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.

MANCHESTER, NH – The U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a statewide survey of New Hampshire highway construction projects that occurred between November 1, 2017 and October 31, 2018, to establish prevailing wage rates, as required under the Davis-Bacon and Related Acts. The data collection initiative is not limited to federally funded construction projects.

"Participation in the survey by contractors and other interested parties is crucial to the wage-setting process. Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers in the county where the work takes place," said Wage and Hour Division Northeast Deputy Regional Administrator Maria Rosado. "Full participation will allow us to provide accurate prevailing wages and to create a complete wage determination which, in turn, will reduce the need for contractors to request additional classifications."

WHD is sending notification letters and data collection forms (WD-10s) to interested parties and contractors known to WHD. Data must be postmarked by September 6, 2019 to be included. To complete the survey electronically, visit www.dol.gov/whd/programs/dbra/wd10/index.htm.

You do not need to receive a letter to answer the survey. If you would like to participate, or have questions regarding the survey process and forms, contact Regional Wage Specialist, Angel A. Aguero at 267-687-4059.

WASHINGTON, DC - Today, the U.S. Department of Labor announced a Notice of Proposed Rulemaking (NPRM) that would make more than a million more American workers eligible for overtime.

Under currently enforced law, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week. Workers making at least this salary level may be eligible for overtime based on their job duties. This salary level was set in 2004. 

This new proposal would update the salary threshold using current wage data, projected to January 1, 2020. The result would boost the standard salary level from $455 to $679 per week (equivalent to $35,308 per year). 

The Department is also asking for public comment on the NPRM’s language for periodic review to update the salary threshold. An update would continue to require notice-and-comment rulemaking.

In developing the proposal, the Department received extensive public input from six in-person listening sessions held around the nation and more than 200,000 comments as part of a 2017 Request for Information (RFI).

“Our economy has more job openings than job seekers and more Americans are joining the labor force,” said Secretary Alexander Acosta.  “At my confirmation hearings, I committed to an update of the 2004 overtime threshold, and today’s proposal would bring common sense, consistency, and higher wages to working Americans.”

“Commenters on the RFI and in-person sessions overwhelmingly agreed that the 2004 levels need to be updated,” said Keith Sonderling, Acting Administrator for the Department’s Wage and Hour Division. 

The NPRM maintains overtime protections for police officers, fire fighters, paramedics, nurses, and laborers including: non-management production-line employees and non-management employees in maintenance, construction and similar occupations such as carpenters, electricians, mechanics, plumbers, iron workers, craftsmen, operating engineers, longshoremen, and construction workers. The proposal does not call for automatic adjustments to the salary threshold.

A 2016 final rule to change the overtime thresholds was enjoined by the U.S. District Court for the Eastern District of Texas on November 22, 2016. As of November 6, 2017, the U.S. Court of Appeals for the Fifth Circuit has held an appeal in abeyance pending further rulemaking regarding a revised salary threshold. As the 2016 final rule was enjoined, the Department has consistently enforced the 2004 level throughout the last 15 years.

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. Once the rule is published in the Federal Register, the public will have 60 days to submit comments for those comments to be considered.

LOUISVILLE, KY – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. Court of Appeals for the Sixth Circuit in Cincinnati, Ohio, issued an opinion affirming the Department's assertion that Off Duty Police Services Inc. – a security and traffic control services provider based in Louisville, Kentucky – violated overtime and recordkeeping provisions of the of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Off Duty Police Services Inc. incorrectly classified employees as independent contractors, leading to overtime violations when the employer failed to pay employees time-and-a-half for any hours they worked over 40 in a workweek. Investigators also found the employer did not record start and stop times for employees' work hours and failed to keep a record of all the hours employees worked, resulting in recordkeeping violations of the FLSA.

While most of Off Duty Police Services Inc.'s employees were uniformed police officers who also worked for other law enforcement entities, others were non-sworn with generally no law enforcement background. The Sixth Circuit found that both groups of workers were employees, overturning a previous district court's finding that the sworn police officers were independent contractors who fell outside the scope of the FLSA's protections. The Sixth Circuit Court went on to affirm the Department's back wage calculations as the best method available to determine wages owed to employees since the employer failed to keep accurate records, and remanded the case to the district court to award damages for the sworn officers.

"The resolution of this case should remind other employers to review their pay practices to ensure they comply with the law," said Wage and Hour Division District Director Karen Garnett, in Louisville. "Violations such as those in this case can add up quickly and become very costly. The Department offers extensive guidance, and encourages employers to reach out to us for assistance to ensure that they understand their responsibilities."

"The U.S. Department of Labor will not hesitate to protect employees, and to level the playing field for employers who obey the law," said Associate Regional Solicitor Theresa Ball, in Nashville.

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.

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.

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.

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.

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.

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.

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.