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.

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/.

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.

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NEW ORLEANS, LA – As a result of a U.S. Department of Labor Wage and Hour Division (WHD) investigation, El Paso Mexican Grill restaurant will pay $654,366 in back wages to 567 employees to resolve violations of the Fair Labor Standards Act (FLSA) found at 23 of the employer's locations in Louisiana and Florida.

WHD investigators found the employer violated FLSA minimum wage requirements when it deducted costs for uniforms from workers' pay, and also when it failed to pay them for all of the hours that they worked. The restaurant also paid some kitchen staff flat salaries, without regard to the number of hours that they worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a week but were not paid additional overtime. El Paso Mexican Grill also violated overtime requirements when it paid tipped employees time-and-one-half of their direct cash wages for their overtime hours instead of basing their rates on the full minimum wage of $7.25 per hour. The employer's failure to keep an accurate record of hours worked by salaried kitchen staff and inaccurate recording of wait staff's earnings violated the FLSA's recordkeeping requirements.

"Companies 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 Troy Mouton, Wage and Hour Division New Orleans 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 tools we offer to explain their responsibilities and how to avoid violations."

The U.S. Department of Labor 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 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.

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WASHINGTON, DC – To prevent job losses and ensure affordable guided tours on federal lands, President Donald J. Trump issued an Executive Order exempting seasonal outdoor guides and outfitters from Executive Order 13568 issued in 2014. Today, the U.S. Department of Labor issued guidance to contracting agencies and the public regarding the President's action. The Department also announced its intention to undertake rulemaking to amend its regulations to reflect President Trump's Executive Order.

Seasonal recreational services include river running, hunting, fishing, horseback riding, camping, mountaineering activities, recreational ski services, and youth camps. The exemption does not apply to lodging and food services, which generally involve more regular work schedules and normal amounts of overtime work.  

The Department is committed to ensuring that all job creators, contractors, contracting officials, unions, workers, and interested parties understand and comply with the wage and fringe benefit requirements that apply to federal and federally assisted contracts. For more information about government contract laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243).

WEST MONROE, LA – West Monroe LLC, operator of Café Rawz in West Monroe, Louisiana, has agreed to pay $69,178 in back wages to 34 employees to resolve overtime, minimum wage, and recordkeeping violations of the Fair Labor Standards Act (FLSA) found in a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

WHD investigators found that West Monroe LLC failed to pay tipped employees at least $2.13 per hour in direct wages, as the law requires. Instead, employees worked only for tips. This violation of the FLSA's "tip credit" provisions, which allow an employer to take credit for an employee's tips toward their minimum wage obligations, resulted in the employer owing affected employees the full federal minimum wage of $7.25 per hour for every hour they had worked. Investigators also found that the employer paid food runners and bussers 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 in a workweek and the company failed to pay them overtime. Investigators also found FLSA recordkeeping violations resulting from the restaurant's failure to track all of the hours employees worked, and to maintain payroll records for a two year period.

"The U.S. Department of Labor is committed to ensuring employees receive all the wages they have rightfully earned," said Wage and Hour Division New Orleans District Director Troy Mouton. "Employers can avoid wage violations by reaching out to us for assistance and to ensure they are in compliance with the law. The Department urges employers to contact their local Wage and Hour office and to make use of the many tools we provide to help them understand their obligations."

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).

LOUISVILLE, KY – Gra-pel Inc, a tire retailer based in Louisville, Kentucky, has paid $51,506 in back wages to 22 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 that Gra-pel Inc. – doing business as Big O Tires – shared employees across its multiple locations, but failed to combine the hours they worked at each location each week to determine when overtime was due. By doing so, the employer violated FLSA regulations by not paying overtime rates when employees worked more than 40 hours. Instead, the employer paid employees separately, at straight time rates, for each store. In addition, Big O Tires failed to include commissions paid to the employees when calculating their overtime rates at its Madison, Indiana, location. Big O Tires’ failure to accurately record overtime hours also violated FLSA recordkeeping requirements.

