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.

GUAYNABO, PR – The U. S. Department of Labor’s Wage and Hour Division (WHD) is conducting a survey of all building, highway, residential, and heavy construction projects active in the U.S. Virgin Islands and Puerto Rico that occurred between July 1, 2017, and December 31, 2018. The purpose to establish prevailing wage rates as required under the Davis Bacon and Related Acts (DBRA). This survey is not limited to federally funded construction projects. 

"Participation in the survey by contractors and other interested parties is crucial to the wage-setting process. Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers in the local subdivision where the work takes place," said Wage and Hour Division Northeast Deputy Regional Administrator Maria Rosado. "Full participation will allow us to provide accurate prevailing wages and to create a complete wage determination which, in turn, will reduce the need for contractors to request additional classifications."

WHD is sending notification letters and data collection forms (WD-10s) to all interested parties and contractors of which the Wage and Hour Division is aware. You do not have to receive a letter to participate in the survey. If you would like to receive a letter, please contact Angel A. Aguero at (267) 687-4059. Data must be postmarked by September 3, 2019, to be included in the survey.  You can also participate in this survey electronically at www.dol.gov/whd/programs/dbra/wd10/index.htm.

PHILADELPHIA, PA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), WSP USA Services Inc. - based in Winchester, Virginia, and doing business as WSP USA Inspection Services, Inc. - has paid $2,772,977 in back wages to 6,450 employees for violating the McNamara-O'Hara Service Contract Act (SCA) and the Fair Labor Standards Act (FLSA).

Under contract with the Federal Emergency Management Agency (FEMA), WSP USA Services Inc. performed disaster-related housing inspections in U.S. territories and states – including Puerto Rico, the U.S. Virgin Islands, Texas, Florida, Georgia, and California – following hurricanes and other natural disasters.

Investigations by WHD's Caribbean and New York City District Offices found the contracting agency's failure to amend the contract at renewal to include the most recent wage determination led WSP USA Services Inc. to underpay SCA-required prevailing wages and fringe benefits to employees. The employer also failed to post the wage determination, which lists the required pay rates for each category of work performed, and the SCA poster, as required. The FLSA violations stemmed in part from WSP USA's failure to include bonuses in employees' regular pay rates when determining their overtime rates. This exclusion resulted in the employer paying overtime at rates lower than those required by law.

"Contractors that bid on government contracts must exercise due diligence and be aware of - and pay - the required rates and benefits to their employees," said Wage and Hour Division Northeast Deputy Regional Administrator Maria Rosado. "All federal contracting agencies advertising for bids and awarding contracts are required to include the McNamara-O'Hara Service Contract Act labor standards and a current wage determination stating the minimum wages to be paid various classes of service employees. Our enforcement of these requirements help to level the playing field for all contractors doing business with the government."

The U.S. Department of Labor provides tools to help employers understand and comply with the labor requirements on government contracts. For more information about the SCA, 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 https://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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CARROLLTON, GA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Tushar and Varsha Patel – the owners of an enterprise operating nine gas stations and convenience stores in Carrollton and Bowden, Georgia – will pay $63,398 in wages to six employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigated the enterprise – consisting of Marathon, Chevron, Shell, and BP gas stations – and found the employer paid overtime-eligible managers flat salaries, without regard to the number of hours that they worked. In doing so, the employer violated FLSA by failing to pay overtime in addition to the managers’ salaries when they worked more than 40 hours in a workweek. WHD also found the employer failed to maintain accurate records of the hours employees worked, also a federal violation.

“We encourage all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance. By doing so, employers can ensure all employees are paid properly and avoid violations like those found in this case,” said Wage and Hour Division District Director Eric Williams, in Atlanta.

WHD investigators found the violations at the following gas station locations:

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.

BATON ROUGE, LA – After investigations by the U.S. Department of Labor’s Wage and Hour Division (WHD), the owners and operators of a family of 11 restaurants with common ownership in Louisiana have paid $230,877 in back wages and an equal amount in liquidated damages to 141 employees for violating the Fair Labor Standards Act’s (FLSA) minimum wage, overtime, and recordkeeping requirements.

