Albuquerque Hotels Pay $79,091 in Back Wages and Damages After U.S. Department of Labor Investigation Finds Violations

News Release

Albuquerque Hotels Pay $79,091 in Back Wages and Damages After U.S. Department of Labor Investigation Finds Violations

ALBUQUERQUE, NM Following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Santa Fe Picacho Hotel Management Corporation - doing business as Heritage Hotels & Resorts and Hotel Albuquerque at Old Town in Albuquerque - has paid $39,545 in back wages and an equal amount in liquidated damages to 69 employees for violating the Fair Labor Standards Act’s (FLSA) overtime requirements.

WHD investigators found that the hotel corporation misclassified banquet workers as tipped employees and failed to include service charges earned by those workers when calculating their overtime rates. Instead of basing overtime rates on all of the wages employees had earned, the employer based overtime only on workers’ base hourly rates. This practice resulted in the employer paying overtime at rates lower than those required by law. Additional overtime violations took place when the employer failed to combine employees’ hours when they worked at multiple locations in the same workweek.

“Employers must pay workers all the wages they have legally earned,” said Wage and Hour Division District Director Evelyn Sanchez, in Albuquerque. “The outcome of this investigation serves as a reminder to other employers to review their pay practices to ensure they are operating in compliance with the law. We will continue our work to ensure protections for workers, and a level playing field for employers. 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 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.

Agency
Wage and Hour Division
Date
March 25, 2019
Release Number
19-185-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux

U.S. Department of Labor Investigation Results in Ohio Company Paying 84 Employees $37,658 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Ohio Company Paying 84 Employees $37,658 in Back Wages and Damages

LEBANON, OH – A Lebanon, Ohio, company that provides services to individuals with development disabilities has agreed to pay 84 employees a total of $37,658 – representing $18,829 in back wages and an equal amount in liquidated damages – after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) found violations of the Fair Labor Standards Act (FLSA).

WHD investigators found Visions Matter LLC failed to pay workers for time spent in work-related training, resulting in overtime violations when that unpaid time occurred during workweeks when employees worked more than 40 hours.

Additional overtime violations resulted from the employer's practice of paying overtime after employees worked 80 hours in two weeks, instead of after 40 hours in a single workweek, as the law requires. The FLSA allows employers to pay employees bi-weekly, but overtime must be tracked weekly.

Visions Matter also failed to maintain required records of each employee's daily and weekly hours worked and overtime pay rate, resulting in recordkeeping violations.

"The Wage and Hour Division works to ensure employers in all industries comply with federal law so that every employee receives the wages they have rightfully earned," said Wage and Hour District Director George Victory, in Columbus. "Employers must understand their responsibility to track and record all of the time their employees spend working. We encourage employers to use the wide variety of compliance tools we offer to explain those requirements, and to contact us for guidance."

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). 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.

Agency
Wage and Hour Division
Date
March 22, 2019
Release Number
19-0396-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

University of Northern Iowa Settles Alleged Family and Medical Leave Act Violations Found in U.S. Department of Labor Investigation

News Release

University of Northern Iowa Settles Alleged Family and Medical Leave Act Violations Found in U.S. Department of Labor Investigation

CEDAR FALLS, IA – The State of Iowa, Board of Regents - operating as the University of Northern Iowa - has entered into a settlement agreement to resolve alleged violations of an employee's protections under the Family and Medical Leave Act (FMLA) as found in a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

WHD investigators determined that the University of Northern Iowa in Cedar Falls, Iowa, failed to designate an employee's rights to FMLA leave properly when the employee requested such leave to care for an ill adult child. Instead, the employer terminated the worker's employment during what should have been a protected leave period.

In the settlement, the State of Iowa agreed to pay the custodian $59,688 in back wages and liquidated damages, and an amendment of the employee's personnel file to reflect her subsequent retirement.  

"The Family and Medical Leave Act protects employees in just this type of circumstance and allows critically needed workplace flexibility precisely when employees need it the most," said Wage and Hour Division Assistant District Director Adam Wombacher, in Des Moines. "We encourage employers to contact us for information to ensure they understand their responsibilities under the law. The Division provides a variety of tools for employers to ensure that they operate in compliance."

The state has also agreed to provide FMLA training to all supervisory employees in the university's custodial services and residence facilities administration as well as FMLA and American with Disabilities Act (ADA) training to the university's human resources department. The settlement agreement does not constitute an admission of wrongdoing by the State.

The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons. Workers and employers with questions about the FMLA and all of the federal wage laws administered by the Division should call the agency's toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
March 22, 2019
Release Number
19-0407-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor’s Overtime Proposal Open for Public Comment

News Release

U.S. Department of Labor’s Overtime Proposal Open for Public Comment

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 make more than a million more American workers eligible for overtime 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 May 21, 2019.

More information about the proposed rule is available at www.dol.gov/whd/overtime2019. 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-AA20. Comments must be received by May 21, 2019 to be considered.

