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

MOUNT HOLLY, NC – Stanton Enterprise Inc. – a McDonald’s franchisee in Mount Holly, North Carolina – has paid a civil penalty of $5,517 following a U.S. Department of Labor Wage and Hour Division (WHD) investigation that found the fast-food restaurant violated the Fair Labor Standards Act (FLSA) child labor requirements after a 15-year-old employee suffered a burn to her arm.

WHD investigators determined Stanton Enterprise Inc. violated child labor requirements when the employer exposed a 15-year-old minor to a hazardous occupation by allowing the employee to operate an electric deep fryer without an automatic function to lower and raise baskets into and out of the hot oil. Investigators also found Stanton Enterprise Inc. allowed minors to work outside of the hours allowed by law, which limit 14- and 15-year-old employees to work no more than 3 hours on a school day, work no more than 18 hours in a school week, work no more than 8 hours on a non-school day, or work no more than 40 hours in a non-school week. Work shifts for those minors cannot begin before 7:00 a.m., nor end after 7:00 p.m., except from June 1 through Labor Day, when evening hours extend to 9 p.m.

Stanton Enterprise Inc. also failed to display legally required postings for the Employee Polygraph Protection Act and the Family & Medical Leave Act.

“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. “Incidents like this one should serve to remind employers of the importance of not permitting employees under the age of 18 to participate in prohibited work. We encourage all employers to review their 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.

CHICAGO, IL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), a federal court has ordered Great Lakes Lumber and Pallet Inc. – based in Chicago, Illinois – and owner David Radzieta to pay $124,370 in overtime wages and liquidated damages to 20 employees for failing to pay overtime wages. The court also ordered the employer to pay $15,120 in civil money penalties for willfully violating the Fair Labor Standards Act (FLSA).

WHD investigators determined that - beginning in January 2016 - the employer issued two checks to employees each time it paid them: one check at regular straight-time rates for the first 40 hours they worked, and a second check, also at straight time but drawn on a different bank account, for any hours they worked beyond 40 in a workweek. Payroll and time records originally provided to WHD showed only the non-overtime hours. The investigation determined, and the employer admitted, that the employer deliberately issued the two separate checks in an attempt to conceal the fact that employees worked overtime, and to create the appearance of compliance with the FLSA.

“Employers are responsible for paying their employees all of the wages they have legally earned,” said Wage and Hour District Director Thomas Gauza, in Chicago. “We encourage employers to contact the Department’s Wage and Hour Division for guidance on laws governing overtime, recordkeeping, and any of the other requirements we enforce, and to use the many tools we offer to help employers comply with the law.”

To resolve this matter, the employer agreed to the entry of a consent judgment issued by the U.S. District Court for the Northern District of Illinois in Chicago.

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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

Court: U.S. District Court for the Northern District of Illinois, Chicago
Docket Number: 18-cv-02968

EL PASO, TX - 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 El Paso, Texas, on December 19, 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. The Family Medical Leave Act (FMLA) entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

WHAT: Wage and Hour Division Educational Forum
Payroll Audit Independent Determination Program (PAID) Educational Forum
Family Medical Leave Act Training

WHEN: December 19, 2018
8:00 a.m. to 11:30 a.m. MST

WHERE: El Paso Community College
Administrative Services Center, Bldg. A
9050 Viscount Blvd.
El Paso, TX 79925

The forum will include members of the Division’s Washington, D.C., and El Paso offices as well as representatives from the Occupational Safety and Health Administration (OSHA), Veterans’ Employment and Training Service (VETS) Equal Employment Opportunity Commission (EEOC), Small Business Administration (SBA), and employer associations from the area.

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

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 Smiley Dental Associates Inc. – a dental practice based in Nashville, Tennessee – to pay $50,000 in back wages and liquidated damages to 10 employees, for violations of minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found Drs. Kim and George Wesley Smiley – owners of Smiley Dental Associates Inc. - and George Wesley Smiley, doing business as Smiley Tooth Spa Inc. – committed numerous violations of federal law. WHD determined that the employer:

• Violated the federal minimum wage requirements by requiring candidates for hire to perform a “working interview” to conclude their application but failed to pay the individuals for those hours worked.
• Failed to pay registered dental assistants, hygienists, and front-desk personnel time-and-one-half for hours worked over 40 in a workweek, resulting in an overtime violation.
• Authorized their accountant to falsify and alter time and payroll records to make it appear that the employer was paying proper overtime for all hours worked.
• Periodically required employees to attend training during their scheduled lunch breaks without paying them for that time.
• Failed to display mandatory Wage and Hour posters in the workplace.    

“Employers are responsible for ensuring that all their employees receive the wages they have legally earned for all the hours they have worked,” said Wage and Hour Division District Director Nettie Lewis, in Nashville. “The outcome of this investigation should remind all employers to review their pay practices to confirm that workers are being paid as the law requires. We encourage all employers to make use of the many tools we offer to explain their responsibilities and to help them avoid violations.”

The Department’s Office of the Solicitor filed a permanent injunction and order against the dental practices and their owners to remedy the violations found in the current investigation. On November 21, 2018, Kim and George Wesley Smiley settled with the Department and the court approved the injunction and order. In addition to ordering the employer to pay back wages and damages, the court permanently enjoined both entities and their owners 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.

