U.S. Department of Labor Investigation Results in South Carolina Roofing Company Paying $156,346 in Back Wages to 84 Employees

News Release

U.S. Department of Labor Investigation Results in South Carolina Roofing Company Paying $156,346 in Back Wages to 84 Employees

MYRTLE BEACH, SC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Monarch Co. – based in Myrtle Beach, South Carolina, and operating as Monarch Roofing – will pay $156,346 in back wages to 84 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer incorrectly classified 81 salaried employees as exempt from overtime, paying them flat salaries without regard to the number of hours they actually worked. This practice resulted in overtime violations when the employees worked more than 40 hours in a workweek, but were not paid overtime. Monarch Co. also failed to pay three hourly employees additional half-time when they worked more than 40 hours in a workweek, as required. Investigators also found the commercial and residential roofing company failed to include employees' non-discretionary bonuses when they did calculate and pay overtime. Excluding these amounts resulted in the employer paying overtime at rates lower than those required by law.

The firm also failed to keep time records for the salaried workers, resulting in recordkeeping violations under the FLSA.

"Employers must familiarize themselves with their obligations to ensure they pay workers the wages they have legally earned," said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. "The U.S. Department of Labor encourages employers to contact us if they have questions about overtime compliance for their hourly and salaried employees. We offer a wide variety of compliance assistance tools and stand ready to help employers. 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 5, 2019
Release Number
19-0333-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Results in Florida Company Paying $41,677 in Back Wages to 111 Employees

News Release

U.S. Department of Labor Investigation Results in Florida Company Paying $41,677 in Back Wages to 111 Employees

ST. PETERSBURG, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Fast Frontier LLC – based in St. Petersburg, Florida, and operating as Cricket Wireless – has paid $41,677 in back wages to 111 employees for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA) at 54 locations in Florida, Mississippi, and Louisiana.

WHD investigators found the employer paid employees flat salaries without regard to the number of hours they had actually worked. This practice resulted in overtime violations when they worked more than 40 hours in a workweek, but were not paid overtime. Additional overtime violations resulted when the employer failed to include commissions when calculating overtime pay, instead basing overtime rates only on workers' hourly base rates. Excluding these amounts resulted in the employer paying overtime at rates lower than those required by law. The Department also cited FLSA recordkeeping violations when the employer failed to maintain accurate records of the number of hours employees worked.

Investigators also found that two former employees never received their final paychecks.

"The U.S. Department of Labor provides compliance assistance to help employers understand the law and avoid violations," said James Schmidt, Wage and Hour Division District Director, in Tampa. "When violations do occur, our enforcement helps to ensure that workers are paid the wages they have earned, and that employers compete on a level playing field. 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."

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 5, 2019
Release Number
19-0331-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Results in South Florida Construction Company Paying $102,088 in Back Wages to 79 Employees

News Release

U.S. Department of Labor Investigation Results in South Florida Construction Company Paying $102,088 in Back Wages to 79 Employees

POMPANO BEACH, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Rivera Services Group Inc. – a construction labor provider based in Pompano Beach, Florida – has paid $102,088 in back wages to 79 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The company was assessed and paid a civil penalty of $1,323 for child labor violations.

WHD determined Rivera Services Group Inc. paid its employees straight time rates for all the hours that they worked, failing to pay 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 keep many of the time and payroll records required by law.

Additionally, WHD found that Rivera Services Group Inc. allowed an employee younger than 18 years old to operate a circular saw as part of his employment, a violation of FLSA child labor requirements.

"The U.S. Department of Labor is committed to ensuring employees receive all wages they have rightfully earned, and enforcing child labor laws," said Wage and Hour Division District Director Tony Pham, in Miami, Florida. "We encourage all employers to review their legal obligations and to contact the Wage and Hour Division for compliance assistance."

