CHARLESTON, SC – The U.S. District Court for the Middle District of South Carolina has ordered Hugo Villalpando, the owner of La Carreta Mexican restaurants in Charleston and Summerville, South Carolina, to pay $190,000 in back wages and liquidated damages to 58 employees for violating the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The action comes after an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD).

The WHD investigation of the restaurants - owned by Villalpando through entities La Carreta of Folly Inc. and La Carreta Inc. - determined that the restaurants violated minimum wage requirements when it failed to include some employees on the payroll, did not directly pay employees at all, and allowed employees to work only for tips. Overtime violations resulted from several of the employer's pay practices, including paying workers for fewer than 40 hours per week without regard to the number of hours they actually worked. Time records indicated employees regularly worked up to 50 hours per week, yet payroll never included those hours. Additional overtime violations resulted when the restaurants paid cooks and bussers flat salaries, without overtime, for workweeks longer than 40 hours.

In the instances when La Carreta and Villalpando paid overtime to servers, they violated the FLSA when they based overtime rates on the servers' direct cash wages of $2.13 per hour rather than on the full minimum wage of $7.25 per hour, as the law requires.

WHD also cited the employer's failure to record all the hours employees worked, and keep any records of some workers' employment.

"This employer is obligated to pay his employees the wages they have legally earned, and must never gain a competitive advantage over those that comply with the law," said Wage and Hour Division District Director Jamie Benefiel, in Columbia. "The U.S. Department of Labor encourages all to reach out to their local Wage and Hour Division office for information about how to comply, and to make use of the many tools we offer to explain their responsibilities and how to avoid violations."
WHD conducted an investigation of La Carreta's Summerville restaurant in 2011 and found the same violations.

The Department's Office of the Solicitor filed a complaint against the two restaurants and their owner to remedy the violations found in the current investigation. Villalpando settled with Department and the parties filed a consent judgment and order that the court approved on September 10, 2018. In addition to being ordered to pay the back wages and damages, the two restaurants and 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.

PHOENIX, AZ – The U.S. District Court for the District of Arizona has entered a consent judgment requiring Bulletproof Securities Inc. of Phoenix, Arizona, to pay $39,500 in back wages and an equal amount in liquidated damages to 151 employees following an investigation by the U.S. Department of Labor Wage and Hour Division (WHD) that identified minimum wage, overtime, and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Bulletproof Securities Inc. failed to pay employees for hours they spent training, which resulted in minimum wage and overtime violations. The employer's failure to include the training hours that employees recorded and submitted in their weekly time sheets resulted in recordkeeping violations.

"This judgment ensures the workers will receive their rightfully earned wages, and that the employer competes on a fair and level playing field," said Wage and Hour Division District Director Eric Murray, in Phoenix. "We encourage employers to contact the Department of Labor for assistance and to use the many tools we provide to help them."

The judgment enjoins and restrains the employer from violating the FLSA, including the prohibition to discriminate against any employee as a result of the litigation or for exercising his or her rights. The regional Solicitor's Office in San Francisco litigated the case for the Department.

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.

MILAN, TN – American Ordnance LLC – based in Middletown, Iowa – has paid $678,296 in back wages, overtime, and fringe benefits to 63 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated provisions of the McNamara-O'Hara Service Contract Act (SCA), and the Contract Work Hours and Safety Standards Act (CWHSSA). American Ordnance LLC is an ammunition manufacturer for the U.S. military performing work at the Milan Munitions Plant in Milan, Tennessee.

WHD investigators found the manufacturer failed to segregate work subject to SCA requirements performed by its subcontractor, Jabezco Group Inc., and failed to include SCA requirements in their contract. Failure to include those requirements resulted in that subcontractor failing to pay its employees hourly rates that met or exceeded the required rates for each classification of work performed. The subcontractor also subsequently failed to pay proper vacation, holiday, and health and welfare benefits as required by the applicable collective bargaining agreements.

Investigators also found American Ordnance LLC failed to pay accurate overtime rates based on applicable prevailing wage rates when employees worked more than 40 hours in a workweek.

"Contractors that bid on government contracts should be aware of and must adhere to all applicable laws when paying employees," said Wage and Hour Division District Director Nettie Lewis, in Nashville. "We provide a number of tools to help employers understand and comply with the labor requirements on government contracts. Our education and enforcement work in this area levels the playing field for all contractors who perform work for the government."

The SCA 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 FLSA, SCA, CWHSSA, and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. The Division also offers a search tool which allows users to determine if you are owed back wages collected by the Division.

