PHOENIX, AZ – After a U.S. Department of Labor Wage and Hour Division investigation, the U.S. District Court of Arizona entered a consent judgment that requires Scottsdale construction contractor MNI Enterprises Inc. to pay $214,392 in back wages to 145 employees for violating the overtime provisions of the Fair Labor Standards Act (FLSA). The court also ordered the employer to pay an additional $25,608 in penalties because of the willful and repeated nature of the violations found.

The Wage and Hour Division investigators determined MNI Enterprises Inc. - doing business as U.S. Carpentry Tucson LLC - paid employees on a piece-rate basis without regard to the number of hours worked. Overtime violations resulted when the company failed to pay the required overtime premium of time-and-one-half for hours worked beyond 40 in a workweek. Investigators found similar overtime violations as a result of two earlier investigations of the company in 2004 and 2013.

“Paying employees on a piece-rate basis does not automatically make them exempt from overtime,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “This agreement helps stop non-compliant employers from gaining an unfair competitive advantage over those that strive to abide by the law. We urge all employers to reach out to us for compliance assistance.”    

The Department’s regional Office of the Solicitor litigated the case. 

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/.

SEATTLE, WA – After a U.S. Department of Labor Wage and Hour Division investigation, Rivera Orchards Inc. has paid $19,297 in penalties to resolve Migrant and Seasonal Agricultural Worker Protection Act (MSPA) violations that posed a direct and imminent threat to its employees.

During the 2017 harvest, Division investigators noted the presence of rats and a live wasp’s nest in a facility that housed 15 migrant workers by the Chelan, Washington-based orchard. Investigators also found that Rivera Orchards Inc. failed to disclose work and housing conditions to employees, as the law requires, and also violated recordkeeping requirements. Upon discovery, the owner made immediate changes to clean the facilities.

“Employers must understand their obligations and responsibilities under the law,” said Jeanette Aranda, Wage and Hour Division District Director in Seattle. “Employees’ health and safety is of the utmost importance. 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 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/.

SAN DIEGO, CA – After a U.S. Department of Labor Wage and Hour Division investigation, the Department has reached a settlement with A&D General Contracting Inc., the prime contractor on two federally funded local projects, to pay 16 landscaping employees $52,969 in back wages after its subcontractor Amigos Design Build Landscapes Inc. failed to pay legally required prevailing wages and later declared bankruptcy.

Wage and Hour Division investigators found that Amigos Design Build Landscapes Inc. violated the Davis-Bacon and Related Acts (DBRA) during work as a subcontractor on two projects: a control gate at the Marine Corps Recruiting Depot in San Diego, and at the Combat Training Tank and Instruction Facility at Camp Pendleton. The projects’ prime contractor, A&D General Contracting Inc., entered into the settlement after the subcontractor filed for bankruptcy.

The Division found Amigos Design Build landscapes Inc. failed to pay legally required health and welfare rates to its employees, and incorrectly categorized some employees in job classifications that paid rates lower than those required for the work actually performed. The contractor also improperly classified some of its employees as apprentices and paid them less than the required prevailing wage rates when, in fact, they were not enrolled in apprenticeship programs. Additionally, investigators found the contractor falsified its certified payroll reports.

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

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. On a covered project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors.

WASHINGTON, DC – The U.S. Department of Labor’s Wage and Hour Division has developed a series of helpful instructional videos that provide valuable assistance to employers and further ensure compliance with the Fair Labor Standards Act (FLSA) to the benefit of the American workforce.

As part of the Wage and Hour Division’s ongoing commitment to protect working Americans, the Division will help employers understand their legal obligations under the FLSA by launching a new series of brief, plain-language videos that explain employer responsibilities under the FLSA. The videos eliminate legalese and provide a valuable resource for employers who simply want to understand what the law requires.

The Division consulted with a variety of stakeholders during the production of the FLSA tutorials, and much of their feedback was incorporated to ensure the videos are user-friendly, straightforward, and in a language and format that is engaging and easy to understand.

