U.S. Department of Labor Investigation Results in Florida Grocery Store Paying $198,039 in Back Wages and Liquidated Damages to 17 Employees

News Release

U.S. Department of Labor Investigation Results in Florida Grocery Store Paying $198,039 in Back Wages and Liquidated Damages to 17 Employees

TAMPA, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), El Grande Supermarket Corp. – operating as El Grande Supermarket in Tampa, Florida – will pay $198,039 in back wages and liquidated damages to 17 employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found El Grande Supermarket Corp. paid one employee a fixed salary without regard to the number of hours the employee worked. This practice resulted in a minimum wage violation when that salary failed to cover all of the hours that the employee worked at the federal minimum wage of $7.25 per hour. The employer also paid overtime-eligible employees straight time rates when they worked more than 40 hours in a week, violating the FLSA’s overtime requirements. WHD also found recordkeeping violations when the employer failed to record cash payments made to workers, and when El Grande failed to maintain other required payroll records.

“The outcome of this investigation serves as a reminder to all employers to review their pay practices to ensure employees are being paid for all the hours that they work,” said Wage and Hour Division District Director James Schmidt, in Tampa. “We remain committed to ensuring that employers who comply with the law do not find themselves at a competitive disadvantage to those who do not. We provide a wide variety of educational materials to help employers understand their responsibilities, and we staff offices nationwide to assist employers with compliance questions.”

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
February 7, 2019
Release Number
19-180-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Florida Cell Phone Company Paying $27,514 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Florida Cell Phone Company Paying $27,514 in Back Wages and Damages

PENSACOLA, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), IV Wireless LLC – operating as Boost Mobile in Pensacola, Florida – will pay $27,514 in back wages and liquidated damages to 32 employees for violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the cell phone service and accessories provider deducted pay from employees to make up for cash register shortages, inventory deficiencies, and transactional errors. This practice resulted in minimum wage violations when, because of the deductions, the employees’ hourly wages fell below the federal minimum wage of $7.25 per hour. IV Wireless also failed to pay some employees time-and-one-half when they worked more than 40 hours in a workweek, paying only straight-time wages, and resulting in overtime violations of the FLSA.

When IV Wireless did pay overtime, the employer failed to include commission payments when determining employees’ overtime rates, resulting in payments in amounts lower than the law requires. The employer also failed to maintain accurate records of the number of hours employees worked on a weekly basis.

“Penalizing employees by withholding a portion of their pay created violations in this case and denied workers wages they had legally earned,” said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. “Employers can reach out to us, confidentially, to ask questions and get information about their responsibilities. We offer a wide variety of tools to help them so that violations may 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
February 7, 2019
Release Number
19-169-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Announces New Compliance Assistance Tool

News Release

U.S. Department of Labor Announces New Compliance Assistance Tool

WASHINGTON, DC – The U.S. Department of Labor today announced the launch of an enhanced electronic version of the Handy Reference Guide to the Fair Labor Standards Act (FLSA). This new online version of one of the Wage and Hour Division’s (WHD) most popular publications will assist American employers and workers with a simple, easy-to-follow resource that provides basic WHD information, as well as links to other resources.

WHD established this electronic guide as part of its ongoing efforts to modernize compliance assistance materials for employers and workers, and to provide easily accessible, plain-language information that will guide them to compliance. This tool offers a new design - reformatted for laptops, tablets, and other mobile devices - and provides numerous additional resources and related information, including plain-language videos. It provides immediate access to materials employers frequently need, and allows users to tailor their experience by exploring available information at whatever level of detail they choose. This tool, in conjunction with worker.gov, employer.gov, and other recently released online tools, will ensure greater understanding of federal labor laws and regulations.

“The Wage and Hour Division believes in providing employers all the tools they need to understand their responsibilities and comply with the law,” said Acting Administrator Keith Sonderling. “We are committed to protecting the American worker, and leveling the playing field for job creators who abide by the law. Compliance assistance and vigorous enforcement go hand-in-hand.”

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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

OCI is part of the Department of Labor’s Office of the Assistant Secretary for Policy, and fosters a compliance assistance culture within the Department designed to complement its ongoing enforcement efforts. This Office focuses on helping enforcement agencies more effectively use online resources to deliver information and compliance assistance to help the American people. In August 2018, OCI launched Worker.gov and Employer.gov to provide information about workers’ rights and the responsibilities of job creators toward their workers.

