South Florida Medical Transportation Company Pays $222,059 in Back Wages for Overtime Violations after U.S. Department of Labor Investigation

News Release

South Florida Medical Transportation Company Pays $222,059 in Back Wages for Overtime Violations after U.S. Department of Labor Investigation

MIAMI BEACH, FL – Miami Beach Medical Transport LLC – a South Florida medical transportation service company – has paid $222,059 in back wages to 53 employees after the U.S. Department of Labor's Wage and Hour Division (WHD)  found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Miami Beach Medical Transport LLC failed to pay drivers for time they spent working from home confirming appointments with patients for the following day's route. The employer also automatically deducted 30 minutes from employees' timecards for lunch each day, whether or not employees were actually able to take those breaks. Both practices resulted in unrecorded and unpaid hours, leading to overtime violations when employees worked more than 40 hours in a workweek but remained unpaid for this time. Failure to record this worktime accurately also resulted in recordkeeping violations under the FLSA.

"Employers must ensure they account for all hours their employees work, and pay them accurately for all of those hours," said Wage and Hour Division District Director Tony Pham, in Miami. "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."

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.

Agency
Wage and Hour Division
Date
July 11, 2018
Release Number
18-1131-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

Boston-Area Restaurant Operator Pays $79,338 in Back Wages and Liquidated Damages After U.S. Department of Labor Investigation

News Release

Boston-Area Restaurant Operator Pays $79,338 in Back Wages and Liquidated Damages After U.S. Department of Labor Investigation

BOSTON, MA – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has led Clover Fast Food, Inc. – based in Cambridge, Massachusetts – and owner Ayr Muir to pay $79,338 in back wages and liquidated damages to 65 employees to resolve violations of overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the Cambridge-based operator of restaurants and food trucks paid some employees straight time instead of overtime when they worked more than 40 hours per week. The violations stemmed, in part, from the employer failing to combine all the hours individual employees worked at multiple locations when determining when overtime was due. Clover and Muir also misclassified certain salaried employees as being exempt from FLSA overtime requirements, failed to pay them the required overtime premium when they worked more than 40 hours per week, and failed to record the number of hours that they worked. Investigators also found the company made impermissible deductions from the salaries of otherwise exempt employees.

"The resolution of this case puts these wages into the hands of those who earned them, and demonstrates how our enforcement levels the playing field for law-abiding employers," said Carlos Matos, Wage and Hour Division District Director in Boston. "We encourage employers to use the tools and resources the Wage and Hour Division provides, and to reach out to us for assistance to avoid violations and operate in compliance with the law."

The settlement also prohibits the business and its owner 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. WHD's Boston District Office conducted the investigation, and Senior Trial Attorney James Glickman of the regional Office of the Solicitor negotiated the settlement with WHD's assistance.

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 for workers who may be owed back wages collected by the Division.

Agency
Office of the Solicitor
Date
July 10, 2018
Release Number
18-0907-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

U.S. Department of Labor Recovers $308,811 in Overtime Back Wages for 134 Employees of Michigan Manufacturer

News Release

U.S. Department of Labor Recovers $308,811 in Overtime Back Wages for 134 Employees of Michigan Manufacturer

OWOSSO, MI – Michigan truck accessories manufacturer, Rugged Liner Inc. will pay $308,811 in back wages owed to 134 employees following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) that found the company violated the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined that the manufacturer automatically deducted 30 minutes from some employees' work time regardless of whether or not they actually took their meal breaks. The employer also deducted 30 minutes for shorter rest breaks, which the law requires be paid for as work time. The company also failed to pay employees for any time they spent working before and/or after their shifts, instead paying only for scheduled hours without regard to the number of hours they actually worked. Additional violations resulted when the employer failed to include some bonus payments in the calculation when determining workers' rates for overtime.

"The U.S. Department of Labor is committed to ensuring employees receive the wages they have rightfully earned, and that employers compete on a level playing field," 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 9, 2018
Release Number
18-1031-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Seeks Information From Battery Manufacturer’s Employees as Wage Violations Case Continues in Federal Court

News Release

U.S. Department of Labor Seeks Information From Battery Manufacturer’s Employees as Wage Violations Case Continues in Federal Court

LYON STATION, PA – The U.S. Department of Labor has filed a lawsuit alleging overtime and recordkeeping violations of federal law against East Penn Manufacturing Co. and encourages current and former employees affected by the alleged wage violations to contact the Department's Wage and Hour Division District Office in Wilkes-Barre, Pennsylvania.

The lawsuit alleging violations of the Fair Labor Standards Act (FLSA) continues in the U.S. District Court for the Eastern District of Pennsylvania. East Penn Manufacturing, which makes batteries, has filed a response with the Court to the Department's complaint. The Court projects a trial could begin as early as June 2019.

