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.

MANCHESTER, NH - 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 (PAID) Program, in Concord, New Hampshire, on November 6, 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 6, 2018
9:00 a.m. to 10:30 a.m. EDT

WHERE: Havenwood Heritage Heights
Tad's Place
149 East Side Drive
Concord, NH 03301

The forum will include members of the Division's Washington, D.C., office and regional staff as well as representatives from the New Hampshire Department of Labor, HR State Council of New Hampshire, Maine Department of Labor, and human resource groups from around the state. 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 Community Outreach Specialist Steven McKinney at 603-606-3125 or email mckinney.steven@dol.gov.

SELMA, NC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Johnson County Industries Inc. – based in Selma, North Carolina – has paid $50,303 in back wages to 92 employees for failing to meet requirements of the Workforce Innovation Opportunity Act (WIOA) and Section 14(c) provisions of the Fair Labor Standards Act (FLSA).

WIOA requires that individuals with disabilities age 24 or younger complete pre-employment transition services, vocational rehabilitation services, and career counseling, information, and referral services before consideration for work at minimum wages under the FLSA's Section 14(c). Since the rehabilitation work center failed to meet those requirements, workers with disabilities must receive at least the federal minimum wage of $7.25 per hour. Recordkeeping violations also occurred when the center failed to maintain accurate records of the workers' hours.

"Employers have an obligation to understand and comply with the labor laws applicable to their businesses," said Wage and Hour District Director Richard Blaylock, in Raleigh. "The U.S. Department of Labor is committed to protecting all working Americans, and will continue to provide education and tools to employers to help them understand their responsibilities and how to comply with the law."

Section 14(c) of the FLSA is designed to offer more job opportunities for workers with disabilities when their disability affects their productive capacity for the work being performed. After applying for and receiving a certificate from the Department's Wage and Hour Division (WHD), the employer may determine their workers' productivity and calculate the appropriate Section 14(c) wage as compared to the rate for experienced workers performing similar jobs in the area.

For more information about the FLSA, Section 14(c), 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 – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Parking Management Services Inc. and Valet Management Services Inc. – valet parking companies based in New Orleans, Louisiana – have paid $97,869 in back wages and an equal amount in liquidated damages to 811 employees for violations of the Fair Labor Standards Act's (FLSA) overtime requirements. WHD also assessed the companies $133,815 in civil money penalties due to the repeat nature of the violations.

WHD investigated the companies' operations in 15 states and found violations of the FLSA overtime provisions when the employers failed to include money that employees earned from commissions, bonuses, and incentive pay in the calculation to determine their overtime. Excluding these amounts resulted in overtime rates lower than those the workers had legally earned. Additional violations occurred when the employer based overtime for tipped employees on their direct cash wages rather than the full federal minimum wage of $7.25 per hour, as the law requires. The employers also violated FLSA recordkeeping provisions by failing to keep accurate records of all the hours that employees worked. Previous investigations of these employers, as recently as 2016, also disclosed overtime violations.

"Employers must pay their employees all the wages they have legally earned for all the hours they have worked, including workers who depend on the tips provided by customers in recognition of the services they provide," said Wage and Hour Division District Director Troy Mouton, in New Orleans. "We encourage all employers to make use of the many tools the Department provides to help them understand and comply with the law and to contact us for assistance. Violations like these can be avoided."

In addition to paying back wages and liquidated damages to affected employees, the employers agreed to provide FLSA training to payroll and human resources staff as well as employees, and  to conduct periodic audits to confirm compliance with FLSA requirements.

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.

STERLING HEIGHTS, MI – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Integrated Living Inc. – based in Sterling Heights, Michigan – will pay $173,787 in back wages and liquidated damages to 52 current and former employees for violations of the overtime requirements of the Fair Labor Standards Act (FLSA) at the Michigan residential care facility.

Investigators determined the company paid its hourly home managers a reduced rate when they worked more than 50 hours in a workweek. Managers received their normal hourly rates for all the hours they worked up to 50 per week, but then received a lower rate for any additional hours. This resulted in the managers receiving overtime rates lower than those required by law for the hours they worked.

"Employers have an obligation to understand and to comply with the labor laws applicable to their businesses," said Wage and Hour Division District Director Timolin Mitchell, in Detroit. "Arbitrarily lowering employees' pay after they reach a specified number of hours shorts the workers and creates an unfair advantage for the employer over those who comply with the law. The Wage and Hour Division encourages employers to reach out to us for assistance to ensure they understand their obligations, and to make use of the many tools we provide to help 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 federal labor laws, call the Division's toll-free helpline at 866-4US-WAGE (487-9243). Information also is 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.

LAVERGNE, TN – Smart Circle Construction Services – based in La Vergne, Tennessee – will pay $246,813 in back wages and liquidated damages to 17 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined the construction company violated the FLSA's overtime requirements when it inaccurately classified some employees as independent contractors, paying them straight time rates for all the hours that they worked, including hours they worked beyond 40 per workweek.

"It is critical for employers to understand their obligations and responsibilities under the law," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "Simply because a pay practice may appear to be common in a particular industry does not in any way mean that it complies with the law. The U.S. Department of Labor encourages all employers to make use of the many resources Wage and Hour Division offers to understand their responsibilities and how to 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.

SAN DIEGO, CA – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Sam Woo – a restaurant based in San Diego, California – will pay 18 employees $192,622 in back wages and liquidated damages for violating provisions of the Fair Labor Standards Act (FLSA).

WHD investigators discovered that Sam Woo paid cooks on a salary basis regardless of the number of hours they actually worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a week and were not paid overtime. Sam Woo also paid servers and food prep workers straight time for their overtime hours. The employer kept two sets of time cards – one for the first 40 hours of work, paid by check, and the second for any additional hours, paid in cash, to hide that employees worked overtime.

“Employers must pay employees the wages they have legally earned for all the hours they have worked,” said Rodolfo Cortez, Wage and Hour Division District Director in San Diego. “Other employers should use the resolution of this case as an opportunity to review their own pay practices to ensure that they are paying workers in compliance. 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.”

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.