KIHEI, HI – After a U.S. Department of Labor Wage and Hour Division investigation, Piilani Gardens LLC, based in Kihei will pay $84,136 in overtime back wages to 22 employees performing maintenance and landscaping activities on Maui to resolve federal overtime pay and recordkeeping violations of the Fair Labor Standards Act (FLSA).

Division investigators determined Piilani Gardens LLC, doing business as Piilani Gardens Apartments, paid employees who resided at the complex straight-time rates when they worked overtime, rather than paying time-and-one half for those hours as the law requires. Additionally, the employer exceeded legal limits to a credit it claimed toward its payroll obligations for providing housing to employees.

“The resolution of this case protects workers and helps level the playing field so that employers that follow the rules do not face unfair competition,” said Division District Director Terence Trotter, in Honolulu. “We urge all employers to use the many tools our agency offers to avoid violations and to comply with the law.”

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/.

SOLEDAD, CA – Following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Future Ag Management Inc. – a Soledad, California-based farm labor contractor – will pay $168,082 in penalties to resolve Migrant and Seasonal Agricultural Worker Protection Act (MSPA) violations that posed a direct and imminent threat to its employees. 

WHD investigators found Future Ag Management Inc. provided housing with illegal and substandard conditions to agricultural workers during lettuce and cauliflower harvests in Monterey County during the summer of 2017. The contractor housed 22 employees illegally in facilities that failed to offer the minimum square footage required per person. The employer also provided only one shower and sink to the 22 employees, fewer than required by law. Restroom facilities were found to be unsanitary and infested with insects. In addition to the dangerous overcrowding and unsanitary conditions, local health authorities also determined that the water provided to the workers by the employer for washing and drinking was unsafe for human consumption.

Upon discovery, the workers were immediately placed in hotels until adequate housing could be secured for the remainder of the harvest season.

“The living conditions we found in this investigation can only be described as inhumane,” said Susana Blanco, Wage and Hour Division District Director in San Francisco. “The Department of Labor remains committed to ensuring the wages and welfare of agricultural workers through our enforcement efforts, and through our ongoing educational efforts for employers in this industry.”

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/.

BOSTON, MA – In connection with a lawsuit brought by the U.S. Department of Labor’s Wage and Hour Division (WHD), the owners of several Boston, Massachusetts, pizza restaurants have agreed to a preliminary order enjoining them from retaliating against employees or former employees, and from instructing employees not to speak with or to lie to U.S. Department of Labor investigators.

The preliminary injunction by the U.S. District Court for the District of Massachusetts prohibits Papantoniadis Pizza Inc.; Athenian Enterprises Inc.; and their owners, Stavros “Steve” Papantoniadis and Polyxeny “Paulina” Papantoniadis, from violating the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA). The Department sought the injunction to halt violations that have continued to occur after it sued the restaurants in March 2017 following an investigation by the WHD.

The Department’s lawsuit alleges that the defendants failed to pay proper overtime to 120 employees by either paying them straight time for overtime hours, or by not paying them at all for hours they worked beyond 40 in a week. The lawsuit further alleges that the employer failed to pay the minimum wage to six employees, and employed a 16- and 17-year-old employee as delivery drivers – a prohibited occupation for minors. In addition, the restaurant owners failed to keep accurate pay records, paid employees in cash off the books, misrepresented employees’ pay rates, and falsified time records.

The injunction requires the defendants to post a statement for employees – in English, Spanish, Portuguese, Arabic, and Greek – detailing the injunction, their rights under the FLSA, and the prohibitions against their employer retaliating against them or coercing them into making false statements. The injunction further allows a Department representative to read the statement aloud to the employees.

“We pursued this action to stop violations that continued despite our lawsuit, to ensure these employees are paid what they have earned, and to level the economic playing field for employers who obey the law,” said Wage and Hour Division District Director Carlos Matos, in Boston.

“This injunction sends a strong message to the public and to employers,” said Merle Hyman, Counsel for Wage and Hour Programs in the office of the Regional Solicitor of Labor. “The U.S. Department of Labor will continue to use all the tools at its disposal to resolve situations where employers deny employees proper pay, falsify records, or retaliate against their employees.”

