MILWAUKEE, WI – To ensure compliance with federal wage laws, the U.S. Department of Labor's Wage and Hour Division (WHD) is conducting an education and enforcement initiative focusing on restaurants in Wisconsin's Fox Cities region and Milwaukee's East Side neighborhoods. The initiative includes providing compliance assistance tools and information to employers and industry stakeholders through educational outreach events.

WHD's outreach efforts include working directly with a wide variety of organizations in the selected areas to identify multiple ways to provide employers with the tools and information needed to comply with the law. WHD is engaged with employer organizations, community organizations, and other government agencies to ensure a wide distribution of information describing requirements under the Fair Labor Standards Act (FLSA).

"This initiative raises awareness among employers, employees, community organizations, and others regarding federal wage and hour laws," said Wage and Hour District Director David King, in Minneapolis, Minnesota. "Our ultimate goal is to increase industry-wide compliance. With more than 200,000 people employed in food-service jobs in Wisconsin, the Wage and Hour Division wants to make sure everyone knows and follows the rules."

The initiative will focus on the cities of Oshkosh, Neenah, Menasha, Appleton, Little Chute, and Kaukauna as well as Milwaukee's East Side neighborhoods.

WHD hospitality investigations conducted in the last three fiscal years found common violations that include employing servers to work only for tips; paying servers overtime at one-and-half times their direct cash wage rather than the full federal minimum wage; pooling tips illegally; misclassifying employees as independent contractors and then failing to pay them minimum wage and overtime; and failing to combine hours employees worked at multiple locations when determining when overtime is due.

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. An employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages, provided that amount plus tips received equals at least the federal minimum wage of $7.25 per hour. If an employee's tips - combined with the employer's direct wages - do not equal the minimum wage, the employer must make up the difference. Employers also are required to provide employees notice of the FLSA tip credit provisions and to maintain accurate time and payroll records.

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.

INDIANAPOLIS, IN – A total of 101 current and former employees of Luciana's Mexican Restaurant and Cantina at three Indiana locations will receive $54,638 in back wages following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) that disclosed overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined the employer failed to pay servers and cooks overtime as required by the FLSA. Specifically, the employer failed to pay cooks for some of the hours they worked, and paid servers overtime at time-and-one-half their direct wages of $2.13 per hour, rather than basing the rate on the full minimum wage of $7.25 per hour, as the law requires. The employer also failed to maintain accurate records of hours worked and pay received by employees, resulting in recordkeeping violations.

The company has amended its payroll practices to ensure proper overtime calculations.

"The U.S. Department of Labor is committed to ensuring employees receive all the wages they have rightfully earned," said Wage and Hour Division District Director Patricia Lewis in Indianapolis. "Employers may avoid wage violations by contacting us for compliance 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.

MYRTLE BEACH, SC – Prime Retail Management Group Inc. - operator of two "Beach Bums" locations in Myrtle Beach, South Carolina - will pay $63,568 in back wages and liquidated damages to 41 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Prime Retail Management Group Inc. failed to pay employees overtime when they worked more than 40 hours in a workweek. Instead, the company paid workers their straight-time rates without regard to the number of hours they worked. Prime Retail Management Group Inc. also failed to maintain accurate time and payroll records, resulting in FLSA recordkeeping violations.

"Employers must pay employees the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. "Other employers should take this as an opportunity to review their own pay practices to ensure that they are complying with the law. We remain 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."

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.

ROBBINSVILLE, NC – Lovin Contracting Co. Inc. – a landscaping company based in Robbinsville, North Carolina – will pay $1,277,550 to 231 employees after a U.S. Department of Labor's Wage and Hour Division investigation uncovered violations of the labor provisions of the H-2B temporary visa program and the Fair Labor Standards Act (FLSA).

WHD investigators determined Lovin Contracting Co. Inc. paid workers rates the employer established based on the workers' positions and experience, rather than paying the prevailing wage rates required by the H-2B visa program, which were higher. When employees compensated with these lower rates worked more than 40 hours in a week, additional violations resulted when their overtime was also based on these illegal lower rates. The employer was also found to have paid other workers flat salaries, without regard to the number of hours they worked. The salaries sometimes failed to cover the required rates per hour, and the employer further failed to pay these workers additional overtime when they worked more than 40 hours per week.

