PHOENIX, AZ – The U.S. Department of Labor has secured a consent judgment against Austin Electric Services LLC and its president Toby Thomas that orders the Avondale, Arizona-based electrical contractor to pay $925,000 in back wages and liquidated damages to 366 employees and $75,000 in civil money penalties for a number of Fair Labor Standards Act (FLSA) violations.

Entered by the U.S. District Court for the District of Arizona, the judgment also resolves the Department's retaliation claims against the company, its attorneys at the Cavanagh Law Firm, and its owner Scott Tonn. 

First filed by the Department in August 2016, the lawsuit stemmed from a 2015 Wage and Hour Division (WHD) investigation that disclosed systemic off-the-clock work by the contractor's electricians. Evidence showed that Austin Electric managers instructed workers not to record the many weekly hours worked beyond 40 in a week, resulting in unpaid overtime. WHD's 2015 investigation followed an earlier investigation that also revealed systemic violations of the FLSA, including nonpayment of minimum and overtime wages due to Austin Electric's electricians. 

During the litigation, the Department added retaliation claims to the lawsuit after the company and its attorneys coerced employees to sign false statements for the employer to submit to the court in defense of the case. U.S. District Court Judge Roslyn O. Silver ordered the defendants and their counsel to halt any further questioning of their workforce, explaining that the Department was likely to succeed in challenging defendants' collection of employee statements as violations of the anti-retaliation provisions of the FLSA. Judge Silver also prohibited the defendants from using the statements, striking them from the litigation.

"The defendants and their attorneys violated the Fair Labor Standards Act and other basic obligations by trying to coerce false statements from their workforce," said the Department's Regional Solicitor Janet Herold. "Federal labor laws protect workers from retaliation, which includes ensuring that they are free from having employers and their attorneys use their outsized influence to pressure them into signing inaccurate statements that deprive them of the wages they lawfully earned."

"This is a win for these employees and for contractors who play by the rules," said Eric Murray, District Director for the Wage and Hour Division in Phoenix. "The Division is committed to vigorously enforcing the law and protecting workers against retaliation for asserting their rights."

In addition to providing $1 million in unpaid wages, liquidated damages, and penalties, the consent judgment includes several provisions to ensure the defendants' and their attorneys' future compliance with the law. The judgment also prohibits the defendants and their attorneys from engaging in any retaliation in violation of the FLSA. Defendants must also issue notices to workers and managers regarding employees' rights under the FLSA, which includes the right to an accurate record of hours worked.

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.

DUBLIN, OH – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Check Smart Financial LLC – based in Dublin, Ohio, and operator of 530 CheckCashing USA locations in 12 states – will pay $80,593 in unpaid wages to 474 current and former employees.

The WHD investigation of five local branches of the company revealed Check Smart Financial LLC violated overtime requirements of the Fair Labor Standards Act (FLSA) by making deductions from employees' pay to recover cash shortages in the stores. This practice resulted in violations during workweeks when employees worked over 40 hours.

Based upon the findings in Ohio, the employer cooperated in expanding the review to all CheckCashing USA locations, and will pay back wages to employees affected by the illegal deduction issue companywide.

"Employers must pay their employees all the wages they have legally earned. As a result of the U.S. Department of Labor investigation, Check Smart Financial LLC has stopped the deduction practice to ensure compliance with the federal Fair Labor Standards Act," said Wage and Hour Division District Director George Victory, in Columbus. "We encourage all employers to contact us for guidance and to use the wide variety of tools we offer to help them comply with the law."

If you think you may be owed back wages collected by WHD, you can search our database of workers for whom we have money waiting to be claimed. If you find that you are due money, you can submit a claim. Begin by entering the employer's name, then click "WOW Search."

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 WHD, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

INDIANAPOLIS, IN – After several investigations by the U.S. Department of Labor's Wage and Hour Division (WHD), Best One Tire Group – based in Monroe, Indiana – has agreed to pay $1,023,808 in overtime back wages and liquidated damages for 1,056 employees nationwide for violations of the Fair Labor Standards Act (FLSA).

WHD investigated 203 tire stores operating under the Best One Tire Group in 24 states and found 835 employees were due $622,142 in overtime back wages. Wage violations occurred when the employer failed to include bonuses, commissions, incentive pay, and shift differentials in the calculation when determining overtime pay rates. Excluding these amounts from worker's total straight time rates resulted in the employers paying overtime at rates lower than those required by law. Thirteen prior investigations conducted in 2017 and 2018 at various tire stores under the Best One Tire Group found $218,486 in overtime back wages and $183,180 in liquidated damages due to 221 employees for similar violations.  

