GUAYNABO, PR – U.S. Department of Labor Wage and Hour Division (WHD) representatives are in St. Croix and St. Thomas this summer to investigate wage issues and provide compliance assistance related to recovery efforts following Hurricanes Maria and Irma.

WHD will review employers' compliance with the McNamara-O'Hara Service Contract Act (SCA), the Davis-Bacon and Related Acts (DBRA), Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA), including potential violations involving unpaid work hours, missed payroll, and/or failure to provide required wages and fringe benefits under federal service and construction contracts.

"The U.S. Department of Labor continues working to ensure that employees performing hurricane recovery work receive the wages and benefits they have legally earned, and that employers compete on a level playing field," said José Vazquez, WHD Caribbean District Director. "We encourage employees and employers to contact us. Department officials are available to answer any questions they may have."

Employees and employers who would like compliance information, who wish to meet with a Wage and Hour representative, have questions or concerns, or wish to file a complaint, should contact WHD's Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email. All contacts are confidential. Individuals seeking enforcement and compliance information should contact WHD as soon as possible.

For more information about the SCA and other laws enforced by the Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.

PHOENIX, AZ – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation revealed overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA), Teharu Sushi restaurant will pay $158,860 in back wages and liquidated damages to 94 employees working at three of its Arizona locations. WHD also assessed $20,940 in civil money penalties.

WHD investigators found that the Teharu Sushi restaurants in Tempe, Mesa, and Scottsdale failed to pay employees overtime when they worked more than 40 hours per week, as the law requires. Instead, the employer paid employees at their straight time rates, in cash, for their overtime hours. Investigators also cited the restaurants for failing to maintain accurate payroll records.

"The U.S. Department of Labor encourages all employers to review their pay practices, and to contact the Wage and Hour Division for assistance," said WHD District Director Eric Murray, in Phoenix. "The resolution of cases like this helps ensure all employees are paid the wages they have legally earned, and that all employers operate on a level playing field."

The Teharu Sushi restaurants in Tempe and Scottsdale operate under the legal name In P. Inc., and in Mesa under Jung & Cho Inc.

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 www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.

GUAYNABO, PR – Following an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Alabama-based construction contractor KW Construction Work Inc. has paid $14,857 to 13 Texas-based employees stranded in the U.S. Virgin Islands without pay or transportation after performing hurricane recovery work. The Corpus Christi office of the Department's Occupational Safety and Health Administration (OSHA) learned of the situation and alerted WHD.

WHD's Caribbean District Office investigated and identified several violations of the Fair Labor Standards Act (FLSA). Investigators found KW Construction failed to pay employees the minimum wage when they paid them a flat fee of $167 to $200 per week regardless of the number of hours they worked, and failed to pay them overtime when they worked more than 40 hours per week. The company also misclassified the employees as independent contractors and failed to keep records of how many hours they worked.  

WHD secured a back wage compliance agreement and payment from the company within 24 hours. The employer also arranged for employees' transportation, allowing them to return to Texas within a few days. 

"The U.S. Department of Labor works to ensure that employees receive the wages they have legally earned for all the hours they have worked and that employers can compete on a level playing field," said Wage and Hour Regional Administrator Mark Watson, Jr. in Philadelphia, Pennsylvania.

"The Department encourages employers to use the tools and resources the Wage and Hour Division provides, and to contact us with any questions they may have to avoid violations and operate in compliance with the law," said Wage and Hour Division Caribbean District Director José Vazquez.

Employees and employers who would like compliance information, who wish to meet with a Wage and Hour representative, have questions or concerns, or wish to file a complaint, should contact WHD's Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email. All contacts are confidential.

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 www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

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.

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.

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.

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).

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.

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.

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.