GUAYNABO, PR – The U.S. Department of Labor’s Wage and Hour Division will be on St. Croix and St. Thomas through March 21 to investigate wage issues and provide compliance assistance related to work done in connection with recovery efforts following Hurricanes Maria and Irma.

The Wage and Hour Division will investigate 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 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 the representative, have questions or concerns, or wish to file a complaint, should contact the Division’s Caribbean District Office at 787-775-1947 or 1-866-4-USWAGE, or by email.   All contacts are confidential.

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 the Division.

ATLANTA, GA – After a U.S. Department of Labor Wage and Hour Division investigation, two Marietta-based hotels have paid $73,732 in back wages and liquidated damages to 14 employees for violating minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The Division’s investigators determined that Swami Hospitality Corp. Super 8 Hotel - doing business as Super 8 Hotel - and Swami I Hospitality Corp. Ramada Inn - doing business as Limited Suites - paid housekeepers a flat amount per each room cleaned without regard to how many hours they worked. This practice resulted in minimum wage violations when that flat amount yielded less than the federal minimum wage of $7.25 per hour, and in overtime violations when these employees worked more than 40 hours per week with no additional overtime pay.

Division investigators also found additional overtime violations when the employer paid front desk staff straight time for overtime hours and, in one case, paid an employee only for 40 hours each week regardless of how many additional hours the employee worked.  

“Employers must understand their obligations and responsibilities under the law. Simply because a pay practice may appear to be common in a particular industry does not, in any way, mean that it complies with the law,” said Jeffrey Genkos, Wage and Hour Division District Director in Atlanta. “The Department of Labor encourages all employers to make use of the many tools the Department 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 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.

ATLANTA, GA – The U.S. Department of Labor’s Wage and Hour Division is conducting a survey of wages paid to workers in 74 metropolitan Georgia counties on all active building and heavy construction projects to establish prevailing wage rates required under the Davis-Bacon and Related Acts (DBRA).

The Division seeks data from employers and interested parties on wages paid to building and heavy construction workers from Nov. 1, 2016, through Oct. 31, 2017. This survey is not limited to federally funded construction projects. See a map of counties included in the survey.

“Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers where the work takes place,” said Wayne Kotowski, Wage and Hour Division Regional Administrator. “The U.S. Department of Labor can accomplish this only with strong participation by the construction industry communities in these 74 Georgia counties.”    

Without significant employer participation, wage rates may not reflect actual wages or create incomplete wage determinations, which lead to more requests for further classifications. Wage data should be submitted for all projects meeting the criteria, regardless of funding sources.

Notification letters and “WD-10” data collection forms are being sent to interested parties and contractors known to the Wage and Hour Division by mid-March, yet all that meet the criteria are invited to participate. Data must be postmarked by Sept. 30, 2018, to be included in the survey. Complete the survey electronically.

For questions regarding the survey process, including how to participate, contact Kim Chu, Supervisory Wage Analyst for the Southeast Wage Determinations Survey Branch of the Wage and Hour Division, at (678) 237-0488.

HOUSTON, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, a Houston-based pool construction company, South Bay Gunite Inc., will pay $115,786 in back wages to 68 employees to resolve violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Wage and Hour Division investigators found South Bay Gunite Inc. violated the overtime provision of the FLSA when it paid employees flat salaries per week or flat rates per job completed without regard to the number of hours they had worked.  This practice created overtime violations when drivers, mechanics, finishers, and others worked more than 40 hours in a workweek without being paid additional overtime. The company violated recordkeeping requirements by failing to maintain accurate records of the number of hours employees worked each day and each week.

“Employers have a responsibility to keep track of the hours their employees work, and to pay workers the wages and overtime they are owed,” said Betty Campbell, Wage and Hour Division Southwest Regional Administrator. “The Department of Labor is committed to proactively educating employers about the requirements of the law, and to providing the tools they need to comply. The Department’s combination of enforcement and compliance activities protect workers and level the playing field for law abiding employers.”

Workers 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/.

WASHINGTON, D.C. – The Wage and Hour Division of the U.S. Department of Labor is announcing a new pilot program, the Payroll Audit Independent Determination (PAID) program, which expedites resolution of inadvertent overtime and minimum wage violations under the Fair Labor Standards Act.