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 4, 2019
Release Number
19-0319-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Finds Overtime Violations At Alabama Nursing Home Facility

News Release

U.S. Department of Labor Investigation Finds Overtime Violations At Alabama Nursing Home Facility

MONTGOMERY, AL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), John Knox Manor Inc. – operating as John Knox Manor II – will pay $96,233 in back wages to 92 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA) at its nursing home facility in Montgomery, Alabama.

WHD investigators found the employer violated the FLSA overtime requirements when it failed to include employees' shift differentials when computing their overtime pay. Instead, the employer based employees' overtime rates only on their base hourly pay. Excluding the shift differentials from the calculation resulted in the employer paying overtime at rates lower than those required by law. The Department also cited violations of the FLSA's recordkeeping requirements.

"The U.S. Department of Labor 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 Kenneth Stripling, in Birmingham. "If employers have questions about what the law requires, we offer a wide variety of tools to help them understand their responsibilities and encourage them to reach out to us for guidance 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 4, 2019
Release Number
19-0325-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Georgia Herbal Products Manufacturer Paying $454,655 in Back Wages to 28 Employees

News Release

U.S. Department of Labor Investigation Results in Georgia Herbal Products Manufacturer Paying $454,655 in Back Wages to 28 Employees

NORCROSS, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Hi-Tech Pharmaceuticals Inc. – an herbal products manufacturer and distributer based in Norcross, Georgia – has paid $454,655 in back wages to 28 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Hi-Tech Pharmaceuticals Inc. failed to pay workers overtime when they worked more than 40 hours in a workweek. The employer also unlawfully deducted time from workers' timecards when they took short rest breaks, and rounded workers' time outside of the parameters required by the FLSA. In addition, WHD cited Hi-Tech Pharmaceuticals for a recordkeeping violation for their failure to keep time and payroll records required by law.

"The Wage and Hour Division engages in robust education and outreach efforts to help employers understand their responsibilities," said Wage and Hour Division District Director Eric Williams, in Atlanta. "We encourage all employers to reach out to us for compliance assistance so that violations like these can be avoided. When violations do occur, our enforcement ensures employees are paid the wages they have earned, and levels the playing field for employers who play by the rules."

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 4, 2019
Release Number
19-0320-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Results in Alabama Erosion Company Paying $113,984 in Back Wages and Damages to 34 Laborers

News Release

U.S. Department of Labor Investigation Results in Alabama Erosion Company Paying $113,984 in Back Wages and Damages to 34 Laborers

OPELIKA, AL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Hydro-Green Erosion Control LLC – an erosion control company based in Opelika, Alabama – will pay $113,984 in back wages and liquidated damages to 34 employees for violating minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Hydro-Green Erosion Control LLC paid laborers flat salaries without regard to the number of hours they had actually worked. This practice resulted in minimum wage violations when those salaries failed to cover all the hours employees had worked at the required federal minimum wage of $7.25 per hour. This practice also resulted in overtime violations when employees worked beyond 40 hours per workweek and did not receive overtime pay. The employer also violated FLSA recordkeeping requirements when it failed to maintain required time records and to display mandatory FLSA posters.

"Ensuring that employees receive the wages they are due under the law guarantees that all employers compete on a fair and level playing field," said Wage and Hour Division District Director Kenneth Stripling, in Birmingham, Alabama. "We encourage all employers to reach out to us for 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 4, 2019
Release Number
19-0328-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Colorado Company Paying $77,238 in Back Wages to Resolve FLSA Violations

News Release

U.S. Department of Labor Investigation Results in Colorado Company Paying $77,238 in Back Wages to Resolve FLSA Violations

MILLIKEN, CO – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Burnco Colorado LLC - doing business as Bestway Concrete and Aggregates - has paid $77,238 in back wages to 406 employees to resolve violations of the Fair Labor Standards Act's (FLSA) overtime requirements at the company's facilities in Milliken, Colorado, and Irvin, Texas.

WHD investigators found the employer violated FLSA overtime requirements when it failed to include bonuses earned by employees in their calculations when determining overtime rates. Excluding these amounts resulted in the employer paying overtime at rates lower than those required by law.

