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.

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.