U.S. Department of Labor to Offer Compliance Seminar on Prevailing Wage Requirements for Federal Construction and Service Contracts

News Release

U.S. Department of Labor to Offer Compliance Seminar on Prevailing Wage Requirements for Federal Construction and Service Contracts

SAN DIEGO, CA – The U.S. Department of Labor’s Wage and Hour Division (WHD) will offer a comprehensive compliance seminar for federal contractors, unions, and employees to provide information on the rules governing federal prevailing wage requirements, wage rules for non-displacement of qualified workers, establishing a minimum wage for contractors, and establishing paid sick leave for federal contractors.

WHD will hold the training on May 22-24 at the Crowne Plaza San Diego Mission Valley, 2270 Hotel Circle North, in San Diego. Check-in for the training is from 8:00 a.m. to 9:00 a.m. on May 22. The program begins each day at 9:00 a.m. and ends at 5:30 p.m. on May 22 and 23, and ends at 3:00 p.m. on May 24.

The Department of Labor is committed to ensuring that all stakeholders, contractors, contracting officials, unions, workers and interested parties understand and comply with the wage and fringe benefit requirements that apply to federal and federally assisted contracts under the Davis-Bacon Act and the McNamara-O’Hara Service Contract Act.

Seminar attendance is free, but pre-registration is required as space is limited. Register online at Prevailing Wage Seminar-San Diego Registration.

For more information on the Davis-Bacon Act, Service Contract Act and other federal wage laws related to government contracts administered by the Wage and Hour Division, call the Department’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the Agency’s website at https://www.dol.gov/whd.

Agency
Wage and Hour Division
Date
May 15, 2018
Release Number
18-0556-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Recovers $46,295 for Employees at Two Sacramento Residential Care Home

News Release

U.S. Department of Labor Investigation Recovers $46,295 for Employees at Two Sacramento Residential Care Home

SACRAMENTO, CA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), residential care home operator of two Sacramento area facilities Golden Berry Inc. will pay $46,295 to six employees to resolve minimum wage and overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that Golden Berry Inc., doing business as Golden Years Care Home I and Golden Years Care Home II, paid hourly caregivers for 80 hours per pay period regardless of the number of hours they actually worked. This practice resulted in minimum wage and overtime violations when employees worked beyond 80 hours but the employer failed to pay them for that additional time. The company’s failure to record this time and to account for all hours worked also resulted in recordkeeping violations.

“The 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 Patricia Canites, Wage and Hour Division Assistant District Director in Sacramento. “Employers must pay their employees for all of the hours that they work.”

Based in Elk Grove, Golden Berry Inc. is registered under the California Department of Social Services, Community Care Licensing Division. The company provides services for elderly patients.

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
May 15, 2018
Release Number
18-0795-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Results in Alabama Framing Contractor Paying $110,641 in Back Wages, Damages and Penalties

News Release

U.S. Department of Labor Investigation Results in Alabama Framing Contractor Paying $110,641 in Back Wages, Damages and Penalties

MEMPHIS, TN – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, JPO Contractors Inc. will pay $90,904 in back wages and liquidated damages to 43 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). WHD also assessed the contractor a civil penalty of $19,737 for willful and repeat violations.

WHD investigators found the Alabama-based drywall and framing company incorrectly considered laborers to be independent contractors rather than employees. This inaccurate classification resulted in overtime violations when the employer paid employees straight-time rates for overtime hours. The company also failed to maintain required records and to post the current FLSA posters.

“When employers fail to pay employees the wages they have legally earned, they harm employees and gain an unfair advantage over their law-abiding competitors. The Department of Labor will use all the tools at its disposal when employers repeatedly violate the law,” said Nettie Lewis, Wage and Hour Division District in Nashville. “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.”

The violations occurred while JPO Contractors performed drywall and framing work at Methodist University Hospital in Memphis, Tennessee.

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 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
May 15, 2018
Release Number
18-0709-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

U.S. Department of Labor Investigation Results In Houston Burger Restaurants Paying $62,754 To Settle Overtime and Record-Keeping Violations

News Release

U.S. Department of Labor Investigation Results In Houston Burger Restaurants Paying $62,754 To Settle Overtime and Record-Keeping Violations

HOUSTON TX – Bernie’s Bellaire LLC and Bernie’s Katy LLC - doing business as Bernie’s Burger Bus - will pay $62,754 to settle overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA) after an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD). The companies operate three locations in the Houston area.

WHD found the companies failed to pay legally required overtime to 49 servers, cooks, and dishwashers and failed to maintain required records. Employees were paid straight-time rates for their overtime hours instead of the time-and-one-half required by law after failing to combine hours that employees had worked at two separate locations for the company when determining whether overtime was due. The companies also failed to display required FLSA posters at its worksites and failed to maintain a record of employee addresses.

“The Wage and Hour Division is committed to ensuring employees receive all the wages they have rightfully earned, and that employers compete on a level playing field,” said Betty Campbell, Southwest Regional Wage and Hour Division Administrator. “The U.S. Department of Labor will continue to enforce the law. We encourage employers to use the numerous resources WHD offers - including online videos, confidential calls, or in-person visits to our local offices - to ensure they have the tools they need to understand their responsibilities and to comply with federal law.”

