U.S. Department of Labor Investigation Results In Portland Roofing Company Paying $74,979 in Back Wages

News Release

U.S. Department of Labor Investigation Results In Portland Roofing Company Paying $74,979 in Back Wages

PORTLAND, OR – Roofing and siding installation company A Cut Above Exteriors, Inc. will pay $74,979 owed to 34 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that A Cut Above Exteriors Inc. of Portland, Oregon, failed to pay overtime when employees worked beyond 40 hours per week, instead paying employees a set percentage of the completed job without regard to the number of hours that they worked.

"We encourage employers to contact WHD for assistance, and to make use of the many tools we provide to help them understand the law and avoid violations," said Thomas Silva, Wage and Hour Division District Director in Portland. "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."

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
June 25, 2018
Release Number
18-1039-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Results in New Jersey Gas Station Owner Paying $132,735 in Back Wages

News Release

U.S. Department of Labor Investigation Results in New Jersey Gas Station Owner Paying $132,735 in Back Wages

WEST ORANGE, NJ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Elias and Katia LLC – owner of a West Orange, New Jersey, Exxon gas station – has paid $132,735 in back wages to 13 attendants to resolve violations of the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that Elias and Katia LLC violated the FLSA by failing to pay attendants at least the federal minimum wage of $7.25 per hour, and to pay employees overtime when they worked more than 40 hours in a week. They also found the employer failed to maintain accurate time and payroll records, as required by law. Specifically, the employer paid wages to some employees that amounted to only $7.00 per hour, and paid straight-time rates regardless of the number of hours employees worked which, in some cases, topped 80 hours per week.

"Employees depend on receiving the wages they have rightfully earned, and law-abiding employers deserve to compete on a level playing field," said John Warner, Northern New Jersey Wage and Hour Division District Office Director. "The U.S. Department of Labor will continue to monitor New Jersey's gas station industry for compliance, and we encourage all employers to reach out to us for guidance. We offer many resources to provide employers the tools they need to understand their responsibilities and to comply with the law."

The Wage and Hour Division is committed to providing employers with the tools they need to assist them in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. 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 its toll-free helpline at 866-4US-WAGE (487-9243). 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 the Division.

Agency
Wage and Hour Division
Date
June 22, 2018
Release Number
18-0957-NEW
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

U.S. Department of Labor Investigation Results in San Diego Restaurant Paying Penalties for Child Labor Violations

News Release

U.S. Department of Labor Investigation Results in San Diego Restaurant Paying Penalties for Child Labor Violations

SAN DIEGO, CA – A San Diego Chuck E. Cheese restaurant will pay $3,928 in penalties after investigators with the U.S. Department of Labor's Wage and Hour Division (WHD) found the restaurant employed minors in violation of the child labor provisions of the Fair Labor Standards Act (FLSA).

WHD investigators discovered that minors were using a dough mixer as part of their employment, in violation of child labor provisions of the FLSA that prohibit employees under 18 years old from setting up, operating, cleaning, or adjusting such machinery.  Investigators also found recordkeeping violations resulting from the employer's failure to maintain proof of birth dates for the minor employees.

"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 and avoid violations," said Rodolfo Cortes, WHD District Director in San Diego.

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.

Agency
Wage and Hour Division
Date
June 22, 2018
Release Number
18-1020-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

Tennessee Manufacturer Pays $50,000 in Back Wages and Damages

News Release

Tennessee Manufacturer Pays $50,000 in Back Wages and Damages

JACKSON, TN – The U.S. Department of Labor and Tennessee faucet manufacturer Delta Faucet Co. have reached a settlement to resolve alleged violations of the Family and Medical Leave Act (FMLA) after the company terminated an employee for exercising his right to take time off to care for a family member. Delta Faucet Co. has paid the former employee $50,000 in back wages and liquidated damages.

An investigation by the Department's Wage and Hour Division (WHD) determined that violations included Delta Faucet Co.'s failure to provide the employee notice that medical certifications he submitted in support of his absence were insufficient. The employer also failed to inform the employee of any additional information needed and to provide him adequate time to obtain documentation to address any alleged deficiency found in those certifications. Delta Faucet Co. used the uncommunicated deficiencies to disregard the certifications and to designate the employee's time away from work as unexcused absences, resulting in termination. An additional violation was disclosed when the company's employee handbook failed to include required FMLA information.

"The 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 Nettie Lewis, WHD District Director in Nashville. "The resolution of this case demonstrates our commitment to protecting law-abiding employers and to ensuring workplace flexibility and protections for employees."

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.

