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.

KANSAS CITY, MO – The U.S. Department of Labor’s Wage and Hour Division (WHD) opened registration for a comprehensive compliance seminar for federal contractors, unions, and workers on the rules governing federal prevailing wage requirements. Attendance is free, but pre-registration is required.

WHD will hold the training on June 12-14 at the Holiday Inn-Country Club Plaza, One E 45th St., in Kansas City.

The three-day Prevailing Wage Seminar covers how to comply with the wage and fringe benefit requirements that apply to federal contracts and federally assisted contracts. The Davis-Bacon and Related Acts (DBRA) and McNamara-O’Hara Service Contract Act (SCA) will be discussed to familiarize those seeking federal contractors with how to obtain wage determinations and add classifications, comply with wage rules for non-displacement of qualified workers, establish a minimum wage for contractors, and if necessary, appeal wage rates.

“The training is a key component of the Wage and Hour Division’s ongoing effort to foster good jobs through increased awareness and enhanced compliance of federal prevailing wage requirements,” said Ruben Rosalez, acting Wage and Hour Administrator in Chicago.

Seminar attendees should check-in from 8 a.m. to 9 a.m. on June 12. The program begins each day at 9 a.m. and ends at 5:30 p.m. on Tuesday and Wednesday; the program will end at 4 p.m. on Thursday.  

Registration can be completed through the online link at Prevailing Wage Seminar- Kansas City Registration.

For more information on the DBRA, SCA, 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 http://dol.gov/whd.

STERLING HEIGHTS, MI – Following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Metropolitan Concrete Corp. will pay $73,647 in back wages to 15 employees working under the H-2B non-immigrant visa program, which provides for the admission of non-immigrants to the U.S. to perform temporary non-agricultural labor or services.

WHD investigators found the Sterling Heights-based company classified the H-2B employees improperly as landscapers. The investigation determined the H-2B employees actually worked as cement masons and concrete finishers, and as such, the employer should have paid them at a higher prevailing wage rate. The company also should have advertised the position to potential U.S. workers using the correct job classification and prevailing wage rate, as required by the H-2B provisions of the Immigration and Nationality Act. Failing to do so may have resulted in fewer U.S. workers applying for the positions than would have occurred if the employer advertised accurate information.

“The H-2B program safeguards American employees against displacement and also protects vulnerable foreign workers from being paid less than the prevailing wage or otherwise working under substandard conditions,” said Timolin Mitchell, Wage and Hour District Director in Detroit. “This case demonstrates our commitment to ensuring all workers are paid what they have legally earned and to leveling the playing field for law-abiding employers.  Employers with questions about guest worker programs are encouraged to reach out to us for information and compliance assistance.”

Investigators also found Metropolitan Concrete failed to comply with requirements to pay the employees’ inbound transportation costs and to provide workers with the tools, supplies, or equipment they need to perform their job duties. The company also took impermissible deductions from workers’ pay for housing expenses. In addition to the payment of back wages, the Division assessed $29,161 in civil money penalties.

For more information about the H-2B immigrant visa program and other laws enforced by the 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.

LOS ANGELES, CA – The U.S. District Court for the Central District of California has ordered Gary Tetone, owner of Southern California-based company GT Drywall, to comply with U.S. Department of Labor investigators in a long-running Wage and Hour Division (WHD) investigation with which he has refused to cooperate since 2016.

WHD issued a subpoena to GT Drywall in Chino Hills and Tetone in November 2016, as part of its investigation of potential wage violations. Tetone has refused to provide a single document and has delayed the U.S. Department of Labor’s actions to secure his compliance since then. The Department’s Office of the Solicitor obtained a warrant for his arrest, which law enforcement officers carried out in February 2018.

Following Tetone’s arrest and incarceration, federal Judge Jesus Bernal released him and ordered him to furnish the documents requested in the subpoena to WHD within 14 days, and to meet with WHD investigators as many times as necessary in the following 28 days to answer questions.

