U.S Department of Labor Investigation Results in Florida Keys Restaurant Paying $73,626 in Back Wages

News Release

U.S Department of Labor Investigation Results in Florida Keys Restaurant Paying $73,626 in Back Wages

MARATHON, FL – FL Food Services LLC, operating as Porky's Bayside Restaurant and Marina, will pay $73,626 in back wages to 35 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined FL Food Services LLC, based in Marathon, Florida, violated the FLSA's overtime requirements when it paid workers for overtime hours at straight time rates, in cash. The employer also incorrectly considered some employees to be independent contractors rather than employees. The inaccurate classification resulted in overtime violations when the employer paid these employees straight-time cash payments for all hours that they worked, including any hours beyond 40 in a workweek. The restaurant also failed to post required FLSA posters.

"Employers that fail to pay employees the wages they have legally earned must not gain a competitive advantage over those that comply with the law," said Tony Pham, Wage and Hour Division Miami District Director. "The U.S. Department of Labor encourages restaurant owners and all employers to reach out to their local Wage and Hour Division office for information about how to comply, and to make use of the many resources we offer to explain their responsibilities and how to avoid violations."

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
July 24, 2018
Release Number
18-1195-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Revokes Georgia Farm Labor Contractor Certification After Investigation Finds MSPA Violations

News Release

U.S. Department of Labor Revokes Georgia Farm Labor Contractor Certification After Investigation Finds MSPA Violations

ADEL, GA – The U.S. Department of Labor's Wage and Hour Division (WHD) has revoked the certificate of registration for H-2A farm labor contractor Jesus Contreras for violating requirements of the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). Contreras provided 29 farmworkers to harvest and package mixed green vegetables at VPC Produce LLC/4 Way Farms LLC in Adel, Georgia.

As a result of the violations, the WHD has assessed Contreras $77,885 in civil money penalties and found that the employer owes $1,894 in back wages to 10 farmworkers.

Contreras violated MSPA requirements by failing to maintain payroll records, failing to register a driver as a farm labor contractor employee, and by housing farmworkers at a different address than he indicated on his farm labor certificate.

WHD investigators determined Contreras also violated H-2A requirements by failing to reimburse 10 farmworkers for expenses associated with their travel to the U.S., and failed to provide housing that met safety and health standards. Investigators found inoperable fire alarms, exposed wiring, and mold present in the employer-provided housing, among other infractions.

"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 District Director Eric Williams, in Atlanta. "To ensure a level playing field for employers who do comply, to protect American workers, and to protect guest workers, WHD will use all enforcement tools at our disposal, including the revocation of the farm labor certificate, for employers who fail to follow the rules."

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 of Labor 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.

Employers are encouraged to review the MSPA ineligible farm labor contractor and H-2A debarment lists prior to contracting for labor.

MSPA, 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 http://www.dol.gov/whd.

 

Agency
Wage and Hour Division
Date
July 24, 2018
Release Number
18-1173-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Payment Of Back Wages to 82 Employees at Tennessee Energy Company

News Release

U.S. Department of Labor Investigation Results in Payment Of Back Wages to 82 Employees at Tennessee Energy Company

LENOIR CITY, TN – Proton Power Inc. has paid $143,336 in back wages to 82 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found that the biodiesel fuels company violated minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found Proton Power Inc. of Lenoir City, Tennessee, failed to pay employees at least the minimum wage and overtime rates at time-and-one-half for hours worked over 40 in a workweek due to missed payroll.

"When employers fail to pay employees the wages they have legally earned, they harm employees and gain an unfair advantage over their law-abiding competitors," said Wage and Hour Division District Director Nettie Lewis, in Nashville. "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
July 24, 2018
Release Number
18-1209-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

Orlando Construction Company Violates Federal Child Labor Law By Allowing Minor to Work in Hazardous Occupation

News Release

Orlando Construction Company Violates Federal Child Labor Law By Allowing Minor to Work in Hazardous Occupation

ORLANDO, FL – An investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) has determined Orlando-based construction company GMH Construction Inc. violated child labor and recordkeeping requirements of the Fair Labor Standards Act (FLSA). As a result, WHD issued the company $3,530 in civil money penalties.

WHD investigators found that GMH Construction Inc. violated federal law when it allowed a 16-year-old employee to operate a man lift and a grinder for cutting metal and concrete, both occupations declared hazardous for minors, and prohibited for employees less than 18 years old under the FLSA. The employer also failed to maintain proof of age for the minor, resulting in the recordkeeping violation.

