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).

WASHINGTON, DC – On Dec. 19, 2017, the U.S. Court of Appeals for the Ninth Circuit became the fourth federal appellate court to expressly reject the U.S. Department of Labor’s six-part test for determining whether interns and students are employees under the Fair Labor Standards Act (FLSA). 

The Department of Labor today clarified that going forward, the Department will conform to these appellate court rulings by using the same “primary beneficiary” test that these courts use to determine whether interns are employees under the FLSA. The Wage and Hour Division will update its enforcement policies to align with recent case law, eliminate unnecessary confusion among the regulated community, and provide the Division’s investigators with increased flexibility to holistically analyze internships on a case-by-case basis.

SEATTLE, WA – The U.S. Department of Labor has reached an agreement with a Tacoma property management company that requires the employer to pay 71 employees $255,793 in back wages to resolve Fair Labor Standards Act (FLSA) violations.

Investigators with the Department’s Wage and Hour Division established that Dobler Management Company, Inc. failed to pay the minimum wage for all hours worked by its on-site property managers, maintenance technicians, and other on-site staff working at client properties. The Department’s investigation further revealed that the workers were not paid the overtime premium of one-and-one half times the regular rate for all hours worked beyond 40 in the workweek. Instead, many employees were paid a salary that was less than the minimum and overtime wage due under federal law. The company also failed to keep records of hours worked by their on-site managers, which averaged between 42 hours and 46 hours per week. 

“Thanks to this settlement, dozens of workers will receive their rightfully earned wages,” said Wage and Hour Division Director Jeanette Aranda, in Seattle. “No employer should gain a competitive advantage by failing to pay its workers in compliance with the law. We urge all employers to make use of the tools our agency offers to explain their obligations and help them avoid violations.”

In addition to paying the back wages, Dobler agreed to make numerous changes to its operations to ensure future compliance, including creating a new position for a human resources employee, and establishing work assignments with specific “on-duty and off-duty” time to more accurately track hours worked.  

Dobler manages approximately 65 properties throughout the Puget Sound area. 

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/.

LOS ANGELES, CA – Investigations in Southern California by the U.S. Department of Labor have found $1.6 million in back wages and liquidated damages due to 1,377 garment industry employees since January. Those amounts resulted from violations of the Fair Labor Standards Act (FLSA) found in 94 percent of 129 Wage and Hour Division investigations of garment facilities in the region during that period.

The Department also assessed an additional $36,000 in civil money penalties associated with those investigations.

Many of the investigations disclosed employees paid well below the federal minimum wage of $7.25 per hour, with some receiving as little as $4.27 per hour. Investigators also found employers often failed to pay employees overtime at time-and-one-half of their regular rates of pay when they worked more than 40 hours in a week, as required by the FLSA. 

Department officials continue to meet with retailers to encourage them to avoid non-compliant manufacturers and to buy only from suppliers that comply with federal labor laws.

“In addition to our outreach efforts in this industry, we continue our investigations in Southern California to ensure local garment employees receive their rightfully earned pay,” said Wage and Hour Division Regional Administrator Ruben Rosalez, in San Francisco. “Unfortunately, we continue to find wage violations at nine out of every 10 facilities we investigate. Manufacturers that fail to pay their employees minimum wage and overtime have a negative impact on the garment industry by unfairly undercutting their competition.”

Investigation findings in 2017 include:

• CAL TM, Inc. will pay $41,742 to 46 employees after an investigation found that employees were not paid overtime and in many cases earned less than the federal minimum wage.  Records were falsified to make it appear that employees were paid hourly.
• ANC Fashion, Inc. will pay $64,906 to 269 employees after investigators found that employees worked over 40 hours per week without receiving overtime pay. 
• HJ Fashion will pay $21,023 to 21 employees after an investigation disclosed the employer failed to pay employees the federal minimum wage and overtime. Investigators also found the employer kept no time records and paid employees in cash only.

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/.

CHARLESTON, WV – The U.S. Department of Labor and a West Virginia nursing home and rehabilitation company have reached an agreement to resolve alleged overtime violations of the federal Fair Labor Standards Act (FLSA).

Stonerise Healthcare LLC will pay $61,840 in back wages and an equal amount in liquidated damages to 498 healthcare employees at 16 facilities in West Virginia.

The Department’s Wage and Hour Division investigation found the Charleston-based company failed to include six types of bonus payments in employees’ regular rates of pay when calculating their overtime rates. This exclusion resulted in artificially lowered overtime rates that failed to reflect time-and-a-half of the true amounts employees had earned per hour. Excluded bonuses included those paid for initial sign-on, picking up extra shifts, and good attendance records, among other incentive payments regularly made available to and earned by workers. 

“We are committed to ensuring that employees receive the wages they have rightfully earned,” said Wage and Hour District Director John DuMont, in Pittsburgh, Pennsylvania. “We are also committed to ensuring that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do.”

The agreement covers Stonerise facilities in Morgantown, Kingwood, Clarksburg, Bridgeport, Parkersburg, Belmont, Berkeley Springs, Keyser, Martinsburg, Charleston, Princeton, Beckley, Rainelle, Lindside, Ronceverte, and Wellsburg.

