UNION CITY, NJ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), R&J Supermarket Corp. – based in Union City, New Jersey – will pay $175,442 in back wages and an equal amount in liquidated damages to 20 employees for violations of overtime, minimum wage, and record keeping provisions of the Fair Labor Standards Act (FLSA). The Department also assessed the employer with a $5,491 civil penalty for the willful nature of its violations.

WHD investigators found that R&J Supermarket Corp. – doing business as Supermarket La Roca - paid employees flat salaries without regard to the number of hours they actually worked in a workweek. This practice caused minimum wage violations when those salaries failed to cover the federal minimum wage of $7.25 per hour, and caused overtime violations when those workers exceeded 40 hours in a workweek, yet were not paid overtime in addition to their salaries. The employer also paid some employees completely off the books, in cash, creating recordkeeping violations.

"Simply paying an employee a salary does not relieve an employer of its obligation to ensure that employees are paid the wages they have legally earned for all the hours they have worked," said Northern New Jersey Wage and Hour Division District Office Director John Warner. "We encourage all employers to make use of the many tools that we provide to help them understand their responsibilities. Violations like these, along with the fines and damages that may result, can be avoided."

The company will install a time clock to record employee hours worked.

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

HARTFORD, CT – Following a U.S. Department of Labor Wage and Hour Division (WHD) investigation, C&W Facility Services Inc. – based in Auburndale, Massachusetts – has paid $69,765 to five employees to resolve multiple McNamara-O'Hara Service Contract Act (SCA) and Fair Labor Standards Act (FLSA) violations by one of its subcontractors.

The U.S. Postal Service (USPS) contracted with C&W Facility Services Inc. to provide janitorial and maintenance services at its Connecticut facilities. C&W Facility Services Inc. subcontracted work to AMV Maintenance LLC – based in Shelton, Connecticut.

An investigation found AMV Maintenance LLC misclassified two employees who performed SCA-covered janitorial work at multiple USPS locations throughout Connecticut as independent contractors, and failed to maintain records of the identities of employees and the dates and locations of work performed. WHD also determined that AMV Maintenance LLC paid some employees flat salaries without regard to the number of hours that they worked. This practice resulted in some employees earning hourly rates that fell well below required SCA prevailing wage rates. AMV Maintenance LLC also failed to pay its SCA-covered employees certain required fringe benefits, holiday pay, or vacation benefits. Finally, the employer violated the SCA and FLSA by failing to pay several employees for their final workweeks.

As a result, the Department has barred AMV Maintenance LLC from future SCA work for three years.

"The U.S. Department of Labor will conduct investigations, assess back wages, and pursue debarment as necessary to ensure that federal contractors and their subcontractors comply with the requirements of the law,"  said the Department's Wage and Hour Division District Director David R. Gerrain in Hartford. "This helps ensure that workers are paid what they have legally earned and also levels the playing field for law-abiding competitors."

For more information about the SCA, 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 WHD.

PHOENIX, AZ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Surebuild LLC – a roofing and general contractor based in Cottonwood, Arizona – will pay $86,714 in back wages and liquidated damages due to 30 employees for overtime, minimum wage, and recordkeeping violations of the Fair Labor Standards Act (FLSA). The Department also assessed Surebuild LLC $16,456 in civil penalties for the willful nature of the violations.

WHD investigators found that Surebuild LLC paid employees straight-time rates, in cash, for the overtime hours they worked instead of paying them time-and-one-half for those hours as required by the FLSA. The employer also failed to issue a final paycheck to one employee, resulting in a minimum wage violation. Additionally, the employer failed to maintain complete records of the numbers of hours employees worked.

"Employers must pay employees the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Eric Murray, in Phoenix. "We encourage all employers to use the many tools the Department provides to help them understand their obligations and to comply with the law. Violations like these can be avoided."

