PHOENIX, AZ – More than 120 employees will share $394,438 in back wages and liquidated damages recovered by the U.S. Department of Labor to conclude a lawsuit filed by the Department’s Office of the Solicitor against national staffing agency Employer Solutions Staffing Group LLC and Arizona staffing agencies TBG Logistics LLC and Countrywide Payroll & HR Solutions Inc. for violations of the Fair Labor Standards Act (FLSA). In addition to the recovery of the unpaid back wages and liquidated damages, the Department also assessed $15,000 in civil money penalties to TBG Logistics for the willful nature of the violations found.

On July 10, 2018, U.S. Senior District Judge Roslyn O. Silver in Phoenix entered judgment against Employer Solutions Staffing Group LLC (ESSG) in the amount of $157,036. Judge Silver rejected ESSG’s argument that, as a large employer, it could not be expected to monitor every paycheck it processes, explaining that ESSG’s failure to pay overtime was willful because “an employer must comply with the FLSA no matter how large it is or how many payroll transactions it processes.” TBG Logistics LLC and Countrywide Payroll & HR Solutions Inc. previously settled with the U.S. Secretary of Labor, agreeing to pay a total of $237,402.

The lawsuit filed on behalf of the Secretary and investigations by the Department’s Wage and Hour Division said the logistics company and the staffing agencies were engaged in a pay scheme to avoid the payment of overtime. Investigators found that the employers paid straight time for all hours worked, including for hours worked in excess of 40 in a work week.

“This litigation and the investigation demonstrate the U.S. Department of Labor’s commitment to ensuring that workers receive the wages they have legally earned, and that employers compete on a fair and level playing field,” said Wage and Hour Division District Director Eric Murray, in Phoenix. “We encourage employers to reach out to their Wage and Hour Division district office for information about how to comply, and to make use of the many resources and tools we offer to be in compliance and avoid violations.”

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.

SAN DIEGO, CA – The U.S. Department of Labor reached a settlement with Parker Hannifin Corp. that requires the company to pay $222,000 to remedy pay discrimination violations identified at its San Diego Composite Sealing Solutions facility.

The settlement comes after a routine compliance evaluation by the Department’s Office of Federal Contract Compliance Programs (OFCCP), where OFCCP investigators found that, as of Jan. 1, 2014, Parker Hannifin steered females in operative positions, such as machinist, molders, shipping and technicians, into lower paying roles, earning less than males situated similarly.

“This settlement demonstrates the U.S. Department of Labor’s commitment to combatting pay discrimination,” said OFCCP Acting Director Craig E. Leen.

Parker Hannifin Corp. agreed to pay $222,000 in back pay and interest to 37 women. The company also agreed to review employee compensation practices and make adjustments as necessary. Other non-monetary forms of relief contained in the settlement include compensation monitoring and Equal Employment Opportunity training.

Parker Hannifin Corp.’s Composite Sealing Solutions Division is a federal contractor that designs and manufactures sealing systems, including systems used in the aerospace and military sectors.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

Second Time in Department’s History That It Has Obtained Temporary Restraining Order Under the H-2A Visa Program

KENNET, MO – The U.S. Department of Labor announced that it has successfully obtained a preliminary injunction from the U.S. District Court for the Eastern District of Missouri to enjoin defendant Marin J. Corp. from violating its obligations concerning its employment of H-2A temporary agriculture workers under the H-2A visa program. This is the second time in the Department's history that it has successfully obtained a preliminary injunction order under the H-2A visa program, with the previous instance occurring in May 2017.

The Department's Wage and Hour Division (WHD) investigators found that Marin J. Corp. violated the labor provisions of the H-2A visa program when it provided unsanitary and unsafe housing and working conditions to employees, including housing them in a former jail. Marin J. Corp also failed to pay the wages required by their work contracts.

"All H-2A laws must be complied with so Americans have the first opportunity to fill these jobs, and by not following the law an employer receives an unfair advantage," said Wage and Hour Regional Administrator Ruben Rosalez, in Chicago. "This preliminary injunction reflects the U.S. Department of Labor's strong commitment to preventing violations of federal laws."

Tuesday, the court entered an agreed preliminary injunction requiring Marin J. Corp. to take specific steps to improve housing and work conditions, pay undisputed back wages, and maintain accurate payroll and time records. The Department had filed a complaint and a motion for a temporary restraining order and preliminary injunction with the court on July 26, 2018. After filing the complaint, the Department entered into discussions with Marin J. Corp. to immediately address the violations at issue. Without admitting the specific allegations of the complaint, Marin J. Corp. consented to the entry of the agreed preliminary injunction.