Judge Bernal admonished Tetone, informing him that failure to abide by these conditions would result in the court issuing another warrant for his arrest. The court deferred to a later date enforcement of the more than $48,000 in contempt penalties and $5,200 in attorney’s fees owed by Tetone.

“The court has put this case on the path to closure,” said Janet Herold, the Department of Labor’s Regional Solicitor. “Tetone has been refusing to produce documents necessary for the Department to complete its investigation. “The U.S. Department of Labor takes all of its investigations seriously, and we expect employers like Tetone to do the same.”

Tetone has ignored numerous orders by the court, as well as multiple letters from the Department. He has also evaded service of process throughout the subpoena enforcement action in federal court. At one point, Tetone lied about his identity to WHD investigators who attempted to serve him with the Secretary of Labor’s enforcement petition, claiming to be a “pool guy” hired to work at his residence. Given his refusal to cooperate with the court’s order enforcing the Department’s subpoena, the court found Tetone and his company in contempt, and imposed a daily fine of $500 until both complied with the subpoena.

Workers and employers with questions about the Fair Labor Standards Act 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).

BLUEFIELD, WV - The U.S. District Court for the Southern District of West Virginia has entered a consent judgment requiring Lambert Construction of Bluefield Inc. to pay $116,818 in back wages and liquidated damages to 45 employees. Additionally, the Bluefield, West Virginia, construction company will pay $16,000 in civil penalties to resolve overtime violations of the Fair Labor Standards Act (FLSA) found in a U.S. Department of Labor investigation.

The action comes after the Department’s Wage and Hour Division found Lambert Construction of Bluefield Inc., doing business as Lambert Construction; ELL Real Estate LLC; and owner Alex Lambert failed to pay employees overtime when they worked more than 40 hours in a workweek. To create the appearance that overtime had not been worked, the firm paid employees with two separate checks each week, splitting hours between two payroll accounts within their business so that each check reflected fewer than 40 hours. Citing the willfulness of the violations, the judgment also assessed the civil penalties.

In addition to paying the back wages, damages, and penalties, the consent judgment permanently enjoins the companies and Lambert from violating the FLSA in the future.

“This settlement not only ensures Lambert’s employees will receive all of the wages they rightfully earned, it also levels the playing field for law-abiding employers,” said Catherine Glencoe, Wage and Hour Assistant Director in Charleston.

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 work week.

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 the Division collects.

LOS ANGELES, CA – Following a U.S. Department of Labor investigation that found overtime and minimum wage violations, prompting the Department to invoke a “hot goods” legal action, the U.S. District Court for the Central District of California has issued a temporary restraining order to prevent a Los Angeles garment manufacturer from shipping clothes to retailer Charlotte Russe.

Division investigators notified garment manufacturer RK Apparel Inc. that they found widespread violations of the Fair Labor Standards Act (FLSA), which rendered the garments manufactured and assembled by those workers hot goods unfit for shipment or sale through interstate commerce. The company advised the Department that it would not ship the hot goods, but then proceeded to ship a batch of the hot goods clothing to Charlotte Ruse.

Division investigators found that RK Apparel’s contractor HDK Ave. Inc. paid its employees well below the federal minimum wage of $7.25 per hour, with some receiving pay as low as $4 per hour. The employer required employees to work up to 58 hours per week but paid them only a piece rate, earning a flat amount per garment produced, and did not pay overtime when they worked more than 40 hours in a work week, as required by federal law.

“Whenever goods are produced in violation of the FLSA’s minimum wage, overtime, or child labor provisions, the U.S. Department of Labor can restrain those goods from being shipped in interstate commerce. This action is commonly referred to as invoking the ‘hot goods’ provision,” said Janet Herold, Regional Solicitor in Los Angeles. “Today’s action demonstrates that we will use all of the tools provided by law to ensure that employees receive the pay they have legally earned and that law-abiding employers are not undercut by unfair competition.”

Employees and employers with questions about the Fair Labor Standards Act 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.