Lovin Contracting Co. Inc. also failed to pay most H-2B workers' transportation costs to and from their home countries, as required, and failed to pay required subsistence payments to those workers while they were in transit. The company also failed to keep complete records for any travel expenses that were reimbursed to H-2B employees, and to maintain records of hours worked by employees paid on a salary basis.

"Employers must pay employees all the wages they have legally earned, and we must ensure that employers understand and abide by the provisions of the H-2B visa program to protect the wages and working conditions of both guest and U.S. workers," said Wage and Hour District Director Richard Blaylock, in Raleigh. "The program safeguards American employees against displacement while protecting foreign workers from being paid less than the wage they were promised."

Before the U.S. Citizenship and Immigration Services can approve an employer's petition for H-2B visa workers, an employer must file an application with the Department stating that there are not sufficient U.S. employees who are able, willing, qualified, and available. The application must also affirm that the employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed persons in the U.S. The law provides for numerous employee protections and employer requirements with respect to wages and working conditions that do not apply to non-agricultural programs.

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

SULPHUR, LA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), temporary staffing company Coastal Staffing Services LLC – based in Sulphur – will pay $1,104,466 in back wages to 1,412 employees involved in post-Hurricane Harvey recovery efforts in Southeast Texas to resolve violations of the Fair Labor Standards Act (FLSA).

WHD investigators found Coastal Staffing Services LLC violated the overtime and minimum wage provision of the FLSA when it failed to pay employees one and one-half times their regular rate of pay for hours they worked beyond 40 in a workweek and paid less than the federal minimum wage when it missed payrolls after Hurricane Harvey. The company violated recordkeeping requirements by failing to maintain accurate records of the number of hours employees worked each day and each week.

"American workers need their lawfully earned wages, especially in the wake of natural disasters and recovery efforts," said Wage and Hour Division District Director Troy Mouton, in New Orleans. "Through education and compliance assistance, the U.S. Department of Labor works to ensure that employers understand the requirements of the FLSA and that workers involved in rebuilding affected communities are paid their rightful wages."

Soon after Hurricane Harvey, WHD deployed teams to provide in-person compliance assistance in Texas and Louisiana. The teams met with workers, homeowners, and volunteers as well as with representatives of shelters and community service centers to increase awareness of federal safety, health, and wage and hour laws; provide compliance tools for employers; and help workers understand their rights.

Workers and employers with questions about the FLSA or any of the federal wage laws administered by the Division should call the Agency's toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. More information is available online at http://www.dol.gov/whd/.

ELKHART, IN – Recreational vehicle parts manufacturer Lippert Components – based in Elkhart, Indiana – will pay $338,151 in overtime back wages and liquidated damages to 1,199 current and former employees following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) that found violations of the overtime requirements of the Fair Labor Standards Act (FLSA) at 53 plants nationwide.

WHD investigators found that when determining overtime rates, the employer ­­failed to include in the calculation certain bonuses employees had earned. Instead of computing overtime at time-and-one-half employees' total straight time earnings, including these bonuses, the employer based that calculation only on employees' pre-bonus earnings. Excluding the bonuses resulted in artificially lowered overtime rates, violating the FLSA.

"Employers are obligated to pay employees all the wages they have legally earned," said Wage and Hour Division District Director Patricia Lewis in Indianapolis. "Employers have an obligation to understand and to comply with the labor laws applicable to their business. We encourage employers to make use of the many tools we provide to help them, and to contact the Wage and Hour Division for assistance to ensure they understand their obligations."

In September 2016, Lippert Components began including the bonuses in question in employee's regular rates of pay in overtime work weeks. However, the employer failed to make any retro-active payments. As a result of this investigation the employer paid back wages for pay periods preceding the date that they began 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 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.