Agency
Wage and Hour Division
Date
June 20, 2018
Release Number
18-0993-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

Michigan Ski Resort to Pay $60,500 in Back Wages and Penalties for Violations of Foreign Visa Program and Child Labor Laws

News Release

Michigan Ski Resort to Pay $60,500 in Back Wages and Penalties for Violations of Foreign Visa Program and Child Labor Laws

IRON RIVER, MI – The U.S. Department of Labor has found Michigan ski resort Ski Brule Inc. in violation of the labor provisions of the H-2B temporary visa program and the child labor provisions of the Fair Labor Standards Act (FLSA) after an investigation by the Department's Wage and Hour Division (WHD) in Grand Rapids, Michigan. Under the terms of the consent findings and settlement agreement approved by an administrative law judge, Ski Brule Inc. - which operates as Brule Ski Resort - will pay $24,711 in back wages to 20 Jamaican housekeepers employed at the resort and $35,789 in penalties for H-2B and child labor violations.

WHD investigators found the resort violated H-2B requirements when it failed to:

  • Request only the number of full-time housekeepers required and accurately state the dates of their temporary need;
  • Pay housekeepers for all the hours that they worked, resulting in their wages averaging less than the required prevailing wage rate;
  • Pay transportation costs for workers to return to their home countries, as required;
  • Specify the amount that would be deducted from housekeepers pay for rent; and
  • Employ housekeepers in the occupations called for in their visas – instead, the employer placed workers as ski lift attendants, restaurant workers, and retail salespersons.

"Any employer seeking H-2B workers must be ready and willing to abide by all of the program's requirements," said Mary O'Rourke, District Director for Wage and Hour in Grand Rapids. "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."

The H-2B program allows employers to bring non-immigrant, foreign workers to the U.S. to perform temporary, non-agricultural labor or services after the employer certifies that it advertised the jobs first to U.S. workers and that it agrees to adhere to program guidelines.

Additionally, the resort employed five minors - 14 and 15 years of age - as ski instructors, an occupation prohibited for workers less than 16 years old. The resort also failed to maintain records of the birth dates of all minor employees.

Before the U.S. Citizenship and Immigration Services can approve an employer's petition for H-2B visa workers, an employer must file an application with the Department stating that there are not sufficient U.S. employees who are able, willing, qualified, and available. The application must also affirm that the employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed persons in the U.S. The law provides for numerous employee protections and employer requirements with respect to wages and working conditions that do not apply to non-agricultural programs.

Visit https://www.dol.gov/whd or call the Division's toll-free helpline at 866-4US-WAGE (487-9243) for more information.

Agency
Wage and Hour Division
Date
June 20, 2018
Release Number
18-0885-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department of Labor Investigation Results in Federal Court Ordering West Virginia Company to Pay $1,635,804 in Back Wages, Damages

News Release

U.S. Department of Labor Investigation Results in Federal Court Ordering West Virginia Company to Pay $1,635,804 in Back Wages, Damages

BRIDGEPORT, WV – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, the U.S. District Court for the Northern District of West Virginia has ordered Fire & Safety Investigation Consulting Services LLC, based in Bridgeport, West Virginia, and its owner Christopher Harris to pay 70 employees $817,902 in back wages and an equal amount in liquidated damages.

WHD investigators found that Fire & Safety Investigation Consulting Services LLC and Harris violated the Fair Labor Standards Act (FLSA) by failing to pay employees overtime when they worked more than 40 hours in a workweek. Instead, the company paid employees what they referred to as a "hitch rate," a fixed amount paid every two weeks, without regard to the number of hours employees actually worked. This practice resulted in overtime violations when employees worked beyond 40 hours in a single workweek, yet were not paid overtime in addition to their flat rates. Additionally, the company's failure to maintain records required by law resulted in recordkeeping violations.

"Just because a pay practice appears to be common within an industry, does not mean that it complies with the law," said John DuMont, WHD District Director. "Simply paying employees a salary does not necessarily mean they are not due overtime. We encourage all employers to review their pay practices and to contact the Wage and Hour Division for assistance."

"The investigation and the court's decision brings Fire & Safety Investigation Consulting Services into FLSA compliance, ensures that these safety consultants receive the wages they've earned, and helps to level the playing field for employers that abide by the law," said Regional Solicitor Oscar Hampton III.

Fire & Safety Investigation Consulting Services LLC provides on-site safety and environmental consulting services for the oil and gas industry in Pennsylvania, Virginia, and West Virginia. 