"Information from employees directly impacted by the violations is always important," said Oscar L. Hampton III, Regional Solicitor. "The Department of Labor strongly encourages current and former East Penn Manufacturing employees who believe they have relevant information about their employment to contact the Wage and Hour Division."

Current and former employees of the company may contact the Wage and Hour Division at 570-846-3620. The FLSA's anti-retaliation provision prohibits firing or other reprisals against employees who provide information to the U.S. Department of Labor.

An investigation by the Wage and Hour Division found that East Penn Manufacturing failed to pay employees for all hours they worked when it failed to pay for all the time shown on company time records. At least some of that time was spent putting on protective clothing after clocking in, and then removing that protective clothing and showering before clocking out. Instead, East Penn paid employees only for their scheduled hours, in violation of the FLSA, the Department alleges.

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).

Agency
Wage and Hour Division
Date
July 9, 2018
Release Number
18-0991-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

U.S. Department of Labor Investigation Results in Health Insurance Provider Paying $128,422 in Back Wages to 17 Employees

News Release

U.S. Department of Labor Investigation Results in Health Insurance Provider Paying $128,422 in Back Wages to 17 Employees

LOUISVILLE, KY – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Humana Inc. has paid $128,422 in back wages to 17 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The health insurance provider paid the back wages after WHD investigators determined that the employer failed to pay employees in the Grievance and Appeal Division for work they performed after their shifts were scheduled to end, paying instead only for scheduled hours. This practice resulted in overtime violations when employees worked beyond 40 hours in a week and this post-shift time remained unpaid. The company's failure to accurately record the hours worked by employees resulted in a recordkeeping violation under the FLSA.

"The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Karen Garnett, in Louisville. "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 9, 2018
Release Number
18-1064-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results in California Fast-Food Franchisee Paying $511,117 in Back Wages and Liquidated Damages

News Release

U.S. Department of Labor Investigation Results in California Fast-Food Franchisee Paying $511,117 in Back Wages and Liquidated Damages

SAN FRANCISCO, CA – JB Restaurants Inc., which operates 14 Jack in the Box fast-food restaurants in the San Francisco Bay Area, will pay $511,117 in back wages and liquidated damages to 152 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime and child labor provisions of the Fair Labor Standards Act (FLSA). The company will pay $255,558 in overtime back wages and an equal amount in liquidated damages. The child labor violations led WHD to assess an additional $18,529 in civil money penalties.

WHD investigators found JB Restaurants failed to total the hours individual employees worked at different locations owned by the franchisee during each workweek when determining whether overtime was due, and also failed to record the number of hours actually worked by employees. Overtime violations resulted when workers' combined totals exceeded 40 hours per week, but the employer paid for those hours separately for each restaurant as straight time. Investigators also found minors operating prohibited equipment, including deep fryers and trash compactors, and working during hours prohibited by FLSA's child labor regulations.  

"We encourage employers to contact the 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 Susana Blanco, in San Jose. "This investigation shows our commitment to ensuring that workers receive their full earnings, that young workers remain safe on the job, and that all employers compete on a fair and level playing field."

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 6, 2018
Release Number
18-1026-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Conducting Survey of Building Construction Projects to Ensure Maryland Workers Covered by Proper Wage Rates

News Release

U.S. Department of Labor Conducting Survey of Building Construction Projects to Ensure Maryland Workers Covered by Proper Wage Rates

BALTIMORE, MD – To help establish prevailing wage rates, the U.S. Department of Labor's Wage and Hour Division (WHD) is conducting a survey of building construction projects in several Maryland counties.

The survey includes wages paid on all building construction projects between March 1, 2017, and Feb. 28, 2018, in the following Maryland counties: Allegany, Anne Arundel, Baltimore, Baltimore City, Calvert, Carroll, Cecil, Charles, Frederick, Harford, Howard, Montgomery, Prince George's, Queen Anne's, Somerset, St. Mary's, Washington, Wicomico, and Worcester.

The survey is not limited to federally funded construction projects. The information provided for this survey will be used to establish prevailing wage rates as required under the Davis-Bacon and Related Acts.

"Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers where the work takes place," said Wage and Hour Division Regional Administrator Mark Watson. "The U.S. Department of Labor can only accomplish this with strong participation by employers in the Maryland building construction industry."

Without significant employer participation, wage rates may not reflect actual wages or may create incomplete wage determinations, which lead to requests for further classifications. Wage data should be submitted for all projects meeting the criteria, regardless of funding sources.

Notification letters and data collection forms, known as WD-10s, are being sent to interested parties and contractors known to WHD. Responses must be postmarked by Dec. 31, 2018, to be included. To complete the survey electronically, visit www.dol.gov/whd/programs/dbra/wd10/index.htm

You do not need to receive a letter to answer the survey. If you would like to participate, or have questions regarding the survey process or completing the WD-10 form, contact William E. Schweizer at 267-687-4031.