Agency
Wage and Hour Division
Date
February 6, 2019
Release Number
19-239-NAT
Media Contact: Edwin Nieves
Phone Number

U.S. Department of Labor Investigation Results in Tennessee Motel Company Paying $58,894 in Back Wages

News Release

U.S. Department of Labor Investigation Results in Tennessee Motel Company Paying $58,894 in Back Wages

NASHVILLE, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Om Shree Ganesha LLC – operating as the Scottish Inns in Nashville, Tennessee – will pay $58,894 in back wages to four employees for violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer made agreements with homeless individuals to provide them with rooms at the hotel in exchange for working at the front desk without pay. This practice resulted in minimum wage violations when the maximum lodging credit allowed for those rooms totaled less than the required minimum wage of $7.25 per hour. This practice also resulted in overtime violations when these employees worked more than 40 hours in a workweek yet, because they worked for housing only, were not paid overtime. The employer also failed to maintain accurate records of the hours employees worked.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “The resolution of this case demonstrates our commitment to those workers, and to leveling the playing field for employers who play by the rules. Other workers in similar situations should reach out to our agency.”

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
February 6, 2019
Release Number
19-160-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Concrete Finishing Company Paying $24,015 in Back Wages and Liquidated Damages

News Release

U.S. Department of Labor Investigation Results in Concrete Finishing Company Paying $24,015 in Back Wages and Liquidated Damages

SEMINARY, MS – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), JLB Development LLC – based in Seminary, Mississippi – has paid $24,015 in back wages and liquidated damages to 25 employees for violating the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined the concrete finishing company violated the FLSA’s overtime requirement when it inaccurately classified employees as independent contractors, and paid them a flat day rate regardless of the number of hours they worked. This practice resulted in violations when these employees worked more than 40 hours in a week, but the employer did not pay them overtime. Investigators also found the employer failed to keep accurate records of the number of hours these employees worked, violating the recordkeeping requirements of the FLSA.

“Employers are obligated to pay their employees the wages they have legally earned,” said Wage and Hour Division District Director Audrey Hall, in Jackson, Mississippi. “Even if employees are paid flat rates, or on salaries, they are typically still due overtime when they work more than 40 hours in a week. The outcome of this investigation serves as a reminder to all employers to review their pay practices to confirm that employees are being paid as the law requires. We encourage employers to reach out to us at any time for information about how to comply with the law.”

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
February 5, 2019
Release Number
19-126-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Tampa Construction Company Paying $38,544 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Tampa Construction Company Paying $38,544 in Back Wages and Damages

TAMPA, FL – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Environmental Construction Inc. – operating as ECI and based in Tampa, Florida – has paid $38,544 in back wages and liquidated damages to 16 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Environmental Construction Inc. failed to pay employees for time they worked before their scheduled shifts began, and for time traveling to and from work sites. WHD determined that the employer directed employees to report to the firm's headquarters and begin their workday by loading tools and equipment into company vehicles, then traveling to various work sites. The employer failed to record or pay for any time workers spent in those duties, instead recording their arrival at the remote worksites as their start times. This practice resulted in overtime violations of the FLSA when this unpaid work time combined with work site hours exceeded 40 hours in a workweek.

WHD also found the employer incorrectly classified a clerical employee as a managerial employee and paid a flat salary regardless of the number of hours worked. This practice resulted in additional overtime violations when this employee worked more than 40 hours in a week, but was not paid overtime. The employer also violated FLSA recordkeeping requirements by failing to keep an accurate record of the number of hours employees worked.

"Simply because a pay practice may appear to be common in an industry does not mean that it complies with the law," said Wage and Hour Division District Director James Schmidt, in Tampa. "Employers must pay employees all the wages they have legally earned. We encourage all employers to reach out to us for guidance 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.

Agency
Wage and Hour Division
Date
February 4, 2019
Release Number
19-0116-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Leads to Court Order for Atlanta Restaurant to Pay $49,500 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Leads to Court Order for Atlanta Restaurant to Pay $49,500 in Back Wages and Damages

ATLANTA, GA – The U.S. District Court for the Middle District of Georgia, Atlanta Division, has ordered Brinker International Inc. – operating as Maggiano's Little Italy in Atlanta, Georgia – and its subsidiary, Brinker International Payroll Company LP, to pay $49,500 in back wages and liquidated damages to 70 employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The action comes after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD).

Specifically, WHD investigators found the employer required certain tipped employees to arrive before the opening of the restaurant to perform prep work, but did not record or pay employees for this work time. This practice resulted in failure to pay the required minimum wage and failure to pay employees required overtime when they worked more than 40 hours in a workweek. WHD also found the restaurant failed to maintain and preserve accurate records of the number of hours worked by employees, a violation of the FLSA recordkeeping requirements.  

"Employers are obligated to pay employees the wages they have legally earned. Our enforcement ensures employers that violate the law do not to gain an unfair competitive advantage over those that comply," said Wage and Hour Division District Director Eric Williams, in Atlanta. "The U.S. Department of Labor encourages all employers to reach out to their local Wage and Hour Division office for information about how to comply, and to avoid violations."

