ORANGE CITY, FL - MorBury OC LLC – operator of Jimmy John's Store 1151 restaurant in Orange City, Florida – has paid a civil penalty of $2,218 after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated child labor provisions of the Fair Labor Standards Act (FLSA).

WHD found that MorBury OC LLC allowed a 16-year-old minor employee to use a meat slicing machine, a violation of FLSA child labor requirements which prohibits minors from engaging in a hazardous occupation.

The employer also paid $367 in back wages to resolve payroll violations found during the investigation after MorBury OC LLC failed to pay two employees required overtime. WHD also determined that the employer failed to keep accurate records of the number of hours employees worked, and failed to maintain copies of the dates of birth for other minor employees, resulting in recordkeeping violations.

"The safety of young workers remains a priority for the Wage and Hour Division. Employers have a responsibility to fully understand and comply with the child labor provisions of the Fair Labor Standards Act to ensure minors work in a safe environment," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "We encourage employers that employ minors to review child labor laws, and to contact us for any assistance they need."

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.

KEY WEST, FL – East on the West Side Inc. – operating as Ambrosia Japanese Restaurant in Key West, Florida – will pay $72,425 in back wages and liquidated damages to 15 employees after the U.S. Department of Labor's Wage and Hour Division (WHD) found violations of overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the restaurant obtained its employees through staffing agency Phoenix ADB Services Inc. The employer paid the 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 also violated the recordkeeping requirements of the FLSA when it failed to maintain time and payroll records and to display the required federal minimum wage poster.

"Employers are responsible for ensuring they pay employees properly for all the hours that they work whether they are hired directly by the company or through a staffing agency," said Wage and Hour Division District Director Tony Pham, in Miami. "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."

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.

CAROLINA BEACH, NC – The U.S. District Court for the Eastern District of North Carolina has ordered Hurricane Alley LLC, Diver Down LLC – operating Hurricane Alley and The Dive restaurants in Carolina Beach, North Carolina – and their owner David Cole to pay $40,555 in back wages to 30 employees. The action comes after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found violations of minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

The investigation found that the employer violated the minimum wage requirements when it required tipped-employees to work only for tips. Since the employer paid no wages to the tipped-employees, the employer owed those workers the full federal minimum wage of $7.25 per hour. The employer also incorrectly considered all employees to be independent contractors rather than employees. The inaccurate classification resulted in overtime violations when the employer paid straight time to hourly employees when they worked more than 40 hours in a workweek, instead of the required time-and-one-half their regular rates. Investigators also found the employer failed to maintain required payroll records, an FLSA recordkeeping violation.  

"Employers are obligated to pay employees the wages they have legally earned. Our enforcement ensures employers that violate the law do not to gain an unfair competitive advantage over those that comply," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "The U.S. Department of Labor encourages all employers to reach out to their local Wage and Hour Division office for information about how to comply, and to avoid violations, in North Carolina employers may reach us at 919-790-2741."

The Department's Office of the Solicitor filed a complaint against Hurricane Alley LLC, Diver Down LLC, and Cole to remedy the violations found in this investigation. In addition to being ordered to pay the back wages; Hurricane Alley LLC, Diver Down LLC, and Cole are enjoined from committing future violations under the FLSA.

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.

CENTRAL CITY, KY – New Lucky Garden Inc. – a restaurant in Central City, Kentucky, operating as Lucky Garden – will pay $78,562 in back wages and liquidated damages to eight employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found New Lucky Garden Inc. paid most employees flat monthly salaries, in cash, without regard to the number of hours they actually worked. This practice resulted in minimum wage violations when those salaries failed to cover all the workers' hours at the federal minimum wage of $7.25 per hour, and overtime violations when they worked more than 40 hours in a workweek yet were not paid overtime. The employer also paid one tipped employee a direct cash wage of only $2.00 per hour, resulting in an additional minimum wage violation.

WHD determined that New Lucky Garden Inc. also violated FLSA recordkeeping requirements when they failed to maintain records of the number of hours employees worked each workweek.

"The Wage and Hour Division works to ensure that employees are paid the wages they have legally earned," said District Director Karen Garnett, in Louisville, Kentucky. "The U.S. Department of Labor will continue to provide a robust compliance assistance program to help employers understand their responsibilities and comply with the law. Costly 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.

EL CENTRO, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), N Your Home – an in-home nursing care service employer based in El Centro, California – will pay $144,080 to 36 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer failed to pay employees overtime when they worked more than 40 hours in a workweek, instead paying flat day-rates for all the hours they worked ranging from $100 to $115 per 24-hour shift. In addition, N Your Home failed to keep accurate records of the number of hours employees worked, and failed to maintain other required payroll records.

“Employers that violate basic federal labor laws hurt employees and gain an unfair advantage over employers who play by the rules,” said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. “We will continue to provide tools to help employers understand their obligations, and offer assistance to any employers with questions about how to comply with the law. Violations like those in this case can be avoided.”

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.

ONTARIO, CA – FLS Transportation Services (USA) Inc. – a logistics company based in Chicago, Illinois, providing transportation services for the U.S. Postal Service (USPS) – has paid $507,455 to 41 employees after the U.S. Department of Labor’s Wage and Hour Division (WHD) found the employer violated federal contract provisions of the McNamara-O’Hara Service Contract Act (SCA).

WHD investigators determined FLS Transportation Services (USA) Inc. - operating as FLS Transportation - violated the SCA when it failed to pay required health and welfare benefits to employees transporting mail between USPS processing and distribution centers in California, Texas and Oklahoma. WHD also found FLS Transportation Services (USA) Inc. failed to pay drivers correct amounts for holiday and vacation time, failed to maintain accurate records of all hours worked, and failed to display the federal SCA poster, as required.

