BIRMINGHAM, AL – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, Taziki’s Restaurants LLC – which operates 14 restaurants in Alabama, Georgia, and Virginia – has paid $135,844 to 26 employees to resolve violations of overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Investigators found the restaurant chain – doing business as Taziki’s Mediterranean Café – failed to combine the hours that individual employees worked at multiple locations in the same workweek to determine whether overtime was due. Instead, the employer paid each employee with multiple paychecks corresponding to each location. This practice resulted in failure to pay overtime when an employee’s combined hours totaled more than 40 in a workweek.

Investigators also found that Taziki’s Restaurants LLC failed to pay workers for time they spent traveling between restaurants to perform work. This exclusion of work time from the payroll created a record keeping violation, and these previously unrecorded hours also resulted in additional overtime found due.  

“The resolution of this case puts these wages into the hands of those who earned them, and demonstrates how Department of Labor enforcement levels the playing field for law-abiding employers,” said Kenneth Stripling, Wage and Hour Division District Director. “We encourage all employers to make use of the many tools our agency offers to help them understand their obligations and to avoid violations.”

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.

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Editor’s Note: This news release has been updated to show that the back wages have been paid.

JENKINTOWN, PA – Following an investigation by the U.S. Department of Labor’s Wage and Hour Division, the U.S. District Court for the Eastern District of Pennsylvania has entered a consent judgment ordering Jenkintown-based Metro Kitchen Bar Inc. and its owner to pay $25,902 in back wages and an equal amount in liquidated damages to 50 employees. Investigators found that Metro Kitchen Bar Inc. – doing business as Drake Tavern – and its owner Zachary Hulayev willfully violated the Fair Labor Standards Act’s (FLSA) minimum wage, overtime, and recordkeeping provisions.

In addition to the back wages and damages, the Department also assessed the employer a penalty in the amount of $15,120 for child labor violations, and for the willful nature of the monetary violations.

The defendants failed to pay some employees overtime at one-and-one-half times their regular rates of pay when they worked more than 40 hours in a workweek. Specifically, the employer failed to pay “back of the house” employees such as cooks, dishwashers, and prep cooks overtime as a result of regular and recurring management overrides of employee time records that reduced their hours to below 40 per week.

Investigators also found violations when the defendants made deductions for the cost of uniforms from the pay of tipped employees, resulting in their pay falling below the minimum wage. Additionally, the investigation found recordkeeping violations because of regularly altered time records and failure to maintain accurate records of hours worked. The defendants also violated federal child labor requirements by permitting two 15-year-old employees to work beyond permitted hours.

“This resolution secures proper compensation for these hard-working employees, and helps ensure that the law will be followed in the future,” said Wage and Hour District Director James Cain, in Philadelphia.

“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.

View the complaint and consent judgment.

The Wage and Hour Division is committed to providing employers with the tools they need to assist them in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. Materials are available in a variety of languages. The division offers useful resources ranging from an interactive E-laws advisor to a complete library of free, downloadable workplace posters. In addition, the Division’s Community Outreach and Resource Planning Specialists conduct ongoing outreach activities to educate stakeholders, including employers, employees, business and labor groups, and professional associations, among others, with accessible, easy-to-understand information about their rights and responsibilities.

For more information about the FLSA and other federal wage laws, call the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.

Acosta v. Metro Kitchen Bar, Inc. d/b/a Drake tavern and Zachary Hulayev

Civil Action Number: 2:18-cv-00477-MAK

ST. PETERSBURG, FL – After an investigation by the Department of Labor’s Wage and Hour Division, Palm Shores Retirement Community Inc. will pay $181,663 in back wages to 454 employees for violating the overtime provisions of the Fair Labor Standards Act (FLSA).

Investigators found that the company’s St. Petersburg location failed to pay the required overtime premium to employees who were involved in the evacuation and subsequent care of residents during and immediately after Hurricane Irma. The employer failed to pay these workers for all of their hours when they worked 24-hour shifts without sleep.

Investigators further identified overtime violations that occurred in all 19 of the employer’s Florida locations.  Specifically, the employer failed to include some bonus payments made to marketing and activities employees when calculating overtime pay rates, resulting in rates being lower than what the law requires.  Additionally, the employer’s exclusion of travel time from some workers’ hours created additional overtime violations.

“The Wage and Hour Division 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 James Schmidt. “Resolutions like the one in this case demonstrate the Department of Labor’s commitment to workers as well as its determination to leveling the playing field for law-abiding employers.”

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.

