THONOTOSASSA, FL – Orion Builders Service Inc. – based in Thonotosassa, Florida – has paid $265,001 in back wages to 67 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The employer also paid $17,753 in civil money penalties for repeat violations.

WHD investigators found the roofing contracting company paid employees a piece rate without regard to the number of hours they actually worked. This practice resulted in violations when employees worked more than 40 hours in a workweek, but the employer failed to pay them overtime in addition to their piece rates. WHD also cited recordkeeping violations when the employer failed to maintain daily and weekly records of the number of hours employees worked.

"Employers are obligated to pay their employees the wages they have legally earned," said Wage and Hour Division District Director Daniel White, in Jacksonville. "Even if employees are paid piece rates, or on salaries, they could be due overtime when they work more than 40 hours in a week. The outcome of this investigation is a good reminder to review pay practices to ensure employees are being paid as the law requires."

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.

MENDENHALL, MS – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the Simpson County Sheriff's Department – based in Mendenhall, Mississippi – has paid $51,389 in back wages to 43 employees for violating the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer misapplied an overtime exemption that applies to law enforcement and fire protection employees. Specifically, the employer failed to pay overtime to employees who took time off during a given pay period even though the employee actually worked over 40 hours during that pay period. Additional overtime violations occurred when the employer noted the start and end dates of the pay period inaccurately.

"The resolution of this case serves as a reminder for local, county, and state governments that they are subject to the Fair Labor Standards Act's requirements," said Wage and Hour District Director Audrey Hall, in Jackson, Mississippi. "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.

KENNEDY SPACE CENTER, FL – Fine Tune Enterprises Inc. - a cleaning service company based in Orlando, Florida - has paid $123,650 in back wages and fringe benefits to 44 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated labor requirements of the Davis Bacon and Related Acts (DBRA) and the Contract Work Hours and Safety Standards Act (CWHSSA).

WHD determined that the employer paid its employees incorrect prevailing wage and benefit rates when it used the rates assigned to a janitor under the McNamara-O'Hara Service Contract Act, instead of general laborer rates applicable under DBRA and required for the work performed. Applying the wrong rates also led to the employer's failure to pay the required overtime rates, and to maintain accurate wage information on the employer's certified payrolls. In addition, the employer failed to display federal labor posters and prevailing wage information properly at the job site.

The prime contractor, Hensel Phelps, subcontracted Fine Tune Enterprises Inc. to perform cleanup work with NASA funds at the John F. Kennedy Space Center. WHD determined Hensel Phelps provided the incorrect wage determination to Fine Tune Enterprises in their contract, leading to the wage discrepancies. To remedy the error, Hensel Phelps issued a check for the full amount of back wages and fringe benefits to the subcontractor for payment to the affected employees. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

"All contractors and sub-contractors must ensure they are thoroughly aware of all requirements associated with performing work on federally funded projects," said Wage and Hour Division District Director Daniel White, in Jacksonville, 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."

For more information about the FLSA, 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 you are owed back wages collected by the Division.

ROCHESTER HILLS, MI – Green Meadows Lawnscape Inc. – operating as Green Meadows Turf & Tree Inc. and based in Rochester Hills, Michigan – has paid $130,325 in back wages to 50 employees to resolve alleged violations of the federal H-2B Visa program for non-immigrant temporary employees and the Fair Labor Standards Act (FLSA). The employer also paid civil money penalties of $9,675.

Green Meadows Lawnscape Inc. made the payments as part of a consent findings and settlement agreement with the U.S. Department of Labor's Wage and Hour Division (WHD), which determined the employer violated the overtime provisions of the FLSA and the H-2B provisions of the Immigration and Nationality Act (INA). The Department's Office of Administrative Law Judges approved the settlement agreement.

WHD investigators determined the employer paid H-2B employees a flat day rate for hours worked on Saturday and Sunday, without regard to the number of hours that they worked, resulting in those workers receiving less than the hourly rates required by the H-2B program. The employer also made payroll deductions for visa and transportation expenses that resulted in some employees receiving less than the federal minimum wage.

