U.S. Department of Labor Investigation Results in Sacramento-Area Gas Stations Paying $45,957 to 40 Employees to Resolve Wage Violations

News Release

U.S. Department of Labor Investigation Results in Sacramento-Area Gas Stations Paying $45,957 to 40 Employees to Resolve Wage Violations

SACRAMENTO, CA – Self-Serve Petroleum Inc. – owner and operator of multiple gas stations and convenience stores in Northern California – will pay $45,957 to 40 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found overtime, minimum wage, and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Self-Serve Petroleum Inc. failed to pay required overtime rates of time-and-a-half for hours worked beyond 40 in a workweek to employees in Auburn, Dixon, and Davis, California. The employer also failed to pay at least the federal minimum wage of $7.25 per hour to one employee. Self-Serve Petroleum also failed to keep accurate time records.

“Employers must pay their employees all the wages they have legally earned,” said Wage and Hour Division Assistant District Director Patricia Canites, in Sacramento. “We encourage employers to use the tools the Department provides to help them understand their obligations.”

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 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
December 3, 2018
Release Number
18-1902-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

Arkansas Amusement Park Operator Resolves Child Labor Violations Found in U.S. Department of Labor Investigation

News Release

Arkansas Amusement Park Operator Resolves Child Labor Violations Found in U.S. Department of Labor Investigation

HOT SPRINGS, AR – Premier Parks LLC – operator of Magic Springs Theme and Water Park in Hot Springs, Arkansas – has paid $13,734 in civil money penalties to resolve violations of the Fair Labor Standards Act's (FLSA) child labor provisions discovered during a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

Premier Parks LLC violated federal child labor law by employing 14- and 15-year-old minors to work outside of the specific timeframes allowed for workers of that age, and for more hours than allowed by law. WHD investigators found 21 minors worked after 7 p.m. on school nights, worked more than 3 hours on a school day, worked more than 8 hours on a non-school day, worked after 9 p.m. during the summer, and worked more than 40 hours per week during non-school days - all FLSA violations.

"Companies that employ minors must be aware of the rules that apply to workers less than 18 years old," said Wage and Hour Division District Director Hanz Grünauer, in Little Rock, Arkansas. "We encourage all employers to contact the Department of Labor's Wage and Hour Division with any questions they may have."

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.

Agency
Wage and Hour Division
Date
November 29, 2018
Release Number
18-1873-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

U.S. Department of Labor Investigation Recovers $15,917 In Back Wages and Damages for 25 Mississippi Hotel Employees

News Release

U.S. Department of Labor Investigation Recovers $15,917 In Back Wages and Damages for 25 Mississippi Hotel Employees

BATESVILLE, MS – Prime Inns Inc. – operator of a Hampton Inn hotel in Batesville, Mississippi – has paid $15,917 in back wages and liquidated damages to 25 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Prime Inns Inc., based in Olive Branch, Mississippi, automatically deducted 30 minutes from employees' work time for meal breaks, even when they worked through those breaks. This practice resulted in minimum wage violations when the employer failed to pay housekeepers for all of the hours they had worked, and in overtime violations when this unpaid time resulted in employees working more than 40 hours per week, without overtime. The employer's practice of paying overtime after 80 hours in a two-week period, instead of after 40 hours in one workweek, resulting in additional overtime violations.  

WHD also determined the Prime Inns Inc. edited employee timesheets to reduce their numbers of hours to avoid paying overtime, and failed to include bonuses in their calculations for overtime, causing the employer to pay rates lower than those required by law. In addition, recordkeeping violations resulted due to the employer's failure to keep accurate records of the number of hours employees worked.

"When employers intentionally violate the law by falsifying time and payroll records to pay their workers less than the law allows, everyone loses," said Wage and Hour Division District Director Audrey Hall, in Jackson. "These unlawful pay practices harm workers, and give the employer an unfair advantage over law-abiding employers in the industry."

The Wage and Hour Division provides a wide variety of tools to educate employers about their responsibilities and to help them avoid 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.

