ALPHARETTA, GA – A U.S. Department of Labor Wage and Hour Division investigation into an Alpharetta-based furniture installer, determined the company violated the Fair Labor Standards Act (FLSA), and owed employees $194,069.

R.I.O.F Inc. – which provides labor for furniture dealers and other furniture installation businesses –misclassified 109 employees as independent contractors and failed to pay overtime. This violation of the FLSA was discovered in the company’s records, which showed the number of hours employees had worked, and the straight-time payments they had received.

“This employer’s actions led to employees being paid thousands of dollars less than they were owed for the hours they worked,” said Wage and Hour Division District Director Eric Williams. “In addition to hurting workers, this practice creates an economic disadvantage for employers who comply with the law. We encourage all employers to make use of our educational resources to ensure compliance.”

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, 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.

PHILADELPHIA, PA – Two Philadelphia restaurants have agreed to pay 156 employees a total of $414,765 in back wages, and an equal amount in liquidated damages, to resolve alleged federal wage violations. A proposed consent judgment filed on Nov. 27 – which must still be reviewed and approved by a federal judge – details the terms of the agreement.

In addition to paying back wages and damages, the employers will pay a $10,000 civil money penalty.

An investigation conducted by the U.S. Department of Labor’s Wage and Hour Division in Philadelphia found that Tierra Colombiana and Mixto violated the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). Minimum wage violations were also found. Both restaurants are owned by Jorge Mosquera, and are operated by Jorge and Mercy Mosquera.

“This resolution restores back wages rightfully earned by hard-working employees,” said Wage and Hour Division District Director James Cain, in Philadelphia. “We encourage all employers to take advantage of the Division’s education and outreach efforts to help them understand their responsibilities and how to properly comply with the Fair Labor Standards Act.”

Division investigators found that servers, bartenders, barbacks, runners, hostesses, kitchen chefs, and dishwashers regularly worked more than 40 hours per week, but were not paid overtime at time-and-a-half as the FLSA requires. The restaurants also failed to maintain required records and made some illegal deductions from employee wages.

“This enforcement action will ensure that workers are paid for all of the hours they worked, and will go a long way in leveling the playing field for employers in the restaurant industry,” said Regional Solicitor Oscar L. Hampton III.

The employers have agreed to comply with the FLSA in the future, including paying the proper overtime premium. The FLSA requires that covered, nonexempt employees be paid at least the minimum wage of $7.25 per hour for all hours worked, plus time-and-one-half their regular rates, including commissions, bonuses, and incentive pay, for hours worked beyond 40 per week.  Employers also must maintain accurate time and payroll records.

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 (548-9243).  Information is also available at http://www.dol.gov/whd/.

Read this news release in Spanish.

HARTFORD, CT – A Manchester-based chain of pizza restaurants and its owner will pay $26,575 in back wages and an equal amount in liquidated damages to employees to rectify violations of the federal Fair Labor Standards Act (FLSA) found by the U.S. Department of Labor. The restaurant chain and owner will also pay $14,000 in damages to a former employee who refused to provide false information to investigators.

The U.S. District Court for the District of Connecticut entered a consent judgment ordering Chemro, LLC – doing business as People’s Choice – and its owner, Robert Y. Mercier II, to comply with the FLSA and to refrain from discharging or discriminating against employees who initiate or cooperate with an FLSA investigation. They will also pay $1,168 in civil money penalties to the Department.

An investigation by the Department’s Wage and Hour Division found that the defendants allegedly violated the FLSA’s minimum wage, overtime, and recordkeeping requirements between February 2013 and November 2015. Specifically, they did not pay one-and-one-half their regular rates of pay to three employees who worked overtime hours of up to 75 hours per week and took payroll deductions for cash register shortages that resulted in one employee receiving less than the minimum wage. The unpaid overtime for this period includes wages and damages that the defendants concealed from the Division during a prior investigation in 2015. The previously hidden unpaid overtime dates back to February 2013.

The defendants also maintained and supplied false time and payroll records and statements to investigators during the current investigation and a prior investigation in 2015. The records included receipts that falsely stated that the employees received back wages. Investigators also found that between about December 2015 and April 2016, Mercier continually pressured one employee to make false statements to investigators, leading the employee to believe he had no choice but to resign. In its complaint, the Department charged that this behavior by the employer resulted in the worker’s constructive discharge, in violation of the FLSA’s anti-retaliation provision, the first such claim made by the Department in New England.

“This resolution secures for these hard-working employees the proper compensation they should have received in the first place,” said Wage and Hour’s Hartford District Director David Gerrain. “Employers who knowingly violate or attempt to evade the law gain an unfair competitive advantage over responsible employers who honor their obligations.”

“Intimidating employees – or in any way suggesting they should make false statements or not cooperate with legitimate investigations – is illegal and has consequences,” said Regional Solicitor of Labor Michael Felsen. 

The FLSA requires that most 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.

The Division’s Hartford District Office investigated, while Senior Trial Attorney Scott M. Miller in Boston’s solicitor’s office litigated the case.

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 Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd. 

# # #

Acosta v. Chemro LLC d/b/a People’s Choice, Robert Y. Mercier II.
Civil Action Number:  3:17-cv-01719-AWT.

AKRON, OH– The U.S. Department of Labor’s Wage and Hour Division and an Akron restaurant have reached an agreement to resolve violations of the Fair Labor Standards Act (FLSA), including payment of $59,177 in back wages and an equal amount in liquidated damages – totaling $118,354 – owed to 21 workers.

