ELKHART, IN – Recreational vehicle manufacturer RV Factory LLC – based in Elkhart, Indiana – will pay $55,484 in overtime back wages to 157 former and current employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) that found multiple violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD determined RV Factory LLC – which operates as The RV Factory – ­­failed to pay employees overtime at time-and-one-half their regular rates of pay when they worked beyond 40 hours in a workweek. Instead, the company paid a flat daily rate to some employees regardless of the number of hours they worked. When overtime was paid, RV Factory LLC failed to include workers’ production bonuses when determining those rates, resulting in payment based on rates lower than those required by law. A recordkeeping violation was also found when the employer failed to track the number of hours worked by one non-exempt salaried employee.

“This investigation is an example of the 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 have an obligation to understand and to comply with the labor laws applicable to their business. We encourage employers to contact the Wage and Hour Division for assistance to ensure they understand their obligations, and to make use of the many tools we provide to help them.”

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.

INDIANAPOLIS, IN – JLBS Construction, a construction company based in Indianapolis, Indiana, will pay $98,236 in overtime back wages to 112 employees, following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) that found the employer had violated overtime requirements of the Fair Labor Standards Act (FLSA).  

WHD investigators determined JLBS Construction ­­– which operates as J.L. Building Solutions ­­– failed to pay employees overtime at time-and-one-half their regular rates when they worked beyond 40 hours in a work week. The company instead paid straight time rates regardless of the number of hours employees had worked.

“Often times our investigators find that employers believe they are correctly compensating employees based on false information and pay practices in certain industries that are illegal. In this case, the company took immediate action to fix its pay practices,” said Wage and Hour Division District Director Patricia Lewis in Indianapolis. “We encourage employers to contact the Wage and Hour Division for assistance to ensure they understand their obligations under the law, and to make use of the many tools we provide to help them.”

In addition to paying the back wages, J.L. Building Solutions hired a human resources officer to ensure compliance with wage laws in the future.

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.

GUAYNABO, PR– Ceres Environmental Services Inc. – a contractor based in San Juan, Puerto Rico – which installed temporary roofing as part of hurricane recovery efforts in Puerto Rico, has paid $500,000 in back wages to 995 employees to resolve violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

Investigators from the U.S. Department of Labor’s Wage and Hour Division (WHD) found that field employees, including blue roof installers, carpenters, drivers, and laborers, often worked 12 or more hours per day, six to seven days per week, yet the employer failed to pay them overtime for the hours they worked beyond 40 in a week. Additional overtime violations resulted when Ceres failed to record and pay for time employees spent working before and after their scheduled shifts, and when they worked through their meal breaks.

Ceres Environmental Services Inc. also misapplied an overtime exemption to several job categories including clerical office positions, paying those workers flat salaries without regard to the number of hours they worked. This practice resulted in overtime violations when those employees worked more than 40 hours per week yet were not paid overtime. The employer also failed to reimburse workers who purchased steel-toed boots that were required as personal protective equipment.

“Employees performing vital disaster relief work must be paid the wages they have legally earned for all the hours that they work,” said Wage and Hour Division Caribbean District Director José R. Vazquez. “The resolution of this case demonstrates our commitment to those workers, and to providing employers the tools they need to comply with the law. Our work levels the playing field for employers who play by the rules.”

Ceres Environmental Services Inc. performed the Blue Roof/Blue Tarp Prime Contract installing temporary roofing in Puerto Rico from October 1, 2017 to March 31, 2018.

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.

Read this news release in Spanish.

MANASSAS, VA - A direct mail company has paid $355,672 in back wages and an equal amount in liquidated damages to 73 employees to resolve violations of overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA) following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD).

WHD investigators found that RPG Enterprise LLC - doing business as Planet Direct Mail - misclassified production employees as independent contractors, and failed to pay them overtime when employees worked more than 40 hours in a workweek. The Manassas, Virginia, company also failed to maintain records required by law. The willful nature of the violations led to an additional assessment of $32,099 in penalties, which the company has paid.

 “Planet Direct Mail paid some employees the proper wages with overtime, while paying the misclassified independent contractors straight-time for the hours they worked in excess of 40 per week,” said Acting Baltimore Wage and Hour District Director John DuMont. “We are committed to holding employers accountable when they attempt to circumvent 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 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. 

Training on Federal Construction and Service Contracts Set for August 27-28

SAN JUAN, PR – The U.S. Department of Labor’s Wage and Hour Division will offer a comprehensive compliance seminar for federal contractors, unions, and workers to provide information on the rules governing federal prevailing wage requirements.