"The violations disclosed in these investigations are far too common. The U.S. Department of Labor's Wage and Hour Division is committed to increasing knowledge and awareness of the laws so that employees receive all their hard-earned wages," said Wage and Hour District Director Patricia Lewis, in Indianapolis. "This employer cooperated during the investigations and is taking steps to ensure compliance at all of their locations. We encourage employers to contact WHD for guidance and compliance assistance."

In an effort to educate others in the industry, Best One Tire Group agreed to write a compliance article for a tire industry trade magazine and to conduct an FLSA audit of any new companies wishing to join the Best One Group to ensure compliance with wage laws. The tire group will also require any new companies to pay any back wages found due in the audits prior to admitting them into the organization.

In addition to conducting investigations, WHD conducts outreach events for employers and industry stakeholders to provide compliance assistance and information on both employers' and employees' legal rights and responsibilities.

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 federal labor laws, call the division's toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.

ATLANTA, GA – Five Kani House restaurants operating in the Atlanta, Georgia-area will pay $361,288 in back wages and liquidated damages to approximately 190 employees after the U.S. District Court for the Northern District of Georgia issued a consent judgment against the employer for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

The court's action follows a U.S. Department of Labor Wage and Hour Division (WHD) investigation that found the restaurants, all owned by June C. Park, paid non-exempt employees flat weekly salaries, resulting in minimum wage violations when their average hourly wages fell below the federal minimum wage of $7.25 per hour. In addition, Kani House deducted a portion of the employees' salaries for uniforms, which resulted in additional minimum wage violations when the deductions caused workers' hourly wages to dip below the federal minimum wage.

Investigators also determined Kani House paid straight-time rates to tipped employees for hours they worked beyond 40 in a workweek, instead of paying them overtime at time-and-a-half for those hours, as the law requires. The employer also failed to keep accurate records of the number of hours worked by employees, resulting in a recordkeeping violation.

"The judgment in this case demonstrates the U.S. Department of Labor's commitment 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 ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do. We encourage all employers to reach out to us for guidance on how to avoid such 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.

SUNRISE, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), J & J Inc. – a painting and water-proofing company based in Sunrise, Florida – will pay $86,530 in back wages to 25 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that J & J Inc. – operating as Eagle Painting – incorrectly classified the majority of its employees as independent contractors, paying them a straight-time rate for all hours worked, which resulted in overtime violations when the employees worked more than 40 hours in a workweek. The employer also directed employees to begin workdays by loading equipment into company vehicles before traveling to work sites. WHD found that J & J Inc. did not start recording work hours until the employees arrived at the work site and failed to pay the employees for any of their pre-shift work loading vehicles, or for their travel time to and from the job sites. This practice resulted in overtime violations of the FLSA when the pre-shift hours and work site hours combined to exceed 40 hours in a workweek.

In addition, WHD found that J & J Inc. failed to maintain accurate records that included employees' travel time to and from work sites, and did not include staff incorrectly classified as independent contractors.

"The law requires employers to pay workers for all the hours they work, including any time spent working before or after scheduled shifts, or traveling between job sites during the workday," said Wage and Hour Division District Director Tony Pham, in Miami. "The Wage and Hour Division works to ensure that employees receive the wages they rightfully earned, and that employers compete on a level playing field. We encourage all employers to reach out to us and to use the wide variety of tools we offer to help them understand their responsibilities."

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.

LIGONIER, PA - After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Bethlen Home of the Hungarian Reformed Federation of America – a continuing care retirement community based in Ligonier, Pennsylvania – paid $39,704 in back wages and liquidated damages to 92 employees for violating the Fair Labor Standards Act (FLSA).

The recovery comes after the U.S. District Court for the Western District of Pennsylvania entered a consent judgement, which in addition to requiring the payment of back wages and damages, permanently enjoins the employer from future violations of FLSA overtime and recordkeeping provisions.

WHD investigators found Bethlen Home of the Hungarian Reformed Federation of America - doing business as Bethlen Communities Inc. - violated FLSA overtime and recordkeeping requirements at its Pennsylvania facilities, which consist of three divisions: Bethlen Home-Skilled Nursing & Rehabilitation Center, Bethlen Communities Home Health and Hospice Service, and Ligonier Gardens Personal Care & Retirement Center. Specifically, WHD found that the employer failed to include workers' shift bonuses when calculating their overtime rates. Excluding these amounts from the calculation resulted in the employer paying overtime rates lower than those required by law. The employer also failed to maintain records of employee bonuses and hourly rates.

