CLARKSTON, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Summit Properties & Development Co. Inc., based in Clarkston, Michigan, will pay a total of $137,237 in back wages and liquidated damages to 17 employees.

WHD investigators determined the general contractor misclassified some employees as independent contractors, and failed to pay them overtime when they worked more than 40 hours in a workweek.

“Wage violations can be avoided when employers understand the requirements under federal law,” said Timolin  Mitchell, Wage and Hour District Director in Detroit. “We encourage employers to contact the Department of Labor by phone, online, in person, or to attend any of our outreach events to learn more about their responsibilities or obtain assistance. The Department offers many tools to help employers comply.”

As a result of this investigation Summit Properties has revised its employee handbook and has agreed to attach information to all future subcontractor agreements to help educate those employers and to ensure employees receive the wages they have rightfully earned.

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.

PHOENIX, AZ – After a June 2017 U.S. Department of Labor Wage and Hour Division (WHD) investigation found 69 Mexican guest workers living in a life-threatening housing encampment at an El Mirage farm, the U.S. District Court of Arizona in Phoenix has entered judgments against a grower and its recruiting agents for violations of the H-2A guest worker program.

Under the consent judgments, the court has ordered G Farms LLC, owner Santiago Gonzalez, and agents Jesus Raul Leon and LeFelco to take specific steps to ensure strict compliance with the terms of the Department’s temporary worker programs.

WHD discovered G Farms guest workers housed in converted school buses, truck trailers, and a shed that were overcrowded, unsanitary, and inadequately ventilated, even as daytime temperatures exceeded 100 degrees. In addition to those conditions, investigators found G Farms and Leon set up kitchen facilities in another converted school bus, with combustible gas lines dangling through windows.

During its investigation, G Farms and agents LeFelco and Leon falsely represented to the Department that they would house the guest workers in 30 hotel rooms, each with a refrigerator and a microwave.

“The violations of the clear and straightforward requirements of the H-2A visa program represented one of the most severe dangers to human life that we have seen,” said Janet Herold, Regional Solicitor. “The Department moved immediately to ensure these workers’ safety. We have zero tolerance for such abuse, and the misconduct and misrepresentations to both domestic and foreign workers in this case is what exacerbated the harm.”

“These judgments make clear that the Department of Labor will use all enforcement tools available against major agents involved in illegal labor practices, abuse of workers, and systemic visa fraud,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “Our work continues to protect employees and to level the playing field for law-abiding employers.”

This is not the first time that LeFelco and Leon used misrepresentations to assist employers with obtaining guest workers. In recent years, Department investigations into LeFelco, Leon, and their clients in the construction and agricultural industries have revealed multiple instances of visa fraud and abuse of the H-2A and H-2B guest worker programs. These cases have already resulted in back wage and civil money penalty assessments approaching $1 million.

Under the consent judgments, LeFelco, Leon, and anyone acting together with them are now subject to punishment for contempt of court if they file any false or unsubstantiated applications under any guest worker program. Under the terms of its consent judgment, G Farms is required to provide all workers with a notice of their rights and a work contract in their native language at the time of hire.

Additionally, the employer must provide housing that complies with detailed standards designed to ensure that workers have a safe place to live while working in the U.S. G Farms also must pay employees for all the hours that they work, including time spent traveling from the employer-provided housing to the worksite. As with Lefelco and Leon, G Farms is subject to punishment for contempt of court for any future violations of any guest worker program.

The H-2A temporary agricultural program establishes a means for agricultural employers, who anticipate a shortage of domestic workers, to bring non-immigrant foreign workers to the U.S. to perform agricultural labor or services of a temporary or seasonal nature.

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

For more information about the H-2A program, the Fair Labor Standards Act and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at https://www.dol.gov/whd.

DUNN, NC – The U.S. Department of Labor’s Wage and Hour Division (WHD) has debarred Worldwide Staffing LLC from applying for H-2A certifications for three years following violations of the visa program’s requirements and a failure to pay back wages owed to employees. The company failed to reimburse employees for their inbound travel expenses from their home countries, as the law requires, and owed $58,458 in back wages to 200 employees. WHD assessed the staffing company a civil penalty of $17,309 because of the violations.

Investigators found Worldwide Staffing - a Dunn-based farm labor contractor - failed to provide employees with adequate cooking facilities to allow them to prepare their meals. Under the H-2A program, employers must either provide cooking facilities to workers free of charge, or provide them three meals per day, for which they may charge. WHD investigators found that Worldwide Staffing provided only two meals per day, and charged workers more for these meals than allowed by law.

“This case demonstrates the Department’s commitment to strictly enforce rules that protect both U.S. workers and the guest workers who participate in these programs,” said Richard Blaylock, Wage and Hour Division District Director in Raleigh. “We encourage employers to contact the Wage and Hour Division by phone, online, or to attend any of our outreach events for assistance and to learn more about their responsibilities.”

Before the U.S. Citizenship and Immigration Services can approve an employer’s petition for H-2A 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 employer must also state 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 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 https://www.dol.gov/whd.

ALLEN PARK, MI – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Michigan-based automotive tire and service retail chain Belle Tire has agreed to pay $342,926 in back wages to 1,207 employees at 100 locations in Michigan, Indiana, and Ohio.

WHD investigators determined Belle Tire violated the overtime provisions of the Fair Labor Standards Act (FLSA) when the company failed to include incentive bonuses and sales commissions earned by employees in their rates of pay when calculating their overtime payment. Instead, Belle Tire paid workers time-and-one-half of only their base rates, without considering the amounts by which these bonuses and commissions had boosted employees’ straight time earnings. The violation affected non-exempted employees including – but not limited to – tire technicians, mechanics, sales staff, mobile auto glass mechanics, and those offering roadside assistance. 

“Wage violations can be avoided when employers understand the requirements under federal labor law. Belle Tire is now training its store managers, supervisors, and payroll personnel to ensure they compute overtime properly and employees receive the wages they have rightfully earned,” said Timolin Mitchell, Wage and Hour District Director in Detroit. “This employer remained very cooperative during the investigation and the company wants to ensure compliance at all their locations. We encourage all employers to contact the Division for guidance and assistance to avoid violations.”

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.

LAWRENCEVILLE, NJ – An education and enforcement initiative conducted by the U.S. Department of Labor’s Wage and Hour Division (WHD) has recovered $2,079,596 in back wages and liquidated damages for 87 attendants working at 25 southern New Jersey gas stations since January 2017. This payment resolves violations found during a series of investigations by the WHD.

WHD investigators found that the gas station owners violated the Fair Labor Standards Act (FLSA) by failing to pay attendants the federal minimum wage of $7.25 per hour, and failing to pay overtime wages to employees when they worked more than 40 hours in a week. Additionally, the owners failed to maintain accurate time and payroll records, as required by law. WHD also assessed one owner of six gas stations a civil money penalty of $8,976 for willful violations.

“The Wage and Hour Division works to ensure that employees receive the wages they have rightfully earned,” said the Charlene Rachor, WHD’s Southern New Jersey District Office Director. “The 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.”

New Jersey is the only U.S. state that bars motorists from pumping their own gas. Gas stations in New Jersey employ full-service gas station attendants to operate gas pumps and provide related customer services. The attendants who received back wages and damages were employed at the following gas stations:

• Citgo, 469 S. Lenola Road in Moorestown;
• Citgo, 400 NJ-38 in Maple Shade;
• Citgo, 2006 Mount Holly Road in Burlington;
• Citgo, 1510 NJ-38 in Cherry Hill;
• Citgo, 102 Washington Crossing Road in Pennington;
• Citgo - Pitman, 690 Delsea Drive in Pitman;
• Gasco Yardville – 4364 S. Broad St. in Trenton;
• Gasco Greenwood – 1761 Greenwood Ave. in Trenton;
• Gasco Tri Star – 1685 Nottingham Way in Trenton;
• Gasco Chambers – 1140 Chambers St. in Trenton;
• Gasco West Creek – 439 Route 9 in West Creek;
• Gasco Lambertville – 32 S. Franklin St. in Lambertville;
• Gasco Southampton – 2344 Route 206 in Vincentown;
• Gasco Barnegat – 282 Route 72 in Barnegat;
• Gasco Morrisville – 999 West Trenton Ave. in Morrisville, PA;
• Lukoil, 2225 Admiral Wilson Blvd. in Merchantville;
• USA Gas, 206 Hanover St. in Pemberton;
• USA Gas, 106 W. Main St. in Maple Shade;
• USA Gas, 402 Landis Ave. in Vineland;
• USA Gas, 3970 N. Delsea Drive in Newfield;
• USA Gas, 47 Chestnut St. in Elmer;
• USA Gas - Mt. Holly – 2523 Route 206 in Mt. Holly;
• Valero, 554 River Road in Fair Haven;
• Valero, 65 N. Blackhorse Pike in Bellmawr; and
• Xtra Power Gas, 1 E Evesham Road in Voorhees.

