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.

Read this news release En Español

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.

# # #

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

Read this news release En Español

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.

Read this news release En Español

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.

Read this news release En Español

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.

# # #

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.