For more information about the FLSA and other laws enforced by WHD, contact the 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.

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Agency
Wage and Hour Division
Date
May 14, 2018
Release Number
18-0686-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

U.S. Department of Labor Debars North Carolina Farm Labor Contractor, Assesses $321,400 Penalty for Wage, Worker Protection Violations

News Release

U.S. Department of Labor Debars North Carolina Farm Labor Contractor, Assesses $321,400 Penalty for Wage, Worker Protection Violations

STANTONSBURG, NC – The U.S. Department of Labor’s Wage and Hour Division (WHD) has revoked the farm labor contractor certificate of registration for Marisa Garcia-Pineda and has debarred the contractor for three years because of violations of federal laws related to wages and worker protections. WHD found that Garcia-Pineda owed $195,735 in back wages to 287 employees while working at Ham Farms in Snow Hill, North Carolina. In addition to the farm labor registration revocation and H-2A debarment, WHD also assessed the company a civil money penalty of $321,400.

Garcia-Pineda is an H-2A labor contractor based in Stantonsburg, North Carolina, who - WHD investigators found - violated the Fair Labor Standards Act (FLSA), the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), and labor provisions of the H-2A visa program.

WHD investigators determined Garcia-Pineda violated H-2A requirements by failing to reimburse employees for their inbound transportation expenses from their home countries as the law requires, which also resulted in FLSA minimum wage violations during the first week of employment. The employer also failed to pay transportation expenses to employees for their return home, and failed to record the hours offered to employees as available for work in payroll records as required under H-2A provisions.

The company further violated H-2A requirements by failing to pay the H-2A employees the legally required wage rate for the hours that they worked and by charging them recruitment fees.

Garcia-Pineda violated MSPA provisions by failing to provide a written disclosure to migrant workers explaining their working conditions, failing to post a MSPA poster at the worksite, and failing to post housing conditions in employer-provided housing.

“The Department of Labor will fully and fairly enforce the law, which includes pursuing revocation and debarment of farm labor contractors that willfully violate the law,” said Richard Blaylock, Wage and Hour Division District Director in Raleigh, North Carolina. “This action is an example of the U.S. Department of Labor’s commitment to protect workers, and to level the playing field for employers who play by the rules. We encourage employers to reach out to us if they have questions related to compliance.”

Marisa Garcia-Pineda utilized the services of Monica Saavedra - a Douglas, Georgia farm labor contractor – to process the H-2A applications, advertise for employees, and process the paperwork. In October 2017, the Department’s Employment and Training Administration debarred Saavedra for H-2A violations including failing to comply with the employer's obligations to recruit U.S. workers.

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 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
May 10, 2018
Release Number
18-0631-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. District Court Orders Utah Drywall Company to Pay $650,000 in Back Wages, Damages, and Penalties for Willful Labor Law Violations

News Release

U.S. District Court Orders Utah Drywall Company to Pay $650,000 in Back Wages, Damages, and Penalties for Willful Labor Law Violations

SPANISH FORK, UT – The U.S. District Court for the District of Utah has ordered Kyco Services LLC and its owner Kyle Morris to pay $550,000 in back wages and liquidated damages to 267 employees for willfully violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The court also ordered the drywall company to pay $100,000 in civil money penalties.

The action follows an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) that found Kyco Services paid employees on a piece rate, without regard to the number of hours that they worked.  When employees worked beyond 40 hours in a week, the employer failed to pay them overtime. Company payroll records, however, falsely showed that the company paid employees hourly rates near the minimum wage, with overtime paid at time-and-one-half, and additional bonuses paid each pay period. The employer generated these records to create the appearance that they were paying overtime, when they were in reality calculating retroactively to arrive at amounts that matched the pre-determined piece rates.

“Not paying construction workers the wages they earned seriously impacts their ability to take care of themselves and their family,” said Wage and Hour Division Administrator in the Southwest, Betty Campbell. “The U.S. Department of Labor remains focused on the American workforce and employers. If violations are found we will pursue corrective action vigorously to ensure accountability, deter future violations, and prevent violators from gaining a competitive advantage. Our work levels the playing field for employers who play by the rules.”

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 including a search tool to use if you think you may be owed back wages collected by the Division.

Docket No.: 18-cv-00234-DB

Agency
Wage and Hour Division
Date
May 10, 2018
Release Number
18-0599-DEN
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

After U.S. Department of Labor Investigation, Tennessee Auto Dealership Pays $58,739 in Back Wages

News Release

After U.S. Department of Labor Investigation, Tennessee Auto Dealership Pays $58,739 in Back Wages

KINGSPORT, TN – Kingsport, Tennessee, automobile dealership Rick Hill Imports Inc. has paid $58,739 in back wages to 20 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the company violated minimum wage and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Rick Hill Imports Inc. – which specializes in BMWs and Mercedes vehicles – failed to pay sales personnel during workweeks where they sold no vehicles, causing the affected employees’ pay to fall below the minimum wage rate for the pay period. In addition, the employer required employees to attend vehicle manufacture certification training and employees received no compensation for those hours worked.

