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.

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.

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.

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.

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.

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.

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.

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

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.