SAN DIEGO, CA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the owners of Adriana Elderly Care Homes Inc. will pay $86,486 to 19 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA). The company – based in Mission Viejo, California – operates four facilities for elderly patients and others with mental disabilities.

WHD investigators found that Adriana Elderly Care Homes Inc. failed to pay caregivers overtime when they worked more than 40 hours in a work week at its residential care facilities. Instead, the employer paid employees flat rates per day, without regard to the number of hours that they worked. This practice resulted in the overtime violations when employees worked beyond 40 hours per week yet were paid only their day rates, without overtime. This practice also led to the company's failure to record the number of hours actually worked by employees, resulting in recordkeeping violations. The companys owners will pay the caregivers $43,243 in overtime back wages and an equal amount in liquidated damages.

"The U.S. Department of Labor encourages all employers to review their pay practices and to take advantage of the many resources we offer to assist them," said Wage and Hour Division Assistant District Director Justin Emerick, in San Diego. "Employers must pay their employees for all of the hours that they work. The resolution of this case demonstrates our commitment to ensuring that workers receive the wages they have legally earned, and that employers compete on a 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). 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.

DARLINGTON, SC – An investigation by the U.S. Department of Labor's Wage and Hour Division (WHD) has resulted in the Darlington County, South Carolina, Sheriff's Office paying $48,229 in back wages to six deputies for violating overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

The Sheriff's Office paid the back wages after WHD investigators determined the employer failed to record and to pay deputies for all the hours they worked while performing K-9 care, handling, and training duties outside of their regularly scheduled shift hours. This practice resulted in overtime violations when that unpaid time caused overtime hours to be worked, yet remain unpaid. The Sheriff's Office's failure to record this time also resulted in a recordkeeping violation under the FLSA.  

"This case serves as a reminder for local governments to review their pay practices to ensure they are paying employees in compliance with the Fair Labor Standards Act," said Jamie Benefiel, Wage and Hour Division District Director in Columbia. "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). Information is also available at https://www.dol.gov/whd.

ATLANTA, GA – The U.S. Department of Labor’s Wage and Hour Division (WHD) is currently engaged in an education and enforcement initiative to educate industry stakeholders, employers, and employees in the Southeast’s agricultural industry about federal wage laws, and to provide compliance assistance to employers. The initiative includes educational outreach events and investigations of employers.

WHD is working with a variety of stakeholder organizations in Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee to identify the best methods for raising awareness among agricultural industry employers and to provide them the tools they need to comply with applicable laws. Recent outreach has included WHD participation at regional events hosted by the Georgia and Florida Fruit and Vegetable Growers Associations, the S.C. Farmworkers Institute, and GAP Connections. In the months ahead, Division representatives will engage commodity groups, trade associations, agricultural extension agents, H-2A agents, and other government agencies to distribute information describing various programs’ requirements.

In addition to education and awareness, WHD will continue its enforcement efforts to ensure employers and labor contractors meet their legal requirements. Compliance in the Southeast’s agricultural industry remains a concern. Of the 483 investigations of agricultural employers completed in WHD’s southeast region from January 2017 through March 2018, 78 percent found violations and led the Division to identify employers that owed more than $1.4 million in back wages to more than 3,400 workers and assess more than $1.8 million in civil money penalties. The Department has also debarred 13 employers from participating in the H-2A temporary labor certification agricultural program as a result of enforcement actions in the Southeast. 

“Agricultural employers must be aware of their obligations under the law and act accordingly,” said Wage and Hour Division Regional Administrator Wayne Kotowski, in Atlanta. “This education and enforcement initiative seeks to supply employers with the resources they need to comply and level the playing field for law-abiding employers. It is also designed to ensure employers provide farmworkers with safe working conditions and pay them the wages they have legally earned.”

WHD may suspend, revoke, or withhold renewal of farm labor certificates for farm labor contractors who have committed multiple violations under the Migrant Seasonal Protection Act (MSPA) or who fail to comply with a final order requiring the payment of a civil money penalty as a result of a violation. Employers are encouraged to review the MSPA ineligible farm labor contractor and H-2A debarment lists prior to contracting for labor.

The Division offers multiple compliance assistance resources to provide employers the tools they need to comply with the law. The Division encourages employers to contact them to find out about upcoming compliance assistance events, to request information, or to ask specific questions. All calls are confidential.

For more information about 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.

SEATTLE, WA – Mt. Baker Roofing has paid a total of $63,486 to a former employee after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found that the employer violated requirements of the Family and Medical Leave Act (FMLA) and interfered with the employee’s ability to exercise his rights under that law. Mt. Baker Roofing paid $31,743 for lost wages and increased medical expenses incurred by the employee due to the loss of health benefits upon termination of employment, and also paid the employee an additional $31,743 in liquidated damages.

WHD investigators found that Mt. Baker Roofing – based in Bellingham, Washington – knew of the employee’s serious health condition but failed to offer required FMLA protections. The employer failed to inform the employee that he was eligible for FMLA leave, and failed to designate his time away from work as FMLA-protected. Investigators also found that the employer retaliated against the employee and wrongfully terminated his employment.

“The Wage and Hour Division 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 Jeanette Aranda, Wage and Hour Division District Director in Seattle. “Our enforcement protects law-abiding employers, and helps to ensure workplace flexibility and protections.”

The employee did not seek reinstatement with the employer.

The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

For more information about the FMLA and other laws enforced by the Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd.