"Our education and enforcement efforts help ensure that workers get paid what they have legally earned, and that employers compete on a level playing field," said Wage and Hour Division District Director Chad Frasier in Denver. "The U.S. Department of Labor provides employers with a wide variety of resources – online, paper, and in person – to help them understand and comply with federal labor laws. We encourage all employers to take advantage of these resources and avoid violations."

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

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 1, 2019
Release Number
19-0284-DEN
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux

U.S. Department of Labor Investigation Results in New Jersey Restaurant Paying $768,548 for Wage and Visa Program Violations

News Release

U.S. Department of Labor Investigation Results in New Jersey Restaurant Paying $768,548 for Wage and Visa Program Violations

BEACH HAVEN, NJ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Cramark Inc. – doing business as The Chicken or The Egg restaurant in Beach Haven, New Jersey - will pay $768,548 in back wages, liquidated damages, and penalties for violating the Fair Labor Standards Act (FLSA) and the labor provisions of the H-2B temporary visa program. Cramark Inc. will pay 23 employees $359,077 in FLSA back wages, an equal amount in liquidated damages, plus $7,792 in H-2B back wages to two employees. The Department also assessed a civil penalty of $42,602 against the employer for the willful nature of the wage violations.

WHD investigators determined the employer violated FLSA overtime requirements when it failed to pay workers time-and-one-half when they worked more than 40 hours in a workweek. Instead, the employer always recorded fewer than 40 hours on the payroll each week, regardless of the actual number of hours worked, and paid for overtime hours in cash, unrecorded. This failure to record all the hours employees worked or the cash payments violated FLSA recordkeeping requirements.

The investigation also found that the employer violated requirements of the H-2B visa program by failing to furnish each H-2B employee, on or before each payday, with a written statement accurately listing their total earnings each workweek in the pay period. Additionally, three H-2B employees performed work as bussers, despite the employer's official application for these temporary workers receiving approval only for the H-2B employees to work in food preparation. The employer paid these employees less than the prevailing wage rates required for H-2B workers in Ocean County, New Jersey.

"The U.S. Department of Labor ensures the labor standards of the FLSA and H-2B visa program are followed to protect workers," said Wage and Hour District Director Charlene Rachor, in Lawrenceville, New Jersey. "Our efforts ensure that employers understand and abide by the provisions of the program to safeguard American employees against displacement while protecting foreign workers from being paid less than the wage they were promised."

In addition to paying the back wages, liquidated damages, and penalties, Cramark Inc. agrees to future compliance with the FLSA and H-2B provisions.

Before the U.S. Citizenship and Immigration Services can approve an employer's petition for H-2B visa workers, an employer must file an application with the Department stating that there are not sufficient U.S. employees who are able, willing, qualified, and available. The application must also affirm that the employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed persons in the U.S.

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. Employees must also maintain accurate time and payroll records. 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 H-2B temporary visa program, FLSA, and other laws enforced by the WHD, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd.

Agency
Wage and Hour Division
Date
February 28, 2019
Release Number
19-0301-NEW
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

Federal Court Orders New Jersey Gas Stations and Owner to Pay $650,000 After U.S. Department of Labor Investigation and Litigation

News Release

CORRECTED: Federal Court Orders New Jersey Gas Stations and Owner to Pay $650,000 After U.S. Department of Labor Investigation and Litigation

LAWRENCEVILLE, NJ – The U.S. District Court for the District of New Jersey has entered a consent judgment requiring five South Jersey gas stations, and their main owner Gurmeet Singh to pay $325,000 in back wages and an equal amount in liquidated damages to 29 current and former employees. The consent judgment comes after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) and litigation by the U.S. Department of Labor's Office of the Solicitor.