The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates for hours worked beyond 40 per week. Employees must also maintain accurate time and payroll records. 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 https://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
June 20, 2018
Release Number
18-0791-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

U.S. Department of Labor Investigation Results in Amarillo Meat Market and Restaurant Paying $74,388 to Resolve Overtime and Child Law Violations and Penalties

News Release

U.S. Department of Labor Investigation Results in Amarillo Meat Market and Restaurant Paying $74,388 to Resolve Overtime and Child Law Violations and Penalties

AMARILLO, TX – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Carniceria La Popular Inc. has paid $34,319 in back wages and an equal amount in liquidated damages to resolve overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA). WHD also assessed $5,750 in civil money penalties for child labor violations.

WHD investigators found that the employer – based in Amarillo, Texas – violated the FLSA's overtime requirements by paying employees flat salaries without regard to the number of hours that they actually worked.  This practice resulted in overtime violations when non-exempt employees worked more than 40 hours in a week and were not paid overtime. Investigators also found the combination meat market, grocery store, tortilla factory, and restaurant violated the FLSA's child labor provisions by allowing minors to clean a band saw and a meat slicer, hazardous equipment specifically prohibited by law for either operation or cleaning by workers under 18 years old.

"Child labor provisions under the Fair Labor Standards Act are designed to protect the educational opportunities for young employees and prohibit their employment in jobs that are detrimental to their health and safety," said Betty Campbell, Wage and Hour Division Regional Administrator. "The U.S. Department of Labor is also committed to ensuring that employees receive the wages they've legally earned, and that we enforce the law to level the playing field for law-abiding employers."

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).

For more information on child labor go to https://www.youthrules.dol.gov/know-the-limits/hazards/index.htm 

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 the Division.

Agency
Wage and Hour Division
Date
June 19, 2018
Release Number
18-0946-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

U.S. Department of Labor Investigation Results in Manhattan Restaurants Paying $363,284 in Wages and Damages to 109 Employees

News Release

U.S. Department of Labor Investigation Results in Manhattan Restaurants Paying $363,284 in Wages and Damages to 109 Employees

NEW YORK, NY – Following a U.S. Department of Labor Wage and Hour Division (WHD) investigation and federal court trial, four restaurants operating under the name Gina La Fornarina and their owner Paola Pedrignani have paid $363,284 in back wages and liquidated damages to 109 employees, resolving violations of overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the business failed to aggregate hours for overtime purposes when employees worked at multiple locations or performed two different roles at the same location in the same workweek, with employees receiving separate checks for work in each location. The employer also paid certain kitchen employees and pizza chefs on a salaried basis without paying overtime when they worked more than 40 hours in a workweek.

The U.S. District Court for the Southern District of New York, following a bench trial, ruled that the violations were willful and ordered the defendants to pay the back wages and damages. The restaurants and Pedrignani have paid the full amount as well as court costs and post-judgment interest.

"The U.S. Department of Labor works to ensure that employees receive all the wages they have rightfully earned and that employers can compete on a level playing field," said David An, Wage and Hour Division District Director in New York City. "We encourage employers and employees to review the many tools and resources the Division provides to explain their rights and responsibilities under the law."

"This case reinforces employers' obligations to comply with overtime and recordkeeping requirements and to make certain that employees are paid all the money they are legally owed," said Jeffrey S. Rogoff, Regional Solicitor of Labor in New York. "Employers should review their pay practices and correct any that fail to comply with the law."

WHD's New York City District Office conducted the investigation. Attorney Advisor Micole Allekotte, Trial Attorney Amy Tai and Senior Trial Attorney James Wong of the Office of the Solicitor litigated the case for the Division.

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

# # #

Manna 2nd Avenue LLC dba Gina La Fornarina, Manna Madison Avenue LLC dba Gina La Fornarina, Manna Amsterdam Avenue LLC dba Gina La Fornarina, Manna Lexington Avenue LLC dba Gina La Fornarina, and Paola Pedrignani, individually and as owner.

Civil Action No. 15-CV-04655-JCF

Agency
Office of the Solicitor
Date
June 14, 2018
Release Number
18-0953-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

U.S. Department of Labor Investigation Results in Court Ordering Six Restaurants and Owners to Pay Back Wages and Penalties

News Release

U.S. Department of Labor Investigation Results in Court Ordering Six Restaurants and Owners to Pay Back Wages and Penalties

CHARLESTON, WV – The U.S. District Court for the Southern District of West Virginia has ordered six restaurants in West Virginia and Ohio and their owners to pay $111,024 in back wages and damages to 27 employees after the U.S. Department of Labor's Wage and Hour Division (WHD) found Fair Labor Standards Act (FLSA) violations. The court also imposed a $20,150 civil money penalty.