“To help employees receive their compensation and help employers comply with the law, we are modernizing the tools we offer to help them along the path,” said Acting Wage and Hour Division Administrator Bryan Jarrett.

Please visit the webpage to check out the videos, along with many other compliance assistance tools that are offered.

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.

ELKINS, WV – After a U.S. Department of Labor Wage and Hour Division investigation, a federal jury has entered a verdict against Randolph County Sheltered Workshop Inc. - doing business as Seneca Designs - and ordered the Elkins nonprofit to pay $119,040 in back wages to 34 employees. Entered in the U.S District Court for the Northern District of West Virginia-Elkins Division, the investigation found that the organization violated the minimum wage provisions of the Fair Labor Standards Act (FLSA).

Division investigators found violations that resulted from the employer’s failure to obtain a certificate authorizing their payment of sub-minimum wages to employees with disabilities. Absent that certificate, employees were legally due the full federal minimum wage. The Agency also found that the employer failed to post information about rights for employees with disabilities paid at a sub-minimum wage, as the law requires.

“We are pleased with the jury’s ruling and hope that the back wages received by these workers will have a positive impact on their lives,” said Catherine Glencoe, Assistant District Director of the Wage and Hour Division in Charleston.

“The ruling in this case will positively impact compliance and will help to level the playing field for employers that follow the law and pay their employees properly,” said Oscar L. Hampton III, Regional Solicitor in Philadelphia.

Employees at Randolph County Sheltered Workshop assemble fishing lures and lure packages for Leland’s Lures in Searcy, Arkansas.

The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates for hours worked beyond 40 per week.

Section 14(c) of the FLSA authorizes employers, after receiving a certificate from the Wage and Hour Division, to pay subminimum wages - wages less than the federal minimum wage -  to employees with disabilities when the disability impairs their productivity for the work being performed.

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.

RINGOES, NJ - After a U.S. Department of Labor Wage and Hour Division investigation, Mavrode Farms LLC—a Ringoes, New Jersey, wholesale florist supplier—has paid $76,374 to 13 employees to resolve violations of the Fair Labor Standards Act (FLSA). The Division also assessed civil money penalties totaling $2,633 for the violations.

Division investigators determined that the company and its owner Michael Mavrode violated the overtime, minimum wage, and recordkeeping provisions of the FLSA and the housing, wage, and disclosure provisions of the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). 

The investigation determined that the employer violated MSPA requirements when it failed to provide workers with copies of work contracts, failed to pay promised wages, and failed to ensure housing safety and health for migrant workers. Mavrode violated the FLSA when he failed to pay overtime to farm employees performing non-agricultural activities. The employer paid those employees on a piece-rate basis, without regard to the number of hours they actually worked. This practice resulted in overtime violations when employees worked more than 40 hours in a work week without additional overtime pay. Mavrode also failed to maintain time records as required by the FLSA. 

“As a result of this investigation, Mavrode Farms’ employees will receive the wages they are owed and will be provided with safe housing,” said Charlene Rachor, Wage and Hour Division Southern New Jersey District Office Director. “Employers can avoid violations by reaching out to us for assistance to ensure they are in compliance with the law. We offer a wide variety of tools for employers, including many specific to the requirements for those in agricultural industries.”

The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates for hours worked beyond 40 per week. The MSPA establishes employment standards related to wages, housing, transportation, disclosures, and recordkeeping. 

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

HONOLULU, HI – Neptune Construction Group Inc., a Florida-based construction company, has agreed to pay 38 employees working at various Hawaii locations $173,320 after a U.S. Department of Labor Wage and Hour Division investigation found Fair Labor Standards Act (FLSA) overtime pay violations.

Operating with offices in Kailua Kona and in Palm Harbor, Florida, Neptune Construction serves the entire U.S. and specializes in remodeling and renovation of hotel properties.

