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

U.S. Department of Labor Investigation Finds North Carolina Town Violated Federal Child Labor Laws

News Release

U.S. Department of Labor Investigation Finds North Carolina Town Violated Federal Child Labor Laws

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.

Agency
Wage and Hour Division
Date
January 25, 2019
Release Number
18-1991-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Results in Alabama Contractor Paying $82,515 for Wage and Benefit Violations

News Release

U.S. Department of Labor Investigation Results in Alabama Contractor Paying $82,515 for Wage and Benefit Violations

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.

Agency
Wage and Hour Division
Date
January 25, 2019
Release Number
19-0001-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Franchise Operator in Pennsylvania Paying $47,668 in Back Wages and Damages

News Release

U.S. Department of Labor Investigation Results in Franchise Operator in Pennsylvania Paying $47,668 in Back Wages and Damages

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.

Agency
Wage and Hour Division
Date
January 23, 2019
Release Number
19-12-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

U.S. Department of Labor Investigation Results in Ohio Bakery Paying $80,726 in Back Overtime Wages to 27 Employees

News Release

U.S. Department of Labor Investigation Results in Ohio Bakery Paying $80,726 in Back Overtime Wages to 27 Employees

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.

Agency
Wage and Hour Division
Date
January 23, 2019
Release Number
19-105-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Recovers $15,241 in Back Wages and Damages For Six Employees at Savannah Senior Living Community

News Release

U.S. Department of Labor Recovers $15,241 in Back Wages and Damages For Six Employees at Savannah Senior Living Community

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.

Agency
Wage and Hour Division
Date
January 17, 2019
Release Number
19-0038-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor to Provide Educational Forum on Resolving Overtime and Minimum Wage Violations January 31, in Little Rock, Arkansas

News Release

U.S. Department of Labor to Provide Educational Forum on Resolving Overtime and Minimum Wage Violations January 31, in Little Rock, Arkansas

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.

Agency
Wage and Hour Division
Date
January 17, 2019
Release Number
19-0081-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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