U.S. Department of Labor Investigation Results in U.S. District Court Ordering Hotels in Louisiana to Pay Back Wages and Penalties

News Release

U.S. Department of Labor Investigation Results in U.S. District Court Ordering Hotels in Louisiana to Pay Back Wages and Penalties

SHREVEPORT, LA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Western District of Louisiana has ordered two Louisiana hotels, Merryton LLC - doing business as Merryton Inn in Shreveport - and Merryton Bossier LLC - doing business as Bossier Inn and Suites in Bossier City - to pay $9,928 in back wages and liquidated damages to 22 employees for violating the Fair Labor Standards Act's (FLSA) minimum wage, overtime and recordkeeping requirements. The employer was also assessed $4,071 in civil money penalties.

WHD investigators determined the hotels violated FLSA minimum-wage provisions by failing to pay employees for all the hours that they worked. The employers violated overtime requirements when it paid straight time rates for overtime hours, and paid for those hours with separate checks. The court also ordered the employers to pay an additional $5,000 in lost wages for violating the FLSA's anti-retaliation provisions when it terminated one employee in Bossier City who questioned the employer's pay practices. The hotels also violated recordkeeping requirements when they failed to keep accurate attendance and payroll records. 

"The U.S. Department of Labor will enforce labor protections vigorously, particularly when employers repeatedly violate FLSA requirements and retaliate against employees for questioning their employer about wages they may be due," said Wage and Hour Division Acting Regional Administrator Donnette Holder. "We readily offer employers information and tools to assist them in complying with federal labor law. When violations occur, we will use all available remedies, including litigation, to enforce the law."

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.

Agency
Wage and Hour Division
Date
February 12, 2019
Release Number
19-0165-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux

U.S. Department of Labor Investigation Results in Los Angeles Supported Living Services Provider Paying $301,763 to 67 Employees

News Release

U.S. Department of Labor Investigation Results in Los Angeles Supported Living Services Provider Paying $301,763 to 67 Employees

LOS ANGELES, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Golden Life Supported Living Agency Inc. – a service provider for clients with developmental disabilities in Los Angeles, California – will pay 67 employees $301,763 in back wages for violating overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Golden Life Supported Living Agency Inc. paid only straight-time rates to its hourly-paid care provider employees without regard to the number of hours they worked. This practice resulted in violations when the employer failed to pay overtime when employees worked beyond 40 hours in a workweek. The employer's failure to accurately record the overtime hours worked also resulted in recordkeeping violations under the FLSA.

"Employers are responsible for paying their employees all the wages that they have earned, including the payment of overtime rates when they work more than 40 hours in a workweek," said Wage and Hour District Director Kimchi Bui, in Los Angeles. "We encourage all employers to make use of the many tools we offer to help them understand their responsibilities, and to reach out to us directly, and confidentially, with any questions they may have about how to comply with the law."

Employers that 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 https://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 12, 2019
Release Number
19-0201-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Recovers $5,579,939 for 993 Employees Who Performed Hurricane Recovery Work in Puerto Rico

News Release

U.S. Department of Labor Recovers $5,579,939 for 993 Employees Who Performed Hurricane Recovery Work in Puerto Rico

GUAYNABO, PR – Investigations by the U.S. Department of Labor's Wage and Hour Division (WHD) have resulted in the recovery of $5,579,939 in back wages and benefits owed to 993 employees of nine subcontractors that provided power generator operation support for hurricane recovery efforts in Puerto Rico. WHD investigators found that the subcontractors violated requirements of the McNamara-O'Hara Service Contract Act (SCA), the Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA).

As part of the resolution of these investigations, Louis Berger U.S. Inc. and its parent entity Louis Berger Group Inc. – both based in Morristown, New Jersey – have paid $5,030,449 to resolve the SCA and CWHSSA violations while the subcontractors have paid $549,490 for the FLSA violations found by WHD.

WHD investigators discovered violations that included failing to pay employees fringe benefits required by the SCA, and failing to pay required wages to employees misclassified as independent contractors. Additionally, the practice of paying employees flat rates regardless of the number of hours that they worked resulted in overtime violations when those workers exceeded 40 hours in a week, without being paid overtime. WHD cited recordkeeping violations for employers' failure to maintain a record of the number of hours employees worked.

"Employers must pay employees all the wages they have legally earned," said Wage and Hour Division Caribbean District Director Jose Vazquez. "These employees - many of whom live in Puerto Rico - have been instrumental in restoring electric power to communities. These back wages will greatly help them to rebuild and support the long-term recovery of the local economy."

In addition to paying the back wages, Louis Berger US Inc. and Louis Berger Group Inc. have agreed to implement new procedures to ensure pay practices fully comply with applicable laws, and to ensure the compliance of subcontractors with the SCA, CWHSSA, and the FLSA on federal contracts. For three years, Louis Berger U.S. Inc. and Louis Berger Group Inc. have agreed to:

  • Appoint an internal compliance manager to oversee subcontractors' compliance on certain prevailing wage contracts, including the accurate classification of workers;
  • Provide subcontractors' employees with written notice of their job classifications, applicable wage rates, overtime rates, and a description of their fringe benefits;
  • Pay wages and fringe benefits found due subcontractor employees if subcontractors fail to pay;
  • Include applicable labor standards clauses and SCA wage determinations in subcontracts on certain federal prevailing wage contracts;
  • Provide training for employees and subcontractors' managers and foreman about the applicable requirements of the SCA, CWHSSA, and FLSA; and,
  • Implement anti-retaliation provisions.

The U.S. Department of Labor recently filed a consent findings and order, which includes these and other measures that are part of an extensive compliance agreement. The Chief Administrative Law Judge of its Office of Administrative Law Judges has approved the consent findings and order.

The nine subcontractors found in violation include:

  • Kallberg Industries LLC, Fort Lauderdale, Florida
  • Kennett Consulting LLC, Weston, Florida
  • Bluesource LLC, Durham, North Carolina
  • Suncoast Resources, Houston, Texas
  • Automated Controls and Power LLC/ACP LLC, Lafayette, Louisiana
  • HP Services Corp., Cupey, Puerto Rico
  • LMD and Assoc. LLC, Charleston, South Carolina
  • DK&J Enterprises Inc. doing business as Roy and Dot's Towing, Rialto, California
  • Able Innovations Inc., Wooster, Ohio

Employees and employers who would like compliance information, who wish to meet with a Wage and Hour representative, have questions or concerns, or wish to file a complaint, should contact WHD's Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email. All contacts are confidential.

For more information about the SCA 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 WHD.

# # #

In the Matter of: Louis Berger U.S. Inc. and The Louis Berger Group Inc.
Office of Administrative Law Judges Case Number: 2019-SCA-00005

Read this news release En Español

Agency
Office of the Solicitor
Date
February 11, 2019
Release Number
19-0220-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

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
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