"Protecting young employees is a priority for the U.S. Department of Labor," said Wage and Hour Division District Director Daniel White, in Jacksonville. "Companies that employ minors must be aware of the special rules that apply to workers less than 18 years old. 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."

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.

Agency
Wage and Hour Division
Date
July 24, 2018
Release Number
18-1188-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Finds Hiring And Pay Violations at North Florida Cabbage Farm

News Release

U.S. Department of Labor Investigation Finds Hiring And Pay Violations at North Florida Cabbage Farm

HASTINGS, FL – A U.S. Department of Labor Wage and Hour Division (WHD) investigation found that Sauceda Contractor Inc., an H-2A farm labor contractor, violated the labor provisions of the H-2A visa program and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) when it provided farmworkers to harvest cabbage at Barnes Farm in Hastings. As a result, the company has paid $19,847 in back wages to 53 employees, and WHD assessed the employer $5,526 in H-2A and MSPA civil money penalties.

WHD investigators determined the company failed to provide the number of meals for which it charged workers, failed to reimburse H-2A workers for their transportation expenses from their home countries, failed to reimburse workers for their visa fees, and failed to meet the housing safety and health requirements. Additionally, Sauceda Contractor Inc. transported migrant workers while using an expired MSPA farm labor contractor's certification, failing to file a renewal application, as required.

Investigators also determined that Sauceda Contractor Inc. violated H-2A recruitment requirements when it included a requirement to lift 60 pounds in the newspaper advertisement seeking American workers but did not apply that same requirement to the H-2A workers. Additionally, Sauceda Contractor Inc. advertised in Alabama and Georgia newspapers when the positions were in Florida.

"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 Daniel White, in Jacksonville. "This case demonstrates our commitment to protect vulnerable workers from being paid less than they are legally owed or otherwise working under substandard conditions, and to safeguard American jobs, level the playing field for law-abiding employers."

For more information about the MSPA, 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 http://www.dol.gov/whd.

Agency
Wage and Hour Division
Date
July 19, 2018
Release Number
18-1112-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in Michigan Company Paying $125,793 in Back Wages

News Release

U.S. Department of Labor Investigation Results in Michigan Company Paying $125,793 in Back Wages

ANN ARBOR, MI – Joak American Homes – operator of seven affiliated homecare companies in Michigan – will pay $125,793 in back wages owed to 58 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the company violated the overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined that the Ann Arbor-based company failed to pay the hourly non-exempted workers at time-and-one-half of their regular rate of pay for all hours worked over 40 in a workweek. Joak American Homes also made improper deductions from the salary of exempted workers. 

"The U.S. Department of Labor is committed to ensuring employees receive the wages they have rightfully earned. These employees deserve their well-earned paychecks," said Wage and Hour District Director Timolin Mitchell, in Detroit. "Employers can avoid wage violations by contacting the Wage and Hour Division for assistance to ensure they are in compliance with the Fair Labor Standards Act."

For more information about the FLSA and other laws enforced by WHD, 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 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
July 19, 2018
Release Number
18-1164-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Finds North Florida Seafood Restaurant Employed Minors in Violation of Federal Law

News Release

U.S. Department of Labor Finds North Florida Seafood Restaurant Employed Minors in Violation of Federal Law

PONTE VEDRA BEACH, FL – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has determined that Palm Valley Outdoors LLC, a north Florida seafood restaurant, violated child labor provisions of the Fair Labor Standards Act (FLSA). WHD issued the restaurant $4,294 in civil money penalties.

WHD investigators found that Palm Valley Outdoors LLC violated the FLSA when it allowed six minor employees - ranging from 13-to-14 years old - to perform hosting and running duties for more than three hours on a school day, with some shifts ending later than 8 p.m. Employing a minor younger than 14 years old in a restaurant is illegal. The FLSA's child labor provisions allow 14- and 15-year-old employees to work outside of school hours in non-hazardous jobs for no more than three hours on a school day and 18 hours in a school week. The provisions also prohibit those employees from shifts that begin before 7 a.m. and end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m.

"The U.S. Department of Labor is committed to keeping young employees safe in the workplace," said Wage and Hour Division District Director Daniel White, in Jacksonville. "We encourage all employers to use the multiple tools we offer to learn about their legal responsibilities 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.