NAPLES, FL – Fish Ristorante LLC has paid $50,391 in back wages and liquidated damages to 57 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the Naples, Florida, restaurant violated the overtime provision of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Fish Ristorante LLC – doing business as Fish – failed to pay employees overtime at time-and-one-half their regular rates of pay when they worked more than 40 hours in a work week, as the law requires. Instead, Fish Ristorante LLC paid workers their straight time rates without regard to the number of hours they worked. The violations affected employees including servers, cooks, food runners, and kitchen staff.

"Employers must not gain an unfair competitive advantage by paying employees below the wages they have earned," said Wage and Hour Division District Director James Schmidt, in Tampa. "The Department's Wage and Hour Division offers a wide variety of tools to help employers understand their obligations, and encourage anyone with questions to call us confidentially at any time for guidance."

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.

PORT WENTWORTH, GA – Evicore Healthcare – a medical benefits management company based in Bluffton, South Carolina – has paid a former employee $17,760 in lost wages after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation determined the company violated the Family and Medical Leave Act (FMLA).

WHD investigators found Evicore Healthcare failed to allow the Georgia-based employee to return to work at the conclusion of an FMLA-leave period, despite being cleared by a doctor and providing the employer with the physician's return-to-work certification. Evicore Healthcare also failed to maintain some portions of records required by the FMLA.

"Employees must not be retaliated against or prevented from exercising their rights under the Family and Medical Leave Act," said Wage and Hour Division District Director Eric Williams, in Atlanta. "This law allows for critically needed workplace flexibility precisely when employees need it the most. We offer a wide variety of tools to help employers understand their responsibilities and to help them comply."

For more information about the FMLA 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/.

NAMPA, ID – G Man Insulation LLC – an insulation and drywall company based in Nampa, Idaho – will pay $272,253 in back wages, damages, and penalties after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found violations of the Fair Labor Standards Act (FLSA) affecting 39 employees. 

WHD investigators found G Man Insulation LLC paid workers either by the hour and by the day, and in both cases failed to pay overtime when employees worked more than 40 hours in a workweek. The investigation found the employer paid employees in cash, at straight time, for overtime hours that were not recorded in the employer's payroll records. The company will pay $126,262 in back wages and an equal amount in liquidated damages to resolve the violations. G Man Insulation LLC has also been assessed $19,728 in civil penalties for the violations.

"Ensuring that construction workers are paid the wages they have earned will level playing field in the industry," said Wage and Hour Division District Director Thomas Silva in Portland. "Violations and penalties like these can be avoided. We encourage all employers to make use of the many tools we offer to help them understand their responsibilities, and to reach out to us directly, and confidentially, with any questions they may have about how to comply with the law."  

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.

VINCENNES, IN – The Knox County Association for Remarkable Citizens Inc. (KCARC) – a federal contractor based in Vincennes, Indiana – has paid 95 current and former employees a total of $25,170 – including $3,755 to 28 workers with disabilities - following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD).

WHD investigators found KCARC violated the overtime provisions of the Fair Labor Standards Act (FLSA) and requirements under the FLSA's Section 14(c) that sets guidelines for the employment of workers with disabilities.

WHD investigators found:

• KCARC's cut and sew division improperly calculated the overtime rates of hourly workers. The employer paid workers production bonuses when they met goals, but failed to include those bonuses in the workers' rates when calculating their overtime. This improper calculation resulted in $21,415 in back wages due to 67 employees.
• KCARC failed to obtain the required number of sources for the wage survey it conducted to determine wages for workers with disabilities under the Section 14(c) program.
• KCARC failed to complete a task analysis properly when conducting the time studies it used to set commensurate rates for workers with disabilities, and improperly rounded wages.

"The employer's pay practices denied employees the wages they earned," said Wage and Hour Division District Director Patricia Lewis, in Indianapolis. "These violations can easily be avoided, and we encourage all employers to come to us for confidential assistance to understand their responsibilities under the law."

In response to WHD's findings, KCARC agreed to adjust their wage survey collection methods to determine the wages workers under the 14(c) program should receive. KCARC also agreed to use a digital time keeping system and to ensure overtime calculations include production bonuses for all non-exempt employees.

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 Section 14(c), the FLSA, or other federal labor laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd.

BOSTON, MA – The U.S. District Court for the District of Massachusetts has entered a consent judgment requiring Boston-based Village Pizza and Grill and its owner, Klaundjon Totoni, to pay $115,841 in back wages and an equal amount in liquidated damages to 14 employees, plus $8,317 in civil penalties. The judgment follows an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) that identified violations of the child labor, overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

Investigators alleged Village Pizza and Grill and Totoni allowed employees under the age of 18 to operate a dough mixer and a meat slicer, in violation of the FLSA's child labor restrictions, and allowed a 15-year-old employee to work more hours than allowed under the FLSA. The FLSA's child labor provisions regulate the numbers of hours employees under 18 can work and prohibits their working in certain jobs and with certain equipment.