"If an employee works in multiple locations, the employer cannot treat each location as a separate job for the employee. An employer must understand its responsibilities to its employees and ensure they are being paid as the law requires," said Karen Garnett, Wage and Hour Division District Director in Louisville. "We encourage employers to contact the Department of Labor 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."

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.

MEMPHIS, TN – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has found the Shelby County Board of Education violated the Family and Medical Leave Act (FMLA) when the school district terminated an employee for exercising her right to take time off for a qualifying illness. The school board has paid the employee $112,826 in back wages and medical expenses.

WHD investigators found that the employer violated the FMLA when it discharged an employee during a medically required absence after that employee had provided documentation and been approved for leave. The FMLA requires job protection during covered absences, including the continuation of health care coverage under the same terms and conditions as if the employee had not taken leave. The settlement includes the wages the employee would have earned, including raises and bonuses, and covers medical expenses incurred due to the fact that health insurance coverage ceased at the time of the illegal termination. Investigators also found that the school district's FMLA notification policies omitted key information required to be provided to employees.

"The U.S. Department of Labor is committed to protecting employees' rights under the Family and Medical Leave Act and to educating employers and employees about their rights and responsibilities under the law," said Wage and Hour Division District Director Nettie Lewis, in Nashville. "The resolution of this case demonstrates our commitment to protecting law-abiding employers and to ensuring workplace flexibility and protections for employees."

The school board has paid the back wages and medical expenses in full and has reinstated the employee.

For more information about the FMLA 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.

FREMONT, NC – The U.S. Department of Labor's Wage and Hour Division (WHD) has revoked the farm labor contractor certificate of registration for Jasiel Rodriguez-Nunez and has debarred the contractor and his business partner, unregistered farm labor contractor Aricel Lopez-Morales, from applying for H-2A certification for three years following an investigation. WHD found that Rodriguez-Nunez and Lopez-Morales each violated the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) and labor provisions of the H-2A visa program.

WHD has assessed Rodriguez-Nunez $187,332 in civil money penalties for the violations and found that he owes $24,199 in back wages to 98 employees who worked at Evans Farms in Fremont. WHD assessed Lopez-Morales $202,662 in civil money penalties and declared the farm labor contractor ineligible to apply for a certificate of registration in the future.

Numerous violations were disclosed, including failure to pay workers required wages, failure to reimburse workers for the cost of their transportation to the U.S., and failure to ensure that drivers transporting the workers locally were licensed and insured.

"Any employer seeking permission to participate in the H-2A program 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 Richard Blaylock, Wage and Hour Division District Director in Raleigh, North Carolina. "This case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and protect vulnerable workers from being paid less than they are legally owed or otherwise working under substandard conditions."

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 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 https://www.dol.gov/whd.

KISSIMMEE, FL – PPM Outdoor LLC, a lawn care company based in Kissimmee, Florida, has paid $55,345 to 40 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined that PPM Outdoor LLC – doing business as Prime Lawn Care Service – violated the FLSA's overtime requirements when they paid hourly workers for their overtime hours at straight-time rates in separate checks. The employer also inaccurately considered the foremen to be exempt from overtime requirements, paying them flat salaries without regard to the number of hours that they worked. By doing so, the employer violated FLSA overtime regulations when employees worked more than 40 hours in a week and received no additional payment and, in one case, committed a minimum wage violation when an employee worked so many hours that the salary failed to cover the federal minimum wage of $7.25 per hour.

"Simply paying workers a salary does not exclude them from overtime pay when they work more than 40 hours in a week," said Daniel White, Wage and Hour Division District Director in Jacksonville. "We encourage all employers to use the tools the Department of Labor offers to learn about their responsibilities and to avoid violations. Our work continues to level the playing field for law-abiding employers."

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.