WHD investigators found that the defendants violated the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA) at the following gas station locations:

  • NS & GS LLC - operating as Third & Landis Riggins Vineland - 301 W. Landis Ave. in Vineland;
  • Sehjog LLC - operating as Millville Gulf - 812 N. 2nd St. in Millville;
  • S. Hari Singh Mgt. Inc. - operating as Burlington Gulf - 629 High Street in Burlington;
  • Woodlane Amoco Inc. - operating as Woodlane Gulf - 1866 Route 541 in Westampton; and
  • Station Mgt. Inc. - operating as Tom's Pennsauken Point Gulf - 7431 N. Crescent Blvd. in Pennsauken.

WHD found that - from at least October 1, 2014 to August 31, 2016 - the defendants paid all employees a flat monthly salary for all the hours that they worked, resulting in some employees' hourly rates falling below the federal minimum wage of $7.25 per hour. This practice also resulted in overtime violations when employees routinely worked more than 40 hours per workweek, yet were not paid time and one-half their regular rates of pay. The defendants also violated FLSA recordkeeping requirements when they failed to make and maintain accurate pay and time records. In July 2017, the Department filed suit against the defendants.

"The attendants hired to operate gas pumps and provide related customer services must be paid for all the hours that they work," said Wage and Hour District Director Charlene Rachor, in Lawrenceville, New Jersey. "The Wage and Hour Division offers numerous tools to help employers learn about their responsibilities and how to comply with the law. We encourage employers to reach out to us for assistance."

"This consent judgment sends a clear message to New Jersey gas station employers that failure to pay employees their rightfully earned wages comes at a high cost," said Regional Solicitor Jeffrey S. Rogoff, in New York.

In addition to requiring the defendants to pay back wages and liquidated damages, the consent judgment prohibits defendants from violating the FLSA in the future and prohibits defendants from directly or indirectly demanding, requiring, or accepting any of the back wages or liquidated damages paid to employees.

The Division's Southern New Jersey District Office investigated the case. Senior Trial Attorneys Allison L. Bowles and James R. Wong and Trial Attorney Frances Y. Ma litigated the case for the Department's Regional Office of the Solicitor in New York. 

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 its 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
February 28, 2019
Release Number
19-0253-NEW
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

U.S. Department of Labor Investigation Results in Seattle-Area Residential Care Company Paying $222,426 to 19 Employees for Overtime Violations

News Release

U.S. Department of Labor Investigation Results in Seattle-Area Residential Care Company Paying $222,426 to 19 Employees for Overtime Violations

SEATTLE, WA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Good Shepherd Adult Family Home – a residential care company based in Shoreline, Washington –will pay $222,426 in back wages and liquidated damages to 19 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The Department also assessed $17,442 in civil penalties against the employer for the willful nature of the violations.

WHD investigators found that workers at the Good Shepherd Adult Family Home facilities were required to provide around-the-clock care to residents, yet the employer failed to pay for all the hours employees worked in compliance with FLSA requirements. Specifically, the employer deducted 8 hours from employees’ recorded worktime for each overnight shift for sleep time, despite workers never being relieved from duty for an uninterrupted 8 hours. The employer made these 8-hour deductions during shifts of 24 hours, as well as during shifts of only 12 hours. Investigators also found the employer’s inaccurate time records resulted in recordkeeping violations under the FLSA.

“Employers who willfully violate basic federal labor laws hurt employees and gain an unfair advantage over employers who play by the rules,” said Wage and Hour Division Acting District Director Tuan Huynh, in Seattle. “We will continue to provide tools to help employers understand their obligations.” 

This marks the second time in the past five years that WHD has cited Good Shepherd Adult Family Homes for FLSA violations. Owner/operator Luz Hoff paid $17,442 in FLSA civil penalties for repeated and willful overtime violations following a 2015 WHD investigation of her facilities.

Good Shepherd Homes provides around-the-clock care for adults at five separate facilities in Shoreline.

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.

Agency
Wage and Hour Division
Date
February 27, 2019
Release Number
19-312-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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