SAN FRANCISCO, CA – Three Santa Rosa area restaurants have reached an agreement with the U.S. Department of Labor to pay 28 employees $147,954 in back wages, and an equal amount in liquidated damages, to resolve federal wage violations. The employer will also pay $15,115 in penalties.

Investigators with the Department’s Wage and Hour Division in San Francisco found that El Charro Casita, Inc., and its owner Antonio Gonzalez willfully violated the Fair Labor Standards Act’s (FLSA) minimum wage, overtime, and record-keeping provisions at its restaurants in Santa Rosa, Rohnert Park, Guerneville.

Investigators found that the employer paid employees straight-time rates, in cash, for overtime hours worked, rather than time-and-one-half of their regular rates for hours they worked beyond 40 in a workweek, as required by the FLSA. The employer also created and maintained a false set of timecards and paychecks in an effort to conceal the nonpayment of overtime wages due under federal law. Additionally, investigators found that the restaurant’s Santa Rosa location employed a minor under the legal working age of 14, in violation of FLSA’s child labor provisions.

“The resolution of this investigation ensures that these employees will receive the wages they have earned,” said Wage and Hour Division Director Susana Blanco, in San Francisco. “This agreement helps us to level the playing field so that employers who fail to comply with the law do not gain a competitive advantage over those who do. We encourage all employers to use the multiple resources we offer to avoid violations.”

As part of the agreement, El Charro Casita will modernize its payroll and scheduling system, provide all employees with FLSA training, and designate a third-party monitor to conduct a review of the company’s compliance with the FLSA every six months for at least two years. The employer has also acknowledged that retaliating against or threatening any employee for cooperating with or participating in a Wage and Hour Division investigation is strictly prohibited, and may subject them to further action.

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/.

DETROIT, MI – The U.S. Department of Labor and a Detroit security company have reached an agreement to resolve overtime violations of the Fair Labor Standards Act (FLSA), including payment of $33,534 in back wages and an equal amount in liquidated damages – totaling $67,068– owed to 25 security guards.

The Department’s Wage and Hour Division found Eagle Security Services failed to comply with the FLSA’s overtime and recording-keeping provisions.

An investigation determined that Eagle Security Services created a separate company, Eagle Security Solutions, from which to pay employees for any hours they worked beyond 40 per week.  That company issued separate checks for the overtime hours, at straight time rates, rather than paying for the overtime hours at time-and-one-half as the law requires.

“Creating a separate company to avoid paying overtime violates the law and is an attempt by the employer to gain an unfair advantage over competitors who play by the rules,” said Wage and Hour Division District Director Timolin Mitchell, in Detroit. “We encourage companies to reach out to us for guidance.”

Under terms of the agreement, Eagle Security Services will implement a training program for current and new managers regarding FLSA compliance, and conduct quarterly reviews of payroll and time records, in addition to paying the back wages and liquidated damages. 

Workers and employers with questions about the FLSA and all 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/.

MARIETTA, GA – A residential concrete design and installation company will pay $179,314 in back wages to 37 employees after a U.S. Department of Labor investigation found Marietta-based TCB Grading Inc. violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Wage and Hour Division investigators found that TCB Grading Inc. paid employees straight-time, instead of the required time-and-one-half, for hours they worked beyond 40 in a workweek. The employer also failed to maintain accurate time and payroll records.

“The resolution of this case puts these wages into the hands of those who earned them, and demonstrates how our enforcement levels the playing field for law-abiding employers,” said Wage and Hour Division District Director Eric Williams. “We encourage employers to contact the Wage and Hour Division by phone, online, or to attend any of our outreach events for assistance and to learn more about their responsibilities.”

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/.

WEST COVINA, CA – The U.S. Department of Labor and a Fontana pallet manufacturing company have reached an agreement to resolve overtime and recordkeeping violations of the federal Fair Labor Standards Act (FLSA). The agreement requires Forest Green Products Inc. to pay $289,215 in back wages and liquidated damages to 60 employees.

Investigators with the Department’s Wage and Hour Division found that Forest Green Products Inc. failed to pay required overtime rates when its employees worked more than 40 hours per week.

