HOUSTON, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division, a Houston-based pool construction company, South Bay Gunite Inc., will pay $115,786 in back wages to 68 employees to resolve violations of the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Wage and Hour Division investigators found South Bay Gunite Inc. violated the overtime provision of the FLSA when it paid employees flat salaries per week or flat rates per job completed without regard to the number of hours they had worked.  This practice created overtime violations when drivers, mechanics, finishers, and others worked more than 40 hours in a workweek without being paid additional overtime. The company violated recordkeeping requirements by failing to maintain accurate records of the number of hours employees worked each day and each week.

“Employers have a responsibility to keep track of the hours their employees work, and to pay workers the wages and overtime they are owed,” said Betty Campbell, Wage and Hour Division Southwest Regional Administrator. “The Department of Labor is committed to proactively educating employers about the requirements of the law, and to providing the tools they need to comply. The Department’s combination of enforcement and compliance activities protect workers and level the playing field for law abiding employers.”

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/.

WASHINGTON, D.C. – The Wage and Hour Division of the U.S. Department of Labor is announcing a new pilot program, the Payroll Audit Independent Determination (PAID) program, which expedites resolution of inadvertent overtime and minimum wage violations under the Fair Labor Standards Act.

The PAID program will ensure that more employees receive back wages they are owed—faster.  Employees will receive 100 percent of the back wages paid, without having to pay any litigation expenses, attorneys’ fees, or other costs that may be applicable to private actions. 

The PAID program facilitates resolution of potential violations, without litigation, and ensures employees promptly receive the wages they are owed.  Under this program, the Wage and Hour Division will oversee resolution of the potential violations by assessing the amount of wages due and supervising their payment to employees.

The Division will not impose penalties or liquidated damages to finalize a settlement for employers who choose to participate in the PAID program and proactively work with the Division to fix and resolve their potential compensation errors.  Employers may not participate in the PAID program if they are in litigation or currently under investigation by the Division for the practices at issue.  Employers likewise cannot use the pilot program repeatedly to resolve the same potential violations, as this program is designed to identify and correct potentially non-compliant practices.  Settlements will be limited in scope to only the potential violations at issue.  The program further requires employers to review the Division’s compliance assistance materials, carefully audit their pay practices, and agree to correct the pay practices at issue going forward.  These requirements improve the employers’ compliance with their minimum wage and overtime obligations, which helps ensure employees’ rights are protected. 

The Division will implement the pilot program nationwide for approximately six months, after which it will evaluate the pilot program and consider future options.  The Division encourages employers to proactively audit their compensation practices to identify potential non-compliant practices.  More information concerning the pilot program is available at www.dol.gov/whd/paid.  It is the mission of the Division to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce.

HONOLULU, HI – The U.S. Department of Labor has finalized a series of settlements with contractors on Saipan in the Commonwealth of the Northern Mariana Islands that will pay a collective $13.9 million in back wages and damages to thousands of employees who came from China to build the Saipan Casino and Hotel on the island.

Investigators with the Department’s Wage and Hour Division determined that the foreign-based construction contractors paid their workforce less than the minimum wage and overtime pay required by the Fair Labor Standards Act (FLSA). Four China-based construction contractors – MCC International Saipan Ltd. Co., Beilida New Materials System Engineering Co. Ltd., Gold Mantis Construction Decoration, and Sino Great Wall International Engineering Co. LLC – have entered into formal agreements to pay $13,972,425 in back wages and liquidated damages to more than 2,400 employees.

MCC, Beilida and Gold Mantis also employed workers brought to Saipan as “tourists” from China under a tourist visa waiver program offered by the Commonwealth of the Northern Mariana Islands. These Chinese “tourists” worked at the casino job site without proper work visas. In addition to being paid in violation of the minimum wage and overtime requirements, these workers also incurred debt of $6,000 or more when they were required to pay their own airfare and recruitment fees prior to their employment on Saipan.

“These settlements ensure that thousands of workers will receive the wages they legally earned, while simultaneously sending a strong, clear message to other employers,” said Wage and Hour Acting Administrator Bryan Jarrett. “Employers who evade the law in an attempt to reduce expenses must not gain a competitive advantage over those who play by the rules.  Regardless of where work is performed in the U.S. or its territories, we will continue to enforce the law and level the playing field.”

“As the Department of Labor works to prevent visa fraud and abuse, this case represents an example of the Department’s strong commitment to protecting the American workforce by enforcing the law,” said U.S. Secretary of Labor Alexander Acosta.

Imperial Pacific International contracted with various China-based companies for the construction of its Saipan Casino and Hotel project. These settlements resolve a portion of the Wage and Hour Division’s wide-ranging investigation into the ongoing casino and hotel project.

The Department’s Office of the Solicitor negotiated the settlements.