GRANT, MI – Michigan roofing and siding contractor American Classic Construction Inc. will pay $310,000 in back overtime wages and liquidated damages to 74 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) in Grand Rapids that found the employer had violated overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).  

WHD investigators determined American Classic Construction Inc. and company owners – Nathan Thompson, Jacob Thompson and Leon Thompson – misclassified employees as independent contractors, and subsequently failed to pay them overtime at time-and-one-half their regular rates of pay when they worked beyond 40 hours in a workweek. The company also failed to maintain accurate records of the number of hours employees worked.

“Employers must understand their obligations under the law. Simply because a pay practice may appear to be common in a particular industry does not, in any way, mean that it complies with the law,” said Mary O’Rourke, Wage and Hour Division District Director 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 the law.”

In addition to paying the back wages and damages due, under terms of the consent judgment entered in the U.S. District Court for Western District of Michigan, American Classic Construction Inc. and its owners agreed to an injunction against violating the FLSA’s overtime and record-keeping provisions in the future.

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). 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 Western District of Michigan

Civil Action No.: 1:17-cv-00875-ESC

PHILADELPHIA, PA – In an effort to help establish prevailing wage rates, the U.S. Department of Labor’s Wage and Hour Division (WHD) is conducting a survey of heavy construction projects in Virginia to collect data on wages paid to workers, as required under the Davis-Bacon and Related Acts.

The survey includes wages paid on all heavy construction projects that occurred in Virginia between March 1, 2017, and February 28, 2018. The survey is not limited to federally funded construction projects.

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

Without significant employer participation, wage rates may not reflect actual wages or 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. Data must be postmarked by Nov. 30, 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.

SEATTLE, WA – Ecos Homecare Inc., owners of three Washington State residential home-care facilities, will pay $213,461 to 26 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Ecos Homecare Inc.’s facilities in Brier, Edmonds, and Shoreline failed to pay employees overtime when they worked more than 40 hours in a week. Instead, the employer paid workers flat rates per day, without regard to the number of hours they had actually worked. This practice also resulted in recordkeeping violations under the FLSA when the employer failed to record the actual number of hours employees worked.

“We encourage all employers to review their pay practices and to contact the Wage and Hour Division for assistance. Doing so helps to ensure that all employees are paid the wages they have legally earned and that employers operate on a level playing field,” said Jeanette Aranda, Wage and Hour Division District Director in Seattle.

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.

MINNEAPOLIS, MN – The U.S. Department of Labor has filed a federal lawsuit seeking an injunction and payment of $131,508 – representing $65,754 in overtime back wages and an equal amount in liquidated damages – for 25 employees of a Minneapolis flooring company.

The filing follows an investigation by the Department’s Wage and Hour Division (WHD) that found Luxury Floors Inc. and its chief executive officer Ruben Ruiz violated the Fair Labor Standards Act (FLSA). Investigators determined that the employer paid employees straight time rates for all the hours that they worked, failing to pay overtime when they worked beyond 40 hours in a week. The company also failed to maintain time records and to record the names, hours, and payments made to day laborers who the company paid in cash.

“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 David King, Wage and Hour District Director in Minneapolis. “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). 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 District of Minnesota
Docket Number: 18-cv-1489

GLASGOW, KY – The U.S. Department of Labor’s Wage and Hour Division (WHD) has debarred Christopher Lee Smith – owner of Christopher Lee Smith Farms in Glasgow – from applying for certification to request temporary foreign workers under the H-2A agricultural worker visa program for three years. WHD also assessed the employer a $35,755 civil penalty for violating the labor provisions of the H-2A program, and found that Smith owed $58,820 in back wages to 14 employees.

WHD investigators found Smith violated the requirements of the H-2A visa program by failing to reimburse foreign workers for their transportation expenses to and from their home countries as the law requires, failing to reimburse employees for expenses related to obtaining their visas, failing to keep required time and pay records, and failing to pay employees their wages when due. Smith also failed to pay the required minimum wage to H-2A visa workers, required by law so that their employment does not depress the wages of U.S. workers in the area.

“Any employer seeking H-2A workers 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 Karen Garnett, Wage and Hour Division District Director in Louisville. “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-2A temporary agricultural program establishes a means for agricultural employers, who anticipate a shortage of domestic workers, to bring non-immigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary or seasonal nature.

The program requires an employer to attest to the Department of Labor that it will offer a wage that equals or exceeds the highest of the following: the prevailing wage for the occupation and geographic area, applicable federal minimum wage, state minimum wage, or local minimum wage. This wage will be paid to the H-2A workers and certain similarly employed U.S. workers during the entire period of the approved labor certification. The program also establishes recruitment and displacement standards to protect similarly employed U.S. workers.

For more information about 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.

MARATHON, FL – Marathon Paradise Inc., which operates a seafood restaurant based in Marathon, Florida, will pay $210,258 in back wages to 78 employees after a U.S. Department of Labor’s Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Marathon Paradise Inc. – doing business as Island Fish Company Restaurant – paid all employees straight-time instead of paying overtime at time-and-one-half for hours they worked beyond 40 in a workweek. The violations affected employees including servers, cooks, and dishwashers.  Recordkeeping violations were cited when the employer failed to display legally required postings outlining FLSA requirements in a conspicuous area readily accessible by 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 Wage and Hour Division District Director Tony Pham, in Miami. “We encourage employers to contact the Wage and Hour Division by phone, online, or to attend any of our outreach events for assistance and to learn more about their responsibilities.”

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.