employees straight time rates without regard to the total number of hours that they worked. This practice resulted in overtime violations when employees worked more than 40 hours in a workweek yet were not paid overtime. The FLSA requires employers to pay workers one-and-one-half times their regular rates of pay for overtime hours. 

Demetrio Inc. also violated FLSA recordkeeping requirements when it failed to maintain accurate records that included the total number of hours employees had worked, full names and home addresses of all employees, the day and time each employee’s workweek began, hours worked daily and weekly, and regular hourly rates of pay for any week in which overtime compensation was due.

“Employers do not have the right to ignore the requirements of federal law,” said Wage and Hour District Director Richard Blaylock, in Raleigh, North Carolina. “Companies must meet their obligation to pay their employees the wages they have legally earned. The U.S. Department of Labor will continue to work to level the playing field so that employers who follow the rules don’t find themselves at an economic disadvantage to those who do not.”

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. Employers can find additional compliance assistance information on the Wage and Hour Division website.

JACKSONVILLE, FL – After an investigation by the U.S Department of Labor’s Wage and Hour Division (WHD), Gulf Breeze Landscaping LLC – based in Gautier, Mississippi – has paid $44,832 in back wages and liquidated damages to 11 employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that Gulf Breeze Landscaping LLC paid only straight-time rates to employees without regard to how many hours they worked. This practice resulted in overtime violations when the employer failed to pay time-and-a-half for hours employees worked beyond 40 in a workweek, as the law requires.

“Employers are responsible for ensuring they pay employees properly for all the hours that they work,” said Wage and Hour Division District Director Daniel White, in Jacksonville, 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. Violations like these can be avoided.”

Gulf Breeze Landscaping worked in Florida’s Walton, Holmes, Washington, and Jackson counties on recovery efforts in the aftermath of Hurricane Michael. 

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 DIEGO, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), JEM Unlimited Iron Inc. – a welding company based in Anaheim, California – will pay $529,186 to 145 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found JEM Unlimited Iron Inc. paid overtime at time-and-one-half employees' regular rates of pay when they worked three hours of overtime or less. When employees worked more than three hours of overtime, the employer paid for half of the overtime hours in unrecorded cash at straight time rates, and paid the remaining half on the payroll at the required rates.

The employer also violated FLSA's record-keeping requirements by failing to keep complete and accurate time records.

"Employees must be paid all the wages they have legally earned, including overtime, so that employers who comply with the law compete on a level economic playing field," said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. "Violations like these must be avoided. The U.S. Department of Labor provides many tools to help employers comply with the law, and will continue to enforce the law rigorously."

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.

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.