MANVEL, TX – After an investigation by the Department of Labor’s Wage and Hour Division, Redman Communications Inc. will pay $63,132 in back wages and an equal amount in liquidated damages to 53 employees to resolve violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Redman Communications violated the overtime provision of the FLSA when it paid its non-exempt drivers straight time wages for overtime hours worked. The company violated recordkeeping provisions by failing to maintain complete and accurate pay and time records of daily hours worked by employees.

“These employees will now receive the wages they rightfully earned,” said Wage and Hour Division Southwest Regional Administrator Betty Campbell. “The Division is committed to proactively educating employers and employees about the requirements of the law. We encourage anyone who wants to learn more to visit our website or to contact their local Wage and Hour Division office today.”

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/.

HOUSTON, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, DC Broadway Inc. – operator of Don Carlos Mexican Restaurants – will pay $97,080 in back wages and an equal amount in liquidated damages to 24 employees to resolve violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Investigators found that when employees worked at more than one of the employer’s locations in the same workweek, DC Broadway failed to combine those hours to determine if the employee had worked more than 40 hours total, requiring overtime payment. The employer also violated recordkeeping provisions when it failed to maintain a record of the hours worked by one part-time employee who was paid a flat rate.

“Employers that pay employees less than what they have legally earned short change their workers and gain an unfair advantage over competitors that abide by the law,” said Betty Campbell, Southwest Regional Administrator for the Wage and Hour Division. “We are committed to helping employers understand their obligations, and encourage employers and employees alike to reach out to us for guidance or assistance.”

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/.

SAN FRANCISCO, CA – Following a U.S. Department of Labor investigation, Laura and Carole Nobis – owners of Nobis Care Homes – have paid $194,275 in back wages to 13 caregivers and cooks to resolve Fair Labor Standards Act (FLSA) violations.  

Investigators with the Department’s Wage and Hour Division found that Laura and Carole Nobis failed to pay employees for hours they worked beyond 40 in a work week. The Department’s investigation found that the employees regularly worked an average of 60 hours per week, but payroll records showed workers were paid only for 40 hours.

“This investigation demonstrates our determination to ensure that employees receive their rightfully earned wages,” said the Department’s Wage and Hour Division District Director Susana Blanco, in San Francisco.  “We are also committed to protecting workers and leveling the playing field to prevent employers that violate the law from gaining an unfair competitive advantage over those that play by the rules.”

The San Mateo County District Attorney’s Office opened a separate criminal investigation of Nobis Care Homes for worker’s compensation fraud associated with the company’s failure to accurately report the number of employees working. The criminal case resulted in Nobis paying additional penalties to the California Employment Development Department and other state agencies.

Nobis Care Homes is a residential care company serving elderly clients. The company operates one home in South San Francisco, one in San Francisco, and three in San Bruno.

The FLSA requires that employees receive one-and-one-half times their regular rates of pay when they work more than 40 hours in a work week and that employers maintain adequate and accurate records of employees’ wages and work hours.

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/.

LANSDOWNE, PA – Following a U.S. Department of Labor’s Wage and Hour Division investigation, a U.S. District Court judge has issued a temporary restraining order prohibiting Lansdowne-based Central Laundry Inc. from transporting, shipping, or delivering goods across state lines that were produced by employees not paid legally required federal minimum wage and overtime rates. A preliminary injunction hearing is scheduled for today. 

Central Laundry Inc. does business as Olympic Linen and Liberty Laundry.

Division investigators determined that from Sept. 8, 2017, through at least Jan. 13, 2018, the company bounced payroll checks and paid some employees in cash at rates below those required by the Fair Labor Standards Act (FLSA). The Department of Labor’s filing requesting a temporary restraining order also included allegations that the employer threatened employees with a gun when they complained about not being paid, and that the company employed minors under the age of 16 in tasks prohibited by law.

“This rapid enforcement action will ensure that repeat offenders like Central Laundry are quickly held accountable for their lack of compliance, and will help level the playing field for other employers in the industry who pay their employees properly,” said Regional Solicitor Oscar L. Hampton III.

In addition to prohibiting the interstate shipment of goods produced by labor paid in violation of the law, the temporary restraining order also prohibits Central Laundry Inc. and its owner, George Rengepes, and business operator James Rengepes from violating the FLSA’s minimum wage and overtime provisions.

The Department is currently litigating a separate action against the company, in which the court determined that the defendants willfully failed to pay laundry workers the proper minimum wage and overtime premium.

Central Laundry provides laundry service for hotel and restaurant operators in Pennsylvania, New York, New Jersey, and Delaware.

