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.

DAYTON, OH – A Dayton, Ohio mental health and drug rehabilitation center has paid $48,698 in overtime back wages to 47 employees after an investigation by the U.S. Department of Labor Wage and Hour Division (WHD) found violations of the Fair Labor Standards Act (FLSA).

WHD investigators found Cornerstone Project LLC violated federal overtime provisions when the employer automatically deducted 30 minutes a day from employees' recorded work time for lunch breaks, without regard to whether workers actually took those breaks. This practice resulted in overtime violations when employees regularly worked through those breaks unpaid. WHD also cited the employer for recordkeeping violations for failing to record this work time.

"Employers must comply with federal laws designed to make sure employees receive the wages they have rightfully earned," said Wage and Hour District Director George Victory, in Columbus. "The Wage and Hour Division encourages all employers to review their pay practices and to use the wide variety of tools we offer, or to contact us directly to help them understand their obligations."

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.

SALT LAKE CITY, UT – The U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a statewide wage survey in Utah to help establish prevailing wage rates as required under the Davis-Bacon and Related Acts (DBRA). WHD urges all highway construction employers in Utah to participate.

The survey will collect data on wages paid to employees on all highway construction projects in Utah that were active between January 1, 2018 through December 31, 2018. The information obtained through this survey will be used to establish prevailing wage rates as required under the DBRA. The survey is not limited to federally funded projects, and wage data should be submitted for all projects meeting the survey criteria, regardless of how they are funded.

"Participation in the survey will help level the playing field for all contractors bidding on federally funded construction projects. Davis-Bacon prevailing wage rates are most effective when they reflect the wages and fringe benefits paid to construction employees in the county in which they work," said Wage and Hour Division Southwest Regional Administrator Betty Campbell. "We need the full participation of Utah's construction industry to succeed in this effort."

WHD is sending notification letters and "WD-10" data collection forms to interested parties and contractors of which it is aware. Employers do not have to receive a letter to participate in the survey.  Participants may also complete the survey online. All responses must be postmarked by Sept. 27, 2019, to be included.

If you would like to participate, or have questions regarding the survey process and forms, contact Craig L. Jackson at (214) 749-2021.

MALVERN, PA – The U.S. Department of Labor is seeking current or former employees of American Future Systems - doing business as Progressive Business Publications - who may be owed a portion of $1,916,000 in back wages and liquidated damages recovered by the Department's Wage and Hour Division (WHD). American Future Systems is the parent company of Progressive Business Publications, a Malvern, Pennsylvania, direct-marketing company that publishes subscription-driven, business-to-business newsletters and other publications.

The Division estimates 8,382 individuals employed by the company from August 9, 2009, through January 3, 2016, at 18 call centers in Pennsylvania, New Jersey, and Ohio, may be eligible for payments. The Division provides its Workers Owed Wages search tool to assist workers owed back wages. If your contact information has changed since the period of the investigation, call 267-514-6072 or send an email to  WHDVM.PHILADELPHIAPADOPGR@dol.gov to provide an update.

The recovery is the result of a WHD investigation and U.S. District Court decision that found that American Future Systems failed to pay employees for compensable break time, which sometime brought wages below the federal minimum wage.

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.