CHARLESTON, SC – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, the U.S. District Court for the District of South Carolina, Charleston Division, has ordered Señor Tequila Inc. and Señor Tequila of Summerville LLC to pay $279,269 in back wages and liquidated damages to 68 employees at three South Carolina restaurants. The employer was also assessed $52,615 in civil money penalties.

WHD investigators discovered violations of minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). Jaime and Sandra Villalpando - whose companies do business as Señor Tequila Mexican Restaurant and Cantinas in Charleston, Summerville, and Mount Pleasant - paid an incorrect rate for overtime hours to tipped employees and failed to pay these employees for hours they worked before and after their scheduled shifts. These practices resulted in minimum wage and overtime violations.   

The employers also paid non-tipped employees in part by check with an additional amount paid in cash. The amounts paid by check reflected a payment of the federal minimum wage of $7.25 per hour for the workers’ first 40 hours each week, and time and one-half that rate for overtime hours. The employers then made additional unrecorded cash payments to each of these employees, but failed to include those amounts in their calculations when determining overtime rates. This exclusion resulted in workers being paid overtime rates lower than those required by law. WHD also found the employer failed to record all the hours employees worked and to maintain required records.

“The employers have violated the FLSA previously and are aware of the wage laws and their obligation to pay employees for all hours they have worked,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia. “The U.S. Department of Labor will hold accountable those employers that continue to violate the law.”

On December 6, 2018, the U.S. Department Labor’s Office of the Solicitor filed a complaint against the three restaurants and their owners to remedy the violations. Jaime and Sandra Villalpando settled with Department and the parties filed a consent judgment and order that the court approved on December 11, 2018. In addition to being ordered to pay the back wages, damages, and to being assessed penalties, the three restaurants and Jaime and Sandra Villalpando 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.

SAVANNAH, GA – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Goodwill Industries of the Coastal Empire Inc. – based in Savannah, Georgia – has paid $114,936 in back wages to 165 employees for violating provisions of the McNamara-O’Hara Service Contract Act (SCA), Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA).

WHD investigators found the thrift store chain failed to pay the required prevailing wage rates to janitorial employees working on three government contracts. The failure was a result of managers altering employees’ time records to reduce the number of hours they had worked and deducting time for short-duration breaks, which the law requires be paid as work time. The employer also deducted time for other breaks employees did not take and moved overtime hours worked from weeks where employees worked more than 40 hours per workweek, to weeks where they worked fewer than 40, resulting in a failure to pay proper overtime.

WHD also determined that because the employer deducted time from employees with disabilities– failing to pay for all the hours that they worked – the resulting pay fell below their legally required commensurate wages under section 14(c) of the FLSA. In addition, the employer failed to pay for vacation time, as required by the SCA.

“Employers are responsible for paying their employees all the wages they have legally earned,” said Wage and Hour Division District Director Eric Williams, in Atlanta. “The Department’s Wage and Hour Division offers a wide variety of tools to help employers understand their responsibilities and avoid violations.”

The 165 employees affected worked at the U.S. Army’s Mission Installation Contracting Command on Fort Stewart, Georgia; the Federal Law Enforcement Training Center in Glyco, Georgia; and the Juliette Gordon Low Complex, the Tomochichi Federal Courthouse, and the U.S. Customs House in Savannah, Georgia.

For more information about the SCA, CWHSSA, 14(c), FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd.

MT. DORA, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), SOL Harvesting LLC – a Haines City, Florida, farm labor contractor – has paid $53,428 in back wages for violating labor provisions of the H-2A visa program.

WHD investigators determined SOL Harvesting LLC – owned by Roberto Carlos Cendejas Perez – failed to provide employees copies of their work contracts and failed to reimburse them for inbound travel expenses from their home countries as required by law. In addition, the company failed to reimburse the employees for their visa and border fees within their first workweek. SOL Harvesting LLC also failed to provide required transportation and housing that met minimum safety and health standards. In addition to the back wages found due, WHD assessed a civil money penalty of $2,368 for the violations.

"Any employer seeking H-2A workers must be ready and willing to abide by all the program's requirements, and must not attempt to shift any of the employer's costs onto the workers," said Wage and Hour District Director Daniel White, in Jacksonville. "The U.S. Department of Labor will continue to safeguard American jobs, level the playing field for law-abiding employers, and ensure that workers are paid the wages that they legally earned. We encourage employers to contact the Wage and Hour Division by phone, online, or to attend any of our outreach events for assistance and to learn more about their responsibilities."

SOL Harvesting LLC provided 99 farmworkers to harvest cucumbers, cabbage, kale, and onions at Scott's Farms in Mt. Dora, Florida, and used the services of H-2A agent Theresa Ward of National Agricultural Consultants LLC.

Before the U.S. Citizenship and Immigration Services can approve an employer's petition for H-2A visa workers, the employer must file an application with the U.S. Department of Labor stating that:

• An insufficient number of U.S. employees are able, willing, qualified, and available to work; and
• The employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed U.S. workers.

For more information about the H-2A and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.