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/.

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