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. Some states have established minimum wage rates that differ from the federal minimum wage. Where federal and state law wage rates differ, the higher standard applies. Employees must also maintain accurate time and payroll records.

The Division is committed to providing employers with the tools they need to assist them – in a variety of languages – in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. It 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.  

ATGLEN, PA – The U.S. Department of Labor and a Pennsylvania manufacturing company reached an agreement to resolve alleged overtime, recordkeeping, and child labor violations of the federal Fair Labor Standards Act (FLSA).

Stoltzfus Structures LLC will pay $188,572 in back wages and an equal amount in liquidated damages to 47 employees. The company also has been assessed, and has not contested, a penalty in the amount of $30,800 for violations of the child labor provisions of the FLSA.

The Department’s Wage and Hour Division investigation found that the Atglen-based company failed to pay 47 non-exempt salaried employees overtime when they worked more than 40 hours per week. Stoltzfus Structures erroneously considered many of its employees to be exempt from the requirements of the FLSA, due to their alleged ownership of a small portion of the business. The employer also failed to make and keep a record of hours worked.

The Division’s investigation also determined that Stoltzfus Structures violated child labor requirements by permitting a 16-year-old employee to operate a table saw with a circular blade resulting in a serious injury. The employer also permitted six 16-year-old employees to operate a pneumatic-powered staple gun and a battery-operated drill. Additionally, the company employed three 15-year-olds in the prohibited occupation of manufacturing, and allowed them to operate power-driven woodworking machines. These minors were not employed as student learners, nor were they enrolled in any apprenticeship or vocational education programs.

“We urge employers to avail themselves of the resources we provide to show them how to comply with federal pay and child labor laws,” said Wage and Hour District Director James Cain, in Philadelphia. “Employment opportunities for minors must never come at the expense of their safety.”

More information on child labor rules can be found at http://youthrules.dol.gov/.

CONCORD, NH – A New Hampshire man has pleaded guilty in federal court to one count of obstruction of justice in connection with a U.S. Department of Labor wage and hour investigation and litigation. It is believed to be the first federal criminal prosecution arising from a Department wage and hour investigation in New Hampshire.

Kevin Corriveau, owner and operator of Kevin Corriveau Painting Inc. of Nashua, was the subject of an investigation by the Department’s Wage and Hour Division and a subsequent civil lawsuit and a consent judgment filed by the Department’s Office of the Solicitor for alleged violations of the Fair Labor Standards Act (FLSA).

In his plea, on Dec. 15, 2017, Corriveau admitted that he caused an employee of his company to provide false information to investigators from the Department’s Wage and Hour Division in 2009 and 2011 regarding the extent of overtime hours worked by employees of the company.

From 2007 through April 2011, Corriveau had been directing employees to report only non-overtime work on payroll and time records to conceal FLSA overtime violations from being found in those records. In 2011, Corriveau himself also falsely stated to investigators that his employees did not work overtime on a Needham, Massachusetts, construction project.

In 2013 – in connection with the civil suit filed against him – Corriveau knowingly created and provided the Department’s attorneys with fraudulent invoices and an altered change order that falsely stated that his employees did not work overtime on the Needham project.

Corriveau is scheduled to be sentenced on March 26, 2018, according to Acting United States Attorney John J. Farley of the District of New Hampshire.

The Department’s Wage and Hour Division and Office of the Inspector General investigated the case with assistance from the Department’s Office of the Solicitor and Employee Benefits Security Administration.

The criminal case is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella and Special Assistant U.S. Attorney Scott Miller. Scott Miller is also a Senior Trial Attorney at the Labor Department’s Office of the Solicitor in Boston, Massachusetts.

LOUISVILLE, KY – American Security Programs Inc., a security service providing armed guards, will pay $277,306 in back wages to 61 employees after a U.S. Department of Labor investigation found the company violated the McNamara-O’Hara Service Contract Act (SCA), the Contract Work Hours and Safety Standard Act (CWHSSA), and the Fair Labor Standards Act (FLSA).

Wage and Hour Division investigators found the company failed to pay employees required prevailing wages and health and welfare benefits for 84 hours of mandatory training. The employer also failed to pay employees for time spent working before and after their scheduled shifts signing in and out for radios and keys needed to perform their duties. As a result, American Security failed to pay employees overtime for hours worked beyond 40 in a workweek. The company also withheld employees’ 401(k) and health benefits contributions intended for the union trust fund, and violated FLSA recordkeeping requirements by failing to maintain accurate time and payroll records.

“When employers receive federal funds to provide services to the government, they must comply with all applicable laws to ensure they pay their employees the required prevailing wages,” said Wage and Hour Division District Director Karen Garnett, in Louisville. “This case’s resolution also helps level the playing field for law-abiding employers.”

Headquartered in Reston, Virginia, American Security Programs provides security guards for the Internal Revenue Service facilities in Covington and Florence, Kentucky.

For more information about the SCA, CWHSSA, 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. 

