CANTON, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the Town of Canton, North Carolina, has paid a civil penalty of $7,060 after employing two minor employees in violation of the Fair Labor Standards Act's (FLSA) child labor requirements.

WHD investigators determined Canton violated child labor requirements by employing two minors in a hazardous occupation by allowing them to ride in the back of a dump truck while removing overhead tree branches on a residential street. Canton further violated child labor requirements by employing the same two minor employees to operate chainsaws. The town did not possess a student learner or apprenticeship exemption for the minors.

"Child labor laws exist to strike a balance between providing meaningful work experience for young people and keeping them safe on the job," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "This case should serve to remind employers of the importance of preventing employees under the age of 18 from participating in prohibited work. We encourage all employers to review their employment obligations and to contact the Wage and Hour Division for compliance assistance."

For more information about the FLSA, child labor, 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 WHD.

PANAMA CITY, FL – Marathon Electrical Contractors Inc. – based in Irondale, Alabama – has paid $82,515 in back wages and fringe benefits to 17 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated 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 Marathon Electrical Contractors Inc. failed to pay some employees required prevailing wage and overtime rates on a project subject to DBRA requirements. The employer inaccurately classified employees as laborers instead of electrician apprentices, and subsequently failed to pay them the correct percentage of the required journeyman wage.

The investigation also found Marathon Electrical Contractors Inc. violated DBRA fringe benefits requirements by claiming it had made contributions to 401(k) funds on behalf of its employees, and showing those contributions on the payroll, but never actually making those contributions.  The employer further violated DBRA requirements when it claimed credit for vacation benefits that failed to meet the criteria required for such credit. Investigators also found that while the contractor prepared certified payroll records, as required, those records were inaccurate because they reflected the 401(k) contributions that were never made.

"The U.S. Department of Labor is committed to ensuring employees performing work for federal contractors are paid the prevailing wages and fringe benefits they have legally earned," said Wage and Hour Division District Director Kenneth Stripling, in Birmingham. "Our work in this area keeps the playing field level for all contractors. If employers have concerns or questions about their pay practices we encourage them to contact the Wage and Hour Division for assistance."

Marathon Electrical Contractors Inc. was contracted to renovate the clinic at Tyndall Air Force Base in Panama City, Florida – a project funded by the U.S. Army Corps of Engineers. 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.

PHILADELPHIA, PA - The U.S. Department of Labor has entered into a consent judgment with BUB Inc. - a franchise operator of Primo Hoagies’ locations in Philadelphia and Bensalem, Pennsylvania - to resolve overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA). Filed in the U.S. District Court for the Eastern District of Pennsylvania, the judgment requires BUB Inc. to pay $23,834 in back wages and an equal amount in liquidated damages to 19 employees, and to pay $8,618 in civil money penalties assessed for willful violations of the FLSA.

The court’s action follows an investigation by the Department’s Wage and Hour Division (WHD) that found the employer failed to pay employees overtime at time-and-one-half when they worked more than 40 hours in a workweek, and failed to combine the hours employees worked at more than one location when determining whether overtime was due.

WHD investigators also determined BUB Inc. misclassified several employees as exempt from the FLSA’s overtime pay requirements. Instead of paying these workers guaranteed salaries, as is required for the exemption, the employer paid them on an hourly basis, without overtime. The employer also failed to maintain payroll records as required by the FLSA.

“The employees at these establishments worked as deli slicers, cashiers, and delivery drivers, earning hourly rates between $7.25 and $13 per hour. We remain committed to ensuring that workers receive all the wages they have legally earned,” said James Cain, Wage and Hour Division District Director in Philadelphia. “We provide a wide variety of compliance assistance – from live trainings, to online tools, to video tutorials – to help employers understand their responsibilities and prevent violations like those that occurred in this case.”

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.

