U.S. Department of Labor Investigation Leads to $70,341 in Back Wages For 82 Employees at Miami TV Production Company

News Release

U.S. Department of Labor Investigation Leads to $70,341 in Back Wages For 82 Employees at Miami TV Production Company

MIAMI, FL – An investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) has found Endemol Latino NA, a TV production company in Miami, owes $70,341 in back wages to 82 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Endemol Latino NA, which does business as Endemol Shine North America, will pay the back wages after WHD investigators determined the company was in violation for inaccurately classifying some employees as salaried exempt, resulting in Endemol Latino NA paying them a flat salary without additional overtime compensation when they worked more than 40 hours per week. Additionally, Endemol Latino NA failed to pay other employees for all hours worked resulting in additional time-and-one-half for hours worked over 40 in a workweek. The company also failed to maintain the required records of hours worked.

“Employers must understand their obligations and responsibilities under the law. Simply because a pay practice may appear to be common does not, in any way, mean that it complies with the law,” said Tony Pham, Wage and Hour Division District Director in Miami. “The U.S. Department of Labor encourages all employers to make use of the many tools it provides to help them understand and comply with the law, and to call us for assistance.”

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 23, 2018
Release Number
18-0884-ATL
Media Contact: Michael D'Aquino
Media Contact: Eric R. Lucero
Phone Number

Nebraska Restaurant to Pay $203,884 in Back Wages to 23 Employees at Two Locations After U.S. Department of Labor Investigation

News Release

Nebraska Restaurant to Pay $203,884 in Back Wages to 23 Employees at Two Locations After U.S. Department of Labor Investigation

AUBURN, NE – An investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) found that El Portal Mexican Restaurant locations in Auburn, Nebraska, and Nebraska City, Nebraska, violated the minimum wage, overtime, recordkeeping, and child labor provisions of the Fair Labor Standards Act (FLSA). El Portal Mexican Restaurant will pay 23 employees $203,884 in back wages to resolve the violations.

WHD investigators found the restaurants’ FLSA violations included:

  • Paying flat salaries to kitchen employees, regardless of the number of hours they worked. This practice resulted in overtime violations when employees worked more than 40 hours in a workweek and received no overtime pay;
  • Failing to meet minimum wage requirements when the restaurants failed to pay servers for all of the hours that they worked, and when they made deductions from wages for the cost of uniforms that exceeded allowable limits;
  • Failing to maintain accurate and legally required records of the number of hours employees worked, and amounts deducted from wages for uniform costs; and
  • Requiring minors under 16 to work past 9 p.m. and longer than 3 hours on school nights in violation of the FLSA’s child labor provisions.

“Ensuring employees receive their hard-earned wages and assisting employers with understanding their obligations under federal labor laws is fundamental to the mission of the Wage and Hour Division,” said Richard Tesarek, Wage and Hour Assistant District Director in Omaha. “Our enforcement ensures employers compete on a level playing field and protects employees. Employers can avoid wage violations by contacting the Wage and Hour Division confidentially for assistance.”

In addition to paying the back wages due immediately, El Portal Restaurant has taken steps to ensure compliance with the FLSA by installing time clocks, and training management about the requirements of the FLSA.

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 22, 2018
Release Number
18-0854-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

U.S. Department Of Labor Lawsuit Seeks Unpaid Wages and Liquidated Damages for 51 Health Care Employees

News Release

U.S. Department Of Labor Lawsuit Seeks Unpaid Wages and Liquidated Damages for 51 Health Care Employees

NEW HAVEN, CT – Following an investigation by its Wage and Hour Division (WHD), the U.S. Department of Labor has filed a federal lawsuit to recover unpaid overtime wages and an equal amount in liquidated damages for 51 current and former employees of Care at Home LLC of New London, Connecticut. Filed in the U.S. District Court for the District of Connecticut, the suit alleges that Care at Home LLC and its co-owners Daniel Karp and Suzanne Karp violated the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA) when they paid straight time instead of overtime to health care workers who worked more than 40 hours per week.