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. Materials are available in a variety of languages. The Division offers useful resources ranging from an interactive E-laws advisor to a complete library of free, downloadable workplace posters. In addition, the Division’s Community Outreach and Resource Planning Specialists conduct ongoing outreach activities to educate stakeholders, including employers, employees, business and labor groups, and professional associations, among others, with accessible, easy-to-understand information about their rights and responsibilities.

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 http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

GUAYNABO, PR – The U.S. Department of Labor’s Wage and Hour Division (WHD) continues to investigate wage issues on St. Croix and St. Thomas and provide compliance assistance related to recovery efforts following Hurricanes Maria and Irma.

WHD will review employers’ compliance with the McNamara-O’Hara Service Contract Act (SCA), the Davis-Bacon and Related Acts (DBRA), and the Fair Labor Standards Act (FLSA), including potential violations involving unpaid work hours, missed payroll, and/or failure to provide required wages and fringe benefits under federal service and construction contracts.

“The U.S. Department of Labor will ensure that employees performing hurricane recovery work receive the wages and benefits they have legally earned,” said Jose R. Vazquez, Wage and Hour Division Caribbean District Director. “The Department provides numerous tools to help employers understand their legal responsibilities, and Department officials are available to answer any questions they may have.”

Employees and employers who would like compliance information, who wish to meet with a Wage and Hour representative, have questions or concerns, or wish to file a complaint, should contact WHD’s Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email. All contacts are confidential. Individuals seeking enforcement and compliance information should contact WHD as soon as possible.

For more information about the SCA and other laws enforced by the Division, contact its 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 WHD.

WILKES-BARRE, PA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the owners of a chain of Pennsylvania bar and grill restaurants have paid $750,007 in back wages and liquidated damages. In a settlement agreement with the Department, Arooga’s Grille House and Sports Bar agreed to pay current and former servers, cooks, and assistant kitchen managers in York, Camp Hill, Lower Paxton, Mechanicsburg, Hanover and Harrisburg for minimum wages and overtime not paid to them over a 30-month period. The 1,039 employees will receive $375,003 in back wages and an equal amount in liquidated damages.

“Employees depend on receiving the wages they have rightfully earned,” said Alfonso Gristina, Wage and Hour Division Wilkes-Barre District Office Director. “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.”

“We will vigorously enforce the law to level the playing field for companies that play by the rules and to safeguard employees’ hard-earned wages,” said Regional Solicitor Oscar L. Hampton III.  “We are hopeful that settlements like this one will call attention to such violations and remind other employers that they must comply with the law.”

Investigators in WHD’s Wilkes-Barre district office found Arooga’s violated the Fair Labor Standards Act as follows when the employer failed to pay:

• Tipped employees the federal minimum wage when deductions for cash drawer shortages, walk outs, and order mistakes reduced their wages to below $7.25 per hour;
• Employees for all of the hours that they worked, resulting in overtime violations for servers who worked an estimated 65-70 hours per week;
• Cooks overtime when they worked an estimated 65 hours per week, paying them only straight time; and
• Assistant kitchen managers overtime after erroneously categorizing them as exempt from overtime.

The FLSA requires that employers pay covered, nonexempt employees at least the federal minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.

The FLSA requires an employer of a tipped employee to pay no less than $2.13 an hour in direct wages, provided that amount plus the tips received equals at least the federal minimum wage of $7.25 an hour. If an employee’s tips combined with the employer’s direct wages do not equal at least the minimum wage, the employer must make up the difference.

Employees and employers can get more information about federal wage laws administered by the Wage and Hour Division by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Workers can also file complaints confidentially. More information also is available online at http://www.dol.gov/whd/.

FLAGSTAFF, AZ – Major League Painting Inc. will pay $242,618 in back wages and liquidated damages to 70 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA) following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD).

WHD investigators found that the Flagstaff commercial and residential painting contractor violated the FLSA’s overtime requirements when it paid straight time for its employees’ overtime hours instead of the time-and-one-half required by law. Investigators found that the employer falsely showed the straight time payment as a “bonus” in the payroll records. The company’s failure to maintain accurate payroll records also resulted in recordkeeping violations.

