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

U.S. Department of Labor Issues Guidance Regarding Employers’ Obligations When Posting Electronic Notice under H-1B Visa Program

News Release

U.S. Department of Labor Issues Guidance Regarding Employers’ Obligations When Posting Electronic Notice under H-1B Visa Program

WASHINGTON, DC – The U.S. Department of Labor's Wage and Hour Division (WHD) today issued a Field Assistance Bulletin (FAB) reiterating employers' responsibilities under the H-1B visa program.

The Immigration and Nationality Act (INA) requires employers seeking to employ H-1B workers to notify affected U.S. workers of their intention to hire nonimmigrant workers. WHD is providing additional guidance to employers on how electronic notifications may be used to meet the notification requirements.

"This guidance helps to ensure that American workers receive the notice they need to enforce their rights," said Keith Sonderling, Acting Administrator for the Wage and Hour Division. "These notices are critical to guard against displacement of Americans by H-1B employees. This guidance offers clarity to ensure that U.S. workers are aware of their rights and their employer's intent to hire H-1B workers."

The FAB confirms that if an H-1B employer chooses to provide notice through electronic media, the employer must ensure that affected American workers, including those employed by a third-party, have access to, and are aware of, the electronic notification. This guidance describes the conditions under which electronic notice satisfies these requirements and provides examples of different methods of posting.

The H-1B foreign labor certification program allows American companies to employ nonimmigrant workers in specialty occupations if the employment of such nonimmigrant workers will not adversely affect similarly employed U.S. workers. WHD's enforcement and education efforts related to this program continue to safeguard American jobs, level the playing field for law-abiding employers, and ensure that employers pay workers for what they have legally earned.

More information about the Department's commitment to protect American workers is available at https://www.dol.gov/whd/immigration/protecting-american-workers.htm  You can contact WHD by calling our toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/WHD.

Agency
Wage and Hour Division
Date
March 15, 2019
Release Number
19-0463-NAT
Media Contact: Megan Sweeney
Phone Number

U.S. Department of Labor Issues New Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues New Wage and Hour Opinion Letters

WASHINGTON, DC – The U.S. Department of Labor announced today that it has issued new opinion letters that address compliance issues related to the Family and Medical Leave Act (FMLA) and the Fair Labor Standards Act (FLSA). An opinion letter is an official, written opinion by the Department's Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the individual person or entity that requested the letter.

The opinion letters issued today are:

  • FMLA2019-1-A: Provides an opinion on the obligation to designate FMLA-qualifying leave and prohibition on expanding FMLA leave;
  • FLSA2019-1: Clarifies FLSA wage and recordkeeping requirements for residential janitors and the “good faith” defense; and
  • FLSA2019-2: Addresses FLSA compliance related to the compensability of time spent participating in an employer-sponsored community service program.

The Department offers a search function allowing users to search existing opinion letters by keyword, year, topic, and a variety of other filters; and encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The Division exercises its discretion in determining whether and how it will respond to each request.

Agency
Wage and Hour Division
Date
March 14, 2019
Release Number
19-0441-NAT
Media Contact: Bennett Gamble

U.S. Department of Labor Investigation Results in Federal Court Ordering West Virginia Company to Pay $3.7 Million in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Federal Court Ordering West Virginia Company to Pay $3.7 Million in Back Wages and Damages

MILLWOOD, WV - After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Southern District of West Virginia has ordered Team Environmental LLC – a natural gas pipeline construction management company based in Millwood, West Virginia – to pay 300 safety inspectors $1,850,000 in back wages and an equal amount in liquidated damages for violating the Fair Labor Standards Act (FLSA).

WHD investigators found that - from October 20, 2012, to May 8, 2015 - Team Environmental LLC paid its inspectors day rates for all the hours that they worked but failed to pay employees overtime when they worked over 40 hours in a workweek. While the employer argued that the manner in which they paid employees was "industry practice," WHD found their practices violated the FLSA.  

"Team Environmental LLC's practices resulted in their employees taking home less money than they had legally earned," said Wage and Hour District Director John DuMont, in Pittsburgh, Pennsylvania. "Other employers should use this as an opportunity to evaluate their own pay practices using the many tools we provide to ensure that they comply with federal labor law. Costly violations like those in this case can be avoided."

