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/.

ALBUQUERQUE, NM – The U.S. Department of Labor’s Wage and Hour Division and New Mexico’s Office of the Attorney General have signed a collaboration agreement to combat human trafficking in New Mexico. The anti-human trafficking agreement is the first of its kind in the Department.

The agreement establishes an ongoing collaboration that will provide clear, accurate, and easy-to-access outreach and educational materials for employers, employees, and other stakeholders. The agreement will allow the Department and the Attorney General’s office to share resources and enhance enforcement by allowing both parties to coordinate investigations and to share information as allowed by current laws. The Wage and Hour Division often supports law enforcement efforts in anti-trafficking by identifying or detecting this crime, and by assisting with the calculation of back wages owed to the victims.

“This agreement demonstrates the Division’s commitment to combating human trafficking,” said Southwest Regional Wage and Hour Division’s Administrator Betty Campbell. “Our collaboration with our state partner leverages our resources to allow us to better protect workers in New Mexico.”

For more information about 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.

BOWMAN, ND – The U.S. Department of Labor has debarred Lambourn Farm, a North Dakota grain and cattle farming operation, from participation in the H-2A temporary visa program after the farm violated program provisions and failed to cooperate with Department investigators.

The H-2a program allows employers to bring non-immigrant, foreign workers to the U.S. to perform agricultural labor.

Despite Lambourn’s failure to cooperate, the Department’s Wage and Hour Division was able to determine that the employer required employees to pay prohibited fees. Lambourn also failed to pay employees the required wage rates, to provide safe transportation and housing, and to maintain required records. Investigators found two employees were owed $1,159 in back wages for work performed on the Bowman farm.

The company has paid the back wages and $18,587 in civil monetary penalties, and is barred from participating in the program for three years.

“When employers apply for worker visas, they agree to demonstrate that they meet program requirements,” said Wage and Hour Division Regional Administrator Betty Campbell. “Employers who don’t play by the rules may gain an unfair advantage over their competitors. Our enforcement protects American workers as well as the safety of temporary workers.”

Before the U.S. Citizenship and Immigration Services can approve an employer’s petition for H-2A visa workers, an employer must file an application with the Department stating that there are not sufficient U.S. employees who are able, willing, qualified, and available, and that the employment of non-immigrant, temporary workers will not adversely affect the wages and working conditions of similarly employed persons in the U.S. The law provides for numerous employee protections and employer requirements with respect to wages and working conditions that do not apply to non-agricultural programs.

In Fiscal Year 2016, the Department processed 1,372 H-2A applications in North Dakota.

Visit http://www.dol.gov/whd or call the Division’s toll-free helpline at 866-4US-WAGE (487-9243) for more information.

CHICAGO, IL – Fabulous Freddies Italian Eatery, a restaurant in Chicago’s South Loop, and one of its named owners, Stephanie Fitzpatrick, have paid 58 employees a total of $339,418 in unpaid wages and damages in a consent judgment following a U.S. Department of Labor Wage and Hour Division investigation.

Division investigators found the restaurant and Fitzpatrick failed to comply with the Fair Labor Standards Act’s (FLSA) minimum wage, overtime, and recording-keeping provisions. The judgment calls for payment of $169,709 in back wages and an equal amount in liquidated damages.

Investigators found Fabulous Freddies paid some non-tipped employees a “training rate” of $3.75 per hour until they proved efficient in the job, resulting in minimum wage violations. The company also failed to pay employees required overtime at time-and-one-half their hourly wage rates when they worked more than 40 hours in a week, in violation of the FLSA’s overtime provisions

“Failing to pay employees what they have legally earned allows companies to gain an unfair advantage over competitors that abide by the law,” said Wage and Hour Division District Director Thomas Gauza, in Chicago. “Wage violations can be avoided, and we encourage employers to reach out to us for guidance.”

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/.

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Case No. 17-cv-04347
 

LAWRENCEVILLE, GA – A gas station group and two check-cashing businesses have paid $88,712 in back wages to 39 employees after U.S. Department of Labor Wage and Hour Division investigations found violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

The companies involved in the Department’s Wage and Hour Division investigations are Shifa Food & Gas LLC, which does business as Big EZ Chevron/Rainforest Chevron, and M&M Check Cashing LLC. Investigators found that Shifa Foods and M&M Check Cashing LLC shared employees despite having different owners, to the point that some workers were cashiers at the gas stations and at the check-cashing businesses, located within the gas stations, while on the same shift. These workers did not receive overtime because the companies incorrectly treated them as independent contractors rather than as their employees, investigators found.

The Department also investigated All Check Solutions LLC, which shares the same owner as M&M Check Cashing LLC, Sameer Lalani. While employees of All Check Solutions did not work in the Shifa Food gas stations, the Department’s investigation found he employed the same pay practices at both M&M Check Cashing and All Check Solutions, resulting in identical violations.

The companies failed to pay the federal minimum wage for their employees’ training hours, and made illegal deductions from workers’ pay for allegedly failing to stock items properly in the store or mistakenly accepting bad checks from customers. The companies violated the FLSA recordkeeping requirements when they failed to maintain a record of payments made to workers they incorrectly considered to be independent contractors.

All Check Solutions paid $18,269 in back wages to nine employees, while Shifa Food & Gas and M&M Check Cashing paid $70,443 in back wages to 30 employees. The three companies agreed to future compliance with the FLSA, and to implement a timekeeping and payroll system that will automatically calculate overtime pay.

