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

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.