In its investigation, the Division determined that Forest Green paid employees only up to 40 hours per week on the payroll, with any additional hours being paid at straight time, in cash, off the books.  The employer also failed to maintain an accurate record of the number of hours employees worked, as required by federal law.

“Failing to pay hard-earned overtime hurts employees, and places other employers at a competitive disadvantage,” said Wage and Hour District Director Danny Pasquil, in West Covina. “Agreements like these demonstrate our determination to level the playing field for law-abiding employers.”

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/.

SEATTLE, WA – The U.S. Department of Labor has reached a settlement with a Washington tree fruit grower to resolve violations of the H-2A non-immigrant visa program under the Immigration and Nationality Act (INA). The settlement requires Tonasket-based Northwestern LLC to pay $60,000 in back wages to 112 employees, and an additional $18,000 in penalties to the Department.

Northwestern Orchards LLC failed to hire a qualified U.S. applicant, in violation of H-2A requirements. The grower also failed to pay prevailing H-2A contractual wages to the workers covered under the temporary employment certification application.

“Any employer seeking H-2A workers must be ready and willing to hire qualified U.S. applicants,” said the Department’s Wage and Hour Division District Director Jeanette Aranda, in Seattle. “This case demonstrates our commitment to safeguard American jobs, level the playing field for law-abiding employers, and protect vulnerable workers from being paid less than they are legally owed or otherwise working under substandard conditions.”

The Division’s Seattle District Office conducted the investigation. Attorney Cheryl Adams of the San Francisco Regional Office of the Solicitor litigated the case for the Division. For more information about the H-2A program, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.

HARTFORD, CT – The U.S. District Court for the District of Connecticut has entered a consent judgment and ordered a Fairfield restaurant and its owner to pay $244,930 in back wages and liquidated damages to eight employees, as part of a settlement with the U.S. Department of Labor’s Wage and Hour Division.

Division investigators found that Vinny’s of Fairfield Inc. – which does business as Vinny’s Ale House – and owner Ernst H. Buggisch failed to pay required overtime to back-of-the-house employees when they worked more than 40 hours per week. In the settlement, the company also agreed to pay $2,992 in penalties for violations of the overtime, minimum wage and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

The investigation determined that the employer paid the employees overtime at straight time rates, in cash, instead of time-and-one-half their regular pay rates as the law requires. The employer also failed to maintain accurate time records, failed to produce records of the cash payments, maintained two sets of time records, and provided inaccurate records to investigators. In addition, the employer intimidated employees during the investigation, coaching them to lie to investigators. The settlement prohibits the defendants from future FLSA wage, recordkeeping, and retaliation violations.

“This settlement is about getting these employees the wages they legally earned,” said Wage and Hour Division District Director David Gerrain. “The Division encourages all employers to access the many compliance resources we offer, and avoid the liabilities that can come with breaking the law.”

“Businesses that violate the law gain a competitive advantage over law-abiding employers,” said the Department’s Regional Solicitor Michael Felsen, in Boston. “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.”

The Division’s Hartford District Office conducted the investigation and Wage and Hour Counsel Merle D. Hyman of 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/.

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Acosta v. Vinny’s of Fairfield LLC, doing business as Vinny’s Ale House, Ernst H. Buggisch
Case Number:  3:17-cv-02024-AWT

BUFFALO, NY – On Jan. 20, the U.S. Department of Labor’s Wage and Hour Division will participate in a U.S. Small Business Administration (SBA) and Service Corps of Retired Executives’ (SCORE) event to provide information and resources to entrepreneurs and small business owners on starting or growing a small business. 

The “Straight Talk 2018” seminar, sponsored by the SBA’s Buffalo District Office and SCORE’s Buffalo Niagara chapter, will be held at Buffalo Niagara Convention Center, Convention Center Plaza, in Buffalo, from 8:00 a.m. to 1:00 p.m.

Division representatives will provide assistance in understanding and complying with the federal Fair Labor Standards Act, the Family and Medical Leave Act, Service Contract Act, and Davis-Bacon and Related acts. These laws govern issues including minimum wage, overtime, child labor, prevailing wages, and family/medical leave.

For further information about the seminar, contact SBA at 716-551-4301. To register online, please visit WNY Straight Talk.