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 – The U.S. Department of Labor has filed suit against a northern Washington berry farm for violating the labor provisions of the H-2A visa program. Sakuma Brothers Farms Inc. and the Washington State Farm Labor Association have been assessed $124,575 in civil money penalties and an additional $9,599 for failing to pay back wages to an eligible U.S. worker who was not hired and to workers who drove the buses that transported workers to the farm.

Investigators with the Department’s Wage and Hour Division found that Sakuma Brothers Farms committed violations of the H-2A visa program. The Department’s Office of the Solicitor (SOL) subsequently filed the lawsuit with the Office of Administrative Law Judges, an administrative trial court for the Department.

The Department alleges Sakuma Brothers Farms gave unlawful preferential treatment to temporary foreign agricultural workers who were brought to the U.S. as part of the H-2A visa program. Sakuma Brothers Farms charged U.S. workers for housing deposits for which it did not charge the H-2A workers, did not provide U.S. workers with household goods that were free for foreign workers, and did not provide U.S. workers with the same transportation to the fields that it provided to the foreign workers. The investigation also found the farm illegally rejected qualified U.S. applicants for the jobs they gave to the H-2A workers. Further, the housing provided to the workers was not maintained to meet the standards required by the Occupational Safety and Health Act.

“This lawsuit reflects the Department’s commitment to strictly enforce our nation’s immigration rules that protect both U.S. and workers part of the visa programs,” said Regional Solicitor of Labor Janet Herold. “While this farm has taken steps to correct its practices, we seek to hold accountable those who unlawfully discriminate against American workers.”   

Since the Department’s investigation and following parallel actions brought by a legal services organization, the farm has changed its employment practices and no longer participates in the H-2A program.

Employees and employers with questions about the H-2A Visa Program or any of the federal wage laws administered by the Wage and Hour 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/.

NEWARK, NJ – After a U.S. Department of Labor Wage and Hour Division investigation, AWAB Transport Inc., a Newark medical transportation company, will pay $77,202 in back wages and an equal amount in liquidated damages to 38 employees to resolve violations of the overtime provisions of the Fair Labor Standards Act (FLSA).

The Division’s investigators found AWAB Transport Inc., doing business as AWAB Medical Transport, paid drivers a flat rate per day, without regard to the number of hours that they worked. This resulted in overtime violations when employees worked more than 40 hours in a workweek with no overtime premium. The company also failed to pay overtime to salaried employees who did not qualify for an exemption from overtime requirements as supervisory or administrative employees.

“The Department of Labor is committed to ensuring that employees receive the wages they earn for all the hours they have worked,” said John Warner, Wage and Hour Division District Director in Mountainside. “A resolution like this demonstrates the U.S. Department of Labor’s commitment to protect employees, as well as its determination to level the playing field for law-abiding employers.”

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.

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 the Division.

MEMPHIS, TN – After a U.S. Department of Labor Wage and Hour Division investigation, Empire Packing LP, a Memphis meat cutting and packing company, will pay $127,830 in back wages and liquidated damages to 272 employees for violating overtime provisions of the Fair Labor Standards Act (FLSA).

The Division’s investigation determined that Empire Packing LP – doing business as Ledbetter Packing Co. – required each of its employees working in the pork, ground beef, and fillet departments to end their lunch breaks five minutes early and return to work – without pay – to wash their hands, stand in a foot bath, and dress in required uniform items such as hair nets and smocks. The accumulation of this uncompensated time each week resulted in overtime violations for employees who worked more than 40 hours.  

“The U.S. Department of Labor is committed to ensuring that employees receive wages they have legally earned for all hours they have worked,” said Division District Director Nettie Lewis, in Nashville. “The outcome of this investigation serves as a reminder to all employers to review their pay practices to confirm they are complying with the law. The Department will continue to work to level the playing field for employers who play by the rules.”

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.

ESTILL SPRINGS, TN – After a U.S. Department of Labor Wage and Hour Division investigation, Tinsley Asphalt LLC, a Tennessee paving company, will pay $77,467 in back wages to 43 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators found that the Estill Springs-based company paid drivers their regular hourly rate regardless of how many hours they worked. Overtime violations resulted when these employees worked more than 40 hours in a workweek and received only their regular hourly rate, with no overtime. Tinsley Asphalt LLC failed to maintain or provide records showing the actual hours employees worked.

“The U.S. Department of Labor is committed to ensuring that all employees receive proper wages for all hours they have worked,” said Wage and Hour District Director Nettie Lewis, in Nashville. “The outcome of this investigation serves as a reminder to all employers to review their pay practices to confirm that workers are being paid according to the law. The Department will continue its work to level the playing field for employers who play by the rules, and to provide the tools to help all employers comply.”

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

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