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.

SEA ISLAND, GA – Sea Island Acquisition LLC has paid $46,922 in back wages to 167 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the Sea Island, Georgia-based employer violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined Sea Island Acquisition LLC - which operates the resort as Sea Island Co. - failed to pay employees in the housekeeping department for all the hours they worked after supervisors altered their time cards, resulting in minimum wage and overtime violations when the employees worked more than 40 hours per workweek. WHD also found the resort incorrectly classified an accounting employee as exempt, paying a flat salary without regard to the number of hours the employee worked. Overtime violations resulted when this employee worked more than 40 hours per week and the firm paid no overtime. The employer also failed to maintain proof of age for 240 minor employees, resulting in recordkeeping violations.

"Even well-intentioned employers may find themselves in violation of the law if they fail to train their managers and ensure that they operate the employers' business in compliance," said Wage and Hour Division District Director Eric Williams, in Atlanta. "The U.S. Department of Labor remains committed to helping all employers understand their responsibilities and to comply with the law, and to ensuring that employees receive the wages they have rightfully earned."

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.

Employees who believe they may be owed back wages should visit the Workers Owed Wages website.

NAPLES, FL – Aqua Seafood & Steak – a restaurant based in Naples, Florida – has paid $35,942 in back wages and liquidated damages to 15 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 the restaurant paid 15 employees at straight-time rates regardless of the number of hours they worked, failing to pay overtime when employees worked more than 40 hours in a workweek. Additionally, the restaurant paid some employees off the books and failed to record hours for another employee, resulting in recordkeeping violations.

"The Department of Labor's Wage and Hour Division is committed to ensuring that employees receive the wages they have earned for all the hours they have worked," said Wage and Hour Division District Director James Schmidt, in Tampa. "We are also determined to ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do."

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.

MIAMI, FL – Belen Jesuit Preparatory School of Miami, Florida, will pay $635,269 to 461 employees for violations of the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA) found in a U.S. Department of Labor Wage and Hour Division (WHD) investigation. WHD also assessed the school $47,578 in civil money penalties for violations of the FLSA's child labor requirements.

Investigators determined that Belen Jesuit Preparatory School classified summer camp counselors incorrectly when it labeled them as exempt from the FLSA's minimum wage and overtime requirements, and paid them flat weekly salaries without regard to the number of hours they had actually worked. This practice resulted in overtime violations when employees worked more than 40 hours in a week yet were not paid overtime. The school also required summer counselors to attend 16 hours of unpaid training prior to the start of camp, resulting in minimum wage violations for those unpaid hours. Summer counselors did not clock in or out for work or lunch breaks and were required to attend an additional 30-to-45-minute weekly meeting, which was also not reflected in time records. The failure to maintain accurate time records resulted in recordkeeping violations.

Investigators also found the school violated child labor requirements when it employed 97 counselors, 14- and 15-years old, to work more than 40 hours per week. The FLSA caps work time for those minors at 40 per week when school is not in session.  

"The well-being of minors in the workplace remains a priority for the Wage and Hour Division," said Wage and Hour Division District Director Tony Pham, in Miami. "We appreciate this employer's cooperation in working with us to correct these violations and come into compliance. We encourage all employers to use the many tools we offer to learn about their responsibilities and to avoid violations."

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 https://www.dol.gov/whd.