In addition, WHD investigators found that the defendants improperly deducted $33 per day from the employees’ wages for food and housing expenses, from January 2016 through at least October of 2016. The housing deductions created violations because the employees were often required to spend the night at the client’s home, primarily for the benefit of the employer, and because the employer failed to maintain accurate records substantiating the cost of the furnished lodging. The employers also failed to maintain records of food costs. The law limits the deduction employers may make to $10.88 per day absent records substantiating a higher deduction.

The suit also alleges that the defendants failed to record the times when employees began and ended work, and when clients’ needs interrupted their sleep. Recording of sleep interruptions is necessary because, among other reasons, if interruptions are so frequent that the employee cannot sleep without interruption for 5 hours, the entire sleep period must be considered paid work time. On the facts found during this investigation, WHD credited 8 hours per day for sleep time for each 24-hour period worked.

“The Wage and Hour Division will conduct investigations and collect back wages and liquidated damages, when appropriate, to ensure employers comply with the requirements of the law,” said David R. Gerrain, Wage and Hour Division District Director in Hartford. “We encourage employers to make use of the many tools we offer to explain their legal responsibilities.”

“An employer’s failure to pay required wages and to maintain complete and accurate records short-changes its employees and puts law-abiding employers at a competitive disadvantage,” said Michael Felsen, Regional Solicitor of Labor in Boston. “The U.S. Department of Labor will continue to use appropriate legal resources – including lawsuits, when necessary, to protect employees and to ensure a level playing field for employers.”

Care at Home LLC is a third-party employer that provides personal care services to aged and infirm clients in private homes and assisted living facilities.

WHD’s New Haven Area Office conducted the investigation. Senior Trial Attorney Theresa Schneider Fromm of the Boston Regional Office of the Solicitor is litigating 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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

# # #

Acosta v. Care at Home LLC, doing business as Care at Home, Daniel Karp, and Suzanne Karp

Civil Action Number: No. 3:18-cv-00711-AWT

Agency
Office of the Solicitor
Date
May 21, 2018
Release Number
18-0840-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

U.S. Department of Labor Investigation Results in Colorado Company Paying $59,701 in Back Wages and Penalties

News Release

U.S. Department of Labor Investigation Results in Colorado Company Paying $59,701 in Back Wages and Penalties

WINDSOR, CO – As a result of a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Coloscapes Concrete Inc. has paid $21,750 in back wages and $31,496 in civil money penalties to settle H-2B non-immigrant visa program violations, as well as $6,454 to resolve overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD found Coloscapes Concrete Inc. violated provisions of the H-2B nonimmigrant visa program by collecting a $1,000 recruitment fee in cash from H-2B workers and by accepting kickbacks from reimbursement checks intended to compensate employees for visa fees and inbound transportation costs from their home countries. Coloscapes Concrete Inc. further violated provisions the H-2B program when it paid U.S. workers less than it paid similarly employed guest workers, and when it laid off U.S. workers shortly before hiring guest workers to perform the same work. The company also failed to pay legally required overtime to 27 cement masons and concrete finishers and failed to maintain complete and accurate records. The overtime violations resulted when payroll deductions for the employee’s housing exceeded the limits allowed under the FLSA.

“The U.S. Department of Labor ensures the recruitment and displacement standards of the H-2B program are followed in order to protect American workers,” said Betty Campbell, Wage and Hour Division Administrator. “We encourage employers to reach out to our local offices for confidential assistance with any of our labor laws, or to visit our website to make use of the numerous tools we provide to help them understand their legal obligations.”

The H-2B non-immigrant visa program permits employers to hire nonimmigrants temporarily to perform non-agricultural labor or services in the U.S.