The Division’s Boston District Office conducted the investigation. Senior Trial Attorney Scott Miller of the Boston Regional Office of the Solicitor is litigating the case for the Division. The defendants consented to the injunction without admitting or denying liability.

For more information about the FLSA or any of the federal wage laws administered by the Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Boston District Office at 617-624-6700. Information also is available at http://www.dol.gov/whd.  

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Acosta v. Papantoniadis Pizza Inc. d/b/a Stash’s Pizza; Athenian Enterprises Inc., d/b/a Stash’s Pizza; Boston Pizza Co., LLC; Weymouth Co. LLC; Stavros “Steve” Papantoniadis; and Polyxeny “Paulina” Papantoniadis.

Civil Action Number:  1:17-cv-10500-ADB

FORT LAUDERDALE, FL – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Fort Lauderdale window and door installation contractor ADCO Installers LLC will pay $103,608 in back wages to 35 employees. WHD investigators found the employer violated overtime provisions of the Fair Labor Standards Act (FLSA).

Investigators determined ADCO Installers LLC paid employees straight-time rates, instead of the required time-and-one-half, for hours they worked over 40 in a work week.

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

For more information about the FLSA and other laws enforced by WHD, 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.

MIAMI, FL – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, Cartagena’s Inc., a Miami-based commercial aircraft paint contractor, will pay $54,704 in back wages to 31 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found Cartagena’s Inc. failed to include time employees spent traveling between job sites when determining how many hours they had worked.  Doing so created overtime violations when these unpaid hours occurred in workweeks longer than 40 hours. The employer also incorrectly considered workers to be independent contractors rather than employees, which created additional overtime violations when the inaccurate classification resulted in Cartagena’s Inc. paying employees straight-time rates for their overtime hours. The company also failed to keep accurate time records of the hours employees worked, resulting in FLSA recordkeeping violations.

“When employers fail to pay employees the wages they have legally earned, it harms employees and also allows those companies to gain an unfair advantage over their law-abiding competitors,” said Tony Pham, Wage and Hour Division District Director. “We encourage employers to contact us with any questions they may have, and to use the wide variety of tools we offer to help them understand their obligations and to comply with the law.”

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.

GRAND RAPIDS, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), WM Limited Partnership-1998, a Grand Rapids-based franchisee of 53 Wendy’s Restaurants, has paid $258,249 in civil money penalties for child labor violations of the Fair Labor Standards Act (FLSA) at all 53 of its Michigan restaurants.

WHD investigators determined WM Limited Partnership-1998, which does business as Wendy’s of Michigan, permitted three 14- and 15-year-old employees to operate manual deep fryers and 422 minors to work more than 3 hours on school days or more than 8 hours on non-school days in violation of the child labor provisions of the FLSA.

“Employment standards for 14- and 15-year-olds ensure minors gain a positive work experience that does not interfere with their education, health, and well-being,” said Mary O’Rourke, Wage and Hour District Director in Grand Rapids. “Child labor violations can be avoided when employers understand the rules. We encourage employers to contact us for guidance, and use the wide variety of tools we offer to help them comply with the law.”

WM Limited Partnership has agreed to train store managers and frontline supervisors on child labor laws, conduct regular payroll audits to monitor the work hours of minors, improve time-keeping practices, and require minor employees to wear special shirts, hats, or other identifying markers to help management easily identify them at work.

For more information about the FLSA, child labor provisions and other laws enforced by WHD, 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.

ERLANGER, KY – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Erlanger-based plumbing contractor D&B Plumbing has paid $73,470 in back wages, overtime, and fringe benefits to eight employees. Investigators determined the company violated labor provisions of the Davis-Bacon and Related Acts (DBRA).

D&B Plumbing worked as a sub-contractor on a senior housing project funded by the U.S. Department of Housing and Urban Development. The DBRA requires all contractors and subcontractors performing work on federal and certain federally-funded projects to pay laborers and mechanics, including plumbers, the proper prevailing wage rates and fringe benefits as determined by the Secretary of Labor.