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

"As the Court correctly concluded, industry practice does not relieve an employer from obligations to comply with the FLSA," said Associate Regional Solicitor Samantha N. Thomas in Arlington, Virginia. "Employees are entitled to their full wages for all the hours that they work, including overtime.  This consent judgment helps to level the playing field for employers that abide by the law and encourage FLSA compliance in this industry."

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.

Agency
Wage and Hour Division
Date
March 13, 2019
Release Number
19-0224-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

U.S. Department of Labor Investigation Results in Florida Farm Paying $18,844 in Back Wages to 14 Employees for Wage Violations

News Release

U.S. Department of Labor Investigation Results in Florida Farm Paying $18,844 in Back Wages to 14 Employees for Wage Violations

OCOEE, FL - After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Lake Meadow Naturals LLC – an agricultural employer based in Ocoee, Florida – has paid $18,844 in back wages to 14 employees for violating overtime, recordkeeping, and child labor provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found Lake Meadow Naturals LLC was ineligible for an agricultural exemption it claimed from overtime requirements, and that it consequently failed to pay employees time-and-one-half for hours they worked beyond 40 in a workweek. Investigators determined that the employees performed inventory and repackaged items received from other farms, and regularly worked in the facility's store handling and selling products from other farms. The agricultural exemption from the FLSA's overtime requirements applies to employees involved in processing and/or packaging products grown only by that employer. Once employees packed goods brought in from other suppliers, the exemption did not apply, and they were due overtime.

WHD determined that the employer misapplied another overtime exemption for several of its employees when it considered them to be exempt from the FLSA's overtime requirements as salaried managers. These employees were found to be due overtime when their job duties failed to meet the criteria for the FLSA's "white collar" exemptions. Lake Meadow Naturals also violated FLSA recordkeeping requirements when the employer failed to keep accurate time and payroll records as required by law.

WHD also found that Lake Meadow Naturals employed a 15-year-old employee to work outside of the hours allowed for 14- and 15-year-old workers, a violation of FLSA child labor requirements.

"The Wage and Hour Division engages in robust education and outreach efforts to provide information to agricultural and other employers so that they have the tools they need to comply with the law," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "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."

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 13, 2019
Release Number
19-0370-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

Massachusetts Pizza Restaurants’ Owners To Pay $330,000 in Back Wages And Liquidated Damages to 150 Employees After Federal Investigation

News Release

Massachusetts Pizza Restaurants’ Owners To Pay $330,000 in Back Wages And Liquidated Damages to 150 Employees After Federal Investigation

Owners Also Prohibited From Retaliating Against Employees

BOSTON, MA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) and subsequent litigation, the U.S. District Court for the District of Massachusetts has issued a consent judgment ordering Stavros "Steve" Papantoniadis and Polyxeny "Paulina" Papantoniadis – owners of a chain of eastern Massachusetts-area pizza restaurants – to pay a total of $330,000 in back wages and liquidated damages to 150 current and former employees.

The restaurants - Stash's Pizza, Boston Pizza Co., and Weymouth Pizza Co. - and owners must also pay a $20,000 civil money penalty and take other corrective actions to resolve violations of the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA), which the Department's Wage and Hour Division (WHD) identified. The consent judgment and order requires the defendants to comply with the FLSA, cooperate with any future WHD investigations, and provide investigators with truthful responses, information, and documents. It also prohibits the defendants from threatening or taking adverse actions against anyone who participates in and cooperates with an investigation. Such actions include instructing individuals to provide false information or not to speak with investigators, and threatening individuals regarding their immigration or work authorization status.

In addition, the judgment prohibits the defendants from falsifying time records, requesting or requiring employees to work "off the clock;" attempting to recover any of the wages and damages due the workers; and harassing, retaliating, discharging, reducing the work hours, or threatening adverse action against any of the workers due wages and damages.

"The U.S. Department of Labor will rigorously enforce the Fair Labor Standards Act and investigate employers who not only deny workers their wages, but continue to do so while attempting to conceal their actions.  Employers who short their workers and impede investigators to gain an unfair economic advantage will not be tolerated," said Wage and Hour Division Boston District Director Carlos Matos.