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. Employees must also maintain accurate time and payroll records. For more information about the FLSA and other federal wage laws, call the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd    

ORLANDO, FL – A U.S. Department of Labor Wage and Hour Division investigation found Orlando-based resort Vistana Management Inc. routinely changed payroll records to avoid paying employees overtime, a violation of the Fair Labor Standards Act (FLSA), resulting in $372,183 in back wages owed to 275 employees. In addition to collecting back wages, the Division assessed $41,368 in penalties against Vistana for repeat violations to the FLSA.

The investigation determined that the management of Vistana Management Inc. – doing business as Sheraton Vistana Resort – failed to record and pay accurately for all the hours that employees worked. Specifically, the employer altered time records to record fewer hours in the payroll than employees had actually worked. Managers requested that employees sign documents authorizing them to edit their clock-in and clock-out times, and to modify their timecards to reflect that employees had not worked through their lunch breaks when they had.

“The resolution of this case puts these wages into the hands of those who earned them, and demonstrates how the Department of Labor’s enforcement protects workers and levels the playing field for law-abiding employers,” said District Director for the Wage and Hour Division Daniel White, in Jacksonville. “We encourage employers to contact the Wage and Hour Division in person, by phone, or online for assistance and to learn more about their responsibilities under 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.

MANCHESTER, NH – The U.S. Department of Labor has reached settlements with Bread and Roses Bakery Inc. of Ogunquit, Maine, after the Department found the company violated terms of the H-2B nonimmigrant visa program under the Immigration and Nationality Act and the minimum wage, overtime, recordkeeping, and child labor requirements of the Fair Labor Standards Act (FLSA). Under the agreements, Bread and Roses will pay $73,115 in back wages and damages to employees, and $21,052 in penalties.

The H-2B program permits employers to hire nonimmigrant foreign workers to perform temporary nonagricultural labor or services in the United States. A Wage and Hour Division investigation found that Bread and Roses Bakery failed to comply with the H-2B program’s requirement to recruit American workers before hiring foreign workers when it provided inaccurate pay rates in advertising for counter attendants. The employer advertised rates of $8.79-to-$9.09 per hour, but actually paid the H-2B employees $10-to-$13 per hour. U.S. workers may have applied for these jobs had accurate rates been provided.

Bread and Roses Bakery also employed H-2B workers in an unapproved job classification when it hired 21 H-2B employees to work as counter attendants, but actually employed many of them as bakers. The employer also failed to pay the legally required prevailing wage to nine employees.

The investigation also found that the bakery violated the FLSA when it paid 45 employees straight time for overtime. Minimum wage violations resulted when the employer failed to reimburse 10 H-2B employees for visa expenses. Additionally, Bread and Roses employed one minor in violation of the hours’ restrictions applicable to 14- and 15-year-old employees, and failed to maintain an accurate record of the hours worked by employees.

“This case highlights our commitment to protecting U.S. workers by ensuring that employers provide them the best opportunity for employment before using nonimmigrant visa programs,” said the Department’s Wage and Hour Division Northern New England District Director Daniel Cronin.

“This agreement also demonstrates our commitment to ensuring that all workers are paid what they have earned and leveling the playing field for law-abiding employers,” said Merle Hyman, Counsel for Wage and Hour Programs in the office of the Regional Solicitor of Labor. 

The Division’s Northern New England District Office conducted the investigation. Attorney Sheila Gholkar of the Boston Regional Office of the Solicitor litigated the case for the Division.

For more information about the H-2B program, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Northern New England District Office at 603-666-7716. Information also is available at http://www.dol.gov/whd.   

SAN DIEGO, CA – The U.S. Department of Labor has reached an agreement with the owner of 10 Orange County residential care facilities to pay 72 employees a total of $173,539 for unpaid overtime.

Investigators with the Department’s Wage and Hour Division found that the owners of Verona Court – operator of residential elder care facilities in Mission Hills and Laguna Niguel – failed to pay employees for time spent working through lunch breaks and attending mandatory training. The employer also paid straight time for overtime hours instead of the federally required time-and-one-half for hours employees worked beyond 40 in a workweek. Additionally, investigators found recordkeeping violations involving inaccurate and incomplete timesheets and payroll records and a lack of records of cash payments.

“Thanks to this settlement, dozens of employees will be paid the wages they rightfully earned,” said Wage and Hour Division Director Rodolfo Cortez, in San Diego. “Working in tandem with our outreach efforts, enforcement like this helps to level the playing field for employers so that no company gains a competitive advantage in the workplace by failing to pay their employees properly.”

Verona Court operates six facilities incorporated as Mission Elder Care Inc. and four facilities incorporated as Laguna Elder Care Inc.

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/.