In addition, the defendants failed to pay delivery drivers for hours they worked "off-the-clock" cleaning the restaurant or shopping for it, and failed to pay overtime to food preparation and counter workers, cooks, and delivery drivers when they worked more than 40 hours in a work week. They also failed to keep accurate records of employees' wages and work hours, resulting in recordkeeping violations.

The consent judgment requires the defendants to hire a qualified independent consultant to create a system to ensure that their pay and recordkeeping practices comply with the FLSA, conduct quarterly reviews of those practices, and inform WHD of any pay or recordkeeping problems and corrective action.  In addition to the judgment, a consent preliminary injunction and order prohibits the defendants from, among other practices, retaliating against employees, requesting employees to work off the clock or reclassifying employees as independent contractors in a manner that violates the FLSA. The defendants must also allow a WHD representative to inform employees, during their paid working hours, of their FLSA rights in the languages they speak.

"Employers must provide young workers with appropriate and safe employment and pay their employees the full wages that they have earned," said Wage and Hour Division Boston District Director Carlos Matos. "We encourage all employers to contact us with any questions they may have, and to use the wide variety of tools we offer to help them understand their obligations and to comply with the law."

"The U.S. Department of Labor will take appropriate steps to enforce compliance with the law and help ensure a level playing field for law-abiding employers," said Regional Solicitor Maia Fisher in Boston.

WHD's Boston District Office conducted the investigation. Senior Trial Attorney Susan Salzberg of the department's Regional Office of the Solicitor in Boston litigated the case for WHD.

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).

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Acosta v. Klaus Restaurants Inc., d/b/a Village Pizza and Grill, and Klaundjon Totoni, President.
Civil Action Number:  1:17-cv-10767-LTS

FORSYTH, GA – The Georgia Department of Corrections has paid $429,005 in back wages to 1,257 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation uncovered overtime violations of the Fair Labor Standards Act (FLSA) at more than 40 facilities statewide.

WHD investigators found that the Georgia Department of Corrections failed to pay employees who attended meetings and training for their time spent in those activities. It also failed to pay employees who worked beyond their assigned shifts to ensure coverage when other employees were late for work. In both scenarios, those unpaid hours resulted in overtime violations when employees worked more than 40 hours in a workweek.

Investigators also determined that the Georgia department failed to pay for any overtime hours worked in excess of 12 hours per pay period. WHD also found that the employer paid out any accrued compensatory time only bi-annually in May and December. This practice resulted in overtime violations when corrections employees left the job before either of these dates, and the state failed to pay out any compensatory time accrued since the previous payout.

"Georgia Department of Corrections' employees perform a difficult, dangerous, and indispensable job that is unquestionably vital to the safety of the community," said Wage and Hour Division District Director Eric Williams, in Atlanta, Georgia. "Their receipt of the wages they are entitled to under the law is imperative. We encourage all employers to make use of the many tools we offer to learn about their responsibilities and comply with the law."

For a complete list of the affected facilities, see the chart that follows this news release.

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.

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WHITE PLAINS, NY – The U.S. District Court for the Southern District of New York has entered a consent judgment requiring Hudson View Care Center Inc. - doing business as Regency Extended Care Center - and owner Michael Melnicke to pay $182,500 in back wages and an equal amount in liquidated damages to 81 employees, plus $20,000 in civil penalties. The judgment follows an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) that identified violations of the Fair Labor Standards Act (FLSA) by the Yonkers extended care facility.

Investigators found the employer failed to pay employees for all the hours they worked. Specifically, certified nursing assistants and licensed practical nurses routinely worked through unpaid meal breaks and nursing staff regularly performed uncompensated work before and after their scheduled shifts. In addition, the employer improperly classified one employee as exempt from the FLSA’s overtime requirements, resulting in uncompensated work hours and unpaid overtime.

“This employer’s practices denied employees payment of all the wages they were legally due,” said WHD Albany District Director Jay Rosenblum. “Such violations are preventable. We encourage employers to reach out to the Wage and Hour Division and to use the tools and resources it provides to learn about their legal responsibilities, avoid violations, and operate in compliance with the law.”

“The resolution ensures workers are protected from FLSA violations, and levels the playing field for employers who play by the rules,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.

The judgment also prohibits the business and its owners from withholding the back pay and liquidated damages from employees and from discriminating against any employees who exercise their rights under the FLSA. The Division’s Albany District Office conducted the investigation. Senior Trial Attorney Susan Jacobs of the regional solicitor’s office in New York litigated the matter for the Department.

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.