CLEVELAND HEIGHTS, OH – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Unger’s Kosher Bakery Inc. – a bakery and grocery store based in Cleveland Heights, Ohio – has paid $80,726 in back wages to 27 employees for overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer violated federal wage laws by failing to pay employees overtime when they worked more than 40 hours in a workweek. Investigators found the company generally paid straight time for all hours worked and directed some employees to use a second time card to record any hours they worked in excess of 40 in a workweek. The employer paid for hours recorded on the second time cards in cash, at straight time. The employer violated FLSA recordkeeping requirements when they failed to maintain accurate payroll records showing the total number of hours employees worked, or the total payments made to workers.

“Our enforcement of the Fair Labor Standards Act’s wage requirements ensures that workers are paid the wages they have earned, and levels the playing field so that employers who break the law do not gain an unfair economic advantage over those who play by the rules,” said Wage and Hour District Director George Victory, in Columbus. “We encourage employers to contact us for confidential guidance, and to use the wide variety of tools we offer to help them understand their responsibilities, and comply with the law.”

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

SAVANNAH, GA – Wilmington Senior Care LLC - operator of a senior living community in Savannah, Georgia – has paid $15,241 in back wages and liquidated damages to six employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Wilmington Senior Care LLC – operating as Summer Breeze Senior Living – automatically deducted time from workers' timecards for lunch breaks and failed to pay employees who worked through those breaks. This practice resulted in unpaid overtime, creating violations when affected employees worked more than 40 hours in a week. The employer's failure to keep accurate records of the number of hours employees worked also resulted in a recordkeeping violation of the FLSA.

"The Wage and Hour Division is committed to ensuring a level playing field for operators of these facilities and guaranteeing that employees receive the wages they legally earned," said Wage and Hour Division District Director Eric Williams, in Atlanta. "We encourage all employers to reach out to us and to use the variety of tools we offer to ensure that their pay practices comply with federal 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.

LITTLE ROCK, AR - The U.S. Department of Labor's Wage and Hour Division (WHD) will present an educational forum about developments in its policies and regulations, and its Payroll Audit Independent Determination Program (PAID), in Little Rock, Arkansas, on January 31, 2019.

PAID facilitates resolution of potential overtime and minimum wage violations under the Fair Labor Standards Act (FLSA). The program's primary objectives are to resolve such claims quickly and without litigation, to improve employers' compliance with overtime and minimum wage obligations, and to ensure that more employees receive the back wages they are owed – faster.

WHAT: Wage and Hour Division Educational Forum
Payroll Audit Independent Determination Program (PAID) Educational Forum

WHEN: January 31, 2019
9:00 a.m. to 11:00 a.m. CST

WHERE: Association of Arkansas Counties
1415 W 3rd Street
Little Rock, AR 72201

The forum will include members of the Division's Washington, D.C., Dallas, and Little Rock offices, as well as representatives from the Arkansas Department of Labor's Labor Standards Division, the Arkansas State Chamber of Commerce, and other employer associations from the area.

Attendance is free, but pre-registration is required. Complete advance registration.

JACKSONVILLE, FL – Stone World Imports and Manufacturing Inc. – a countertop installation company based in Jacksonville, Florida – has paid $49,269 in back wages to 21 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer paid only straight time rates to employees without regard to how many hours they worked. This practice resulted in overtime violations when the employer failed to pay time-and-a-half for hours employees worked beyond 40 in a workweek, as the law requires.

"The Fair Labor Standards Act requires employers to maintain accurate records of the number of hours employees work, and pay proper overtime when they work more than 40 hours in a workweek," said Wage and Hour Division District Director Daniel White, in Jacksonville. "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.

OKLAHOMA CITY, OK – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Backyard Energy Services – based in Oklahoma City, Oklahoma – has paid $253,399 in back wages and $2,163 civil money penalties to resolve violations of the Fair Labor Standards Act's (FLSA) overtime, child labor, and recordkeeping requirements.