The PAID program will ensure that more employees receive back wages they are owed—faster.  Employees will receive 100 percent of the back wages paid, without having to pay any litigation expenses, attorneys’ fees, or other costs that may be applicable to private actions. 

The PAID program facilitates resolution of potential violations, without litigation, and ensures employees promptly receive the wages they are owed.  Under this program, the Wage and Hour Division will oversee resolution of the potential violations by assessing the amount of wages due and supervising their payment to employees.

The Division will not impose penalties or liquidated damages to finalize a settlement for employers who choose to participate in the PAID program and proactively work with the Division to fix and resolve their potential compensation errors.  Employers may not participate in the PAID program if they are in litigation or currently under investigation by the Division for the practices at issue.  Employers likewise cannot use the pilot program repeatedly to resolve the same potential violations, as this program is designed to identify and correct potentially non-compliant practices.  Settlements will be limited in scope to only the potential violations at issue.  The program further requires employers to review the Division’s compliance assistance materials, carefully audit their pay practices, and agree to correct the pay practices at issue going forward.  These requirements improve the employers’ compliance with their minimum wage and overtime obligations, which helps ensure employees’ rights are protected. 

The Division will implement the pilot program nationwide for approximately six months, after which it will evaluate the pilot program and consider future options.  The Division encourages employers to proactively audit their compensation practices to identify potential non-compliant practices.  More information concerning the pilot program is available at www.dol.gov/whd/paid.  It is the mission of the Division to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce.

HONOLULU, HI – The U.S. Department of Labor has finalized a series of settlements with contractors on Saipan in the Commonwealth of the Northern Mariana Islands that will pay a collective $13.9 million in back wages and damages to thousands of employees who came from China to build the Saipan Casino and Hotel on the island.

Investigators with the Department’s Wage and Hour Division determined that the foreign-based construction contractors paid their workforce less than the minimum wage and overtime pay required by the Fair Labor Standards Act (FLSA). Four China-based construction contractors – MCC International Saipan Ltd. Co., Beilida New Materials System Engineering Co. Ltd., Gold Mantis Construction Decoration, and Sino Great Wall International Engineering Co. LLC – have entered into formal agreements to pay $13,972,425 in back wages and liquidated damages to more than 2,400 employees.

MCC, Beilida and Gold Mantis also employed workers brought to Saipan as “tourists” from China under a tourist visa waiver program offered by the Commonwealth of the Northern Mariana Islands. These Chinese “tourists” worked at the casino job site without proper work visas. In addition to being paid in violation of the minimum wage and overtime requirements, these workers also incurred debt of $6,000 or more when they were required to pay their own airfare and recruitment fees prior to their employment on Saipan.

“These settlements ensure that thousands of workers will receive the wages they legally earned, while simultaneously sending a strong, clear message to other employers,” said Wage and Hour Acting Administrator Bryan Jarrett. “Employers who evade the law in an attempt to reduce expenses must not gain a competitive advantage over those who play by the rules.  Regardless of where work is performed in the U.S. or its territories, we will continue to enforce the law and level the playing field.”

“As the Department of Labor works to prevent visa fraud and abuse, this case represents an example of the Department’s strong commitment to protecting the American workforce by enforcing the law,” said U.S. Secretary of Labor Alexander Acosta.

Imperial Pacific International contracted with various China-based companies for the construction of its Saipan Casino and Hotel project. These settlements resolve a portion of the Wage and Hour Division’s wide-ranging investigation into the ongoing casino and hotel project.

The Department’s Office of the Solicitor negotiated the settlements.

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 – The U.S. Department of Labor has filed suit against a northern Washington berry farm for violating the labor provisions of the H-2A visa program. Sakuma Brothers Farms Inc. and the Washington State Farm Labor Association have been assessed $124,575 in civil money penalties and an additional $9,599 for failing to pay back wages to an eligible U.S. worker who was not hired and to workers who drove the buses that transported workers to the farm.

Investigators with the Department’s Wage and Hour Division found that Sakuma Brothers Farms committed violations of the H-2A visa program. The Department’s Office of the Solicitor (SOL) subsequently filed the lawsuit with the Office of Administrative Law Judges, an administrative trial court for the Department.