ELKINS PARK, PA – The U.S. District Court for the Eastern District of Pennsylvania has ordered SM Choi Inc. – which operates four fast-food establishments in Elkins Park, Pennsylvania – to pay $93,146 in back wages and an equal amount in liquidated damages to 38 employees for willful violations of the Fair Labor Standards Act (FLSA). The Department also assessed the employer $26,121 in civil penalties.

An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) found SM Choi Inc. willfully violated overtime and recordkeeping provisions of the FLSA.

WHD investigators found that the employer paid cashiers and cooks flat salaries, in cash, without regard to the number of hours that they actually worked. This practice resulted in violations when employees worked more than 40 hours in a workweek but the employer did not pay overtime. SM Choi Inc. also failed to maintain required records of the number of hours employees worked. WHD found the employer engaging in this same practice in a previous WHD investigation in 2016.

"SM Choi Inc. employees worked five to six days per week, for an average of 10 hours per day, and were denied the wages they rightfully earned," said Wage and Hour Division District Office Director James Cain, in Philadelphia. "This enforcement action and consent judgment will help to ensure that workers are paid the wages they are legally owed and that employers in the restaurant industry operate on a level playing field."

WHD is committed to providing employers with the tools they need to understand their obligations and to comply with federal labor laws. 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.

WASHINGTON DC – The U.S. Department of Labor's Wage and Hour Division will host a public listening session in Washington, D.C., to gather views on the Part 541 white-collar exemption regulations, often known as the "Overtime Rule," on October 17, 2018, from 10 a.m. to 12 p.m. EDT.

Issued under the Fair Labor Standards Act, these regulations implement exemptions from the overtime-pay requirements for executive, administrative, professional, and certain other employees. The Department plans to update the Overtime Rule, and is interested in hearing the views and ideas of participants on possible revisions to the regulations.

WHAT:
Public Listening Session on the Part 541 White-Collar Exemption Regulations

WHERE:
U.S. Department of Labor
Frances Perkins Building
200 Constitution Avenue, NW
Washington, DC 20210
(Enter at the 3rd and C Street NW entrance)

WHEN:
Wednesday, October 17, 2018
10 a.m. to 12 p.m. EDT

There is no fee to attend the listening session; however, registration is required. To register, click here. 

For more information about the Overtime Rule, click here. For more information on the Fair Labor Standards Act, and other federal wage laws administered by the Wage and Hour Division, call the department's toll-free helpline at 866-4US-WAGE (487-9243), or visit the agency's website at http://dol.gov/whd.

CHATTANOOGA, TN – A Tennessee poultry processing facility has paid $36,038 in back wages to 69 employees and a civil penalty of $7,469 after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found Koch Foods Inc. violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Investigators determined that the employer did not accurately record the total daily and weekly hours worked by some employees. Consequently, workers did not receive wages for all the hours they worked, and overtime violations ensued when the employees worked more than 40 hours in a workweek and were not paid time-and-one-half.

"Tracking and recording workers' hours is the responsibility of the employer," said Wage and Hour Division's District Director Nettie Lewis, in Nashville. "The outcome of this investigation serves as a reminder to all employers to review their pay practices to ensure workers are being paid for all the hours that they work. We remain committed to ensuring that employers who comply with the law do not find themselves at a competitive disadvantage to those who do not."

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.

INDIANAPOLIS, IN – The U.S. Department of Labor's Wage and Hour Division (WHD) will offer a compliance seminar for contractors, unions, workers and other interested parties to provide information on the rules governing federal prevailing wage requirements.

WHD will offer the training on October 24, 2018, from 9:00 a.m. to 1:00 p.m., at the Ivy Tech Community College Culinary and Conference Center, 2820 North Meridian St., Indianapolis, Indiana 46208.

The training is a component of the Wage and Hour Division's ongoing effort to increase awareness and enhanced compliance with federal prevailing wage requirements.

While seminar attendance is free, preregistration is required. Registration can be completed through the online registration link at Prevailing Wage Survey and Compliance Seminar- Indianapolis.

For more information on the Davis-Bacon Act, the Service Contract Act, and other federal wage laws related to government contracts administered by the Wage and Hour Division, call the department's toll-free helpline at 866-4US-WAGE (487-9243) or visit the agency's website at https://dol.gov/whd.