OMAHA, NE – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), a federal court in Omaha, Nebraska, entered a consent judgment ordering China Palace Inc. and owners and operators – Miao Hui Zhang and Jian Zhang – to pay $145,987 in back wages, liquidated damages and interest to eight current and former employees. Investigators found repeat and willful violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA) at the Omaha restaurant, resulting in the assessment of an additional $8,800 civil money penalty.

WHD investigators found the restaurants, in some instances, failed to cover employees’ hours at the federal minimum wage of $7.25 per hour, and also failed to pay overtime when employees worked more than 40 hours in a workweek. The owners’ failure to record and pay workers for some of the hours worked resulted in additional minimum wage, overtime, and recordkeeping violations.

The restaurant had been previously investigated, and had failed to make any changes to come into compliance with the law.

“Employers must pay their employees all the wages they have legally earned,” said Wage and Hour Division Assistant District Director Richard Tesarek in Omaha. “This employer had a chance to implement changes and failed to do so.”

For more information about the FLSA and other laws enforced by the 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.

NASHVILLE, TN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Middle District of Tennessee has ordered Reynolds Baldwin III – doing business as Copperhead Construction LLC and formerly as Sara-Tech LLC – to pay $501,000 in back wages and liquidated damages to 82 employees to resolve violations of the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). Additionally, WHD assessed the Spring Hill, Tennessee-based company $29,000 in civil money penalties.

WHD investigators found Reynolds Baldwin III failed to pay employees overtime when they worked more than 40 hours in a workweek. Investigators also found, in some instances, that the company illegally altered time records to record and pay for fewer hours than employees had actually worked. Reynolds Baldwin III also failed to maintain accurate records of hours worked and failed to display required posters in the workplace.

"The Wage and Hour Division will use all of the tools at its disposal to ensure workers receive the wages they have legally earned," said Nashville District Director Nettie Lewis. "This case should remind all employers to ensure their pay practices follow the law, and that we encourage them to contact the Wage and Hour Division with their questions about compliance assistance."

In December 2017, the U.S. Department Labor's Office of the Solicitor filed a complaint against the construction companies and Reynolds Baldwin III to remedy the violations found in the current investigation. Reynolds Baldwin III settled with the Department and the parties filed a consent judgment and order that the court approved on December 4, 2018. In addition to the order to pay the back wages and damages, the court has enjoined Copperhead Construction LLC, Sara-Tech LLC, and Reynolds Baldwin from committing future FLSA violations.

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.

NEW ORLEANS, LA - 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 New Orleans, Louisiana, on January 9, 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 9, 2019
10 a.m. to Noon CST

WHERE: Tulane University, Bowers Auditorium
1555 Poydras St.
New Orleans, LA 70122

The forum will include members of the Division's Southwest Region, and New Orleans offices as well as representatives from the Louisiana Workforce Commission and employer associations from the area. If you are unable to attend in person, you can participate from the comfort of your own desk.

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

Editor's Note: This release has been updated to reflect changes in forum participants.

NASHVILLE, TN – The U.S. District Court for the Middle District of Tennessee, Nashville Division, has ordered Hetal Patel Inc., Pankaj and Hetal Patel, and Madhusudhan Naik - operators of the Woodlands Indian Vegetarian Cuisine restaurant - to pay $220,000 in back wages and liquidated damages to 31 employees at its Nashville, Tennessee, restaurant. The action comes after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found violations of minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employers paid some food prep workers, cooks, and dishwashers flat salaries without regard to the number of hours they actually worked. These employees worked approximately 60 hours per week, resulting in hourly rates less than the federal minimum wage of $7.25 per hour. In addition, the employers failed to pay required overtime to these employees when they worked more than 40 hours in a workweek. Investigators also found the employers failed to keep required payroll records, an FLSA violation.

“Employers are responsible for paying their employees all the wages they have legally earned,” said Nettie Lewis, the Wage and Hour Division's district director in Nashville. “The Department’s Wage and Hour Division provides a wide variety of tools for employers to learn about these requirements, and encourages them to reach out to us for assistance so that violations can be avoided.”

In December 2017, the Department’s Office of the Solicitor filed a complaint against Hetal Patel Inc., Pankaj and Hetal Patel, and Madhusudhan Naik to remedy the violations found in the investigation. The defendants settled with the Department and the parties filed a consent order and injunction that the court approved on December 11, 2018. In addition to ordering the payment of back wages and damages, the court has also enjoined all the parties named from committing future FLSA violations.

