WINTER GARDEN, FL – KBL Buildings Inc. – based in Winter Garden, Florida – will pay $111,197 in back wages to 100 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found that the metal framing construction company violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that instead of paying employees overtime at time-and-one-half their regular rates when they worked more than 40 hours in a workweek as required, the employer paid employees their straight-time rates plus a flat $3 per overtime hour. The employer attempted to conceal the violation on the payroll by labeling the straight-time payment as travel, and the $3 per hour as per diem payments. KBL Buildings also failed to include the overtime in its payroll records, resulting in recordkeeping violations.

"This investigation shows the commitment by the Department of Labor to ensuring employees receive all the wages they have rightfully earned, and that employers compete on a level playing field," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "We encourage employers to contact the Wage and Hour Division 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."

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/.

ORLANDO, FL – Loyal Source Government Services LLC – a medical and support staff contactor based in Orlando, Florida – will pay $574,989 to 4,047 employees after a U.S. Department of Labor Wage and Hour Division investigation determined the company violated the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators found Loyal Source Government Services LLC unlawfully deducted $10 per paycheck from each employee for the administration of employee health and welfare benefits.

"This investigation demonstrates the Department of Labor will enforce all applicable laws to ensure that employees receive legally required pay and benefits," said Wage and Hour Division District Director Daniel White, in Jacksonville. "The Department's Wage and Hour Division encourages all employers to make use of the many tools we provide to help them understand and comply with the law, and to call us for assistance."

For more information about the SCA and other laws enforced by the Division, contact its 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.

SAN JUAN, PR – The U.S. Department of Labor's Wage and Hour Division (WHD) has signed agreements with the Puerto Rico Department of Labor and Human Resources, Labor Standards Division (PR-LSD), and the Office of the Comptroller of the Commonwealth of Puerto Rico (OCPR) to establish collaborative relationships to promote compliance with laws where the agencies have common interests.

The partnerships' goals include providing clear, accurate, and easy-to-access compliance outreach to employers, employees, and other stakeholders; conducting coordinated investigations; sharing information consistent with applicable laws; and sharing resources, such as cross-training investigators.

"Since Hurricane Maria, the WHD Caribbean District Office has seen a significant increase in construction and debris removal activities with many newly formed companies undertaking contracts funded privately and under federal contract," said Wage and Hour Regional Administrator Mark Watson, Jr. in Philadelphia, Pennsylvania. "These partnerships are crucial to making the best use of government resources to ensure protection and compliance."

WHD Northeast Regional Administrator Mark Watson, Jr., Puerto Rico Secretary of Labor and Human Resources Mr. Carlos J. Saavedra Gutierrez, and Puerto Rico Comptroller Yesmin M. Valdivieso recently signed the partnership agreements.

WHD enforces the federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. It also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and the prevailing wage requirements of the Davis-Bacon and Related Acts and the Service Contract Act, among other statutes.

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WASHINGTON, DC - To ensure compliance with federal wage laws, the U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a nationwide initiative to strengthen compliance with the labor provisions of the H-2B temporary visa program in the hotel industry.

The initiative includes providing compliance assistance tools and information to employers and stakeholders, as well as conducting investigations of employers using this program. A key component of the investigations is ensuring that employers recruit U.S. workers before applying for permission to employ temporary nonimmigrant workers.

"Any employer seeking workers under this program must be ready and willing to hire qualified U.S. applicants first," said Bryan Jarrett, Wage and Hour Division Acting Administrator. "This initiative demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and protect guest workers from being paid less than they are legally owed or otherwise working under substandard conditions."

Last year, WHD investigations found more than $105 million in back wages for more than 97,000 workers in industries with a high prevalence of H-2B workers, including the hotel industry.

The H-2B nonimmigrant program permits employers to temporarily hire nonimmigrant workers from outside the United States to perform nonagricultural labor or services in the United States. The employment must be of a temporary nature for a limited period of time such as a one-time occurrence, seasonal need, peak load need, or intermittent need. Many hotels use H-2B workers to fill a need for seasonal workers.

