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

Read this news release En Español

HUNTSVILLE, TN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the Scott County, Tennessee, Government has paid $59,769 in back wages to 31 employees in the Scott County Sheriff's Department for violating the overtime requirements of the Fair Labor Standards Act (FLSA). The employer was also assessed a civil penalty of $12,486 by WHD for repeat violations.

WHD investigators determined Scott County incorrectly applied an overtime exemption that applies to law enforcement and fire protection employees to dispatchers who, as civilian employees, do not qualify for the exemption. In a two-week schedule, these dispatchers worked 60 hours one week and 24 hours the second week. Instead of paying dispatchers overtime when they exceeded 40 hours during a workweek, the employer paid overtime when they worked more than 86 hours during the two-week pay period. WHD also found Scott County Government paid patrol officers per their scheduled hours, instead of the number of hours they actually worked. This practice resulted in overtime violations when officers worked before or after their scheduled shifts, and that extra time remained unpaid.

"Misapplying exemptions results in workers taking home less than the wages they have legally earned, and can quickly add up to significant back wage liabilities," said Wage and Hour District Director Nettie Lewis, in Nashville, Tennessee. "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. Violations like those found 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.

LEBANON, KY – The U.S. Department of Labor's Office of Administrative Law Judges (OALJ) has issued a decision against James L. Brady Sr. – a tobacco farmer based in Lebanon, Kentucky – after an investigation by the Department's Wage and Hour Division (WHD) found he violated provisions of the Fair Labor Standards Act (FLSA), the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), and the H-2A visa program.

WHD investigators found that Brady violated the labor provisions of the H-2A visa program when he paid a lower hourly rate to U.S. employees than he did to H-2A workers performing the same type of work. He also failed to reimburse H-2A workers for travel expenses to and from their home countries, and failed to provide them housing at no cost, as the law requires. In addition, Brady failed to provide H-2A employees with at least three-quarters of the work hours that were guaranteed on their work contracts. WHD also found the employer failed to pay the employees as frequently as required, and paid less than required wages. Brady also failed to keep records and to provide employees with pay statements as required.

In addition, WHD determined Brady failed to meet safety and health requirements for the housing of H-2A employees. The Court ordered Brady to pay $91,778 in back wages to 43 employees and increased the civil money penalty previously assessed by the Department to $115,200 for the violations.

"This decision serves as an example to all growers using the H-2A program that a grave and egregious failure to adhere to all provisions of federal labor law will not be tolerated," said Wage and Hour Division District Director Karen Garnett, in Louisville, Kentucky. "Our work continues to safeguard American jobs, level the playing field for law-abiding employers, and ensure that workers are paid the wages they have legally earned." 

For more information about the FLSA, MSPA, H-2A, and other laws enforced by WHD, 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 FRANCISCO, CA – A restaurant enterprise with three locations in the San Francisco Bay Area will pay $224,465 in back wages to 25 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employers willfully violated the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). Additionally, WHD assessed the enterprise $18,621 in civil penalties for the willful nature of the violations, and for a child labor recordkeeping violation. The restaurants are owned and operated by Anthony LoForte Sr., Anthony LoForte Jr., and Sherry LoForte.

WHD investigators found restaurants Zio Fraedo's in Pleasant Hill and Vallejo, and Zio's Pasta Pronto in Pinole, failed to pay employees for all of the hours that they worked, resulting in minimum wage violations at the Pleasant Hill location. Investigators also found the restaurants paid employees for their overtime hours in cash, off the records, at straight-time rates. The law requires payment for overtime hours at time and one-half employees' regular rates of pay.

"Employers must understand they are responsible to pay employees all the wages they have legally earned," said Wage and Hour Division Assistant District Director Alberto Raymond, in San Francisco. "Willful violations like those found in this investigation will not be tolerated. The U.S. Department of Labor provides many tools to help employers comply with the law, and we encourage employers and employees alike to contact us for assistance. We will continue our work to level the playing field for employers, and to ensure workers are paid what they have earned."

