Court Orders Pennsylvania Restaurant to Pay $88,282 in Back Wages, Damages and Penalties Following U.S. Department of Labor Investigation

News Release

Court Orders Pennsylvania Restaurant to Pay $88,282 in Back Wages, Damages and Penalties Following U.S. Department of Labor Investigation

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.

Agency
Wage and Hour Division
Date
September 5, 2018
Release Number
18-1309-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

U.S. Department of Labor Debars North Carolina Farm Labor Contractor for Wage and Worker Protection Violations; Assesses $174,614 Penalty

News Release

U.S. Department of Labor Debars North Carolina Farm Labor Contractor for Wage and Worker Protection Violations; Assesses $174,614 Penalty

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.

Agency
Wage and Hour Division
Date
August 28, 2018
Release Number
18-1349-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Los Angeles Garment Maker Paying $51,840 to 40 Employees to Resolve Wage Violations

News Release

U.S. Department of Labor Investigation Results in Los Angeles Garment Maker Paying $51,840 to 40 Employees to Resolve Wage Violations

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.

Agency
Wage and Hour Division
Date
August 28, 2018
Release Number
18-1297-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Issues New Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues New Wage and Hour Opinion Letters

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.

Agency
Wage and Hour Division
Date
August 28, 2018
Release Number
18-1389-NAT
Media Contact: Megan Sweeney
Phone Number

U.S. Department of Labor Investigation Results in San Antonio Restaurants Paying $208,642 in Back Wages

News Release

U.S. Department of Labor Investigation Results in San Antonio Restaurants Paying $208,642 in Back Wages

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.

Read this news release En Español

Agency
Wage and Hour Division
Date
August 27, 2018
Release Number
18-1244-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

U.S. Department of Labor to Host Listening Sessions About Proposed Overtime Rule

News Release

U.S. Department of Labor to Host Listening Sessions About Proposed Overtime Rule

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.

Agency
Wage and Hour Division
Date
August 27, 2018
Release Number
18-1386-NAT
Media Contact: Megan Sweeney
Phone Number

U.S. Department of Labor Investigation Results in Alabama Ironworks Contractor Paying $106,046 in Back Wages and Benefits to 77 Employees

News Release

U.S. Department of Labor Investigation Results in Alabama Ironworks Contractor Paying $106,046 in Back Wages and Benefits to 77 Employees

SYLACAUGA, AL – Ironworks subcontractor Hoytt Reinforcing Inc. – based in Sylacauga, Alabama – will pay $106,046 in back wages, overtime, and fringe benefits to 77 employees after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found the employer violated requirements of the Davis-Bacon and Related Acts (DBRA), the Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA).

WHD investigators determined that Hoytt Reinforcing Inc. inaccurately classified employees doing the work of reinforcing ironworkers as laborers. Hoytt Reinforcing Inc. then paid these employees the rate applicable to laborers, which is less than the required rate for ironworkers, creating the prevailing rate and fringe benefit violation. Due to the inaccurate classification, the employer violated the CWHSSA when it paid overtime based upon these incorrectly lower rates when employees worked more than 40 hours in a workweek. Investigators also found the employer violated the FLSA by failing to maintain accurate time records, a violation of the recordkeeping requirements.

Hoytt Reinforcing Inc. is an ironworks subcontractor on the I-65 and I-20/59 interchange and bridge replacement project in Birmingham, Alabama - a project funded by the U.S. Department of Transportation’s Federal Highway Administration and the Alabama Department of Transportation. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

“No contractor should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage project,” said Wage and Hour Division District Director Kenneth Stripling, in Birmingham. “Not only does this practice undercut what the workers involved are legally owed for their work, it results in unfair competition for contractors who play by the rules.”

For more information about the FLSA, DBRA, 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.

Agency
Wage and Hour Division
Date
August 24, 2018
Release Number
18-1340-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Two Anaheim Hotels Paying $59,142 in Back Wages and Damages to 87 Employees

News Release

U.S. Department of Labor Investigation Results in Two Anaheim Hotels Paying $59,142 in Back Wages and Damages to 87 Employees

ANAHEIM, CA – Two hotels in Anaheim, California, have paid $59,142 in back wages and liquidated damages to 87 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that New Century Enterprises LLC – doing business as Hotel Indigo Anaheim – and Union Investments USA LLC – doing business as Ramada Plaza Anaheim – failed to pay employees overtime for hours worked beyond 40 hours per week during some pay periods. Investigators also found the hotels failed to pay housekeepers for work they performed off-the-clock. The investigation found these employees punched out at the end of their scheduled shifts, but returned to work to complete unfinished tasks such as cleaning remaining guest rooms, stocking their cleaning carts, and emptying their trash bins. This practice resulted in additional overtime violations. Investigators also cited the hotels for failing to maintain accurate payroll records.

“These two investigations help ensure that workers receive their full earnings, and that employers compete on a fair-and-level playing field,” said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. “Employers must pay employees for all hours that they work, and in compliance with the law. We encourage all employers to make use of the many tools our agency offers to explain their responsibilities, and to help them avoid violations.”

These two hotels operated under the same management and payroll services.

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.

Agency
Wage and Hour Division
Date
August 24, 2018
Release Number
18-1348-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Results in Indiana Restaurant Paying $45,828 in Back Wages

News Release

U.S. Department of Labor Investigation Results in Indiana Restaurant Paying $45,828 in Back Wages

INDIANAPOLIS, IN – Sixteen employees of The Journey restaurant – based in Indianapolis, Indiana – will receive $45,828 in back wages following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) that disclosed overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined the “back of the house” employees at The Journey restaurant worked an average of 63 hours per week for flat salaries without regard to the number of hours they had worked. This practice resulted in overtime violations when these employees worked more than 40 hours in a workweek and the employer failed to pay overtime. The employer’s failure to record the number of hours employees worked also resulted in recordkeeping violations.

The employees worked as line cooks, dishwashers, and in food preparation.

“This investigation represents the U.S. Department of Labor’s commitment 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 Patricia Lewis in Indianapolis. “Employers can avoid wage violations by contacting us for assistance to ensure they are in compliance with the law.”

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.

Agency
Wage and Hour Division
Date
August 23, 2018
Release Number
18-1350-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

Tennessee Trucking Company to Pay $89,204 in Back Wages and Damages After U.S. Department of Labor Investigation

News Release

Tennessee Trucking Company to Pay $89,204 in Back Wages and Damages After U.S. Department of Labor Investigation

ROCK ISLAND, TN – Hillis Group LLC, based in Rock Island, Tennessee, will pay $89,204 in back wages and liquidated damages to 42 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found that the asphalt and trucking company violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found Hillis Group LLC paid drivers flat rates per day regardless of the number of hours they worked resulting in overtime violations when the drivers worked more than 40 hours in a workweek with no additional pay. The company also failed to keep record of employees’ work start and finish times resulting in violations.

“Employers have an obligation to pay employees in accordance with the law for all the hours they have worked. Failing to do so creates a hardship for the workers, and places other employers at a competitive disadvantage,” said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. “We encourage 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.”

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.

Agency
Wage and Hour Division
Date
August 22, 2018
Release Number
18-1352-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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