Before employers can be approved to request guest workers under the H-2B program, they must file an application with the Department stating that:

• An insufficient number of U.S. employees are 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 labor provisions of the H-2B program 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.

BETHEL PARK, PA – The U.S. District Court for the Western District of Pennsylvania has entered a consent judgment against Danny's Pizza Enterprises Inc. – a Bethel Park, Pennsylvania, quick-service restaurant doing business as Danny's Pizza & Hoagies – following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) that found the employer violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The judgment requires Danny's Pizza Enterprises Inc. and its owner and corporate officer Daniel Rowsick, to pay $39,577 in back wages and an equal amount in liquidated damages to 16 current and former employees. The willful nature of the violations led to an additional assessment of a $9,128 civil money penalty.

WHD investigators found that from January 11, 2015, to January 6, 2018, the defendants paid employees their straight-time rates, in unrecorded cash, for their overtime hours instead of paying them time-and-one-half for those hours as required by the FLSA. This practice led to recordkeeping violations when the defendants failed to maintain records concerning this payment to workers. Additional recordkeeping violations resulted when the employer's records failed to include any information at all for some employees.

"When an employer willfully uses deceptive practices that prevent employees from collecting wages owed under the FLSA, we must respond," said Wage and Hour District Director John DuMont, in Pittsburgh. "The Wage and Hour Division is committed to ensuring employees receive all the wages they have rightfully earned, and that employers compete on a level playing field."

In addition to requiring payment of the back wages, damages, and penalty, the consent judgement enjoins the defendants from future FLSA violations.

"This judgment sends a clear message that disregarding the basic rights of employees comes at a high cost," said Regional Solicitor Oscar L. Hampton III.

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.

CLINTON, NC – The U.S. Department of Labor's Wage and Hour Division (WHD) has debarred Ruben V. Serna – owner of Serna Harvesting, a farm labor contractor – from participation in the H-2A visa program for three years for violations of federal wage and H-2A program requirements. WHD found that Serna owed $194,109 in back wages to 181 employees certified to work at 15 North Carolina farms for which the contractor provides H-2A workers. WHD also assessed Serna a civil money penalty of $174,614 for the violations.

WHD investigators found the Clinton, North Carolina, contractor violated the Fair Labor Standards Act (FLSA) and the labor provision of the H-2A visa program. Serna violated H-2A requirements by failing to provide housing for H-2A workers at no cost to them and failing to reimburse employees for their inbound transportation expenses from their native countries as the law requires. Workers paying those costs out of pocket resulted in FLSA minimum wage violations during their first week of employment. In addition, Serna failed to pay employees' transportation expenses for their return trips home, and failed to properly record hours in payroll records as the H-2A program requires.

"Any employer seeking H-2A workers must be ready and willing to abide by all of the program's requirements, and must not attempt to shift any of the employer's costs onto the workers," said Wage and Hour Division District Director Richard Blaylock, in Raleigh, North Carolina. "This case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and protect workers from being paid less than they are legally owed."

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 Department 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 FLSA, 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 https://www.dol.gov/whd.

LOS ANGELES, CA – Garment contractor SMT Apparel Inc. – based in Los Angeles, California – will pay 40 employees $51,840 after a U.S. Department of Labor investigation found that the company failed to pay minimum wage and overtime, in violation of the Fair Labor Standards Act (FLSA).

Investigators with the Department's Wage and Hour Division (WHD) discovered that SMT Apparel Inc. paid employees at a piece rate without regard for the number of hours they worked. This practice resulted in minimum wage violations for 11 employees when their piece rates failed to cover all of their hours at the federal minimum wage of $7.25 per hour, and overtime violations for 29 employees when they worked more than 40 hours in a workweek but were not paid overtime.

"This case demonstrates our commitment to ensuring workers are properly paid and to leveling the playing field for law-abiding employers," said Richard Longo, Acting Wage and Hour Deputy Regional Administrator in San Francisco. "The Wage and Hour Division is available and eager to provide assistance to employers to help them understand the law and avoid violations."

"This case also shows that the Department is serious about wage violations and enforcement of the law," said Susan Selestsky in the Department's Regional Solicitor's Office in Los Angeles.