“The resolution of this case puts these wages into the hands of workers who rightfully earned them,” said Wage and Hour Division District Director Eric Williams, in Atlanta. “We urge companies to reach out to the Wage and Hour Division for information they need to comply with 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. including a search tool to use if you think you may be owed back wages collected by WHD.

WASHINGTON, DC – The U.S. Department of Labor today announced a Notice of Proposed Rulemaking (NPRM) regarding the tip regulations under the Fair Labor Standards Act (FLSA).  Under the proposed rule, workplaces would have the freedom to allow sharing of tips among more employees.  The proposal would help decrease wage disparities between tipped and non-tipped workers – an option that is currently restricted by a rule promulgated in 2011 that has been challenged in a number of courts.

The Department’s proposal only applies where employers pay a full minimum wage and do not take a tip credit and allows sharing tips through a tip pool with employees who do not traditionally receive direct tips – such as restaurant cooks and dish washers. These “back of the house” employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers.  The proposal would not affect current rules applicable to employers that claim a tip credit under the FLSA. 

The Department of Labor promulgated tip regulations in 2011 that restricted this option. Since 2011, there has been a significant amount of litigation involving the tip pooling and tip retention practices of employers that pay a direct cash wage of at least the federal minimum wage and do not claim a FLSA tip credit.  There has also been litigation directly challenging the Department’s authority to promulgate the provisions of the 2011 regulations that restrict sharing of tips. 

Moreover, in the past several years, several states have changed their laws to require employers to pay tipped employees a direct cash wage that is at least the federal minimum wage.  This means that fewer employers can take the FLSA tip credit.  The Department’s proposed new rule follows these developments, along with serious concerns that it incorrectly construed the statute when promulgating the 2011 regulations. 

The NPRM will be published in the Federal Register on Dec. 5, 2017, and be available for public comment for 30 days.  The Department encourages interested parties to submit comments on the proposed rule. The NPRM, along with the procedures for submitting comments, can be found at the Wage and Hour Division’s Proposed Rule website.

WASHINGTON, DC – U.S. Secretary of Labor Alexander Acosta issued the following statement today regarding Senate passage of the tax reform bill:

“Senate passage of tax reform is continued good news for America’s job creators and job seekers. Reducing taxes and reforming the tax code will help businesses of all sizes hire more Americans and invest in the workforce. President Trump has brought a spirit of economic optimism back to our nation, with nearly 1.5 million jobs created since January, the lowest unemployment rate in 17 years, and two consecutive quarters of GDP growth over 3 percent. Tax reform will create the conditions for continued economic growth and even more job creation.”

NEW YORK, NY – The U.S. Department of Labor’s Wage and Hour Division has opened an area office in Queens to connect employers, community and trade organizations, employees, and other stakeholders with resources and assistance to ensure compliance with federal labor laws. The new office is located at 68-60 Austin St., Room 601, Forest Hills, New York, 11375.

“This office will serve as a one-stop resource for compliance assistance and information,” said Wage and Hour Division District Director David An, in New York City. “The Queens area office will benefit all the members of the labor and business communities of the second most populous county in New York State and one of the world’s most ethnically diverse urban areas by putting them much closer to available resources.”

Members of the Queens’ office staff are fluent in Spanish and Chinese, and have access to a translation service for other languages. In addition, the Division provides information and publications in numerous languages, including Spanish, Vietnamese, Korean, Chinese, Thai, Haitian Creole, Russian, Hmong, Tagalog, Polish, Portuguese, Nepali, Urdu, Hindi, Samoan, Nepali, Arabic, and Punjabi.

To receive wage and hour-related information, file a complaint, or ask questions about federal wage laws, individuals and businesses should contact the Wage and Hour Division. Services are confidential and are provided at no charge. The Division administers a number of federal labor laws, including the Fair Labor Standards Act, which contains minimum wage, overtime, recordkeeping, child labor, and anti-retaliation provisions; the Family and Medical Leave Act; the Davis-Bacon Act; the Service Contract Act; the Migrant and Seasonal Agricultural Worker Protection Act; and various provisions of the Immigration and Nationality Act that extend protections to different types of nonimmigrant workers.

For more information, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (1-866-487-9243) or its New York City District Office at, (212) 264-8185, Brooklyn Area Office at (718) 254-9410, or Queens Area Office at (718) 834-2090, depending on location of employment. Information also is available at: http://www.dol.gov/whd/. 

NASHVILLE, TN – The U.S. District Court for the Middle District of Tennessee, Nashville Division, issued a consent order and permanent injunction against Casa Vieja Mexican Grille, Inc., and its owners, after a U.S. Department of Labor, Wage and Hour Division investigation determined that Casa Vieja violated the minimum wage, overtime wage, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

The Hendersonville-based restaurant and its owners – Martin Salazar, Jaime Salazar, and Alejandro Mendez – failed to accurately record the hours that employees worked and they failed to pay employees in compliance with the minimum wage and overtime wage provisions of the FLSA. In total, the Department determined that Casa Vieja owed $751,682 in back wages and liquidated damages to 45 employees. Casa Vieja agreed to pay this amount in full, after a legal action was filed in the District Court.

“Employees should receive the wages they earn for the hours they work,” said Wage and Hour Division District Director Nettie Lewis. “The outcome of this case serves as a reminder to all employers to review their pay practices to confirm that workers are being paid as the law prescribes. We will continue to work to level the playing field for employers who play by the rules.”

In addition to paying the back wages and liquidated damages, the restaurant and its owners are permanently enjoined from violating the FLSA in the future. The Department’s Office of the Solicitor in Nashville litigated the case.

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.