Wage and Hour Division investigators found that Neptune Construction Group Inc. paid 19 employees straight time for their overtime hours after inaccurately considering them to be independent contractors instead of employees. The company also misapplied an exemption from the law’s overtime requirements intended to apply to salaried managers to another 19 employees, resulting in additional overtime violations.

“Employees depend on receiving the wages they have rightfully earned,” said Terrence Trotter, Wage and Hour Division District Director in Honolulu. “Wage violations can be avoided when employers understand the rules. We encourage employers to contact us for guidance so they can avoid violations. The Department of Labor offers many tools to help employers comply.”

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/.

FOLEY, AL – After a U.S. Department of Labor Wage and Hour Division investigation, the U.S. District Court for the Southern District of Alabama has ordered Riviera Stoneworks Inc., Hood’s Discount Home Center of Foley Inc., and Michael J. Hood, the operator of both companies, to pay $28,307 in back wages and liquidated damages to 28 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Division investigators found that Riviera Stoneworks failed to pay employees required overtime when they worked more than 40 hours in a workweek. The Division determined that when employees worked overtime, the employer paid them with two separate checks, both at straight time. One check - from Riviera Stoneworks’ payroll account - covered the first 40 hours, while any hours worked beyond 40 were paid in a separate check, at straight-time from the Hood’s Discount Center payroll account. None of the Riviera Stoneworks employees ever worked at Hood’s Discount Center. Additionally, the employer violated recordkeeping requirements when it failed to display required FLSA posters in conspicuous locations for employees’ reference.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Kenneth Stripling, Wage and Hour Division District Director in Birmingham. “We are determined to ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do.”

The employer has paid the back wages and damages. Riviera Stoneworks manufactures pavers and architectural pre-cast products distributed at Hood’s Discount Home Center locations in Foley and Gulfport, Mississippi.

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

MEMPHIS, TN – After an investigation by U.S. Department of Labor’s Wage and Hour Division, the U.S. District Court for the Western District of Tennessee has ordered Capital Construction Inc. and its owner, Justin B. Herter, to pay $188,244 in back wages and liquidated damages to 37 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Division investigators found that Capital Construction Inc. - a general contractor based in Collierville - failed to pay employees required overtime for hours they worked beyond 40 in a work week. The employer incorrectly considered some workers to be independent contractors rather than employees, creating overtime violations when the inaccurate classification resulted in Capital Construction Inc. paying the employees straight-time rates instead of the time-and-one-half required for overtime. The employer paid some employees with a company check or direct deposit for their first 40 hours each work week and then paid overtime hours in cash, at straight-time. Investigators also found the employer paid other employees completely in cash, off the books, for all of their hours and denied overtime. In addition, the company failed to maintain accurate payroll records, and failed to post FLSA posters for employees’ reference, as required.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “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.”

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.

HUNTSVILLE, AL – After a U.S. Department of Labor Wage and Hour Division investigation, a Huntsville, Alabama, security company and two subcontractors will pay $1,184,722 in back wages to 236 employees after a U.S. Department of Labor investigation found the companies violated provisions of the Fair Labor Standards Act (FLSA), Service Contract Act (SCA), and the Contract Work Hours and Safety Standards Act (CWHSSA).

Division investigators determined that ManTech International Corp. and its subcontractors, Systems Development Corp. and Bevilacqua Research Corp., violated the SCA by paying employees rates and benefits less than those required by law. In addition, the companies violated the CWHSSA by not paying the employees time and one half their regular rates of pay for hours they worked beyond 40 in a workweek.

Investigators also found that Systems Development and Bevilacqua Research both violated the FLSA by failing to record any hours employees worked beyond 40 per workweek as overtime hours in the payroll records.

“No contractor should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage contract,” said Kenneth Stripling, Wage and Hour Division District Director in Birmingham. “Not only does this practice undercut what the workers involved are legally owed, it results in unfair competition for contractors who play by the rules.”

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, CWHSSA, 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 which allows users to determine if you are owed back wages collected by the Division.