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

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.