There are very specific guidelines under the H-2A program that require employers to ensure workers have appropriate, clean and safe housing and working conditions, and that they are paid the wages they are legally due. The Department encourages all employers to make use of the many tools that are available to ensure that they understand their responsibilities, and how to avoid violations.

For more information about agricultural employment and other laws enforced by WHD, 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.

HOUSTON, TX – Houston retailer Conn Appliances Inc. – doing business as Conn’s – will pay $540,870 in back wages and liquidated damages to 1,991 employees to settle overtime violations of the Fair Labor Standards Act (FLSA) found in an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD). The corporate-wide investigation covered 164 locations of the appliances, furniture, and electronics retailer.

The investigation disclosed overtime violations when the employer made deductions from employees’ wages to cover the cost of uniforms, and for paperwork processing mistakes. Those deductions dropped workers’ hourly rates below the amount required for them to qualify for a specific exemption from overtime that the employer had claimed. The employer also failed to include commissions and bonuses when calculating overtime rates for some hourly employees, resulting in rates lower than those the workers had legally earned. 

“We encourage employers to contact the U.S. Department of Labor’s Wage and Hour Division for assistance, and to make use of the many tools we provide to help them understand the law and avoid violations,” said Wage and Hour Division District Director Robin Mallett. “This investigation shows our commitment to ensuring that workers receive their full earnings and that all employers compete on a fair and 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 toll-free helpline at 866-4US-WAGE (487-9243).

FORT WORTH, TX – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has recovered $253,359 in back wages for 410 employees after Walker Drywall Inc. paid the money owed to settle violations of the Fair Labor Standards Act (FLSA) overtime provisions.

WHD investigators found the company contracted with several temporary labor providers that paid workers straight time instead of required overtime when they worked more than 40 hours in a workweek. Investigators determined that Walker Drywall Inc. benefitted from the work done by employees supplied by the labor providers. The company also failed to maintain accurate time records for these employees, violating the FLSA's recordkeeping provisions.

"The U.S. Department of Labor helps ensure employees receive the wages they have legally earned," said Wage and Hour Division Dallas District Director Jesus A. Valdez. "Employers in this industry should take notice and review their pay practices to ensure they comply with the law. Violations can be avoided, and we encourage employers in all industries to contact the Wage and Hour Division for guidance."

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.

NOLENSVILLE, TN – Elite Wireless Inc., headquartered in Nolensville, Tennessee, will pay $130,781 in back wages and liquidated damages to 102 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). WHD also assessed the retailer a civil money penalty of $41,065 for willful and repeat violations.

WHD investigated the cellular phone and computer retailer's nine locations in Tennessee, Kentucky, and North Carolina, and determined that the employer paid some employees weekly salaries that failed to cover all of the hours they worked at $7.25 per hour, in violation of the FLSA's minimum wage requirements. The retailer also paid overtime-eligible assistant managers flat salaries, without regard to the number of hours that they worked. This practice resulted in overtime violations when these employees worked more than 40 hours per week yet were not paid overtime in addition to their salaries. Additional overtime violations resulted when Elite Wireless Inc. failed to include earned commissions in workers' rates when computing their overtime pay, instead erroneously basing overtime only on employees' base rates. Recordkeeping violations were cited when the employer failed to maintain accurate records of the hours employees worked.

"Employers must understand their obligations and responsibilities under the law. 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," said Nettie Lewis, Wage and Hour Division District Director in Nashville. "We encourage 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"

Elite Wireless Inc. operates stores in Franklin, Lebanon, Nashville, Knoxville, and Clarksville, Tennessee; Lexington and Bowling Green, Kentucky; and Jacksonville, North Carolina. At the time of the investigation, the employer was an authorized retailer of AT&T phones and other AT&T products and accessories.

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.

GUAM – The U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a building, heavy, highway and residential construction survey in Guam to collect data to establish prevailing wage rates, as required under the Davis-Bacon and Related Acts.

The survey is not limited to federally funded construction projects, and covers active building, heavy, highway and residential construction projects in Guam between May 1, 2017, and April 30, 2018.

"Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers in the county where the work takes place. The U.S. Department of Labor needs the full participation of the Guam construction industry community to set prevailing wage rates," said the Wage and Hour Division's Acting Regional Administrator Juan Coria. "Full participation by contractors and interested parties will allow us to provide accurate prevailing wages and to create complete wage determinations which, in turn, reduces the need for contractors to request additional classifications." 

Notification letters and data collection forms (WD-10s) are being sent to interested parties and contractors known to the Wage and Hour Division. Data must be postmarked by August 31, 2018, to be included. If you would like to participate, or have questions regarding the survey process and forms, contact Helen Thach at (415) 241-3530 or Rose Huynh at (415) 241-3539.

To complete the survey electronically, visit www.dol.gov/whd/programs/dbra/wd10/index.htm.

You do not need a letter to answer the survey.

PORTLAND, OR – The U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a building construction survey statewide in Oregon to collect data to establish prevailing wage rates, as required under the Davis-Bacon and Related Acts.

The survey is not limited to federally funded construction projects, and covers active building construction projects in all counties between March 1, 2017, and February 28, 2018.

"Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers in the county where the work takes place. The U.S. Department of Labor needs the full participation of the Oregon construction industry community to set prevailing wage rates," said the Wage and Hour Division's Acting Regional Administrator Juan Coria. "Full participation by contractors and interested parties will allow us to provide accurate prevailing wages and to create complete wage determinations which, in turn, reduces the need for contractors to request additional classifications." 

Notification letters and data collection forms (WD-10s) are being sent to interested parties and contractors known to the Wage and Hour Division. Data must be postmarked by December 21, 2018, to be included. If you would like to participate, or have questions regarding the survey process and forms, contact Sylvia Lee at (415) 241-3540 or Rose Huynh at (415) 241-3539.

To complete the survey electronically, visit www.dol.gov/whd/programs/dbra/wd10/index.htm.

You do not need a letter to answer the survey.

PITTSBURGH, PA – The U.S. District Court for the Western District of Pennsylvania has entered a consent judgment against Water Transfer Solutions LLC and its president, Joseph Dugan, requiring the defendants to pay $92,728 in back wages and an equal amount in liquidated damages - totaling $185,456 - to 82 current and former employees. The judgment follows an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) that determined the Canonsburg, Pennsylvania, company violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators from the Pittsburgh District Office found that – from July 1, 2017, to December 14, 2017 – Water Transfer Solutions LLC paid employees on a day-rate basis, without regard to the number of hours they worked. This practice resulted in overtime violations when employees worked beyond 40 hours per week and the employer failed to pay them additional half-time. This practice of paying flat day rates also led to recordkeeping violations when the company failed to maintain records of the number of hours employees worked.

"The U.S. Department of Labor is committed to ensuring that employees receive the wages they have earned for all the hours they have worked," said Wage and Hour District Director John DuMont, in Pittsburgh. "Our ongoing enforcement and outreach in the oil and gas industry seeks to identify and remedy such common violations to protect employees, to educate employers, and to ensure a level playing field for law-abiding employers."

Under the consent judgement, in addition to paying the back wages and damages, the defendants are enjoined from violating the FLSA in the future.

"This judgment sends a clear message to employers that failure to pay employees their rightfully earned wages comes at a high cost," said Regional Solicitor Oscar L. Hampton III.

Water Transfer Solutions LLC provides water transfer services for the oil and gas industry.

View the complaint and consent judgment. 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.

ATHENS, GA – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has determined that FQSR LLC – an Athens, Georgia, fast-food restaurant operator – violated child labor provisions of the Fair Labor Standards Act (FLSA). The Department assessed the restaurant $10,590 in civil money penalties.

WHD investigators determined that FQSR LLC – doing business as KBP Foods as operator of a Kentucky Fried Chicken/Taco Bell restaurant – violated the FLSA when it employed three minors, ages 16 and 17, to operate an industrial mixer, a violation of Hazardous Order No. 11, which governs occupations involved in the use of bakery machines. KBP Foods also allowed one 16-year-old employee to drive a personal vehicle to pick up supplies for the restaurant, a violation of Hazardous Order No. 2, which governs minor employees driving as part of their employment.

"Keeping youth safe in the workplace is a top priority of the U.S. Department of Labor," said Wage and Hour Division District Director Eric Williams, in Atlanta. "This case is an important reminder to all businesses that employ youth under 18 to review their policies and ensure these employees are not put into harm's way. We encourage 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 FLSA 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.