LAWRENCEVILLE, NJ – The owner of six southern New Jersey gas stations has paid $1,471,024 in back wages and damages to 24 gas station attendants to resolve violations of the Fair Labor Standards Act (FLSA).

An investigation conducted by the U.S. Department of Labor’s Wage and Hour Division found that Manjit Guleria – the owner of five Citgo stations and one Lukoil station – regularly required employees to work seven days a week, 10 or more hours each day. Despite these long hours, Guleria paid his employees flat salaries that typically resulted in hourly wages well below the federal minimum wage of $7.25 per hour, with no additional pay for overtime hours. Accordingly, the Department found that Guleria and his companies violated the FLSA by failing to pay employees the federal minimum wage or overtime. The employer also failed to maintain required payroll records.

Under the terms of the settlement, 24 employees will receive $735,512 in unpaid minimum wage and overtime compensation and $735,512 in liquidated damages. In addition to the back wages and damages, Guleria paid a $8,976 penalty for the violations and has agreed to future FLSA compliance. The stations will use an electronic timekeeping system to track employees’ hours worked, change break policies to ensure that they pay employees when they are unable to take breaks, and will provide employees with information about their rights under the FLSA.

“This settlement puts these wages into the hands of the employees who earned them,” said Charlene Rachor, director of the Division’s Southern Jersey District Office. “The Division encourages employers to avail themselves of the many resources we provide to help them to operate in compliance, and not to find themselves facing the liabilities that can come with breaking the law.”

New Jersey is one of two U.S. states that bar motorists from pumping their own gas. Gas stations in New Jersey employ full-service gas station attendants to operate gas pumps and provide related customer services. The attendants who received back wages and damages are employed at the following gas stations:

• Citgo, 400 NJ 38 in Maple Shade;
• Citgo, 102 Washington Crossing Road in Pennington;
• Citgo, 2006 Mount Holly Road in Burlington;
• Citgo, 1510 NJ 38 in Cherry Hill;
• Citgo, 469 Lenola Road in Moorestown; and
• Lukoil, 2225 Admiral Wilson Blvd. in Merchantville. 

“Businesses that violate the law gain a competitive advantage in the industry and undermine law-abiding employers. We will vigorously enforce the law to ensure that companies that comply compete on a level playing field and to safeguard employees’ hard-earned wages,” said the Department’s Regional Solicitor Jeffrey S. Rogoff, in New York.

The FLSA requires that covered, non-exempt employees be paid at lease the federal minimum wage of $7.25 per hours for all hours worked, plus time and one-half their regular rates for hours worked beyond 40 per week. Some states have established minimum wage rates that differ from the federal minimum wage. Where federal and state laws require different wage rates, the higher standard applies. Employees must also maintain accurate time and payroll records.

The Division is committed to providing employers with the tools they need to assist them – in a variety of languages – in fulfilling their obligation to understand and comply with the variety of laws the Division enforces. It 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.

The division’s Southern New Jersey District Office conducted the investigation, and Elena Goldstein, an attorney from the department’s Office of the Regional Solicitor in New York, assisted the division in securing the settlement.

 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.

PITTSBURGH, PA – A federal contractor that serves as the prime contractor for repair and renovation projects at federal buildings in West Virginia and Kentucky, has paid $213,282 in back wages to seven employees to resolve violations of federal law found by the U.S. Department of Labor.

An investigation conducted by the Department’s Wage and Hour Division found B&F Contracting Inc. violated the Davis-Bacon and Related Acts (DBRA) by paying employees less than the prevailing wages required by law, and failing to provide required fringe benefits. Investigators also found the company failed to pay overtime to one employee in violation of the Contract Work Hours and Safety Standards Act (CWHSSA), and failed to maintain required payroll records. The company has paid all back wages in full.

“We are committed to providing information to federal contractors on their legal responsibility to pay prevailing wages and fringe benefits,” said District Director John DuMont, in Pittsburgh. “The resolution of this case helps to level the playing field for federal contractors who play by rules and must not be underbid by those who do not.”

In addition to paying the back wages, the company has agreed to hire a certified public accountant to oversee its compliance with the DBRA and to provide the Division with copies of certified payroll records and corresponding time records on a semi-annual basis for a one-year period. The agreement also states that if B&F Contracting violates DBRA requirements in the future, it will be debarred from bidding on federal contracts for three years. 

DBRA covers contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. DBRA contractors and subcontractors must pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. CWHSSA requires prime and subcontractors to pay laborers and mechanics – performing on a federal service contract and federal and federally assisted construction contract over $100,000 – one-and-a-half times their basic rate of pay for all hours worked over 40 in a workweek.

The Division is committed to providing companies with the tools they need to understand and comply with the variety of labor laws the Division enforces. It offers useful resources ranging from an interactive Employment Laws Assistance for Workers and Small Businesses advisor to a complete library of free, downloadable workplace posters. In addition, Community Outreach and Resource Planning specialists conduct ongoing activities to educate stakeholders, including employers, employees, business and labor groups, and professional associations.

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