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.

LANSDALE, PA – Following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Eastern District of Pennsylvania has entered a consent judgment requiring Fox Bindery Inc. – based in Lansdale, Pennsylvania – and owner Henry J. Fox to pay $274,183 in back wages and an equal amount in liquidated damages to 556 current and former employees. The Department also assessed the employer and its owner a $50,000 civil money penalty due to the willful nature of the violations.

Investigators found Fox Bindery Inc. violated the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). Investigators found that - from March 11, 2013, to March 6, 2016 - Fox Bindery Inc. used workers obtained through temporary employment agencies to fill laborer positions. WHD determined Fox Bindery Inc. and the employment agencies jointly employed the temporary workers. WHD's investigation also found that the temporary employment agencies knowingly failed to pay temporary employees for additional time they worked in excess of 40 hours a week, and knowingly paid employees who performed work for Fox Bindery Inc. less than the minimum wage of $7.25 per hour, a FLSA violation. Investigators also determined Fox Bindery Inc. made no effort to determine if these employees were properly paid, despite receiving detailed invoices from the temporary staffing agencies.

"The use of temporary staffing agencies by Fox Bindery Inc. does not excuse its responsibility to comply with federal wage and hour regulations," said Wage and Hour District Director James Cain, in Philadelphia. "The Wage and Hour Division offers numerous tools to help employers learn about their responsibilities and how to comply with the law."

"This consent judgment will help to ensure that employees are paid the wages they are rightfully owed, and that some employers do not gain an unfair competitive advantage over other employers that comply with the law," said Regional Solicitor Oscar L. Hampton III.

In addition to paying back wages, liquidated damages, and civil money penalties, Fox Bindery Inc. and its owner have agreed to change its business practices and comply with the FLSA in the future.

The Division's Philadelphia District Office investigated the case.

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 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 the Division.

SEATTLE, WA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Oralia Magallanes and Juan Calderon – operators of three Mexican restaurants in North Central Washington – will pay $96,995 to 32 employees for overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators discovered that the operators of Rancho Grande Restaurant in Oroville, Rancho Grande Restaurant in Chelan, and Rancho Chico Restaurant in Tonasket paid dishwashers, cooks, and wait staff fixed salaries without regard to the number of hours they actually worked, resulting in overtime violations when employees worked more than 40 hours in a week without additional pay. The employers also failed to keep accurate time records, resulting in recordkeeping violations under the FLSA.

"Employers must pay their employees all the wages they have legally earned for all the hours they have worked," said Wage and Hour Division acting District Director Tuan Huynh in Seattle. "Ensuring that employees receive the wages they rightfully earned also guarantees that all employers compete on a fair and level playing field. We encourage all employers to reach out to us for assistance so that violations like these can be avoided."

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.

MANCHESTER, NH – A Manchester, New Hampshire, enterprise involving a catering business and several cafes – all owned and operated by Keri Laman and Tidewater Hospitality Resources LLC – has paid $86,959 in back wages and liquidated damages for 70 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation identified violations of the overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The Department also assessed the employers $22,820 in civil penalties due to the willful nature of the violations.

The investigation covered four Manchester, New Hampshire, entities - Tidewater Catering Group LLC, Bayona Café LLC, Waterworks Café LLC, and Unity Café LLC. WHD investigators found that the businesses paid straight time, in cash, off the books, for overtime hours worked by hourly employees, failed to pay overtime to a non-exempt salaried employee for overtime hours, and failed to pay at least the federal minimum wage to one employee who the employer paid a flat rate of $50 per day. Recordkeeping violations stemmed from failing to record overtime hours for hourly employees, omitting from payroll overtime hours the employer paid off the books in cash, and failing to record the hours worked by an employee misclassified as exempt from the overtime requirements.

"Ensuring that employees receive the wages they are due under the law guarantees that all employers compete on a fair and level playing field," said Wage and Hour Division District Director Daniel Cronin in Manchester. "We encourage all employers to reach out to us for assistance. Violations like these can be avoided."

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, FMLA, 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.

WASHINGTON, DC – The U.S. Department of Labor announced today that it has issued two new opinion letters. These letters demonstrate the Department’s commitment to providing meaningful compliance assistance to help employees understand their rights and ensure that employers have the tools they need to comply with federal labor law.

The letters released today address the following compliance issues under the Fair Labor Standards Act (FLSA):

• Determining minimum wage and overtime compliance for employees with varying average hourly rates.