The Department’s investigation revealed D&B Plumbing, doing business as Signature Plumbing, misclassified employees doing the work of plumbers as laborers. The employer then paid these employees the rate applicable to laborers, which is less than the rate required for plumbers, creating the prevailing rate and fringe benefit violation. Additionally, the contractor miscalculated overtime due to workers who worked in more than one capacity and at different rates of pay for those roles. Instead of basing overtime on either the weighted average of those rates or on the rate in effect when the overtime hours were worked, the employer based their overtime calculation on the lowest hourly rate earned by the employee.  

“No contractor should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage project,” said Wage and Hour Division District Director Karen Garnett, in Louisville. “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.”

For more information about the DBRA 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/.

ANN ARBOR, MI – An investigation by the U.S. Department of Labor’s Wage and Hour Division found that Min & Kim Inc., an Ann Arbor restaurant doing business as Seoul Garden of Ann Arbor, violated the Fair Labor Standards Act (FLSA). Min & Kim Inc. was ordered by a federal court to pay $112,212 in back wages to 27 employees to resolve alleged federal wage violations, including failure to pay overtime and maintain accurate payroll and time records.

Investigators determined Min & Kim Inc. paid cooks, sushi chefs, cooks’ helpers, servers, dishwashers, and busboys a flat amount of money per day, regardless of the number of hours they worked. When employees worked beyond 40 hours in a workweek, the company failed to pay legally required overtime.

“The Department of Labor is committed to ensuring employees receive the wages they have rightfully earned, and that employers compete on a level playing field,” said Wage and Hour District Director Timolin Mitchell, in Detroit. “Employers can avoid wage violations by contacting the Wage and Hour Division for assistance to ensure they are in compliance with the Fair Labor Standards Act.”

The order by the U.S. District Court, Eastern District of Michigan, Southern Division resolves a lawsuit brought by the Department against the restaurant and its owners, Kounwoo Hur and Sung Hee Kim, to recover the wages.

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.

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Court: U.S. District Court for the Eastern District of Michigan, Ann Arbor
Docket Number: 2:15-cv-14310

TROY, MI – After a U.S. Department of Labor Wage and Hour Division investigation, Nino Salvaggio Fruit and Vegetable Markets—operator of three Detroit-area fruit and vegetable markets—has agreed to pay $135,657 in back overtime wages and interest to 212 employees to resolve a federal lawsuit.  

Investigators determined Nino Salvaggio Fruit and Vegetable Markets failed to pay employees for time they spent on rest breaks shorter than 20 minutes, as required by the Fair Labor Standards Act (FLSA). Failing to pay for this time resulted in overtime violations when employees worked more than 40 hours in a work week, as well as in recordkeeping violations when the excluded hours were not recorded. The violations affected employees at Salvaggio’s locations in Clinton Township, St. Clair Shores, and Troy.

“Employees depend on receiving the wages they have rightfully earned,” said Wage and Hour District Director Timolin Mitchell, in Detroit. “Wage violations can be avoided when employers understand the rules. We encourage employers to contact the Wage and Hour Division for guidance on laws governing rest breaks and any other requirements so they can avoid violations. The division offers many tools to help employers comply with the law.”

To resolve this matter, the employer agreed to the entry of a consent judgment issued by the U.S. District Court, Eastern District of Michigan, Southern Division.

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 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 the Eastern District of Michigan, Ann Arbor
Docket Number: 2:17-cv-14136

HAINES CITY, FL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), landscaper Southern Sod will pay $79,758 in back wages and liquidated damages to 70 employees. The WHD investigation found the company violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Investigators found Southern Sod paid employees flat rates per day, regardless of the number of hours that they worked. Overtime violations resulted when these employees worked more than 40 hours in a workweek and received only those day rates, with no overtime. This same day-rate practice also resulted in recordkeeping violations, as the employer failed to keep track of the number of hours employees worked.

“It is critical for employers to 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 Wage and Hour Division District Director James Schmidt. “We encourage all employers to make use of the many tools we provide to help them understand and comply with the law, and to contact 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/.