"This case shows that the U.S. Department of Labor will employ all available legal remedies to enforce the law," said the Department's New England Regional Solicitor of Labor Maia Fisher. "If the defendants do not meet the terms of the judgment, they may be subject to additional litigation or legal remedies including contempt of court."

The Department filed suit in March 2017. In February 2018, it obtained an injunction from the court to halt violations that continued to occur after the lawsuit's filing and enjoin the defendants from retaliating against employees and former employees and instructing them to lie to or not speak with WHD investigators. The Department's representatives visited each restaurant and read the injunction in the workers' native languages to ensure they understood the injunction's protections and their right to speak to the Department about workplace conditions.

WHD's Boston District Office conducted the original investigation. Senior Trial Attorneys Scott M. Miller and James Glickman litigated the case for the Department.

The Department provides numerous resources and tools to help employers understand their responsibilities and 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.

# # #

Acosta v. Papantoniadis Pizza Inc., d/b/a Stash's Pizza; Athenian Enterprises Inc. d/b/a Stash's Pizza; Boston Pizza Company LLC; Weymouth Pizza Company, LLC., Stavros "Steve" Papantoniadis; and Polyxeny "Paulina" Papantoniadis.
Civil Action Number: 1:17:-cv-10500-ADB

Agency
Office of the Solicitor
Date
March 13, 2019
Release Number
19-0361-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

U.S. Department of Labor Investigation Results in Florida Laundry Service Paying $60,863 in Back Wages to 15 Employees

News Release

U.S. Department of Labor Investigation Results in Florida Laundry Service Paying $60,863 in Back Wages to 15 Employees

ORLANDO, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Crown Linen LLC – based in Orlando, Florida – will pay $60,863 in back wages to 15 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer incorrectly considered two groups of employees as exempt from the overtime requirements as managers under the FLSA. This misapplication of the exemption resulted in the employer paying overtime-eligible employees flat weekly salaries without regard to the number of hours they worked. This practice resulted in violations when these employees worked more than 40 hours per week and were not paid overtime. Additionally, the employer paid other employee’s straight time instead of overtime when they worked over 40 hours in a workweek. The employer also failed to maintain required records of the number of hours employees worked.

“Our enforcement ensures that workers like these are paid the wages they have earned, and that employers compete on a level playing field,” said Wage and Hour District Director Daniel White, in Jacksonville. “We encourage all employers to reach out to us and use the wide variety of tools we offer to help them understand their responsibilities, and avoid wage 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 12, 2019
Release Number
19-378-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in South Florida Assisted Living Facility Paying $103,389 in Back Wages to 20 Employees

News Release

U.S. Department of Labor Investigation Results in South Florida Assisted Living Facility Paying $103,389 in Back Wages to 20 Employees

PEMBROKE PINES, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Paradise Villa Retirement Home Inc. – operator of five South Florida assisted living facilities – has paid $103,389 in back wages to 20 employees for violating minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Paradise Villa Retirement Home Inc. inaccurately classified caregivers as independent contractors rather than employees and paid them flat rates per day without regard to the number of hours they actually worked. This practice resulted in minimum wage violations when those flat rates failed to cover all the hours employees worked at the federal minimum wage of $7.25 per hour. Overtime violations resulted when employees worked more than 40 hours in a workweek but were paid only their flat rates with no overtime. WHD also cited recordkeeping violations when the employer failed to maintain records of the number of hours employees worked.

"The Fair Labor Standards Act requires employers to keep track of and pay employees for all the hours that they work," said Wage and Hour Division District Director Tony Pham. "The result of this investigation is an opportunity for other employers to review their pay practices to ensure they comply with the law. The Wage and Hour Division is determined to ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do."

The assisted living facilities operated by Paradise Villa Retirement Home Inc. involved in the investigations are:

  • Paradise Villa at Sheridan, 11330 Sheridan St., Pembroke Pines;
  • Paradise Villa at Pembroke Pines, 1145 NW 92 Ave., Pembroke Pines;
  • Paradise Villa at Coral Springs, 4275 NW 67th Way in Coral Springs;
  • Paradise Villa at Cooper City, 5190 SW 90th Terrace, in Cooper City; and
  • Paradise Villa at Coconut Creek, 4130 NW 22 St., in Coconut Creek.

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.

Agency
Wage and Hour Division
Date
March 12, 2019
Release Number
19-0318-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number
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