Agency
Wage and Hour Division
Date
July 19, 2018
Release Number
18-1187-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

California Car Wash Operator to Pay $4.2 Million in Back Wages and Liquidated Damages Following U.S. Department of Labor Lawsuit

News Release

California Car Wash Operator to Pay $4.2 Million in Back Wages and Liquidated Damages Following U.S. Department of Labor Lawsuit

LOS ANGELES, CA – More than 800 employees at 12 Southern California car washes will receive a share of a $4.2 million recovery obtained by the U.S. Department of Labor to conclude a lawsuit filed by the Department. In a consent judgment entered by the U.S. District Court for the Central District of California in Los Angeles, car wash operator Vahid David Delrahim and his related businesses must pay $3.8 million in back wages and liquidated damages for violations of the Fair Labor Standards Act (FLSA), along with $400,000 in civil money penalties.

The lawsuit filed on behalf of the Secretary of Labor and the investigation by the Department found that Delrahim required employees at his company's car washes to work off the clock at the beginning of each shift and to clock out, but to remain at the car washes, when business was slow. The violations resulted in unpaid wages amounting to - on average - several hours of pay each day. As a result of the judgment, some employees will receive more than $10,000 in back wages.  

Throughout the litigation, the court repeatedly sanctioned defendants, and reprimanded their counsel, Littler Mendelson, P.C., for coercive conduct in witness interviews and in collecting declarations from defendants' employees.

"This is a major win for hundreds of employees systematically abused by one of Southern California's largest car wash operators," said Wage and Hour Division Acting Regional Administrator Juan Coria, in San Francisco. "This landmark case sends a powerful message that the Department of Labor will use strong law enforcement and litigation tools to protect employees and level the playing field for law-abiding employers."

"The court's decisions make clear that our laws protect workers and neither an employer nor their attorneys may interfere with their rights," said the Department's Regional Solicitor Janet Herold. "The integrity of our justice system depends on employers' and their attorneys ensuring that a true and accurate record free of any undue influence is presented to the court."

In addition to the recovery of $4.2 million in unpaid back wages and penalties, the judgment includes several provisions to ensure defendants' future compliance with the law. They include one year of oversight of the defendants and their car washes by a court-appointed independent monitor and issuance of notices by the defendants to workers and managers regarding employees' FLSA rights.

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
July 18, 2018
Release Number
18-1193-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Results in San Francisco Bay Area Construction Contractor Paying $250,000 Owed to 22 Employees

News Release

U.S. Department of Labor Investigation Results in San Francisco Bay Area Construction Contractor Paying $250,000 Owed to 22 Employees

SAN JOSE, CA – Full Power Properties LLC – prime contractor and employer for the 650-unit, high-rise Silvery Towers project in San Jose, California – has paid $250,000 to 22 employees to resolve violations of the Fair Labor Standards Act (FLSA) found during a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

WHD investigators determined that Full Power Properties LLC benefited from the work done by employees supplied by Job Torres, an unlicensed subcontractor doing business as Nobilis Construction.

Investigators found a number of the employees forced to work without pay on large Bay Area construction projects, including the Silvery Towers development. When not working, they lived in captivity in squalid conditions in a warehouse controlled by Torres.

On Aug. 29, 2017, federal agents freed the workers as they executed search and arrest warrants at multiple locations as part of an ongoing forced-labor and human-trafficking investigation. Agents arrested Torres, and placed him in custody. Following the arrests, agents contacted WHD to determine if FLSA violations existed.

"The U.S. Department of Labor will do everything in its power to stop employers who violate the law from gaining an unfair competitive advantage over those who play by the rules," said Wage and Hour Division District Director Susana Blanco, in San Francisco. "This case also represents a major victory in the fight against the scourge of human-trafficking."     

Employees and employers with questions about the FLSA or any of the federal wage laws administered by the Division should call the agency's toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at https://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
July 18, 2018
Release Number
18-0412-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Results in Cabinet Manufacturer To Pay $175,458 in Overtime Payments

News Release

U.S. Department of Labor Investigation Results in Cabinet Manufacturer To Pay $175,458 in Overtime Payments

BRYAN, TX – Texas-based cabinet manufacturer Kent Moore Cabinets LLC will pay $175,458 in back wages to 59 employees to resolve overtime, minimum wage, and recordkeeping 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).

WHD investigators found that the employer failed to pay overtime to service technicians. Kent Moore Cabinets LLC incorrectly classified these employees as exempt from overtime, and paid them a guaranteed wage plus commissions for their primarily manual labor. The service technicians received no additional compensation when they worked more than 40 hours in a workweek, in violation of the FLSA’s overtime requirements. The company also failed to maintain accurate pay and time records for these employees, violating the FLSA’s recordkeeping provisions.

“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 Robin Mallett, in Houston. “Employers can avoid wage violations by reaching out to 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 Wage and Hour 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
July 17, 2018
Release Number
18-1115-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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