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/.

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/.