WHD investigators found the restaurants violated FLSA overtime requirements when they paid flat salaries or day rates to employees without regard to the number of hours that they actually worked. These practices resulted in violations when employees worked more than 40 hours in a week, but were not paid overtime.  Additional overtime violations resulted when the restaurants paid tipped employees overtime based on time-and-one-half their direct cash wages of $2.13 per hour instead of basing their overtime on the full federal minimum wage of $7.25 per hour, as required.

Minimum wage violations resulted when the employer made deductions from employees’ wages for cash register shortages and the cost of required uniforms. The employer also failed to pay some employees for all the hours that they worked, and paid some kitchen staff salaries that failed to cover all of their hours at the minimum wage. Recordkeeping violations resulted when the restaurants failed to keep accurate time and payroll records, as required by law. 

“The violations found in these investigations are avoidable,” said Wage and Hour Division District Director Troy Mouton, in New Orleans. “The resolution of these cases should remind employers to review their pay practices to ensure they comply with federal law. We encourage employers to call us, confidentially, for information about the FLSA or any of the other laws we enforce.”

The restaurants included in the investigations are Albasha Greek & Lebanese Café Nene LLC in Covington, Albasha Greek & Lebanese Restaurant NENF LLC in Hammond; Albasha Greek & Lebanese Restaurant Albasha Greek and Lebanese Restaurant Inc. in Baton Rouge, Albasha Greek and Lebanese Cafe Lebanon Inc. in Baton Rouge, Albasha Greek & Lebanese Restaurant - Slidell NENMS LLC in Slidell, Albasha Greek & Lebanese Restaurant-Metairie NENAL LLC in Metairie, Casa Maria NNMK LLC in Gonzales, Casa Maria Mexican Grill CASA NNMK LLC in Denham Springs, Las Palmas Mexican Restaurant BKBS Inc. in Brusly, Las Palmas Mexican Restaurant HAWA LLC in Prairieville, and Las Palmas Mexican Restaurant WADI Inc.  in Baton Rouge.

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.

WASHINGTON, DC – The U.S. Department of Labor today announced Cheryl Marie Stanton was sworn-in as the Administrator of the Department's Wage and Hour Division.

"I welcome and congratulate Cheryl Stanton as she officially assumes the position of Administrator of the Wage and Hour Division," said U.S. Secretary of Labor Alexander Acosta. "Cheryl brings with her a distinguished career including prior public service as Executive Director of the South Carolina Department of Employment and Workforce."

The Wage and Hour Division (WHD) enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.

Stanton was nominated by President Trump on September 2, 2017, and confirmed by the U.S. Senate on April 10, 2019.

MANCHESTER, NH – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), The Spot LLC – owner of two Burlington, Vermont, restaurants – has paid $55,546 in back wages and an equal amount in liquidated damages to 91 current and former employees to resolve overtime violations of the Fair Labor Standards Act (FLSA). The employer also paid $2,360 in penalties for child labor violations.

WHD investigators found The Spot LLC - operator of The Spot and Spot on the Dock – violated FLSA overtime requirements when it paid employees straight-time rates when they worked more than 40 hours in a workweek. The FLSA requires the employer to pay non-exempt employees an overtime premium of one-and-one-half times their regular rates of pay for any hours they work beyond 40 in a workweek.  

The Spot LLC also employed three 15-year-old workers outside of the hours allowed for that age group by the FLSA. Some youths worked past 11:00 p.m., later than the 9:00 p.m. limit in effect from June 1 through Labor Day, and far beyond the 7:00 p.m. limit in effect from the day after Labor Day through May 31. Minors also worked more than 3 hours on school days, more than 8 hours on non-school days, and more than 18 hours during school weeks, all in excess of what the law allows. The employer also violated recordkeeping requirements by failing to maintain required records documenting a minor employee's date of birth.

"Violating the Fair Labor Standards Act can be very costly for employers that fail to pay employees what they have legally earned," said Wage and Hour Division Northern New England District Director Daniel Cronin. "Ensuring employers comply with the law not only protects workers, it also levels the playing field for employers who are already in compliance. We encourage employers to reach out to us for understanding wage and hour laws."

WHD's Northern New England District Office in Manchester, New Hampshire conducted the investigation.

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 its 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 the Division. Additional information about the requirements of the child labor laws for teens, parents, educators and employers is available at the YouthRules! website.