LAFAYETTE, IN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Northern District of Indiana has issued a default judgment requiring the operators of the Quality Inn and Suites franchise in Lafayette, Indiana, to pay $16,660 in back wages and liquidated damages to 34 employees. The court judgment came after operators Gursahib S. Sekhon and Mehar Hotels Group of Indiana LLC failed to respond to the complaint or appear in U.S. District Court as ordered. The court also permanently enjoined the defendants from future violations of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer violated the FLSA's overtime provisions. Specifically, the employer paid employees straight time rates for all the hours that they worked, paying for any hours worked beyond 40 per week in cash. The law requires overtime to be paid at one and one-half times workers' regular rates of pay. The Division also assessed $16,362 in civil money penalties for the willful nature of the violation.

"Employers who fail to accurately pay their employees will be held accountable," said Wage and Hour District Director Patricia Lewis in Indianapolis. "The U.S. Department of Labor's Wage and Hour Division is committed to ensuring no one is paid less than what he or she has legally earned."

For more information about wage 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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

Acosta v. Gursahib S. Sekhon. Mehar Hotels Group of Indiana LLC

Case No. 4:17-cv-73 JVB

CHICAGO, IL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the U.S. District Court for the Northern District of Illinois has entered a consent judgment ordering the owners and operators of two Illinois restaurants to pay $254,000 in back wages and liquidated damages to 28 current and former employees.

The court ordered Tsho Inc., Ekyu Inc. and owners, Haruhisa Osada and Hideo Sudo, to pay the employees of Jurin Japanese Restaurant locations in Geneva and South Elgin to resolve violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The judgment also requires the employers to pay civil money penalties of $9,000. The court also issued an injunction against the restaurants and their owners for violating employees’ FLSA rights.

WHD investigators found the restaurants, in some instances, failed to pay overtime when employees worked more than 40 hours in a workweek. The owners’ failure to record and pay employees for some of the hours they worked resulted in additional overtime and recordkeeping violations.

“Employers must pay their employees all the wages they have legally earned,” said Wage and Hour Division Director Thomas Gauza in Chicago. “Our work ensures that employers who follow the rules do not find themselves at a competitive disadvantage for doing so. We encourage all employers to reach out to us for guidance and for help in understanding their legal obligations to their workers.”

For more information about the FLSA and other laws enforced by the 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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

WILMINGTON, DE – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the District of Delaware has ordered El Tapatio, Inc. - operator of El Tapatio Mexican Restaurant in Wilmington, Delaware - to pay $128,051 in back wages and an equal amount in liquidated damages to 20 employees for violating the minimum and overtime wage provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that from February 15, 2016, to February 10, 2019, the employer paid servers a cash wage that was less than the federal minimum cash wage of $2.13 per hour required by the FLSA for tipped employees. The sub-$2.13 per hour cash wage was a result of the employer's deduction of $1 per hour from employee wages in order to pay an employee who cleaned the restaurant. El Tapatio also failed to pay workers overtime when they worked more than 40 hours in a workweek.

WHD also found El Tapatio failed to maintain accurate payroll records by not recording all the hours employees worked each week, and failed to post a required FLSA poster. In addition to the back wages and damages, the court ordered the employer to pay a civil penalty of $8,458 assessed by WHD for the willful nature of the violations.

"Employers are responsible for paying their employees all the wages they have legally earned for all the hours they have worked," said Wage and Hour District Director James Cain, in Philadelphia, Pennsylvania.

"The resolution of this case demonstrates our commitment to ensuring employees are paid what they have legally earned, as well as our continued efforts to level the playing field for employers who comply with the law," said Regional Solicitor Oscar L. Hampton III in Philadelphia.

In addition to paying the back wages, damages and penalty, El Tapatio is enjoined from violating provisions of the FLSA in the future.

If you are a former or current employee of El Tapatio Mexican Restaurant and believe you may be due back wages as a result of this investigation, please contact the WHD Philadelphia District Office at 215-597-4950.

The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records. 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.

ATLANTA, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Postal Fleet Services Inc. – based in Saint Augustine, Florida – will pay $329,057 in back wages and benefits to 53 employees for violating requirements of the Fair Labor Standards Act (FLSA) and the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators determined Postal Fleet Services Inc. failed to pay drivers the prevailing wage rates required by the SCA for work they performed on a contract for the U.S. Postal Service to haul mail in Montgomery, Alabama and Tupelo, Mississippi. The violations occurred when the employer failed to pay drivers for time they spent working before their scheduled shifts sorting mail, and for time they spent driving company trucks from one city to another between their local routes. The employer also failed to pay employees the fringe benefits required by the SCA, and failed to maintain records of the hours employees worked, a violation of the FLSA.