Agency
Wage and Hour Division
Date
November 29, 2018
Release Number
18-1883-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

Franchisee Pays $122,523 to 245 Restaurant Employees to Resolve Federal Wage and Hour Violations at Three Georgia Locations

News Release

Franchisee Pays $122,523 to 245 Restaurant Employees to Resolve Federal Wage and Hour Violations at Three Georgia Locations

ATLANTA, GA – RREMC Restaurant LLC – parent company of Denny's restaurants in Byron, Columbus, and Norcross, Georgia – has paid $122,523 in back wages and liquidated damages to 245 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that RREMC Restaurant LLC falsely increased reported tip amounts for servers and deleted or reduced time from their daily hours. By doing so, the employer violated FLSA minimum wage requirements when the employees' actual hourly earnings fell below the federal minimum wage of $7.25 per hour. The employer's actions led to overtime violations when they deducted or erased employees' hours and then failed to pay overtime when they worked more than 40 hours in a workweek. WHD also determined the restaurants violated FLSA recordkeeping requirements when they failed to keep accurate records of employees' hours.

"Employers must ensure that their employees receive the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Eric Williams, in Atlanta. "We are determined to ensure that employers who fail to comply with the law do not gain an unfair advantage over those who do."

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.

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
November 29, 2018
Release Number
18-1866-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

Four Restaurants in Minnesota and Iowa to Pay $831,232 in Back Wages to 113 Employees Following U.S. Department of Labor Investigation

News Release

Four Restaurants in Minnesota and Iowa to Pay $831,232 in Back Wages to 113 Employees Following U.S. Department of Labor Investigation

MINNEAPOLIS, MN – Three restaurants in Minnesota and one in northern Iowa will pay $831,232 in back wages to 113 current and former employees following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD). Investigators found violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA) at the four restaurants.

Plaza Garibaldi – a part of Las Lomas Inc. and owned by Janete Alvarez Campos based in Redwood Falls, Minnesota – will pay $151,269 to 30 employees. La Terraza Mexican Grill and Bar – a part of Los Ocampo Inc. and owned by Janete Alvarez Campos and Leticia Salazar Rizo based in Mankato, Minnesota – will pay $160,182 to 26 employees. Plaza Garibaldi Authentic Mexican Restaurant Inc. – owned by Janete Alvarez Campos, Denise Y. Fernandez and Leticia Salazar Rio based in New Ulm, Minnesota – will pay $390,067 to 31 employees. Las Palmas Mexican Restaurant – part of Las Palmas Mexican Restaurant Inc. and owned by Janete Alvarez Campos, Leticiz Salazar Rizo and Benjamin Alberto Ruiz based in Mason City, Iowa – will pay $129,714 to 26 employees.

WHD investigators found the restaurants, in some instances, required servers to "kick back" their hourly wages and work only for tips. The employer also paid bussers, food runners, cooks, and dishwashers' flat salaries, without regard to the number of hours they worked. This practice resulted in minimum wage violations when those salaries failed to cover employees' hours at the federal minimum wage of $7.25 per hour, and in overtime violations when employees worked more than 40 hours in a workweek without being paid overtime. Additional minimum wage violations occurred when the employers deducted the cost of uniforms from servers' wages. The owners' failure to record and pay workers for some of the hours that they worked resulted in additional minimum wage and overtime violations, and in recordkeeping violations.

"Employers must pay their employees the wages they have legally earned," said Wage and Hour Division District Director David King in Minneapolis. "We encourage employers to make use of the many tools the Wage and Hour Division provides to help them understand their obligations, and to contact us for assistance."

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 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
November 28, 2018
Release Number
18-1733-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Recovers $3.2 Million in Back Wages, Damages, And Penalties from Portland, Oregon, Courier Service

News Release

U.S. Department of Labor Recovers $3.2 Million in Back Wages, Damages, And Penalties from Portland, Oregon, Courier Service

PORTLAND, OR – The U.S. District Court for the District of Oregon has entered a consent judgment against Gerald (“Jerry”) Brazie, Jr. and three Portland, Oregon-based companies he controls, requiring that their drivers be paid $3,087,100 in wages and liquidated damages for violations of the Fair Labor Standards Act (FLSA). The judgment also requires the delivery service to pay $112,900 in civil money penalties.

