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

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
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