• Application of the ministerial exception to members of an egalitarian religious commune.

The Department now offers a search function allowing users to search opinion letters by key word, year, topic, and a variety of other filters. An opinion letter is an official, written opinion by the Department’s Wage and Hour Division on how a particular law applies in specific circumstances presented by the person or entity requesting the letter. Opinion letters represent official statements of agency policy.

The public is encouraged to submit opinion letters to the Wage and Hour Division and can visit this webpage to learn how to request an opinion letter or determine whether existing agency guidance already addresses their questions. The Division will exercise discretion in determining whether and how it will respond to each request. 

NEWARK, NJ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Sinai Center for Rehabilitation and Healthcare LLC – a nursing and rehabilitation center in Newark, New Jersey – will pay $130,000 in back wages and an equal amount in liquidated damages to 174 employees to resolve violations of overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined Sinai Center for Rehabilitation and Healthcare LLC - doing business as Sinai Post-Acute Nursing and Rehab Center - failed to pay for all of the hours employees worked. Instead, the employer paid employees only for their scheduled shifts, or for extra time that had been approved in advance, without regard to the hours they actually worked. Employees often worked beyond their scheduled shifts to transfer care appropriately, write notes, and secure medication. Additionally, the company failed to record accurate numbers of hours worked on payroll records.  

“Healthcare employees provide vital services and must be paid the wages they have legally earned,” said Wage and Hour Division District Director John Warner in Mountainside, New Jersey. “Employers must understand their obligations and responsibilities under the law. We encourage all employers to make use of the various tools we provide to help them understand and comply with the law, and to call us for assistance.”

“We are hopeful that settlements like this one will call attention to these common violations in the healthcare industry and remind other employers that they must comply with the law,” said Regional Solicitor Jeffrey S. Rogoff, in New York.

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.

NEW YORK, NY – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the U.S. District Court for the Eastern District of New York has ordered the operators of three Queens, New York, hotels to pay $360,543 in back wages and an equal amount in liquidated damages to 83 employees to resolve violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The operators will also pay $28,914 in civil penalties and $625 in post-judgment interest.

The three companies – Exclusive Hospitality LLC, operator of the Quality Inn franchise at 53-05 Queens Boulevard in Woodside; Krishna Hospitality LLC, operator of the Country Inn & Suites franchise at 40-34 Crescent Street in Long Island City; and Sterling Hospitality LLC, operator of the Ramada franchise at 38-30 Crescent Street in Long Island City – jointly employ housekeeping, maintenance, and front desk staff at the three hotels. Owners Kaushik Patel and Chandresh Patel manage the operations of the three locations.

WHD investigators found the employers failed to pay the employees overtime at time-and-one-half their hourly rates when they worked more than 40 hours in a workweek. Most of the employees worked 48 to 60 hours or more per week. The defendants generally paid employees only straight time, at the hourly state minimum wage, for all of the hours that they worked.

WHD alleged the employers designed their pay practices to create the false appearance of compliance with the FLSA, concealed employees’ total hours worked in order to deny them premium pay, failed to make and maintain accurate records, and destroyed other records.

The consent judgment requires the employers to comply with the FLSA and maintain proper records. It also prohibits them from withholding pay, discharging or discriminating against employees in retaliation for asserting their FLSA rights, and requires them to post notices in English, Hindi, Punjabi, Urdu, Spanish, and Chinese, informing employees of their FLSA rights.

“The willfulness of these violations and actions taken by these employers denied workers the pay that was rightfully and legally due to them,” said David An, the Wage and Hour Division’s district director in New York City. “The defendants’ actions also economically undercut employers that adhere to the rules and pay their workers correctly. We provide numerous tools for employers to explain their responsibilities and show them how to avoid violations.”

“The U.S. Department of Labor does not hesitate to take appropriate steps to rectify FLSA violations and pursue outcomes to prevent them from recurring,” said Regional Solicitor of Labor Jeffrey S. Rogoff, in New York.

The Division’s New York City District Office conducted the investigation. Senior Trial Attorney James Wong and Trial Attorney Jason Glick of the Regional Solicitor’s office in New York litigated the case.

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 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.

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Acosta v. Exclusive Hospitality LLC, Krishna Hospitality LLC, Sterling Hospitality LLC, Kaushik Patel, and Chandresh Patel.
Civil Action Number:  18-cv-2882