The judgment acts on a lawsuit the U.S. Department of Labor brought in December 2016 against Brazie and his companies – Senvoy LLC, Driver Resources LLC and ZoAn Management Inc. – seeking to remedy the systemic denial of minimum wages and overtime pay to couriers driving under the Senvoy name since at least 2010. Brazie illegally required these Senvoy LLC-controlled drivers to sign contracts with Driver Resources LLC, a corporate shell entity managed by ZoAn Management Inc. Ultimately, the violations arose from Senvoy LLC’s practice of classifying its couriers as independent contractors, rather than as employees. As a result, Senvoy LLC failed to pay its couriers for all hours worked and charged the couriers a host of expenses, including the cost of gas and other costs attendant to using the drivers’ vehicles for Senvoy LLC’s delivery work. 

“The facts here were clear and unequivocal: these drivers, under unambiguous and long-settled federal law, are and were Senvoy LLC employees,” said Regional Solicitor Janet Herold. “It is not just employees here who were cheated of millions of dollars in wages due, but also taxpayers who bore the burden of Senvoy LLC’s unlawful practices as the company used this unlawful practice to avoid payment of federal and state payroll taxes. Employers that do so enjoy an unfair and unlawful advantage over their law-abiding competitors, to the significant detriment of both the employees and taxpayers.”

In addition to the recovery of $3.2 million in unpaid back wages, liquidated damages, and penalties, the judgment, entered October 12, 2018, orders the defendants to classify immediately all drivers as employees who are entitled to the full payment of the federal minimum wage, overtime pay, and reimbursement for work-related expenses, such as gas and use of drivers’ personal vehicles. Further, to ensure that Senvoy LLC remains in compliance with the FLSA, the defendants must obtain a third-party audit of their employment practices within six months and issue notices to their workers and managers regarding employees’ rights under the FLSA.

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 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
November 27, 2018
Release Number
18-1721-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Initiative Seeks to Ensure New Jersey’s Childcare Industry Complies With Federal Wage and Hour Regulations

News Release

U.S. Department of Labor Initiative Seeks to Ensure New Jersey’s Childcare Industry Complies With Federal Wage and Hour Regulations

MOUNTAINSIDE, NJ – The U.S. Department of Labor's Wage and Hour Division (WHD) has begun an education and enforcement initiative to ensure New Jersey's childcare industry complies with federal wage laws, as the Division addresses consistent violations of the Fair Labor Standards Act (FLSA).

The initiative includes outreach efforts to provide WHD compliance assistance to educate childcare employers. WHD is working with stakeholders in the industry to provide the tools and information they need to understand their responsibilities and to comply with the law.

"Childcare industry employees deserve to be paid the wages they have legally earned," said Wage and Hour District Director John Warner, in Mountainside, New Jersey. "With nearly 19,000 people employed in the industry in New Jersey, the U.S. Department of Labor wants to make sure everyone knows and follows the rules. Our goal is to ensure industry-wide compliance, and to educate employers so they can avoid violations."

Since October 2017, WHD investigations nationwide have identified employers that owed more than $1.3 million in back wages to more than 3,500 people employed in the childcare industry. In these investigations, WHD commonly finds employers paying straight time rates for overtime hours; misapplying exemptions from minimum wage and overtime requirements; making deductions from employees' pay for uniforms that bring their rates below the federal minimum wage of $7.25 per hour; and failing to pay for all of the hours employees work.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates for hours worked beyond 40 per week.

The Office of Compliance Initiatives (OCI) - housed within the Department's Office of the Assistant Secretary of Policy - fosters a compliance assistance culture within the Department designed to complement its ongoing enforcement efforts. In August 2018, OCI launched a revamped Worker.gov to provide information about workers' rights and an all-new Employer.gov to provide information about the responsibilities of job creators toward their workers.