"No federal contractor should gain an economic advantage by paying employees below the prevailing wages and fringe benefits their contract requires," said Wage and Hour Regional Administrator Juan Coria, in Atlanta, Georgia. "Federal service contracts spell out employers' responsibilities when they bid on these jobs. We encourage all employers to review their legal obligations and to contact the Wage and Hour Division for compliance 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 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.

MEMPHIS, TN – McKesson Specialty Distribution LLC – a California-based distributor for a federally funded children's vaccine program – will pay $1,650,452 in back wages and fringe benefits to 515 employees after discovering and self-reporting violations of the McNamara-O'Hara Service Contract Act (SCA) and the Contract Work Hours and Safety Standards Act (CWHSSA) to the U.S. Department of Labor's Wage and Hour Division (WHD).

McKesson Specialty Distribution LLC contacted WHD to report the infraction at the distributor's Aurora, Colorado; and its LaVergne and Memphis, Tennessee, facilities. WHD subsequently confirmed that the employer failed to pay the required prevailing wage rates to employees performing work on a federal service contract with the Centers for Disease Control (CDC). Paying incorrect prevailing wage rates further resulted in McKesson failing to pay correct overtime rates when employees worked more than 40 hours in a workweek. The employer also failed to pay the applicable fringe benefits required for employees working on this contract.

"McKesson Specialty Distribution made every effort to correct violations once they identified their errors," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "The U.S. Department of Labor encourages all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance. We stand ready to provide the tools, guidance and information employers need to understand and uphold their legal responsibilities."

McKesson Specialty Distribution LLC is responsible for the distribution of vaccines for the Vaccines for Children program, federally funded by the CDC. The employer is a subsidiary of McKesson Corp., headquartered in San Francisco, California.

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, CWHSSA, 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.

APEX, NC – After an investigation by the a U.S. Department of Labor's Wage and Hour Division (WHD), La Rancherita Inc. – operating as La Rancherita Mexican Restaurant in Apex, North Carolina – has paid $53,100 in back wages to 18 employees to resolve violations of the overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found La Rancherita Inc. violated federal minimum wage requirements when it required tipped employees to wait for the day's first customer to enter the establishment before clocking-in, instead of doing so when their workday began. This practice resulted in unrecorded and unpaid work time, creating the minimum wage violations. Investigators also determined the employer paid its cooks flat salaries, without regard to the number of hours that they worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek, yet were not paid overtime. The employer also recorded false hourly rates for these workers in an attempt to show overtime in the payroll records, resulting in FLSA recordkeeping violations. 

"Employers must understand their responsibilities and pay employees all of the wages they have legally earned," said Wage and Hour District Director Richard Blaylock, in Raleigh. "The work of the Wage and Hour Division protects workers' wages, and levels the playing field so that employers who follow the rules don't find themselves at an economic disadvantage to those who do not. We encourage all employers to use the many tools we provide to help them understand their responsibilities and to comply with the law."

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.

HONOLULU, HI – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the operators of five Goma Tei Ramen restaurants in Honolulu, Hawaii, will pay $190,000 in back wages and liquidated damages to 49 employees for violating the Fair Labor Standards Act (FLSA).

WHD investigators determined the employers paid kitchen staff fixed salaries without regard to the number of hours they actually worked. By doing so, the employer violated overtime requirements when employees worked more than 40 hours in a week, but were not paid overtime. The practice also led to FLSA recordkeeping violations when the employer failed to accurately record the total number of hours actually worked.

"Simply paying restaurant employees a salary does not exempt these workers from receiving the overtime pay they are lawfully due," said Wage and Hour Division District Director Terence Trotter, in Honolulu. "The U.S. Department of Labor provides many tools to help employers understand their responsibilities and avoid violations like those found in this investigation. Employers and employees alike should contact us for assistance."

The investigation included four Goma Tei Ramen restaurants at Ala Moana Shopping Center, Ward Center, Pearlridge Shopping Center and Kahala Mall, all of which are owned by Kenneth Siu, Jerry Siu, and Choi Sim Siu. A fifth location at International Marketplace is owned by Kenneth and Jerry Siu.

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.

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.