The Department alleges Sakuma Brothers Farms gave unlawful preferential treatment to temporary foreign agricultural workers who were brought to the U.S. as part of the H-2A visa program. Sakuma Brothers Farms charged U.S. workers for housing deposits for which it did not charge the H-2A workers, did not provide U.S. workers with household goods that were free for foreign workers, and did not provide U.S. workers with the same transportation to the fields that it provided to the foreign workers. The investigation also found the farm illegally rejected qualified U.S. applicants for the jobs they gave to the H-2A workers. Further, the housing provided to the workers was not maintained to meet the standards required by the Occupational Safety and Health Act.

“This lawsuit reflects the Department’s commitment to strictly enforce our nation’s immigration rules that protect both U.S. and workers part of the visa programs,” said Regional Solicitor of Labor Janet Herold. “While this farm has taken steps to correct its practices, we seek to hold accountable those who unlawfully discriminate against American workers.”   

Since the Department’s investigation and following parallel actions brought by a legal services organization, the farm has changed its employment practices and no longer participates in the H-2A program.

Employees and employers with questions about the H-2A Visa Program or any of the federal wage laws administered by the Wage and Hour 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/.

NEWARK, NJ – After a U.S. Department of Labor Wage and Hour Division investigation, AWAB Transport Inc., a Newark medical transportation company, will pay $77,202 in back wages and an equal amount in liquidated damages to 38 employees to resolve violations of the overtime provisions of the Fair Labor Standards Act (FLSA).

The Division’s investigators found AWAB Transport Inc., doing business as AWAB Medical Transport, paid drivers a flat rate per day, without regard to the number of hours that they worked. This resulted in overtime violations when employees worked more than 40 hours in a workweek with no overtime premium. The company also failed to pay overtime to salaried employees who did not qualify for an exemption from overtime requirements as supervisory or administrative employees.

“The Department of Labor is committed to ensuring that employees receive the wages they earn for all the hours they have worked,” said John Warner, Wage and Hour Division District Director in Mountainside. “A resolution like this demonstrates the U.S. Department of Labor’s commitment to protect employees, as well as its determination to level the playing field for law-abiding employers.”

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.

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 a U.S. Department of Labor Wage and Hour Division investigation, Empire Packing LP, a Memphis meat cutting and packing company, will pay $127,830 in back wages and liquidated damages to 272 employees for violating overtime provisions of the Fair Labor Standards Act (FLSA).

The Division’s investigation determined that Empire Packing LP – doing business as Ledbetter Packing Co. – required each of its employees working in the pork, ground beef, and fillet departments to end their lunch breaks five minutes early and return to work – without pay – to wash their hands, stand in a foot bath, and dress in required uniform items such as hair nets and smocks. The accumulation of this uncompensated time each week resulted in overtime violations for employees who worked more than 40 hours.  

“The U.S. Department of Labor is committed to ensuring that employees receive wages they have legally earned for all hours they have worked,” said Division District Director Nettie Lewis, in Nashville. “The outcome of this investigation serves as a reminder to all employers to review their pay practices to confirm they are complying with the law. The Department will continue to work to level 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 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 WHD.

ESTILL SPRINGS, TN – After a U.S. Department of Labor Wage and Hour Division investigation, Tinsley Asphalt LLC, a Tennessee paving company, will pay $77,467 in back wages to 43 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that the Estill Springs-based company paid drivers their regular hourly rate regardless of how many hours they worked. Overtime violations resulted when these employees worked more than 40 hours in a workweek and received only their regular hourly rate, with no overtime. Tinsley Asphalt LLC failed to maintain or provide records showing the actual hours employees worked.

“The U.S. Department of Labor is committed to ensuring that all employees receive proper wages for all hours they have worked,” said Wage and Hour District Director Nettie Lewis, in Nashville. “The outcome of this investigation serves as a reminder to all employers to review their pay practices to confirm that workers are being paid according to the law. The Department will continue its work to level the playing field for employers who play by the rules, and to provide the tools to help all employers comply.”

For more information about the FLSA 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 Division.