The Department's Office of the Solicitor filed a complaint against Brinker International and Brinker International Payroll to remedy the violations found in this investigation. Brinker International and Brinker International Payroll settled with the Department and the parties filed a consent judgment and order that the court approved on January 25, 2019. In addition to being ordered to pay the back wages and damages, both Brinker International entities are enjoined from committing future violations under the FLSA.

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
January 31, 2019
Release Number
18-2022-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Subway Franchisee Paying $47,657 Penalty after Child Labor Violations at Four Wisconsin Restaurants

News Release

U.S. Department of Labor Investigation Results in Subway Franchisee Paying $47,657 Penalty after Child Labor Violations at Four Wisconsin Restaurants

WAUSAU, WI – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Shadowlake Enterprises – operator of four Subway Restaurant franchise locations in Wausau, Wisconsin – has paid $47,657 in civil money penalties for child labor and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer violated federal occupational standards for employees under age 16 by permitting 55 employees, ages 14- and 15-years-old, to operate prohibited baking and toaster ovens, and to work more than 3 hours on school days or more than 8 hours on non-school days. The employer also failed to maintain records verifying the date of birth for some of the employees under age 19.

"Employment standards for 14- and 15-year-old workers ensure minors gain a positive work experience that does not interfere with their education, health, and well-being," said Wage and Hour District Director David King, in Minneapolis. "Child labor violations can be avoided when employers understand the rules. We encourage employers to contact us for guidance, and use the wide variety of tools we offer to help them comply with the law."

Shadowlake Enterprises has agreed to use a computerized scheduling system that will automatically control the hours scheduled for individual employees based on their age.

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
January 31, 2019
Release Number
19-0095-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Fines Michigan Manufacturer $28,474 For Child Labor Violations after Minor Suffers Amputation Injury

News Release

U.S. Department of Labor Fines Michigan Manufacturer $28,474 For Child Labor Violations after Minor Suffers Amputation Injury

GRAND RAPIDS, MI – Following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Tuff Automation Inc. has paid a civil money penalty of $28,474 after a 17-year-old employee suffered an amputation of his right index finger while operating an unguarded band saw at the Grand Rapids, Michigan, manufacturing facility. The minor also suffered significant nerve damage to his right middle finger.

WHD investigators found the company violated the child labor provisions of the Fair Labor Standards Act (FLSA) by employing a worker under the age of 18 to operate prohibited hazardous equipment.

"Child labor laws ensure minors can gain a positive and safe work experience that does not interfere with their education, health, and well-being," said Mary O'Rourke, Wage and Hour District Director in Grand Rapids. "Child labor violations can be avoided when employers understand the rules and familiarize key business personnel about such rules prior to hiring minors. We encourage employers and school districts issuing work permits to contact us for guidance, and use the wide variety of tools we offer to help them comply with the law."

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
January 31, 2019
Release Number
19-0119-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Investigation Results in $158,139 in Back Wages and Damages for 50 Employees on Massachusetts Construction Project

News Release

U.S. Department of Labor Investigation Results in $158,139 in Back Wages and Damages for 50 Employees on Massachusetts Construction Project

BOSTON, MA – 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 Massachusetts has ordered P & B Partitions Inc. and its owner Ronald H. Biglin Jr. to pay $158,139 in back wages and liquidated damages to 50 employees, to resolve willful violations of the Fair Labor Standards Act (FLSA). The company – based in West Berlin, New Jersey – was also assessed $33,880 in civil money penalties.

The employer worked on the City Square apartment construction project in Worcester, Massachusetts, between August 2016 and April 2018. WHD investigators found that the employer paid employees - including laborers, dry wall hangers, carpenters, and a lull operator - straight time in cash when they worked overtime hours. In addition, the employer failed to maintain records of the cash payments, failed to track accurately employees' work hours, and falsified payroll records.

"Employers are responsible for paying their employees all the wages they have legally earned," said Wage and Hour Division District Director Carlos Matos, in Boston.  "The U.S. Department of Labor is committed to protecting the American workforce, and will continue to provide education and tools to employers to help them understand their responsibilities and how to comply with the law."

"The U.S. Department of Labor will take appropriate steps to enforce the law to ensure that contractors pay their employees correctly and don't break the law to gain an unfair advantage over law-abiding competitors," said Regional Solicitor of Labor Maia Fisher, in Boston.

Read the complaint and the consent judgment and order.

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 its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd including a search toolto use if you think you may be owed back wages collected by the Division.

# # #

Acosta v. P & B Partitions Inc. and Ronald H. Biglin, Jr.
Civil Action Number:  1:18-cv-12398.

Agency
Office of the Solicitor
Date
January 29, 2019
Release Number
18-1868-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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