Agency
Wage and Hour Division
Date
March 22, 2019
Release Number
19-0474-NAT
Media Contact: Edwin Nieves
Phone Number

U.S. Department of Labor Fines City of Orem After Investigation Finds Child Labor Violations

News Release

U.S. Department of Labor Fines City of Orem After Investigation Finds Child Labor Violations

CITY OF OREM, UT – The City of Orem, Utah, has paid $16,350 in civil money penalties to resolve child labor violations of the Fair Labor Standards Act (FLSA) after the U.S. Department of Labor’s Wage and Hour Division (WHD) found the city employed 25 children under the age of 16 at its Scera Park Pools after 9 p.m. in the summers of 2017 and 2018.

The FLSA does not contain any hours requirements for minors 16 years of age and older.  Employees under the age of 16 may only work from 7 a.m. to 7 p.m.; except between June 1 and Labor Day, when the evening hour is extended to 9 p.m.  In addition, these employees must work outside of school hours, not more than three hours on a school day, not more than eight hours on a non-school day, not more than 18 hours during a week when school is in session, and not more than 40 hours during a week when school is not in session.

“Child labor laws exist to provide meaningful work experience to young people while also keeping them safe on the job,” said Wage and Hour Division District Director Kevin Hunt in Salt Lake City. “Employers must be aware of both federal and state laws that apply to workers under age 18. We encourage all employers to review their employment obligations and to contact the Wage and Hour Division for compliance assistance.”

The Department offers numerous resources and tools to help employers understand their responsibilities and comply with federal law, including a Youth Employment Compliance Assistance Toolkit.

Local WHD offices welcome confidential calls and in-person visits, and the Division’s library of online videos offers useful information on FLSA compliance. 

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.

 

Agency
Wage and Hour Division
Date
March 21, 2019
Release Number
19-434-DEN
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux

U.S. Department of Labor Investigation Results in Alabama Sheriff’s Department Paying $49,968 in Back Wages for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in Alabama Sheriff’s Department Paying $49,968 in Back Wages for Overtime Violations

ATHENS, AL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the Limestone County Sheriff's Department – based in Athens, Alabama – will pay $49,968 in back wages to 126 employees for violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD found the Limestone County Sheriff's Department failed to pay deputies for hours they worked when they were required to file warrants at the courthouse outside the hours of their scheduled shifts. In many instances, the courthouse was not open during officers' regularly scheduled shifts, so visits to the facility necessarily occurred outside of their regular work hours. The Limestone County Sheriff's Department failed to record this time or paid deputies for it.

WHD also found that the employer failed to pay employees for time they spent working at an annual fundraising event. Investigators determined that these hours worked by the employees did not meet the definition of "volunteer" work according to FLSA regulations when the sheriff's department pressured employees into working at the event and took adverse disciplinary action toward any employee who refused to volunteer.

"The resolution of this case serves as a reminder for local, county, and state governments that they are subject to the FLSA's requirements," said Wage and Hour District Director Kenneth Stripling, in Birmingham, Alabama. "Employees have a right to be paid for all of the hours that they work, and cannot be forced to volunteer their time. We encourage all employers to make use of the many tools we provide to help them understand their responsibilities and operate in compliance 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.

Agency
Wage and Hour Division
Date
March 19, 2019
Release Number
19-0406-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigations Find Wage Violations At Kentucky Fried Chicken and Arby’s in South Carolina and Georgia

News Release

U.S. Department of Labor Investigations Find Wage Violations At Kentucky Fried Chicken and Arby’s in South Carolina and Georgia

GREENVILLE, SC – After investigations by the U.S. Department of Labor's Wage and Hour Division (WHD), Whiteford's Inc. – operator of 30 Kentucky Fried Chicken and Arby's fast food locations in South Carolina and Georgia, and based in Greenville, South Carolina – has paid $32,797 in back wages to 298 employees for violating the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer failed to include workers' performance-based bonuses in the calculation when determining their overtime rates, resulting in violations for assistant managers and shift leads who received these bonuses every four weeks. Excluding these amounts from the calculation resulted in the employer paying these workers overtime at rates lower than those required by law. The FLSA generally requires employers to pay overtime at one-and-one-half times workers' total earnings per hour, not just their base rates. 

In addition, the employer deducted a portion of some employees' wages for uniforms, which resulted in minimum wage violations when those deductions caused workers' hourly wages to dip below the federal minimum wage of $7.25 per hour.

"The outcome of this case puts these wages into the hands of those who earned them, and demonstrates how the U.S. Department of Labor's enforcement levels the playing field for law-abiding employers," said Wage and Hour Division District Director Jamie Benefiel, in Columbia. "We encourage all employers to make use of the many tools our Agency offers to help them understand their obligations and to avoid violations."

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.