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

BRIDGEVILLE, PA – The U.S. Department of Labor's Wage and Hour Division (WHD) has reached an agreement with Sidelines Tree Service LLC – based in Bridgeville, Pennsylvania – to resolve violations of the federal Fair Labor Standards Act (FLSA). Sidelines Tree Service LLC has paid $43,304 in back wages and an equal amount in liquidated damages to 69 employees and pledged future compliance with the FLSA.

WHD investigators found that the company paid employees straight-time rates for their overtime hours instead of paying them time-and-one-half for those hours as required by the FLSA. The company also failed to keep required records of the number of hours worked by one misclassified salaried employee, and failed to display the "Employee Rights" FLSA poster.

"The resolution of this case puts these wages into the hands of the people who rightfully earned them," said John DuMont, Wage and Hour District Director in Pittsburgh, Pennsylvania. "We hope that other employers take this as an opportunity to examine their own payroll practices to ensure they're in compliance. We encourage all employers to use the many tools the U.S. 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 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.

INDIANA, PA – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has resulted in Regency Fine Food and Drink LLC – doing business as Tres Amigos – paying $42,968 in back wages and an equal amount in liquidated damages to five employees to resolve violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the Indiana restaurant violated the FLSA by failing to pay cooks and dishwashers time-and-one-half for their overtime hours when they worked more than 40 hours in a week. Instead, the employer paid these workers flat salaries, without regard to how many hours they actually worked. This practice also led to recordkeeping violations when the employer failed to record the number of hours worked by these employees.  

"The employees at this establishment were denied the wages they rightfully earned," said John DuMont, Pittsburgh Wage and Hour Division District Office Director. "Just because a particular pay practice seems to be common in an industry does not mean that it's legal. The U.S. Department of Labor will continue working to ensure that employees receive the wages they have earned, and that law-abiding employers are able to compete on a level playing field. We offer many resources to provide employers the tools they need to understand their responsibilities 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 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 tool to use if you think you may be owed back wages collected by the Division.

ERIN, 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 Ho-Jo's Mini Mart – based in Erin, Tennessee – and its owner David Gardner to pay $62,794 in back wages and liquidated damages to 18 employees for violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). In addition to ordering payment of back wages and damages, the court permanently enjoined Ho-Jo's Mini Mart and Gardner from committing future violations of the FLSA, and assessed the store a civil money penalty of $7,908.

WHD investigators determined Ho-Jo's Mini Mart failed to pay employees for all of the hours they spent in training and required some employees to work off the clock without pay. By doing so, the employer caused employees' average pay per hour to drop below the federal minimum wage of $7.25 per hour. The employer also paid some employees flat salaries without regard to the number of hours that they worked. That practice resulted in some workers being paid less than the minimum wage, and resulted in overtime violations when those employees worked more than 40 hours per week.

In addition, Ho-Jo's Mini Mart paid other employees straight time for their overtime hours, and failed to pay other employees any wages at all for overtime hours they worked off the clock. Investigators also found the employer altered time records to create the appearance that employees had worked fewer than 40 hours when they had exceeded that threshold and were legally due overtime.

"Employers must pay employees 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 serves as a reminder for all employers to review their pay practices and to confirm they are paying their employees as the law prescribes. The Wage and Hour Division offers numerous tools to help employers learn about their responsibilities and 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.

HUDSON, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Affordable Golf Carts Inc. – based in Hudson, Florida – has paid $62,413 in back wages and liquidated damages to 20 current and former employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Affordable Golf Carts Inc. violated the overtime provision of the FLSA when it paid employees at their straight time rates, in cash, for any hours they worked beyond 40 in a workweek, instead of paying overtime at time-and-one-half for the overtime hours, as the law requires. The employer also failed to record any of the overtime hours, resulting in FLSA recordkeeping violations.

"Paying employees in cash off the books does not relieve employers of their responsibility to pay employees the wages they have legally earned," said Wage and Hour Division District Director James Schmidt, in Tampa, Florida. "The Department of Labor remains committed to educating employers and employees about their rights and responsibilities so that violations can be avoided, and that employers compete on a level playing field. We hope that other employers use the resolution of this case as an opportunity to review their own payroll practices, and to make any corrections necessary to come into compliance."