“Employers must comply with all applicable laws to ensure that their employees receive legally required pay and benefits,” said Wage and Hour Division Assistant District Director Ralph Valles, in West Covina. “Employers are urged to call the Department of Labor for assistance, and to use the tools we provide to help them comply with the law.”  

FLS Transportation Services (USA) Inc. cooperated fully with WHD during the investigation, agreed to future compliance, and as a result of the findings developed an internal monitoring plan for SCA compliance.

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 SCA and other laws enforced by the Wage and Hour Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). 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.

ATLANTA, GA – An Atlanta, Georgia-based warehouse and food distributor for restaurants in the Southeast U.S. will pay $1,794,753 in back wages and liquidated damages to 130 employees and $36,414 in penalties after the U.S. Department of Labor’s Wage and Hour Division (WHD) found violations of the Fair Labor Standards Act (FLSA).

WHD investigators found Kirnland Food Distribution Inc. and Y&L Service Inc. paid its employees fixed salaries without regard to the number of hours they actually worked, leading to minimum wage violations when those salaries failed to cover all the hours the employees worked at the federal minimum wage of $7.25 per hour. The practice also resulted in overtime violations when employees worked more than 40 hours in a workweek but were not paid overtime. In addition, investigators found recordkeeping violations when the employer failed to maintain accurate time and payroll records for employees.

A previous investigation of this employer disclosed the same pay practices. WHD assessed civil penalties for the willful and repeat nature of the violations.

"The Wage and Hour Division is committed to ensuring that employees receive the wages they have earned for all the hours they have worked," said Wage and Hour Division District Director Eric Williams, in Atlanta. "We are also determined to hold employers accountable when they repeatedly violate the law so that they do not gain an unfair competitive advantage over those who play by the rules. This investigation should encourage other employers to evaluate their pay practices to ensure they are in compliance. Violations like these can be avoided."

HF Group Holding Corp. owns Kirnland Food Distribution, with two distribution centers in Greensboro, North Carolina, and Ocala, Florida. Y&L Service Inc. operated in the same facility as Kirnland Food Distribution, but dissolved operations in 2017. 

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.

KANSAS CITY, MO – The U.S. District Court in the Western District of Missouri has granted a motion sanctioning Scratch Bakery KC LLC – based in Kansas City, Missouri – for refusing to comply with a federal subpoena to provide documents to the U.S. Department of Labor's Wage and Hour Division (WHD) to determine compliance with the Fair Labor Standards Act (FLSA).

The court granted the motion against Scratch Bakery KC LLC after multiple federal court hearings and serving a subpoena on the employer to determine its FLSA compliance. The court also imposed a $100 daily fine until Scratch Bakery fully complies with the subpoena, and assigned responsibility for repayment of reasonable attorney fees in connection with the court's proceedings to the employer. In addition, the court suspended the statute of limitations' initial date - for any action brought by the Department for FLSA violations - from July 3, 2018, to the date Scratch Bakery fully responds to the subpoena.

"Complying with U.S. Department of Labor subpoenas is not optional," said Wage and Hour Division Regional Administrator Michael Lazzeri, in Chicago, Illinois. "This case demonstrates the Department's commitment to ensuring employees receive the wages they have earned and that employers comply with the law."

Scratch Bakery KC LLC's owner Brad Killen continually failed to produce requested documents or to appear at hearings set by the court. After he failed to appear at a November 30, 2018, hearing, the court directed the Department to file a motion outlining the relief sought. Killen was served with the motion granting such relief on March 22, 2019, at another business he owns, The Kansas City Baking Company in North Kansas City, Missouri.

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.

WEST POINT, MS – West Point Fast Break Inc. – a gas station and convenience store based in West Point, Mississippi – will pay $29,726 in back wages to 15 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the employer violated minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD determined West Point Fast Break Inc. paid employees for only their first 40 hours worked in a workweek, resulting in minimum wage violations when the employees' average hourly wages fell below the federal minimum wage after working unrecorded and unpaid hours. The employer also failed to pay required overtime when employees worked more than 40 hours per week. The investigation also found West Point paid some employees' wages in cash, without records, and discarded their time cards after payroll was complete. The FLSA requires employers to maintain payroll records for at least two years.  

"The U.S. Department of Labor will rigorously enforce the law, and will investigate employers that deny employees their wages by blatantly failing to pay for all the hours that they work," said Wage and Hour District Director Audrey Hall, in Jackson, Mississippi. "Employers must understand their responsibilities and comply with the law. The Wage and Hour Division provides multiple tools in a variety of formats to educate employers and help them avoid violations like those in this case."

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.

LOS ANGELES, CA – Rito Alcala, a Littlerock, California, trucking company has paid $108,762 in back wages and benefits to 46 employees after the U.S. Department of Labor Wage and Hour Division (WHD) found the company violated federal contract provisions of the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators determined the employer – operating as Rito Alcala Trucking – violated the SCA by failing to pay the correct prevailing wages and required health and welfare benefits to employees delivering mail for the U.S. Postal Service (USPS) in Los Angeles, Santa Clarita, and San Bernardino.

Investigators found the USPS contractor also failed to pay employees required vacation and holiday rates. In addition, Rito Alcala made illegal deductions from employees' wages by requiring them to pay for oil changes, tire replacements, insurance, registration, and parking, all of which should have been paid for by the employer.

"Federal contractors should not gain an economic advantage by paying employees less than the wages and fringe benefits required on their prevailing wage contracts," said Wage and Hour Division District Director Kimchi Bui, in Los Angeles. "Federal service contracts spell out employers' responsibilities when they bid on these jobs. We encourage all employers to make use of the many tools we provide to help them understand and comply with the law, and to call us for assistance. Violations like these can be avoided."

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 SCA and other laws enforced by the Wage and Hour Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). 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.