"The judgment in this case underscores the Wage and Hour Division's commitment to ensuring that employees  receive all the wages they have rightfully earned," said Wage and Hour District Director John DuMont, in Pittsburgh, Pennsylvania. "Our work also levels the playing field for employers who obey the law."

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.

BRISTOL, TN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Frizzell Construction Co. Inc. – based in Bristol, Tennessee – will pay $195,193 in back wages, and fringe benefits to 27 employees for violating requirements of the Davis-Bacon and Related Acts (DBRA), the Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA).

WHD investigators determined that Frizzell Construction Co. Inc. incorrectly classified employees and paid them at rates lower than those applicable to the work they actually performed. The employer paid employees as general laborers when they actually performed more skilled labor as concrete finishers, ironworkers, and carpenters, all of which require payment at higher rates. The employer also failed to record and pay required rates to employees who worked in multiple positions for which different rates applied. These incorrect classifications resulted in the employer paying incorrect prevailing wage rates to the employees and subsequently incorrect overtime rates when they worked more than 40 hours in a workweek.

Investigators also found that due to the incorrect classification, the employer failed to pay or provide required fringe benefits to the affected employees.

"No contractor should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage project," said Wage and Hour Division District Director Nettie Lewis, in Nashville. "Not only does this practice undercut what the workers involved are legally owed for their work, it results in unfair competition for contractors who play by the rules. We encourage all employers to contact us for guidance to avoid violations and ensure workers receive the wages they have earned."

Frizzell Construction Co. Inc. was contracted to perform construction work on the Morristown Utility Systems Contract A – Lowland Wastewater System Improvements. The Economic Development Agency partially funded the project. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

For more information about the FLSA, DBRA, CWHSSA, and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. The Division also offers a search tool which allows users to determine if you are owed back wages collected by the Division.

CLEARWATER, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Advanced Marketing & Processing Inc. – a warrantee insurance company based in Clearwater, Florida – has paid $89,866 in back wages to 138 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The employer, which does business as PMC, paid the back wages after WHD investigators determined PMC misapplied an exemption from the overtime requirements under the FLSA. This misapplication of the exemption led the employer to pay some overtime-eligible employees flat weekly salaries, without regard to the number of hours they had worked. This practice resulted in violations when these employees worked more than 40 hours per week and were not paid overtime. The employer also failed to maintain required records of the number of hours employees worked.

"Employers must understand their obligations and responsibilities under the law. Simply because a pay practice may appear to be common does not, in any way, mean that it complies with the law," said Wage and Hour Division District Director James Schmidt, in Tampa. "The U.S. Department of Labor encourages 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.

JEFFERSON, GA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Hubbell Inc. – a lighting manufacturer based in Shelton, Connecticut – will pay $138,753 in back wages and liquidated damages to 829 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA) at its distribution facility in Jefferson, Georgia.

WHD investigators found that Hubbell Inc. failed to include employees' shift differentials when computing their overtime pay, instead basing their time-and-one-half calculation only on the workers' hourly base rates. Excluding these amounts from the calculation resulted in the employer paying overtime at rates lower than those required by law. The employer also failed to maintain complete and accurate records of the hours employees worked.

"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 Eric Williams in Atlanta, Georgia. "We are also determined to ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do. We offer a wide variety of tools to help employers 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.

EDGEWOOD, md – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the District of Maryland has entered a consent judgment ordering hotel owner and manager Akhilbhai Patel to pay $78,575 in back wages and an equal amount in liquidated damages to 34 current and former employees at two Edgewood, Maryland locations. The Department also assessed Patel a $6,440 civil money penalty due to the willful nature of the violations.

WHD investigators found that Patel – manager of Blissful Enterprises LLC, and manager and owner of ENA Hotels LLC – violated the overtime provisions of the Fair Labor Standards Act (FLSA).

Investigators determined Patel paid some employees flat salaries, without regard to the number of hours that they worked. This practice resulted in overtime violations when these employees worked more than 40 hours in a week, yet were not paid overtime. The employer further violated overtime requirements when it paid some workers their straight-time hourly rate, rather than time-and-a-half, for hours worked beyond 40 in a workweek.

"The violations committed by this employer denied workers the wages they were legally due," said Wage and Hour Division Acting District Director John DuMont, in Baltimore. "We offer a wide variety of tools that explain the requirements of the law, and encourage employers in all industries to contact us with any questions about compliance. Our goal is to prevent violations from occurring."

"The U.S. Department of Labor does not hesitate to take appropriate steps to rectify FLSA violations and pursue outcomes that prevent them from recurring," said Regional Solicitor of Labor Oscar L. Hampton III, in Philadelphia.

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.