Agency
Wage and Hour Division
Date
March 19, 2019
Release Number
19-0403-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Federal Court Requiring West Virginia Consulting Firm to Pay $1,635,804 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Federal Court Requiring West Virginia Consulting Firm to Pay $1,635,804 in Back Wages and Damages

BRIDGEPORT, WV – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), a federal appeals court affirmed a district court judgment requiring Fire & Safety Investigation Consulting Services LLC – based in Bridgeport, West Virginia – to pay $817,902 in back wages and an equal amount in liquidated damages to 70 employees.

The U.S. Court of Appeals for the Fourth District upheld a May 2018 summary judgment granted by the Northern District of West Virginia that ruled that Fire & Safety Investigation Consulting Services LLC, and owner Christopher Harris, violated the Fair Labor Standards Act (FLSA).

WHD investigators found the employer failed to pay employees an overtime premium when they worked more than 40 hours in a workweek. Instead, the employer paid employees what they referred to as a "hitch rate," a fixed amount paid every two weeks. This practice resulted in overtime violations when employees worked beyond 40 hours in a single workweek and the employer failed to pay overtime in addition to their flat rates. The employer also violated FLSA recordkeeping requirements by failing to maintain records of the number of hours employees worked.

"Employers must pay their employees all the wages they legally earned. We urge all employers to make use of the many tools the U.S. Department of Labor provides to help them understand and comply with the law, and to call us for assistance," said Wage and Hour Division District Director John DuMont, in Pittsburgh, Pennsylvania.

"These violations are common in the oil and gas industry and remind other employers that they must comply with the law," said Regional Solicitor Oscar Hampton III, in Philadelphia.

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.

Agency
Wage and Hour Division
Date
March 19, 2019
Release Number
19-0350-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

U.S. Department of Labor Investigation Results in Green Bay, Wisconsin Restaurant Paying $106,856 in Back Wages and $6,591 in Penalties

News Release

U.S. Department of Labor Investigation Results in Green Bay, Wisconsin Restaurant Paying $106,856 in Back Wages and $6,591 in Penalties

GREEN BAY, WI – Following a U.S. Department of Labor Wage and Hour Division (WHD) investigation, a Green Bay, Wisconsin, restaurant and its owner have paid $106,856 in back wages to 109 current and former employees, and an additional $6,591 in civil money penalties for child labor violations and willful overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Mackinaws Grill and Spirits, and owner Kevin Quinn, willfully violated the FLSA's overtime requirements by paying cooks in cash at "straight time" for overtime hours worked. WHD determined the employer issued checks to cooks for the first 40 hours they worked in each workweek, and paid cash for all remaining hours.

Investigators also found the employer violated the FLSA's minimum wage requirements when deductions from workers' pay for uniforms and pagers caused their rates to dip below the federal minimum wage of $7.25 per hour. Mackinaws also failed to maintain accurate time records, and to display FLSA posters at the worksite as required by law.

Child labor violations occurred when Mackinaws and Quinn employed three minors under age of 16 to work more hours than allowed by law.

"This investigation serves as a reminder to other employers to evaluate their pay practices to ensure that they comply with the law, and that if they employ minors, that they do so within established guidelines," said Wage and Hour District Director David King, in Minneapolis. "We encourage employers and employees alike to contact us for guidance, and use the wide variety of tools we offer to help employers comply with the law and employees receive the wages they are rightfully owed. Violations like those found in this investigation can be avoided."

For more information about the FLSA, child labor provisions and other laws enforced by WHD, 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.

Agency
Wage and Hour Division
Date
March 19, 2019
Release Number
19-0395-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Investigation Results in Fire Protection Company Paying $315,846 in Back Wages and Damages to 14 Employees

News Release

U.S. Department of Labor Investigation Results in Fire Protection Company Paying $315,846 in Back Wages and Damages to 14 Employees

ALBUQUERQUE, NM – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Alliance Fire Protection Inc. – based in Albuquerque, New Mexico – has paid $157,923 in back wages and an equal amount in liquidated damages to 14 employees for violating the Fair Labor Standards Act's (FLSA) overtime and recordkeeping requirements.

WHD investigators found the employer failed to pay its fire sprinkler fitters for all of the hours they worked. Specifically, Alliance Fire Protection Inc. failed to pay workers for time they spent picking up materials at the company's location, and time spent traveling to and from worksites. This unrecorded time resulted in overtime violations when employees worked more than 40 hours per week yet remained unpaid for these hours. The employer also violated the FLSA's recordkeeping requirements when they failed to keep accurate time and payroll records. 

"Employers must understand their responsibilities and pay employees for all the hours that they work," said Wage and Hour Division District Director Evelyn Sanchez, in Albuquerque. "Our enforcement and education efforts help to maintain a level playing field for employers and ensure that workers take home all the wages they have legally earned. The results of this case should encourage other employers to examine their pay practices to ensure they are operating in compliance with the law."

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.

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.

Agency
Wage and Hour Division
Date
March 18, 2019
Release Number
19-0184-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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