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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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.

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

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.

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.

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.

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.

ELIZABETH CITY, NC – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation,  Huntsville, Alabama, aviation maintenance company Y-Tech Services Inc. will pay $95,000 in back wages to 12 employees for failure to pay prevailing wage rates required for work performed under a federal contract for the U.S. Coast Guard in Elizabeth City.

WHD investigators determined that Y-Tech Services Inc. violated provisions of the McNamara-O’Hara Service Contract Act (SCA) by erroneously categorizing and paying the employees as aircraft workers when they actually performed the work of sheet metal employees, which requires the payment of higher rates. Y-Tech Services Inc. remained cooperative throughout the investigation, and worked with WHD to rectify the problems immediately.

“When employers receive federal funds to provide services to the government, they must comply with all applicable laws to ensure that their employees receive legally required pay and benefits,” said Wage and Hour Division District Director Richard Blaylock, in Raleigh. “Violations can be avoided, and we encourage employers to reach out to us for guidance.”

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a contractor’s collective bargaining agreement.

For more information about the SCA and other laws enforced by WHD, contact WHD’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division’s web site. WHD also offers a search tool that allows users to determine if they the Division has collected back wages owed to them.

RALEIGH, NC – The U.S. Department of Labor’s Wage and Hour Division (WHD) has debarred the Lake Placid, Florida, company Vasquez Citrus & Hauling Inc. and Juan Vasquez, an H-2A farm labor contractor, from applying for H-2A certification for a period of three years for violations of the program’s provisions. WHD also issued the company a civil money penalty of $15,153.

WHD investigators found Vasquez Citrus & Hauling Inc., working for Ham Farms in Snow Hill, North Carolina, failed to reimburse employees for their inbound travel expenses as required by law. Additionally, Vasquez failed to provide adequate payroll or time records to the investigators.

“The resolution of this case reflects the U.S. Department of Labor’s commitment to strictly enforce our nation’s immigration rules that protect U.S. workers and the guest workers who participate in our visa programs,” said Richard Blaylock, Wage and Hour Division District Director in Raleigh. “The Department of Labor offers a great deal of compliance assistance in the agricultural industry, and we encourage all employers to make use of the many tools we provide to help them understand and comply with the law, and to call us for assistance.”

The Immigration and Nationality Act authorizes the H-2A program, which allows the lawful admission into the U.S. of temporary, nonimmigrant workers to perform agricultural labor or services. WHD enforces the labor provisions of this program.

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 that the employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed U.S. workers.

Federal law provides for numerous employee protections and employer requirements with respect to wages and working conditions that do not apply to non-agricultural programs.

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 http://www.dol.gov/whd.

Editor’s Note:  This news release was changed to correct the name of the state where the farm labor contractor is located.

ATLANTA, GA – To ensure compliance with federal wage laws, the U.S. Department of Labor’s Wage and Hour Division (WHD) is undertaking an initiative in Florida, Kentucky, North Carolina, and South Carolina to strengthen compliance with the labor provisions of the H-2A and H-2B temporary visa programs.

The initiative includes providing compliance assistance information to employers and stakeholders, as well as conducting investigations of employers using these programs. A key component of the investigations is ensuring that employers recruit U.S. workers before applying for permission to employ temporary nonimmigrant workers.

“Any employer seeking workers under these programs must be ready and willing to hire qualified U.S. applicants,” said Wayne Kotowski, Wage and Hour Division Regional Administrator in Atlanta. “This initiative demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and protect guest workers from being paid less than they are legally owed or otherwise working under substandard conditions.”

The Immigration and Nationality Act authorizes the lawful admission of temporary, nonimmigrant workers (H-2A workers) to perform agricultural labor or services of a temporary or seasonal nature. The H-2B program permits employers to temporarily hire nonimmigrants to perform nonagricultural labor or services in the United States.

Before an employer can be approved to request guest workers under the H-2A or H-2B programs, they 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.

WHD offers multiple compliance assistance resources to provide employers the tools they need to comply with the law. The Division encourages employers to reach out to them for information or with specific questions. All calls are confidential.

For more information about the H-2A, H-2B 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.