"The H-2B visa program safeguards American employees against displacement while protecting foreign workers from being paid less than the prevailing wage or from otherwise working under substandard conditions," said Wage and Hour District Director Timolin Mitchell in Detroit. "The resolution of this case ensures no one is being paid less than they are legally owed."

The H-2B visa program permits employers to hire nonimmigrants to perform temporary nonagricultural labor or services in the U.S. and requires the employer to attest to the Department that it will offer a wage that equals or exceeds the highest of the prevailing wage, applicable federal minimum wage, the state minimum wage, or local minimum wage.

For more information about wage laws enforced by WHD, 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.

GUAYNABO, PR – U.S. Department of Labor Wage and Hour Division (WHD) representatives are working in St. Croix and St. Thomas to provide compliance assistance and education for employers, and to investigate payroll practices related to ongoing recovery efforts following Hurricanes Maria and Irma.

WHD will review employers' compliance with the federal labor statutes including the McNamara-O'Hara Service Contract Act (SCA), the Davis-Bacon and Related Acts (DBRA), Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA). Investigators will determine whether employers are paying employees in compliance with the requirements of those laws, covering both private work and construction and/or services taking place as part of federally funded recovery. Common violations that investigators will watch for include failure to pay employees for all the hours they have worked, failing to pay workers minimum wage or overtime after misclassifying them as independent contractors, and failing to pay required wages and fringe benefits under federal service and construction contracts.

These efforts are a continuation of WHD's education and enforcement work in the U.S. Virgin Islands. Through Fiscal Year 2018 and January 2019, the agency concluded 17 investigations in USVI that recovered $1,313,763 in back wages for 262 employees of contractors working on recovery efforts. WHD representatives also participated in more than 20 outreach events during this time. These included training and information sessions with employees, employers, and officials from local and federal agencies.

"The U.S. Department of Labor continues working to ensure that employees performing hurricane recovery work have received and will receive the wages and benefits they have legally earned, and that employers compete on a level playing field," said Wage and Hour Division Caribbean District Director José Vazquez. "We encourage employees and employers to contact us. Department officials are available to answer any questions they may have."

Employees and employers who would like compliance information, who wish to meet with a Wage and Hour representative, have questions or concerns, or wish to file a complaint, should contact WHD's Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email. All contacts are confidential. Individuals seeking enforcement and compliance information should contact WHD as soon as possible. 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 including a search tool for workers who may be owed back wages collected by WHD.

The Office of Compliance Assistance (OCI) – housed within the Department of Labor's Office of the Assistant Secretary for Policy – fosters a compliance assistance culture within the Department designed to complement its ongoing enforcement efforts. OCI focuses on helping enforcement agencies more effectively use online resources to deliver information and compliance assistance to help the American people. In August 2018, OCI launched Worker.gov and Employer.gov to provide information about workers' rights and the responsibilities of job creators toward their workers.

WASHINGTON, DC – The U.S. Department of Labor announced today that the Office of the Federal Register has published the Department's Notice of Proposed Rulemaking that would revise and clarify the responsibilities of employers and joint employers to employees in joint employer arrangements under the Fair Labor Standards Act (FLSA).

The official publication in the Federal Register marks the start of the proposal's public comment period, which will remain open for 60 days and close on June 10, 2019.

More information about the proposed rule is available at www.dol.gov/whd/flsa/jointemployment2019. The Department encourages any interested members of the public to submit comments about the proposed rule electronically at www.regulations.gov, in the rulemaking docket RIN 1235-AA26. Comments must be received by June 10, 2019 to be considered.

KENNESAW, GA – After an agreement between the U.S. Department of Labor and Schadsons Corp., the Office of Administrative Law Judges in Washington, D.C., entered a consent order, affirming that the mechanical contractor violated labor provisions of the Davis Bacon and Related Acts (DBRA) and the Contract Work Hours and Safety Standards Act (CWHSSA).

As a result of the order, the Kennesaw, Georgia-based employer has paid $195,000 in back wages and fringe benefits to 21 employees, and agreed to be debarred from obtaining new federal contracts for one-and-a-half years.