For more information about the FLSA and other federal labor laws, call the division's toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at https://www.dol.gov/whd.

Agency
Wage and Hour Division
Date
November 27, 2018
Release Number
18-1843-NEW
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

U.S. Department of Labor Investigation Results in Los Angeles County Restaurant Paying $219,716 to 33 Employees to Resolve Wage Violations

News Release

U.S. Department of Labor Investigation Results in Los Angeles County Restaurant Paying $219,716 to 33 Employees to Resolve Wage Violations

WEST COVINA, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Pho Ha Pomona Inc. – operator of Pho Ha Vietnamese Restaurant based in Pomona, California – will pay $219,716 in back wages and liquidated damages to 33 employees for minimum wage, overtime, and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Pho Ha Pomona Inc. failed to pay servers, cooks, cook assistants, and dishwashers required overtime at time-and-a-half when they worked beyond 40 hours in a workweek. Instead, the employer paid straight time rates for all of the employees' hours, including making payments in cash at straight time for some of the overtime hours. The employer also failed to pay at least the federal minimum wage of $7.25 per hour to three employees. Additionally, the employer failed to keep accurate time records, as required by law. 

"Employers must pay employees the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Daniel Pasquil in West Covina. "We encourage all employers to use the many tools the Department of Labor provides to help them understand their obligations and to comply with the law."

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 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
November 19, 2018
Release Number
18-1770-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Recovers $96,511 for Arkansas Tire Shop Employees

News Release

U.S. Department of Labor Recovers $96,511 for Arkansas Tire Shop Employees

SPRINGDALE, AR – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Rental Concepts LLC - doing business as RNR Tire Express in Springdale, Arkansas - has paid $96,511 in back wages to 239 employees to resolve systemic violations of the Fair Labor Standards Act (FLSA) overtime provisions. The employer also violated the Family Medical Leave Act (FMLA) recordkeeping provisions.

WHD investigators found the employer violated FLSA overtime requirements when it failed to include monthly sales commissions and production bonuses earned by employees in addition to their hourly pay when calculating overtime rates for account managers, salesmen, and shop technicians. Additionally, while the company provided medical leave for employees, it failed to provide notice to its employees regarding the Family Medical Leave Act (FMLA), as required.

"This case is a good example of how seemingly small mistakes in payroll can add up quickly and violate the FLSA," said Wage and Hour Division District Director Hanz Grünauer, in Little Rock. "The U.S. Department of Labor offers many tools and resources to employers to increase compliance. Employers should take advantage of these resources."

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.

Agency
Wage and Hour Division
Date
November 16, 2018
Release Number
18-1767-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

U.S. Department of Labor to Provide Educational Forum in Nevada

News Release

U.S. Department of Labor to Provide Educational Forum in Nevada

Las Vegas Forum Will Include Discussion of PAID Program

LAS VEGAS, NV - 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 the Department's Payroll Audit Independent Determination (PAID) Program, in Las Vegas, Nevada, on November 27, 2018.

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

WHEN:
November 27, 2018
9:00 a.m. to 12:00 p.m. PST

WHERE:
Nevada State Business Center
3300 W Sahara Ave., 4th Floor, Suite 400 (Nevada Room)
Las Vegas, NV 89102

(For those seeking to attend via video teleconference)
Nevada State Division of Insurance
1818 E College Parkway, 1st Floor
Carson City, NV 89706

The forum will include members of the Division's Washington, D.C., office and regional staff as well as representatives from the Nevada Labor Commissioner's Office and representatives from the Nevada Association of Employers. Attendance is free, but pre-registration is required. Complete advance registration.

For more information about the PAID program, visit www.dol.gov/whd/PAID, or call 866-4US-WAGE. For more information about this event, call District Director Gaspar Montañez at 702-928-1250 or email montanez.gaspar@dol.gov.

Agency
Wage and Hour Division
Date
November 15, 2018
Release Number
18-1848-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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