Rick Hill Imports Inc. also failed to record the hours worked by its employees and to have the FLSA poster displayed in areas where employees worked, both violations of the recordkeeping provisions of the FLSA.

“A commission-based pay practice does not alleviate an employer’s responsibility to pay its employees at least the minimum wage rate for all hours worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “We encourage all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance. Doing so can help ensure all employees are paid properly and that all employers operate 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 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
May 10, 2018
Release Number
18-0753-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Investigation Results in Florida Grocery Store Paying $15,264 in Back Wages and Damages to 13 Employees

News Release

U.S. Department of Labor Investigation Results in Florida Grocery Store Paying $15,264 in Back Wages and Damages to 13 Employees

WINTER GARDEN, FL – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, JJB Food Corp. has paid $15,264 in back wages to 13 employees for violating minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA). WHD also assessed the Winter Garden, Florida, grocery store a civil penalty of $1,308 for child labor violations.

WHD investigators determined that JJB Food Corp. - doing business as Bravo’s Supermarket - deducted money from employees’ wages to account for cash drawer shortages, resulting in minimum wage violations. The company also incurred overtime violations by deducting for short breaks less than 20 minutes and inaccurately classifying two employees as salaried exempt that led the company to pay them a flat salary without additional overtime compensation when they worked more than 40 hours per workweek.

WHD also found that JJB Food Corp. violated child labor laws when it allowed two 15-year-old minors to work more than three hours per day on school days and after 7 p.m. after Labor Day 2017. Current regulations permit 14- and 15-year-olds to work until 9 p.m. from June 1 through Labor Day.

“We encourage all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance. Doing so can help ensure all employees are paid properly and that all employers operate on a level playing field,” said Daniel White, Wage and Hour Division District Director in Jacksonville.

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 to use if you think you may be owed back wages collected by WHD.

Agency
Wage and Hour Division
Date
May 9, 2018
Release Number
18-0712-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino

U.S. Department of Labor Recovers $125,348 for 14 Employees Of Connecticut Company Working on Federal Construction Contracts

News Release

U.S. Department of Labor Recovers $125,348 for 14 Employees Of Connecticut Company Working on Federal Construction Contracts

HARTFORD, CT – An investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) has resulted in the payment of $125,348 in back wages to 14 employees of Gilliam Co. LLC who performed hangar renovation work in Massachusetts, at the U.S. Coast Guard Base in Bourne and at Barnes Air National Guard Base in Westfield.

WHD investigators found that Gilliam Co. LLC of North Franklin, Connecticut, and owner Jeffrey A. Gilliam Sr. violated the pay and fringe benefits provisions of the Davis-Bacon and Related Acts (DBRA) by failing to make required fringe benefits payments - chiefly 401(k) contributions - for employees. Gilliam also took payroll deductions from employees for a non-existent vacation fund, failed to pay employees for their last two weeks of work at the Westfield project, and submitted falsified certified payroll records.

Gilliam and his company agreed to be debarred from future federal construction contracts.

“No company should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage project,” said David R. Gerrain, Wage and Hour Division District Director in Hartford. “Not only does this practice undercut what the workers involved are legally owed for their work, it results in unfair competition for those who play by the rules.”

WHD obtained a waiver from Gilliam that allowed the projects’ general contractor, Cutter Enterprises LLC, to pay the back wages in full to the employees. On a DBRA project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors.

The DBRA applies to contractors and subcontractors working on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works. Contractors and subcontractors must pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.

Employees and employers with questions or concerns about the DBRA, the Fair Labor Standards Act, or other laws enforced by the Division, may call -866-4-USWAGE, or by email. Information is also available at https://www.dol.gov/whd the site includes a search tool to learn whether you may be owed back wages collected by the Division.

Agency
Wage and Hour Division
Date
May 8, 2018
Release Number
18-625-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

U.S. Department of Labor Investigation Results in Discount Retailer Paying $273,254 to 125 Employees in 39 Arizona Stores to Resolve Violations

News Release

U.S. Department of Labor Investigation Results in Discount Retailer Paying $273,254 to 125 Employees in 39 Arizona Stores to Resolve Violations

PHOENIX, AZ – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, California-based discount retailer 99 Cents Only Stores LLC will pay $273,254 to 125 employees in 39 of its Arizona stores for wage and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that 99 Cents Only Stores LLC violated the FLSA when it failed to pay assistant store managers in its Arizona stores for time they worked during their meal periods. The investigation determined that store cashiers and customers needing assistance regularly interrupted the managers’ 30-minute meal breaks. If employees are not free from duty during their breaks, the FLSA requires employers to pay for that time. The company’s failure to maintain accurate payroll records also resulted in recordkeeping violations.

“The Wage and Hour Division is available and eager to provide assistance to employers to help them avoid wage violations,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “Employees must be paid in full and in compliance with basic rules. The U.S. Department of Labor provides a wide variety of tools to help employers understand these rules.”

Based in Commerce, California, 99 Cents Only Stores operates more than 300 locations in California, Texas, Arizona and Nevada.

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
May 8, 2018
Release Number
18-718-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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