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 JOSE, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Yaana Technologies – a Silicon Valley data collection services company based in Milpitas, California – will pay $910,878 in back wages and liquidated damages to 34 employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). Additionally, WHD assessed $31,670 in civil penalties because of the repeat nature of the violations found.

WHD investigators found Yaana Technologies missed several payrolls, resulting in their failure to pay employees at least the federal minimum wage, and failure to pay overtime when employees worked more than 40 hours in a week. The employer also violated the recordkeeping requirements of the FLSA.

WHD found Yaana Technologies in violation of the same FLSA provisions when it failed to pay workers for multiple pay periods in 2017.

"Employees rightfully expect to receive their full earnings correctly and on time," said Wage and Hour Division District Director Susana Blanco, in San Jose. "We are committed to ensuring a level playing field for law-abiding employers, and we encourage all employers to use the tools the U.S. Department of Labor offers to learn about their responsibilities."

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.

RALEIGH, NC - Kingfisher Systems Inc. – a federal contractor that provides information technology support at two North Carolina military installations, and based in Falls Church, Virginia – has paid $342,334 in wages and fringe benefits to 45 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 that Kingfisher Systems Inc. incorrectly classified employees providing information technology support work at Marine Corps Air Station Cherry Point in Havelock and Camp Lejeune in Jacksonville. As a result, the employer paid prevailing wage rates lower than those required by law and subsequently also paid incorrect fringe benefit rates to those workers. Additional violations resulted when the employer based overtime pay on these incorrect rates. WHD also found Kingfisher Systems Inc. failed to keep accurate records reflecting the required SCA wage rates, fringe benefits, correct work classifications, and the total daily compensation of each employee.

“Contractors and subcontractors awarded federal contracts must understand that incorrectly classifying employees can lead to numerous violations,” said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. “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 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.

WEST MIFFLIN, PA - After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Leschak Automotive Inc. – an auto repair shop based in West Mifflin, Pennsylvania – has paid $15,445 in back wages and an equal amount in liquidated damages to 10 employees to resolve violations of federal overtime requirements. WHD also assessed a $4,652 civil money penalty due to the willful nature of the violation.

WHD investigators found that the auto repair shop violated the overtime requirements of the Fair Labor Standards Act (FLSA) when it paid employees off the books, in cash, at their straight-time rates for hours they worked beyond 40 in a workweek. Leschak made these payments to workers, in separate envelopes containing the cash, apart from payment for their first 40 hours of work each workweek. The FLSA requires employers to pay workers one and one-half times their regular rates of pay for overtime hours.  

"Employers that pay employees less than they are legally due shortchange their workers, and gain an unfair advantage over competitors that abide by the law," said Wage and Hour Division District Director John DuMont, in Pittsburgh, Pennsylvania. "The U.S. Department of Labor will take appropriate steps to enforce the law to ensure that employers pay their employees the wages they have earned.  We encourage all employers to reach out to us for guidance so that violations like those in this case 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 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. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.

PORTLAND, OR – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), TT& L Sheet Metal Inc. – based in Beaverton, Oregon – will pay $98,461 in back wages to 51 employees for violating overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer failed to include time that employees spent driving when they totaled the employees' hours each week to determine whether overtime was due. Additional overtime violations resulted when the employer based overtime rates on employees' lowest pay rates earned during each week. Some employees earned rates that varied widely between projects within the course of a workweek, requiring the employer to pay overtime based upon the weighted average of those rates, or upon the rates employees were paid while actually working the overtime hours. The employer's practice of making deductions from employees' pay for tools required for their jobs resulted in additional violations.

"Violations like these are among the most common that we find in this industry, and they are completely avoidable," said Wage and Hour Division District Director Thomas Silva, in Portland, Oregon. "We encourage employers to use the wide variety of tools we provide or to reach out to us directly for confidential assistance in understanding and complying with federal labor laws. Employers may speak with trained Wage and Hour professionals to get their questions answered and avoid violations."

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 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.