Agency
Wage and Hour Division
Date
July 6, 2018
Release Number
18-1073-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

U.S Department of Labor Investigation Results in Michigan Gas Station Paying $64,146 in Overtime Back Wages, Damages to 3 Employees

News Release

U.S Department of Labor Investigation Results in Michigan Gas Station Paying $64,146 in Overtime Back Wages, Damages to 3 Employees

CANTON, MI – Canton Petroleum – a gas station and convenience store based in Canton, Michigan – will pay three employees $64,146 in unpaid overtime wages and liquidated damages following a U.S. Department of Labor investigation that found the company violated overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).  

The Department's Wage and Hour Division (WHD) in Detroit determined the company failed to pay employees required overtime when they worked more than 40 hours in a workweek. WHD investigators found Canton Petroleum paid employees for up to 40 hours of work in their paychecks, and then only occasionally paid them an additional approximately $100 in cash for their overtime hours, without regard to how many hours they had actually worked. The company also failed to maintain accurate records of the number of hours employees worked and to post the FLSA requirements.

"Employers must understand their obligations under the law and pay wages accordingly. Failing to pay hard-earned overtime hurts employees, and places other employers at a competitive disadvantage," said Wage and Hour Division District Director Timolin Mitchell, in Detroit. "We encourage employers to contact the Wage and Hour Division for assistance, and to make use of the many tools we provide to help them understand the law."

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). 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 5, 2018
Release Number
18-1054-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

Federal Judge Orders Michigan Logging Company to Pay $878,874 In Overtime Back Wages and Liquidated Damages to 50 Employees

News Release

Federal Judge Orders Michigan Logging Company to Pay $878,874 In Overtime Back Wages and Liquidated Damages to 50 Employees

GAYLORD, MI – A federal judge has ordered Timberline South LLC – based in Gaylord, Michigan – and its manager Jim Payne to pay $878,874 in back wages and liquidated damages to 50 employees after finding the logging company and Payne violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).  

The U.S. Secretary of Labor filed a complaint in the U.S. District Court for the Eastern District of Michigan after an investigation conducted by the Department's Wage and Hour Division's (WHD) Grand Rapids District Office concluded Timberline South and Payne violated the FLSA.

WHD investigators determined Timberline South LLC and Payne failed to pay employees – including truck drivers, equipment operators, and shop personnel – overtime when they worked beyond 40 hours in a workweek.  Instead, the company paid only "straight time" no matter how many hours employees worked, and paid various combinations of hourly rates, piece rates, and day rates.

In his decision and order, Judge Thomas L. Ludington determined the Division properly reconstructed overtime back wages for employees where the employers failed to keep accurate records of the number of hours employees worked, as the law requires. 

The FLSA requires covered employers to pay non-exempt employee's time-and-one-half their regular rates of pay after 40 hours worked per week regardless of whether the employees are paid on a salary, piece rate, hourly rate, or a combination.

"Employers must understand their obligations under the law. Failing to pay employees overtime gives employers an unfair advantage in the market place and denies employees their hard earned wages," said Wage and Hour Division District Director Mary O'Rourke, in Grand Rapids. "We encourage employers to contact the Wage and Hour Division for assistance, and to make use of the many tools we provide to help them understand their obligations under the law."

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). 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.

# # #

Court: U.S. District Court for the Eastern District of Michigan, Northern Division
Civil Action No.: 1:16-cv-11552

Agency
Wage and Hour Division
Date
July 5, 2018
Release Number
18-1053-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Investigation Results in Lubbock Hospital Paying $119,175 in Overtime Back Wages

News Release

U.S. Department of Labor Investigation Results in Lubbock Hospital Paying $119,175 in Overtime Back Wages

LUBBOCK, TX – Lubbock County Hospital District - doing business as University Medical Center - has paid $119,175 in back wages to 197 emergency room healthcare employees to settle overtime 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 automatically deducted 30 minutes for lunch from the emergency room staff's timesheets regardless of whether they took meal breaks or not.  When the employer failed to relieve employees of their job duties, leaving them to work through their breaks, this practice created an overtime violation when this work time remained unpaid. University Medical Center also violated the FLSA's recordkeeping provisions by failing to track break time accurately.

"The Wage and Hour Division is committed to ensuring that employees receive the wages they have earned for all of the hours that they work," said Wage and Hour Division Assistant District Director Lubbock Area Office Ryan Martin. "Wage violations can be avoided when employers understand the rules. We encourage employers to contact us for guidance on laws governing rest breaks and any other requirements so they can avoid violations.  The division offers many tools to help employers comply."

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).

Agency
Wage and Hour Division
Date
June 29, 2018
Release Number
18-0983-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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