The actions follow an investigation by the Department's Wage and Hour Division (WHD) that found Schadsons incorrectly classified employees as general laborers, when they actually performed more skilled work such as plumbing or pipe-fitting. In doing so, the employer paid incorrect prevailing wage rates applicable to the less-skilled job categories, and subsequently also paid incorrect overtime rates when the employees worked over 40 hours in a workweek. Schadsons also failed to pay the correct fringe benefit rates due to the affected employees as required under the DBRA.

"The U.S. Department of Labor is committed to ensuring that employees are properly classified and receive the wages they have rightfully earned for all the hours they have worked," said Wage and Hour Division District Director Eric Williams, in Atlanta. "We are also determined to ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do. We will utilize all options available to us, including litigation, to hold those who commit violations accountable."

Caddell Construction Company Inc. subcontracted Schadsons Corp. to perform heating, ventilation, and air conditioning work on two separate projects funded by the U.S. Army Corps of Engineers at Fort Benning, Georgia; the McBride Elementary School; and two initial entry combat training battalion barracks. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers 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 FLSA, 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. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. The Division also offers a search tool which allows users to determine if you are owed back wages collected by the Division.

DETROIT, MI – Ally Financial Services – based in Detroit, Michigan – has paid a total of $198,311 to 1,287 employees after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) found the employer failed to calculate overtime pay correctly for hourly employees who also earned a production bonus. These errors resulted in overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found the systematic violations occurred at the employer's locations across the nation. The violations also applied to home-based employees. The law requires that production bonuses be included in the rate upon which employers calculate time and one-half when employees work more than 40 hours per week. Calculating overtime based on hourly rates alone, excluding these production bonuses, yields rates lower than those required by law.

"As a result of the U.S. Department of Labor's Wage and Hour Division investigation, Ally Financial Services identified an error in calculating overtime in its system," said Wage and Hour District Director Timolin Mitchell, in Detroit. Michigan. "Ally Financial Services made the necessary correction enterprise-wide immediately to ensure pay is now being processed correctly."

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 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.

DENVER, NC - Wooden pallet manufacturer Tree Brand Packaging Inc. – based in Denver, North Carolina – will pay $22,640 in back wages to 48 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). The employer also paid a civil penalty of $2,218 for federal child labor violations.

WHD investigators found the employer:

• Incorrectly classified one employee as exempt, and subsequently failed to pay him for any hours he worked beyond 40 in a workweek;
• Paid three employees straight time rates when they worked overtime hours;
• Illegally rounded employees' time, resulting in overtime violations when hours they worked remained unrecorded and unpaid; and
• Violated recordkeeping requirements when they failed to record all the hours worked by the hourly employees, and failed to record hours for the employees who were incorrectly classified as exempt.

In addition, WHD found that Tree Brand Packaging Inc. employed one minor employee to engage in a hazardous occupation when he operated several power-driven wood working machines, a violation of FLSA child labor requirements.

"The U.S. Department of Labor works diligently to ensure employers understand their obligations to pay their employees all the wages they have legally earned, and to provide a safe work environment when employing minors," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "We encourage all employers to review child labor law provisions and to contact the Wage and Hour Division for compliance assistance."

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.

MACON, GA – The Georgia Department of Human Services - operating as Bibb County Division of Family and Children Services in Macon, Georgia - has paid an employee $18,910 in lost wages and reinstated her to her former position after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated the Family and Medical Leave Act (FMLA).

WHD investigators found that when the employee requested leave for an FMLA-qualifying health condition and provided documentation supporting that request, the Georgia Department of Human Services failed to provide the worker with required notice of her eligibility, failed to notify the employee of her rights and responsibilities under the FMLA, and terminated her employment.

"Many Americans rely on the Family and Medical Leave Act for critically needed workplace flexibility precisely when they need it the most," said Wage and Hour Division District Director Eric Williams, in Atlanta. "The U.S. Department of Labor is committed to enforcing the law and educating employers to ensure employees are not prevented from exercising their FMLA rights."

For more information about the FMLA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd.