FRESNO, CA – After a U.S. Department of Labor Wage and Hour Division investigation, Central Valley garlic grower Valley Garlic Inc. and its farm labor contractor X-Treme Ag Labor Inc. have signed consent judgments, entered by the U.S. District Court for the Eastern District of California in Fresno. The U.S. Department of Labor sued Valley Garlic Inc. and X-Treme Ag Labor Inc. for being jointly responsible in a June 2015 crash that took the lives of four farmworkers who were being transported to work, including a 16-year-old minor.

X-Treme Ag Labor Inc. and its owner Isabella Camacho entered into a consent judgment requiring them to pay $46,000 in back wages and penalties, and to be forever barred from acting as a farm labor contractor. In the judgement, X-Treme Ag and Camacho also admitted to violating MSPA’s transportation safety requirements and that they did so in connection with their work for Valley Garlic.

The consent judgment against Valley Garlic Inc. requires the company to take steps to prevent future violations and unauthorized transportation including:

• Exclusively hiring farm labor contractors that are transportation-authorized and that can legally and safely transport farmworkers;
• Specifically discussing transportation in contract deliberations with farm labor contractors;
• Auditing their fields for compliance with federal labor laws at random times during peak harvest; and
• Paying $45,900 in civil penalties.

Division investigators determined that the workers were not wearing seatbelts, the driver had no valid driver’s license, and the vehicle was unsafe. The Department brought suit under the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), which requires growers and packers to take specific steps to ensure that all farmworkers are transported safely to their fields.

“These two judgments send a message that will result in safer transportation to and from the fields for hundreds of hardworking men and women,” said Nora Pedraza, Wage and Hour Division Assistant District Director in Fresno. “The Department of Labor offers a wide variety of compliance assistance and educational opportunities for employers to learn how to comply with the law. We owe it to the memory of these farmworkers to do whatever we can to prevent any future such tragedies.”

MSPA protects migrant and seasonal agricultural workers by establishing employment standards related to wages, housing, transportation, disclosures, and recordkeeping. For general information on MSPA, please see the Employment Law Guide or the Wage and Hour Division’s MSPA fact sheet.

To operate legally as farm labor contractors, individuals and companies must register with the U.S. Department of Labor. Farm labor contractors that intend to house, transport, or drive a migrant or seasonal agricultural worker must meet special requirements. Application materials and instructions can be found online at https://www.dol.gov/whd/forms/fts_wh530.htm

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

WHITES CREEK, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, the U.S. District Court for the Middle District of Tennessee has ordered Music City Masonry Contractors LLC and its owners, Brandy George and Robin “Bubba” Waller, to pay $493,987 in back wages and liquidated damages to 247 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The order comes as part of a settlement with the Wage and Hour Division, which assessed a $10,012 civil money penalty for the willful and repeat violations.

Division investigators found the contracting company paid employees straight-time rates for their overtime hours instead of the time-and-one-half required by law. The employer falsified time and payroll records to make it appear that they were paying the proper overtime. The company also failed to maintain accurate records of the hours employees worked, resulting in recordkeeping violations.

“The resolution of this investigation ensures these employees receive their rightfully earned wages,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “No employer should gain a competitive advantage by failing to pay its employees in compliance with the law. We urge all employers to make use of the tools the Department of Labor offers to explain their obligations and help them 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.

WASHINGTON, DC – With the inclusion of key provisions related to America’s tipped workers included in the recently passed Consolidated Appropriations Act, the U.S. Department of Labor’s Wage and Hour Division (WHD) has issued a Field Assistance Bulletin (FAB) to address WHD’s enforcement of tip credit rules under the Fair Labor Standards Act (FLSA).

As a result of this legislation, workplaces may establish tip pooling arrangements between “front of the house” and “back of the house” staff, such as cooks and dishwashers. The bill vacated WHD’s 2011 regulations that barred tip pooling when employers pay tipped employees at least the full federal minimum wage.

Additionally, Congress gave the Department—for the first time—authority to prevent employers from taking employees’ tips in all circumstances. Congress enacted this bipartisan law in response to U.S. Secretary of Labor Alexander Acosta’s testimony last month before the House Appropriations Subcommittee on Labor, Health and Human Services, and Related Agencies that he would support a law barring employers from taking tips.

FAB 2018-3 confirms that employers who pay the full federal minimum wage may now allow non-traditionally tipped workers, such as cooks and dishwashers, to participate in tip pools. The FAB also confirms that WHD will immediately begin using its new enforcement tools to protect American workers’ tips—including by recovering all tips unlawfully kept by employers, and imposing liquidated damages and civil monetary penalties as appropriate.

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

TAMPA, FL – Investigations by the U.S. Department of Labor’s Wage and Hour Division into rebuilding efforts in the aftermath of Hurricane Irma have resulted in 11 roofing companies paying $239,893 in back wages to 259 employees for violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Division investigators determined all 11 companies paid employees a piece rate, without regard to the number of hours they actually worked. This practice resulted in overtime violations when the employers failed to pay employees overtime for hours worked beyond 40 in a workweek. The employers also violated FLSA recordkeeping requirements when they failed to record the actual number of hours these employees worked.

The Division found the following companies in violation: Crown Roofing LLC, Currier Roofing Co. Inc., D Peck Roofing Inc., Dura-Loc Roofing Systems, Saint Raphael Roofing Inc., and San Carlos Roofing Co., all based in Fort Myers; Campbell Roofing & Sheet Metal of FL Inc. and Roofing by Homeplus Inc., both in Cape Coral; Clyde Johnson Contracting & Roofing, Inc. of Clewiston; Gulf Coast Roofing Company Inc. of Naples; and Kelly Roofing LLC of Bonita Springs.

In addition to paying back wages, Clyde Johnson Contracting will pay $11,057 in liquidated damages to 16 employees, and Dura-Loc will pay $11,368 in liquidated damages to six employees.

“Employers must understand their obligations and responsibilities under the law. Pay practices must comply with the law,” said Wage and Hour Division District Director James Schmidt, in Tampa. “We encourage all employers to make use of the many tools the Department of Labor 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 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.

CAMDEN, NJ – Two companies that operate 17 Houlihan’s franchisee restaurants in New Jersey and New York and their owner Arnold Runestad will pay $5,000,000 in back wages and liquidated damages to 1,471 current and former employees to resolve a U.S. Department of Labor lawsuit alleging violations of the Fair Labor Standards Act (FLSA). The agreement is part of a consent judgment filed on April 2, 2018, that is pending review and approval by the U.S. District Court for the District of New Jersey.

The Department’s Wage and Hour Division found that Saddle Brook-based A.C.E. Restaurant Group Inc., A.C.E. Restaurant Group of New York LLC, the individual restaurants, and Runestad violated the FLSA when they denied overtime pay to employees who worked more than 40 hours a week at multiple restaurants. They also violated the law’s minimum wage requirements when they included ineligible, non-tipped employees in a mandatory tip pool, retained portions of employees’ tips, and routinely deducted money from employees’ paychecks for meals while also requiring them to pay for meals.

“The Wage and Hour Division works to ensure 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 Wage and Hour Regional Administrator Mark Watson, Jr. in Philadelphia, Pennsylvania.

“The U.S. Department of Labor will not hesitate to pursue appropriate legal measures, such as this consent judgment, so that employers commit to corrective action, restitution, and ongoing compliance with the Fair Labor Standards Act,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.

In addition to payment of the back wages and liquidated damages, the consent judgment  requires the defendants to comply with the FLSA’s minimum wage, overtime, recordkeeping, and anti-retaliation provisions, and provide employees with a notice of their FLSA rights.

The New Jersey restaurants are located in Bayonne, Brick, Bridgewater, Cherry Hill, Eatontown, Fairfield, Hasbrouck Heights, Holmdel, Lawrenceville, Metuchen/Woodbridge, New Brunswick, Paramus, Ramsey, Secaucus, and Weehawken. The New York locations are in Farmingdale and Westbury.

The Division’s Northern and Southern New Jersey and Long Island District Offices investigated the case. Attorneys Daniel Hennefeld, James Wong, Molly Theobald, and Lindsey Rothfeder of the Department’s regional Office of the Solicitor in New York litigated the case.

For more information about the FLSA and other laws enforced by the Wage and Hour 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.

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Acosta v. A.C.E. Restaurant Group Inc., A.C.E. Restaurant Group of New York LLC, Arnold Runestad, et al

Civil Action Number: Case 1:15-cv-07149-JHR-AMD

HONOLULU, HI – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, the owners of four Ichiriki Japanese Nabe Restaurants on Oahu will pay $60,721 in overtime owed to 62 employees to resolve pay violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer improperly paid overtime to some employees only when they worked more than 80 hours in a semi-monthly pay period, rather than for any hours worked beyond 40 per work week, as the law requires. The employer also paid some employees straight time rates for overtime hours worked. The employer also paid managers a flat rate per day, without regard to the number of hours that they worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a work week and were not paid overtime. The employer, which operates restaurants in Honolulu, Aiea and Kaneohe, also failed to keep accurate records of the number of hours employees worked, the Division found.

“When we resolve cases like this one, we protect workers and ensure that employers are competing on a level playing field,” said WHD District Director Terence Trotter, in Honolulu. “We urge all employers to use the many tools our agency offers to learn about their legal responsibilities, avoid violations and operate in compliance.”

Employees and employers with questions about the FLSA or any of the federal wage laws administered by the Division 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/.

LUMBERTON, NC – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, a U.S. District Court for the Eastern District of North Carolina has ordered Del Sol Partnership 2 Inc. and its owner, Pablo Salgado, to pay $144,884 in back wages and liquidated damages to 15 employees for violating the overtime, minimum wage, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Division investigators found the company paid flat salaries to some employees at its Lumberton and Red Springs restaurants without regard to the number of hours they worked. This practice resulted in overtime violations when those employees worked more than 40 hours in a workweek without overtime pay. The employer also failed to keep any records of the number of hours employees worked.

In addition, Del Sol Partnership 2 Inc. violated minimum wage requirements when it required wait staff to work only for tips, when the FLSA calls for employers to pay tipped employees at least $2.13 per hour in direct wages. An employer is then allowed to take a credit for the employee’s earned tips to satisfy the remainder of its minimum wage obligation.

The court also ruled that Salgado deliberately attempted to conceal his failure to adhere to the FLSA by underreporting the number of employees, instructing them not to cooperate with the Division’s investigators, and threatening to reduce the number of hours for each employee who requested an hourly wage.

“Employees are entitled to receive all of wages they have legally earned. The Department of Labor will use all of the tools at its disposal - including the courts when necessary - to ensure that payment,” said Richard Blaylock, Wage and Hour Division District Director in Raleigh. “Employees or employers with questions about FLSA compliance can reach out to us for help at any time.”

“Unfortunately, we find that too many employers pay their staff flat salaries, or pay wait staff tips only, failing to ensure that they receive the required minimum wage and overtime for the hours they work,” said Regional Solicitor Stanley Keen. “Not only do we ensure workers are not exploited, but we also prevent employers from gaining an unfair competitive advantage by breaking the law.”

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

WESTBURY, NY – After an investigation and litigation by the U.S. Department of Labor, the U.S. District Court for the Eastern District of New York has ordered Casa Concrete Inc., a provider of concrete services, and its officers, Alice Fernandes and Manuel Fernandes, to pay $412,000 in back wages and liquidated damages to 20 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Investigators from the Department’s Wage and Hour Division found that the Casa Concrete, based in Selden, typically paid employees by check for their first 40 hours of work, but paid them in cash at a straight time – or lower – rates for any hours they worked beyond 40 per workweek. The company also failed to pay employees for time spent working in its Long Island yard and traveling to and from the yard to job sites. In addition, Casa Concrete failed to keep required records of employees’ work hours, rates of pay, and total wages paid.

“Employees are entitled to receive all of the wages they have legally earned for all the hours that they have worked,” said Irv Miljoner, Wage and Hour Division District Director in Westbury. “We encourage employees or employers with questions about FLSA compliance to reach out to us for help. This can help prevent violations from occurring in the first place.”

“The U.S. Department of Labor will use all tools at its disposal – including litigation when necessary – to ensure that workers are not exploited and employers don’t gain an unfair advantage over their competitors by breaking the law,” said Jeffrey S. Rogoff, Regional Solicitor of Labor in New York.

The consent judgment also prohibits the defendants from retaliating against, or soliciting repayment of recovered wages from, the employees. Read the complaint and consent judgment.

The Division’s Long Island District Office conducted the investigation. Senior Trial Attorney Elena Goldstein of the regional solicitor’s office in New York 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 http://www.dol.gov/whd; the site includes a search tool to learn whether you may be owed back wages collected by WHD.

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Acosta v. Casa Concrete Inc., Alice Fernandes, Manuel Fernandes.
Civil Action Number: 18-CV-1500

ATLANTA, GA – After a U.S. Department of Labor Wage and Hour Division investigation, Insight Global LLC will pay $354,978 in back wages to 14 employees for violating provisions of the Fair Labor Standards Act (FLSA) and the McNamara-O’Hara Service Contract Act (SCA). The Atlanta-based staffing and consulting company committed the violations during performance as a subcontractor to Hewlett Packard on an information technology contract with the U.S. Department of the Navy.

Wage and Hour Division investigators determined that Insight Global violated the SCA after failing to pay employees the prevailing wage rates required for the work they performed. The company erroneously categorized and paid the employees as computer operators when they actually performed the work of personal computer support technicians, which require the payment of higher rates. Insight Global also failed to pay employees fringe benefits required by the SCA. These incorrect wage rates resulted in overtime violations under the FLSA when the company based their time-and-one-half calculations for hours employees worked beyond 40 per week on the rates that were erroneously low.

“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 Jeffrey Genkos, Wage and Hour Division Acting District Director in Atlanta. “Violations can be avoided, and we encourage employers to reach out to us for guidance.”

Insight Global LLC provides services as a government contractor working for the U.S. Navy in California, Florida, Virginia, Louisiana, Massachusetts, North Carolina, Minnesota, New Jersey, and Washington, D.C.

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 predecessor contractor’s collective bargaining agreement.

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

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Editor’s Note: This news release was changed to correct the list of states where contracting services were provided.

URBANDALE, IA – After a U.S. Department of Labor Wage and Hour Division investigation, majority owner of two Iowa restaurants Gloria Ochoa has paid $833,992 in back wages to 64 employees to resolve federal wage violations, including falsifying payroll and time records and failing to pay required minimum wages and overtime. Wage and Hour Division investigators determined that Ochoa, majority owner of Rojas LLC and Ocha Inc., which do business as El Rodeo Mexican Restaurants in Urbandale and in Clive, violated the Fair Labor Standards Act (FLSA). Ochoa has also paid a civil money penalty for violating child labor regulations.

Division investigators determined that Ochoa violated minimum wage requirements when she required servers to cash their paychecks and return the amounts of the checks, in cash, to the employer. Ochoa also required servers to surrender $20 from their daily tips to the employer. Additionally, the restaurants kept no time records reflecting when employees worked, instead paying workers for 80 hours biweekly regardless of their actual hours. This practice resulted in overtime violations when employees worked beyond 40 hours in a workweek, yet received no overtime pay. Employees routinely worked 55 hours per week. Investigators also determined that Ochoa employed a minor employee outside of the work hours allowed by the FLSA’s child labor requirements.

Under terms of the consent judgment entered in federal court in Des Moines, Ochoa admitted to the violations and agreed to seek assistance from the Division to ensure future compliance.

“Employees depend on receiving all the wages they have rightfully earned,” said Adam Wombacher, Wage and Hour Acting District Director in Des Moines. “The resolution of this case demonstrates our commitment to those workers, and 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.”

The order by the U.S. District Court for the Southern District of Iowa resolves a lawsuit brought by the Department against the restaurants and Ochoa to recover the wages.

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 WHD.

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Court: U.S. District Court for Iowa
Docket Number: 4:18-cv-00065