The free training will be held August 27-28, 2018, at the Departamento del Trabajo y Recursos Humanos de Puerto Rico, 505 Edificio, Prudencio Rivera Martinez Ave. Muñoz Rivera Hato Rey, Puerto Rico in Salón Santiago Iglesias Patín.

The Department of Labor is committed to ensuring that all stakeholders, contractors, contracting officials, unions, workers, and other interested parties understand the wage and fringe benefit requirements that apply to federal and federally assisted contracts under the Davis-Bacon and Related Acts, McNamara-O’Hara Service Contract Act, and the Contract Work Hours and Safety Standards Act.

The training is a key component of the Wage and Hour Division’s ongoing effort to foster good jobs through increased awareness and enhanced compliance with federal prevailing wage requirements.

Check-in for the training will be from 8:00 a.m. to 9:00 a.m. on Monday, August 27, 2018, with the program running from 9:00 a.m. to 5:30 p.m. on Monday and Tuesday.

While seminar attendance is free, preregistration is required. Registration can be completed through the online registration link at Prevailing Wage Seminar- Puerto Rico Registration.

For more information on the Davis-Bacon Act, Service Contract Act and other federal wage laws related to government contracts 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.

Read this news release en español

CENTRAL ISLIP, NY – The U.S. District Court for the Eastern District of New York has entered a consent judgment requiring Paul Dill Associates Inc. and its two owners, Paul Joseph Dill and Paul Jeremy Dill - doing business as Bi County Auto Body - to pay $185,000 in back wages and an equal amount in liquidated damages to 49 employees, plus $30,000 in civil penalties. The judgment follows an investigation by the Department of Labor’s Wage and Hour Division that identified violations of the Fair Labor Standards Act (FLSA) by the Smithtown, New York, auto body repair business.

Investigators from WHD’s Long Island District Office found that between July 2014 and April 2016, the employer violated the FLSA’s overtime requirements when they paid 49 employees straight time rates, in cash, for all the hours they worked beyond 40 in a workweek. The FLSA requires overtime for those hours at one and one-half times workers’ regular rates of pay.

The employer also deducted one hour per day from employees’ time for a meal break even though employees were often unable to take those breaks uninterrupted by work. Those unpaid hours resulted in additional overtime violations. Recordkeeping violations were cited when the employer willfully failed to record any hours that employees worked beyond 40 per workweek, in an attempt to conceal overtime.

“The employer engaged in an unlawful practice to deny employees the overtime wages they had legally earned and to conceal their failure to pay for those hours,” said Irv Miljoner, the Wage and Hour Division’s district director in Long Island. “The resolution of this case demonstrates our commitment to those workers, and to leveling the playing field for employers who play by the rules.”

“This case shows that the U.S. Department of Labor will take appropriate steps to ensure compliance with the Fair Labor Standards Act and to rectify wage violations so employees are not denied their justly earned pay,” said Jeffrey S. Rogoff, the department’s regional Solicitor of Labor in New York. “Employers can avoid wage violations by reaching out to the Wage and Hour Division for assistance to ensure they are in compliance with the law.”

The judgment also prohibits the business and its owners from soliciting or accepting the return of the back wages from the employees and from discriminating against any employees who exercise their rights under the FLSA. The Division’s Long Island District Office conducted the investigation. Trial Attorney Stacy Goldberg 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 resolvethose 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(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.

Acosta v. Paul Dill Associates, Inc. d/b/a Bi County Auto Body; Paul Joseph Dill; and Paul Jeremy Dill.

Civil Action No. 2:17-cv-04324-JS-SIL

SAN FRANCISCO, CA – Thai Satay Restaurant has paid $313,742 in back wages and liquidated damages to 20 employees at its South San Francisco and San Mateo locations after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found violations of the Fair Labor Standards Act (FLSA).  

WHD investigators found that the employer violated minimum wage requirements when it paid some employees flat salaries insufficient to cover all of the hours that they worked at the federal minimum wage of $7.25 per hour. The investigation disclosed overtime violations when the employer paid either flat salaries or day rates without regard to the number of hours the employees actually worked. When these employees worked more than 40 hours per week with no additional payment, overtime violations occurred. The company’s failure to maintain records of the number of hours worked by employees resulted in recordkeeping violations under the FLSA.  

“No employer should gain a competitive advantage by failing to pay its workers in compliance with the law,” said Wage and Hour Division District Director Susana Blanco, in San Francisco. “This case highlights our commitment to leveling the playing field for employers and to ensuring that employees receive their rightfully earned wages.”

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.

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.