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).

# # #

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.

# # #

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.

GUAYNABO, P.R. – In the year since hurricanes Irma and Maria struck Puerto Rico and the U.S. Virgin Islands, the U.S. Department of Labor’s Wage and Hour Division (WHD) has recovered $14,337,657 in unpaid wages for 7,761 employees engaged in recovery work in those territories. WHD has also undertaken significant outreach activities to educate employers and employees about compliance with federal wage laws, as part of its ongoing hurricane response efforts.

Following the hurricanes, WHD began a broad-based education and enforcement initiative providing information to employers and workers via social media, and by conducting outreach. Investigations focused on compliance during short-term emergency response operations funded through the Federal Emergency Management Agency (FEMA) to ensure employers were aware of their responsibilities and employees were paid. The investigations examined coverage under and employers’ compliance with the Service Contract Act (SCA), Contract Work Hours and Safety Standards Act (CWHSSA), Davis Bacon and Related Acts (DBRA), and the Fair Labor Standards Act (FLSA).

WHD investigators found violations including non-payment of wages, minimum wage and overtime violations resulting from employees being misclassified as independent contractors, and failure to pay required health and welfare benefits under the SCA.

WHD has conducted more than 60 outreach events; signed memorandums of understanding (MOUs) with Puerto Rico’s Department of Labor and its Office of the Comptroller to better coordinate enforcement and outreach efforts; and hosted a prevailing wage seminar to educate contractors, government agencies, and other stakeholders about compliance with applicable laws.

The Agency will continue its efforts in Fiscal Year 2019 as the focus shifts from disaster response to long-term recovery. This will include outreach to non-federal agencies that will oversee the expenditure of Community Development Block Grants in public works projects.

“The U.S. Department of Labor continues its commitment to the recovery of Puerto Rico and the U.S. Virgin Islands, to ensure that employees performing hurricane recovery work receive the wages and benefits they have legally earned and that employers adhere to the law,” said Wage and Hour Regional Administrator Mark Watson, Jr.

“Our combination of enforcement, education, and outreach provides employers and employees with the information and the tools they need not only to identify and rectify violations but to prevent them from occurring in the first place,” said Wage and Hour Division Caribbean District Director Jose R. Vazquez. “Our efforts ensure employees are paid what they have earned.”

Employees, employers, stakeholders, and other interested parties who wish to obtain compliance information, meet with a Wage and Hour representative, have their questions or concerns addressed, or file a complaint, should contact WHD’s Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email. All contacts are confidential.

Read this news release in Spanish

MONTGOMERY, AL – Ozark Safety Services LLC – based in Montgomery, Alabama – has paid a former employee $10,095 in lost wages after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the company violated the Family and Medical Leave Act (FMLA).

WHD investigators found Ozark Safety Services LLC discharged the employee for absences that qualified for FMLA-protected leave. Rather than categorizing the absences as allowed and covered under the FMLA, the company labeled them as unauthorized, and took improper disciplinary action.

"The Family and Medical Leave Act allows for critically needed workplace flexibility precisely when employees need it the most," said Wage and Hour Division District Director Kenneth Stripling, in Birmingham. "This investigation ensures that this employee is not prevented from exercising FMLA rights. We encourage employers to contact us for guidance so they can avoid violations."

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.

OPELIKA, AL – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has resulted in the Opelika, Alabama, Police Department paying $56,681 in back wages to seven officers for violations of overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

The police department paid the back wages after WHD investigators found the employer failed to record and to pay officers for all the hours they worked while performing K-9 care outside of their regularly scheduled shift hours. This practice led to overtime violations when that unpaid work resulted in unpaid overtime. The employer failed to record this time, resulting in a recordkeeping violation under the FLSA.

"Local governments must ensure their pay practices pay employees in compliance with the Fair Labor Standards Act," said Wage and Hour Division District Director Kenneth Stripling, in Birmingham. "The Department of Labor encourages 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.

ELLWOOD CITY, PA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Boehm Family Enterprises LLC – doing business as McElwain Brothers Paint and Collision in Ellwood City, Pennsylvania – has paid $33,731 in back wages and an equal amount in liquidated damages to 12 mechanics and painters to resolve violations of the overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Boehm Family Enterprises LLC violated the FLSA by incorrectly classifying the mechanics and painters as exempt from the law's overtime requirements and paying them only straight time when they worked more than 40 hours in a workweek. Additionally, the employer failed to include employee performance bonuses when determining overtime pay.

"The U.S. Department of Labor is committed to ensuring employees receive the wages they have rightfully earned, and that law-abiding employers compete on a level playing field," said Wage and Hour District Director John DuMont, in Pittsburgh. "The Department's Wage and Hour Division provides many resources to employers to help them comply with the law and understand their responsibilities to 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 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 http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

PROVIDENCE, RI – On September 24, 2018, from 10:00 a.m. to 12:00 p.m. EST, the Wage and Hour Division of the U.S. Department of Labor will hold a public listening session in Providence, Rhode Island, 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 is working on a proposal to update the Overtime Rule, and is interested in hearing the views and ideas of participants on possible revisions to the regulations.

Location:
Rhode Island Convention Center
1 Sabin Street – Room 551A/B
Providence, Rhode Island  02903

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.

LONG BEACH, CA – California Cartage Company LLC – based in Long Beach, California – will pay $3,573,074 to 1,416 employees after the U.S. Department of Labor Wage and Hour Division (WHD) found the company violated federal contract provisions of the McNamara-O’Hara Service Contract Act (SCA).

WHD investigators determined California Cartage Company LLC violated the SCA by failing to pay prevailing wages, and required health and welfare benefits, to employees for work performed at a Centralized Examination Station operated for the U.S. Customs and Border Protection (CBP) at the Port of Los Angeles/Long Beach.

Investigators found the company also failed to apply the SCA clauses and wage determination to contracts for five subcontractors, which resulted in the subcontractors’ failure to pay required prevailing wages and fringe benefits to their employees as well. The contract required certain hourly rates, depending upon the positions workers held, and also required the payment of fringe benefits, holiday, and vacation time.

California Cartage Company LLC received federal funds to provide port drayage services of cargo selected for inspection by the CBP at a centralized examination facility.

“No contractor receiving federal funds to provide services to the government should gain an economic advantage by paying workers below the wages and fringe benefits required by applicable law,” said Wage and Hour Division District Director Kimchi Bui, in Los Angeles. “Workers must be paid what they are legally owed for their work. Violations can be avoided, and we encourage employers to reach out to us for guidance.”

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 SCA and other laws enforced by the Wage and Hour Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). 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.