The employer violated federal overtime law when it misclassified employees as independent contractors and paid them flat daily rates without regard to the number of hours they worked. This practice resulted in overtime violations when the company failed to pay overtime to these employees when they worked more than 40 hours in a workweek. Investigators also found Backyard Energy Services erroneously classified its intrastate drivers as exempt from FLSA-overtime requirements, and paid them flat salaries without consideration for overtime pay when they worked over 40 hours in a workweek. The company also failed to keep records of the number of hours employees worked as required by the FLSA.

In addition, Backyard Energy Services violated child labor laws when it employed a 17-year-old to operate a front-end loader and track hoe.

"Employers have a legal responsibility to pay their employees for all of the hours that they work, including overtime hours," said Wage and Hour Division District Director Michael Speer, in Oklahoma City, Oklahoma. "By enforcing the FLSA, the U.S. Department of Labor helps to level the playing field for all employers and ensure workers get the wages and employment protections they are due."

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.

CAMDEN, AR – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Ouachita County Medical Center – a non-profit corporation headquartered in Camden, Arkansas – has paid $91,044 in back wages to resolve violations of the Fair Labor Standards Act's (FLSA) overtime provisions.

Ouachita County Medical Center violated the law when it required employees to remain onsite overnight, but failed to include those hours when calculating overtime payment. Additionally, the employer calculated overtime at rates lower than those required by law for some of its employees. The employer also failed to keep complete time and payroll records as required by the FLSA.

"Emergency medical professionals are critical to the welfare of the American people. We work to ensure that they, and all employees, are paid the wages they have legally earned," said Wage and Hour Division District Director Hanz Grünauer, in Little Rock, Arkansas. "We encourage employers to reach out to us for free and confidential assistance at any time to ensure that they are paying their employees correctly."

The U.S. Department of Labor 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.

TAMPA, FL – The U.S. Department of Labor's Wage and Hour Division (WHD) office in Tampa, Florida, conducted 350 investigations of employers in the restaurant industry in fiscal year 2018, finding over $1 million in back wages and liquidated damages for more than 1,500 employees for minimum wage and overtime violations of the Fair Labor Standards Act (FLSA). WHD assessed more than $19,000 in civil money penalties in these investigations. As part of this effort, the Tampa district office engaged with several chambers of commerce and multiple other stakeholders in payroll and human resources to provide compliance assistance and education to help ensure that employers in the restaurant industry understand their responsibilities and how to avoid violations.

WHD recovered more than $476,000 in back wages for more than 600 employees after their employers violated the overtime requirements of the FLSA through pay practices such as improperly classifying some employees as exempt from overtime, resulting in violations when they worked more than 40 hours in a workweek without overtime pay. Violations also occurred when employers paid tipped employees overtime at rates based on their direct cash wages instead of the full applicable minimum wage, as required by law.

More than 1,000 employees received over $335,000 in back wages to remedy FLSA minimum wage violations resulting from practices such as employers failing to provide final paychecks to employees who had left their jobs, inaccurately calculating the employers' credit against their minimum wage obligations for tips received by employees, illegally deducting money from employees' paychecks for cash or merchandise shortages, and charging workers for uniforms. Illegal tip pooling arrangements also resulted in minimum wage violations.

WHD found child labor violations when seven employers failed to adhere to the FLSA's requirements for employing workers under the age of 18, ranging from employing minors in prohibited hazardous occupations to employing workers under 16 years old beyond the number of hours or times of day permitted.

"Federal law allows employers a wide variety of methods to pay their employees. None of these methods, however, relieves employers from their legal responsibility to keep track of all the hours employees work, and to ensure that they pay for all of those hours," said District Director James Schmidt, in Tampa. "When restaurant owners violate the law, they gain an unfair economic advantage over their law-abiding competitors. We provide numerous tools and conduct extensive outreach to help employers understand their responsibilities and avoid violations."

WHD provides more information about concluded investigations in our publicly available online enforcement database, at https://enforcedata.dol.gov/homePage.php.

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.