The court's order covered four Las Trancas restaurants and a Plaza Maya restaurant in West Virginia and one Las Trancas restaurant in Ohio. The defendants were Las Trancas Inc., Las Trancas of Charleston Inc., Las Trancas Buckhannon Inc., Las Trancas of Ripley Inc., Plaza Maya Inc., and Lorena Arellano and Martin Arellano, individually and as corporate officers of the enterprise of Las Trancas Inc.

The consent judgment came in response to a WHD investigation that found the restaurants willfully violated the FLSA's minimum wage, overtime, and recordkeeping requirements during the period May 2014 to October 2017. The restaurants paid some workers only for their scheduled hours, without regard to the number of hours they actually worked, leading to minimum wage and overtime violations.

The restaurants also failed to pay overtime when employees worked more than 40 hours in a workweek, but worked fewer than 80 hours in the two-week pay period. WHD also found servers were paid a salary on days when they filled in for a manager but did not take into consideration the extra hours worked nor the additional money earned on these shifts when calculating the amounts these employees were due for overtime. Failure to track employees' hours accurately resulted in recordkeeping violations.

"This resolution puts these wages into the hands of the people who rightfully earned them," said John DuMont, Wage and Hour District Director in Pittsburgh, Pennsylvania. "We encourage all employers to use the many tools the Department of Labor provides to help them understand their obligations and to comply with the law."

"The agreement amplifies our clear message that the Wage and Hour Division will fully and fairly enforce the law," said Regional Solicitor Oscar L. Hampton III. "The outcome in this case helps to level the competitive playing field for employers that comply with the law."

View the complaint and consent judgment.

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.

# # #

Acosta v. Las Trancas Inc., et. al.
Civil Action Number: 2:18-cv-00936

Agency
Wage and Hour Division
Date
June 13, 2018
Release Number
18-0841-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

U.S. Department of Labor Debars Georgia Farm Labor Contractor For H-2A Violations in Georgia and Wisconsin, Assesses $207,522 Penalty

News Release

U.S. Department of Labor Debars Georgia Farm Labor Contractor For H-2A Violations in Georgia and Wisconsin, Assesses $207,522 Penalty

VIDALIA, GA – The U.S. Department of Labor's Wage and Hour Division (WHD) has revoked the certificate of registration for farm labor contractor J.C. Longoria Castro and debarred him from applying for H-2A certification for three years for violating the Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). WHD also found he violated labor provisions of the H-2A visa program at worksites in Georgia and Wisconsin. In addition to the revocation and debarment, WHD assessed a civil money penalty of $207,522.

Castro – owner of J.C. Castro Harvesting LLC - is an H-2A farm labor contractor who furnished approximately 150 temporary guest agricultural employees to Scott Farms LLC in Brinson, and 63 combined H-2A and equivalent U.S. employees to growers in Wisconsin. In total, WHD found that Castro, based in Vidalia, Georgia, owed $72,166 back wages to 63 employees in Wisconsin and $28,177 in back wages to 122 employees in Georgia.

"The U.S. Department of Labor will enforce the law rigorously when employers knowingly disregard their obligations," said Wayne Kotowski, Wage and Hour Division Regional Administrator in Atlanta. "The Department will use all the tools at its disposal to ensure farm workers are paid legally and treated humanely, and to level the playing field for growers who play by the rules. We strongly encourage all employers to use the multiple tools we provide to help them understand their responsibilities, and to verify that any contractor providing them labor is complying with the law."

Investigators determined Castro violated H-2A requirements by:

  • Requiring employees to work earlier than their anticipated period of employment;
  • Failing to provide employees copies of their work contracts;
  • Failing to provide meals or kitchen facilities;
  • Failing to pay  H-2A employees required wages, despite the company's records indicating it had;
  • Failing to include the total hours of employment offered and worked on employees' earnings record;
  • Failing to provide an itemized list of deductions taken from employees' wages on earnings records; and
  • Failing to provide housing that met safety and health standards.

Castro violated MSPA provisions by failing to post an MSPA poster at the worksite, failing to disclose employment conditions such as pay rates and duration of employment to corresponding U.S. employees, and failing to ensure that drivers of vehicles used to transport migrant employees held valid licenses.  Recordkeeping violations were charged under the FLSA.

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.

For more information about the FLSA, 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.

Agency
Wage and Hour Division
Date
June 13, 2018
Release Number
18-0990-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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