“The resolution of this case demonstrates the U.S. Department of Labor’s commitment to ensure that employees receive the wages they rightfully earn,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “No employer that fails to comply with the law should gain a competitive advantage over those that play by the rules. We urge employers to call the Department of Labor for assistance and to use the tools the Department offers to explain their obligations and avoid violations.”

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 http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by the Division.

CHICAGO, IL – Consistent with its mission to protect the American workforce, the U.S. Department of Labor has revoked Rock River Valley Self Help Enterprises, Inc.’s certificate under Section 14(c) of the Fair Labor Standards Act (FLSA) after finding nearly 250 workers with disabilities were being exploited.

Section 14(c) of the FLSA is designed to offer more job opportunities for workers with disabilities when their disability affects their productive capacity for the work being performed. After applying for and receiving a certificate from the Department’s Wage and Hour Division (WHD), the employer may gauge their hourly workers’ productivity and calculate the appropriate sub-minimum wage as a percentage of the rate for experienced workers performing similar jobs in the area under the Section 14(c) provisions.

The WHD investigation revealed a failure to timely perform appropriate wage surveys and failure to conduct proper time studies on all jobs performed by workers with disabilities. The investigation also revealed that the employer attempted to mislead and obstruct WHD’s investigation by concealing relevant information from WHD during the investigation, hiding work that the employer had not time studied but had the workers perform. On some weekends, Self Help unlawfully paid workers with gift cards instead of wages.

The nature of these violations, coupled with Self Help’s repeated failure to demonstrate current compliance with the law—despite being provided guidance and numerous opportunities to do so—led WHD to revoke the employer’s Section 14(c) certificate, effective immediately and retroactively. WHD also denied Self Help’s pending applications to renew their certificate. Absent this certificate, Self Help must pay all current workers at least the full federal minimum wage of $7.25 per hour.  In addition, Self Help must pay back wages to all workers who performed work at the subminimum wage over the last two years.  These determinations may be appealed to the WHD Administrator.

“The Department of Labor is committed to protecting Americans with disabilities from exploitation in the workplace,” said Ruben Rosalez, Acting Regional Administrator. “When employers violate federal law and obstruct investigators, we take decisive action to protect vulnerable workers, their families, and other employers who play by the rules.”

The Department is taking proactive steps to assist Self Help workers who may be impacted by the revocation and require additional assistance. In coordination with federal and state partners, the Department’s Office of Disability Employment Policy and the Employment and Training Administration are working with local, state, and federal agencies to identify resources and support for the affected workers in Self Help’s geographic region, should they be needed.  Additionally, law enforcement agencies have been notified of this action.

Employees and employers with questions about the FLSA or any of the federal wage laws administered by WHD should call the Agency’s toll-free helpline at 866-4US-WAGE (487-9243).  All calls are confidential. More information is available online at http://www.dol.gov/whd/.

SALT LAKE CITY, UT – The U.S. Department of Labor’s Wage and Hour Division (WHD) urges heavy construction employers in 10 metropolitan Utah counties to participate in a wage survey to help establish prevailing wage rates as required under the Davis-Bacon and Related Acts. 

WHD is collecting data on wages paid to workers on all heavy construction projects active from Aug. 1, 2016, through Sept. 30, 2017. The survey is not limited to federally funded projects.

“Contractor and interested party participation in this survey is crucial to the process. The Davis-Bacon prevailing wage rates are most effective when they reflect the wages and fringe benefits paid to construction workers in the county in which they work. We need the full participation of Utah’s construction industry to succeed in this effort,” said Betty Campbell, Wage and Hour Division Southwest Regional Administrator.

Without a high level of survey participation, the state’s wage rates will not reflect actual wages - preventing accurate wage determinations and leading to increased requests for additional classifications. Wage data should be submitted for all projects meeting the criteria, regardless of how they are funded. The 10 counties included in the survey are: Salt Lake, Tooele, Box Elder, Davis, Morgan, Weber, Cache, Juab, Utah, and Washington.

WHD is sending notification letters and “WD-10” data collection forms to interested parties and contractors of which it is aware. Employers do not have to receive a letter to participate in the survey.  Participants may also complete the survey online. All responses must be postmarked by Aug. 31, 2018, to be included.

If you would like to participate, or have questions regarding the survey process and forms contact Craig L. Jackson at (214) 749-2021.