For more information about the FLSA and other laws enforced by the Wage and Hour Division, call 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. Department of Labor's Wage and Hour Division is conducting a survey of wages paid to workers in 46 metropolitan North Carolina counties on all active building construction projects to establish prevailing wage rates required under the Davis-Bacon and Related Acts (DBRA).

The Division seeks data from employers and interested parties on wages paid to building construction workers from June 1, 2017, through May 31, 2018. This survey is not limited to federally funded construction projects. See a map of metropolitan counties included in the survey.

"Davis-Bacon prevailing wage rates must reflect the actual wages and fringe benefits paid to construction workers where the work takes place," said Wage and Hour Division Acting Regional Administrator Betty Campbell. "We can only establish accurate wage rates with strong participation by the construction industry communities in North Carolina."    

Without significant employer participation, wage rates may not reflect actual wages or create incomplete wage determinations, which lead to more requests for further classifications. Wage data should be submitted for all projects meeting the criteria, regardless of funding sources.

Notification letters and "WD-10" data collection forms are being sent to interested parties and contractors known to the Wage and Hour Division. Data must be postmarked by April 1, 2019, to be included. Interested parties may also complete the survey electronically.

Participants do not need to receive a letter to answer the survey. If you would like to participate, or have questions regarding the survey process and forms, contact Kim Chu, Supervisory Wage Analyst for the Southeast Wage Determinations Survey Branch of the Wage and Hour Division, at (678) 237-0488.

HAMMOND, IN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Las Vegas-based Caesar's Entertainment Group will pay $175,128 in back wages and liquidated damages to 889 employees at two Indiana casinos it operates, for minimum wage violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Horseshoe Hammond Casino in Hammond and the Horseshoe Southern Indiana Casino in Elizabeth made deductions from employees' wages to cover their costs for individual employees' casino gaming licenses required by the Indiana Gaming Commission. The license is non-transferrable, valid only in the establishment for which it was issued, and must be renewed annually. The casinos deducted 100 percent of the license fee from their employees' wages, creating minimum wage violations when those deductions brought the employees' pay below the federal minimum wage of $7.25 per hour.

Investigators determined 485 employees at the Hammond casino were due $45,938 and 404 employees of the Elizabeth casino were due $41,626. All employees will also receive an equal, additional amount in liquidated damages.

"Employers must pay employees the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Patricia Lewis in Indianapolis. "Employers can avoid wage violations by contacting the Department of Labor for compliance assistance – we offer a wide variety of tools and live consultation services to explain the rules clearly to them."

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.

NEW YORK, NY – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), federal contractor Fedcap Rehabilitation Services Inc. has paid $2,830,146 to 443 employees at 17 New York and New Jersey locations to resolve violations of the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators determined that the New York City-based company failed to pay required fringe benefits into employee retirement accounts for over one year. When it eventually did, the company failed to correctly calculate and pay the proper health and welfare fringe benefits to employees for all the hours they worked at 26 Federal Plaza in New York City. WHD expanded its investigation to include 18 other federal offices and facilities served by Fedcap throughout New York and New Jersey and found violations at 17 locations. WHD also found that the employer illegally deducted third-party administrative fees from employees' pay.

"When employers receive federal funds to provide services to the government, they must comply with all applicable laws to ensure that their employees receive legally required pay and benefits," said David An, Wage and Hour Division District Director in New York City. "The McNamara-O'Hara Service Contract Act protects the wages of employees, and keeps a level playing field for employers. Violations can be avoided, and we encourage employers to reach out to us for guidance."

The General Services Administration (GSA) contracted with Fedcap Rehabilitation Services Inc. to provide the janitorial and maintenance services at federal offices and facilities.

The McNamara-O'Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor's collective bargaining agreement.

For more information about the SCA 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 http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.