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 18, 2018
Release Number
18-734-DEN
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

After U.S. Department of Labor Investigation, Federal Court Orders Arizona Janitorial Company to Pay $384,869 in Back Wages and Civil Penalties

News Release

After U.S. Department of Labor Investigation, Federal Court Orders Arizona Janitorial Company to Pay $384,869 in Back Wages and Civil Penalties

PHOENIX, AZ – Following a U.S. Department of Labor Wage and Hour Division (WHD) investigation, the U.S. District Court for the District of Arizona has ordered Synergy Commercial Service LLC and owner Eduardo Bernal to pay $351,869 in back wages and liquidated damages to 136 employees for minimum wage and overtime violations of the Fair Labor Standards Act (FLSA). The court also ordered the Gilbert-based janitorial company to pay $33,000 in civil money penalties.

WHD investigators found Synergy Commercial Service paid straight time rates for all the hours employees worked, failing to pay overtime when they worked beyond 40 hours per workweek. Investigators also found that the company misclassified employees as independent contractors not subject to FLSA protections, and paid these employees at rates below the federal minimum wage.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they rightfully earn,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “We encourage all 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 judgment also orders the defendants to procure the services of a third party to monitor future compliance, and prohibits them from receiving any amount paid to the employees in connection with the court order.

WHD’s Phoenix District Office conducted the investigation. The Regional Solicitor’s office in San Francisco litigated the case.

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; the site includes a search tool to learn whether you may be owed back wages collected by WHD.

Agency
Wage and Hour Division
Date
May 17, 2018
Release Number
18-851-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

U.S. Department of Labor Investigation Results in U.S. District Court Ordering Oklahoma Restaurant to Pay $335,687 in Back Wages and Liquidated Damages

News Release

U.S. Department of Labor Investigation Results in U.S. District Court Ordering Oklahoma Restaurant to Pay $335,687 in Back Wages and Liquidated Damages

OKLAHOMA CITY, OK – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, the U.S. District Court for the Western District of Oklahoma has ordered Meers Store & Restaurant Inc. and owner Margaret Maranto to pay $335,687 in back wages and liquidated damages to 84 employees for willful violations of the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). The court also found the employer to be in violation of the FLSA’s child labor provisions, and granted a permanent injunction prohibiting the defendants from violating any of the provisions of the FLSA in the future. A $42,190 civil money penalty has also been assessed.

WHD investigators found the company and Maranto failed to pay minimum wages to certain employees, failed to pay overtime compensation, and failed to comply with child labor provisions. WHD determined that the company and Maranto failed to pay wages to table bussers, most of them minors, who were forced to work for tips alone. When employees worked beyond 40 hours in a week, the defendants failed to pay overtime at time-and-one-half and instead compensated them at their regular rate of pay. The company also failed to keep required records.

“Employees are entitled to receive all wages they have legally earned, and minors deserve the workplace protections put in place for them by law,” said Betty Campbell, Wage and Hour Division Administrator. “This case demonstrates the Department of Labor’s commitment not only to workers, but also to providing employers the tools they need to comply with the law. 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.: 5:15-cv-01378-D

Agency
Wage and Hour Division
Date
May 17, 2018
Release Number
18-719-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

U.S. Department of Labor Investigation Results in Massachusetts Stone Fabricator Paying $144,199 in Back Wages and Liquidated Damages to 20 Employees

News Release

U.S. Department of Labor Investigation Results in Massachusetts Stone Fabricator Paying $144,199 in Back Wages and Liquidated Damages to 20 Employees

BOSTON, MA – Following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Onyx Marble & Granite LLC and owners Jose Moraes and Poliana Moraes will pay a total of $144,199 in back wages and liquidated damages to 20 employees to resolve violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the Framingham, Massachusetts, fabricator and installer of custom stone products paid straight time instead of overtime to employees who worked more than 40 hours per week measuring, cutting, polishing, and installing stone products; and failed to keep records of the employees’ work hours.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have rightfully earned and that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do,” said Carlos Matos, Wage and Hour Division District Director in Boston. “We encourage all employers to use the tools and resources the Wage and Hour Division provides to learn about their legal responsibilities, avoid violations, and operate in compliance with the law.”

The settlement also prohibits the business and its owners 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 to use if you think you may be owed back wages collected by the Division.

Agency
Office of the Solicitor
Date
May 16, 2018
Release Number
18-0769-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number

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
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