VIDALIA, GA – The U.S. Department of Labor’s Wage and Hour Division will host free compliance assistance seminars for Georgia agricultural employers and farm labor contractors to promote compliance with the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) and the labor provisions of the H-2A temporary worker program.

The first seminar will be held Tuesday, Jan. 23, beginning at 8:30 a.m. EST, at AmericInn, 155 Mose Coleman Drive, Vidalia 30474. The Agency will host a second seminar on Thursday, Feb. 22, beginning at 8:00 a.m. EST, at the Omega Club House, 5471 Alabama Ave., Omega, GA 31775. To register or to request more information about the seminars, contact Rachel Mast-Matos at 678-237-0540 or via email at mast-matos.rachel@dol.gov.

Topics for discussion at both meetings will include housing and transportation, employee work hours, wage rates, and record-keeping requirements.

Information about federal labor laws enforced by the Wage and Hour Division is available in English and Spanish by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243), or by visiting its website.

SAN FRANCISCO, CA – Following a U.S. Department of Labor investigation, a Riverside, California, company has paid $944,000 in back wages and damages to 1,069 employees working as drywall installers and painters. The investigation found that the employees routinely worked more than 40 hours per week without receiving any required overtime pay.

West Coast Drywall and Company Inc., and the Department’s Wage and Hour Division reached a settlement, which was signed by a U.S. District Court judge for the Central District of California. As part of the settlement, the company agreed to pay an additional $50,500 in civil penalties for violations of the Fair Labor Standards Act (FLSA).

“The Wage and Hour Division continues to ensure that employers pay employees properly for all the hours that they work, including overtime when they work more than 40 hours in a week,” said Wage and Hour District Director Danny Pasquil. “This investigation clearly demonstrates the Department’s continued commitment to enforcing a level playing field for all employers.”

The Wage and Hour Division found that the drywall company paid the employees only piece rates when they worked beyond 40 hours in a week. Employees paid on a piece rate are compensated per unit they produce and are eligible for overtime when they work more than 40 hours per week. The investigation also found that the company failed to pay employees for time spent attending required monthly safety meetings, and failed to keep accurate records of work hours, both in violation of FLSA requirements.

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/.

DENVER, CO – Parkside Landscape Inc. has paid $524,063 in back wages to 53 employees and $26,104 in penalties to resolve violations of the Fair Labor Standards Act (FLSA) and H-2B non-agricultural visa program provisions. The violations were found during an investigation by the U.S. Department of Labor’s Wage and Hour Division.

The Wage and Hour Division’s H-2B nonimmigrant visa program investigation determined that back wages and penalties were owed because the company failed to pay employees the wages offered in the approved H-2B labor certification and the job order they filed with the Department when applying for permission to hire the foreign workers. Penalties were also owed because the employer failed to provide required earning statements, comply with safety requirements for employer-provided transportation, and provide a copy of the job order to employees at the time they applied for their visas. Violations of the overtime provisions of the FLSA resulted when the employer paid eight employees straight time for hours they worked beyond 40 in a workweek.   

“We must ensure that employers understand and abide by the provisions of the  H-2B visa program to protect the wages and working conditions of similarly employed U.S. workers,” said the Division’s Southwest Regional Administrator Betty Campbell. “The program safeguards American employees against displacement while protecting vulnerable foreign workers from being paid less than the prevailing wage or otherwise working under substandard conditions.”

In consent findings between the Department and Parkside Landscaping, the employer, in addition to paying owed H-2B back wages and the penalty, agreed to comply with all the requirements of the H-2B provisions under the Immigration and Nationality Act.

The H-2B nonimmigrant visa program permits employers to hire nonimmigrants to perform nonagricultural labor or services in the United States. The employment must be of a temporary nature for a limited period of time such as a one-time occurrence, or a seasonal, peak load, or intermittent need. The H-2B program requires the employer to attest to the Department that it will offer a wage that equals or exceeds the highest of the prevailing wage, applicable federal minimum wage, the state minimum wage, or local minimum wage to the H-2B nonimmigrant worker for the occupation in the area of intended employment during the entire period of the approved H-2B labor certification. The H-2B program also establishes certain recruitment and displacement standards in order to protect similarly employed U.S. workers.

For more information about federal wage laws, or for information about attending a training event, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).