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.

WASHINGTON, DC – The U.S. Department of Labor's Wage and Hour Division (WHD) announced today that it has issued six new opinion letters. This release demonstrates the agency's continued commitment to providing meaningful compliance assistance to help employees understand their rights and ensure that employers have the information they need to comply with federal labor laws. The letters released today address compliance under both the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA).

"Opinion letters help provide greater clarity for American job creators and employees," said Wage and Hour Division Deputy Administrator Bryan Jarrett. "The opinion letters issued today show the ongoing efforts of the Department to provide the tools employers need to comply with the law and protect workers."

The opinion letters issued today address the following issues:

• Organ donors' qualification for FMLA leave
• Compensability of time spent voluntarily attending benefit fairs and certain wellness activities
• Application of the movie theater overtime exemption to a movie theater that also offers dining services
• Application of the commissioned sales employee overtime exemption to a company that sells an internet payment software platform
• Volunteer status of nonprofit members serving as credentialing examination graders
• "No-fault" attendance policies and roll-off of attendance points under the FMLA

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 WHD on how a particular law applies in specific circumstances presented by the person or entity requesting the letter. The public is encouraged to submit requests for opinion letters to WHD and can visit this webpage to learn how to request an opinion letter or determine whether existing agency guidance already addresses their questions.

A request for an opinion must include a representation that the opinion is not sought by a party in a Wage and Hour investigation, its representative, or any third party acting on its behalf; or by a party, its representative, or any third party acting on its behalf for use in any litigation that was initiated prior to the submission of the opinion letter request. WHD will exercise discretion in determining whether and how it will respond to each request.

SAN ANTONIO, TX – Taqueria Chapala Jalisco restaurant – based in San Antonio, Texas – has paid $208,642 to 69 employees to resolve violations of the Fair Labor Standards Act's (FLSA) minimum wage, overtime, and recordkeeping requirements found at four of its locations during a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

WHD investigators found the employer paid employees flat amounts per day without regard of the number of hours they actually worked in a workweek. This practice resulted in overtime violations when kitchen and wait staff worked up to 60 hours per week without overtime pay. In some instances, the employees worked so many hours that the day rates failed to meet the federal minimum wage of $7.25 per hour. The employer also failed to maintain time records for these employees, violating the FLSA's recordkeeping provisions.

Taqueria Chapala Jalisco cooperated fully with the investigation and has taken steps to comply with the federal regulations going forward.

"The U.S. Department of Labor is committed to ensuring employees receive all the wages they have rightfully earned, and that employers compete on a level playing field," said Wage and Hour Division District Director Cynthia Ramos, in San Antonio. "We encourage employers to reach out to us for assistance to ensure they are in compliance with the law."

The Department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

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.

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WASHINGTON, DC – The U.S. Department of Labor's Wage and Hour Division announced today that in the upcoming weeks it will hold public listening sessions to gather views on the Part 541 white-collar exemption regulations, often referred to as the “Overtime Rule.”

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.

Listening sessions will be held in the following cities:

ATLANTA, GA
September 7, 2018, 10 a.m.-12 p.m.
Intercontinental Buckhead Atlanta, 3315
Peachtree Rd NE – Trippe Room
Atlanta, GA

SEATTLE, WA
September 11, 2018, 10 a.m.-12 p.m.
Jackson Federal Building
912 2nd Ave., Ste 566
Seattle, WA

KANSAS CITY, MO
September 13, 2018, 10 a.m.-12 p.m.
Holiday Inn Country Club Plaza
One E 45th St. – Ballroom A/B
Kansas City, MO

DENVER, CO
September 14, 2018, 10 a.m.-12 p.m.
Remington Arms Room
DFC – Building 41
Denver, CO

PROVIDENCE, RI
September 24, 2018, 10 a.m.-12 p.m.
Rhode Island Convention Center
1Sabin Street – Room 551A/B
Providence, RI

There is no fee to attend the listening sessions; however, registration is required. To register for one of the sessions above, 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 https://dol.gov/whd.