Division investigators found Azteca Restaurante Mexicano Inc. and its named owner, Salvador Alatorre, failed to comply with the FLSA’s minimum wage, overtime and recording-keeping provisions. The Division assessed a civil money penalty of $9,646 for willful and repeated violations.

“Failing to pay workers a legal wage is not only wrong, but it allows companies to gain an unfair advantage over competitors who abide by the law,” said Wage and Hour Division District Director George Victory, in Columbus. “Wage violations can be avoided, and we encourage companies to reach out to us for guidance.”

Investigators found Azteca Restaurante Mexicano paid kitchen staff fixed salaries, ranging from $550 to $675 per week, without regard to how many hours they worked. This practice resulted in failure to pay required overtime when these employees worked more than 40 hours in a week. The restaurant also illegally deducted 3 percent of servers’ credit card sales from their tips, resulting in some servers receiving less than the minimum wage. The Division found the company computed overtime for servers based only on their cash wages instead of the minimum wage of $7.25 per hour, resulting in additional overtime violations. When the employer failed to record and pay for some of the hours employees worked, more overtime violations resulted.

Under terms of the agreement, Azteca Restaurante Mexicano has implemented a computerized time-keeping system in addition to paying the back wages, liquidated damages, and penalties.

A 2011 investigation by the Division disclosed minimum wage, overtime and record-keeping violations at Azteca. The restaurant then paid back wages, liquidated damages, and a civil money penalty.

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/.

BOSTON, MA – A Dudley contract packager of aerosol containers and the U.S. Department of Labor have reached a settlement agreement resolving alleged violations of the federal Fair Labor Standards Act (FLSA). Shield Packaging Co. Inc. has paid $210,227 and an equal amount in liquidated damages to 205 employees and pledged future compliance with the FLSA.

The Department’s Wage and Hour Division found that the company failed to pay the employees overtime based on their regular pay rates between April 1, 2015, and Oct. 31, 2016. The company also failed to pay employees for – and keep proper records of – the time they spent putting on and removing safety equipment required for their jobs. The FLSA requires that employees receive one-and-one-half times their regular rates of pay for hours they work beyond 40 in a workweek and that employers maintain accurate records of employees’ wages and work hours.

The Division’s investigation was part of a joint enforcement effort with the Fair Labor Division of the Massachusetts Attorney General’s Office. The state’s investigation identified alleged violations of state laws including failure to pay minimum wage, hindrance, and paystub violations, for which the company will pay more than $564,000 in wages and penalties.

“This cooperative federal-state effort and the resulting settlements compensate these employees for wages they rightfully earned but did not receive. As the Department of Labor enforces the Fair Labor Standards Act, we encourage all employers to take advantage of the Division’s education and outreach efforts to help them understand their responsibilities and how to properly comply with the law,” said the Wage and Hour Division’s Northeast Regional Administrator Mark Watson Jr.

Senior Trial Attorney Susan Salzberg of the Department’s Boston Regional Solicitor’s Office provided legal support in this matter.

The Wage and Hour Division is committed to providing employers with the tools they need to understand and comply with the variety of labor laws the Division enforces in a variety of languages. 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, 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.

CHATTANOOGA, TN – MetalTek International Inc. – a foundry and machinist shop in Chattanooga – has agreed to pay a total of $335,680 in back pay and liquidated damages to 68 employees after a U.S. Department of Labor Wage and Hour Division investigation found the company violated the Fair Labor Standards Act (FLSA) by not allowing its workers to put on and remove protective equipment while on the clock.

Investigators found that the company did not pay the workers for the time spent taking safety precautions before and after work amid high levels of lead and other job hazards. The precautions, which MetalTek required, included donning protective equipment before entering work areas, and then removing and storing the equipment, and showering before leaving work each day. In doing so, the company violated the FLSA overtime provision.

“The FLSA requires employers to pay employees for all hours that they work, which includes putting on or removing protective equipment required to perform their duties,” said Wage and Hour Division District Director Nettie M. Lewis, in Nashville. “The resolution of this case ensures that these workers are paid the wages they have legally earned, and levels the playing field for law-abiding employers.”

The investigation covered a three-year period. In addition to the wage violations, the Division also found MetalTek violated FLSA recordkeeping provisions by failing to maintain accurate time and payroll records.

The company agreed to pay the back wages and damages, and to comply with the FLSA in the future.

Headquartered in Waukesha, Wisconsin, MetalTek produces machined centrifugal, continuous and sand cast components.

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. 

FORT WALTON BEACH, FL – A recent U.S. Department of Labor Wage and Hour Division investigation of Alabama-based government contractor InfoPro Corp., found an unintentional software glitch caused employee health and welfare benefits to be underpaid from July 1, 2015, to Sept. 30, 2016. Division investigators determined that InfoPro owed $126,329 in health and welfare benefits to 84 employees covered by the Service Contract Act (SCA).

InfoPro recognized the error, and immediately agreed to pay the benefits to the affected workers.  To avoid future violations and ensure compliance with the SCA, InfoPro implemented a process for a human resources representative to prepare the pay records, while a representative in the accounting department reviews the compiled data, acting as a failsafe. The new process has proven effective in eliminating payroll errors due to software mistakes.

InfoPro contracts with federal and state agencies to provide engineering and tests operations, cybersecurity and IT services, range operations and maintenance, ordnance services, and training and security services to federal and state agencies.

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. 

MEMPHIS, TN – The U.S. District Court for the Western District of Tennessee issued a judgment and permanent injunction against Mulrooney Enterprises to pay $140,000 in back wages and liquidated damages for violating the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).

U.S. Department of Labor Wage and Hour Division investigators found Gregory Edward Mulrooney – doing business as Mulrooney Enterprises, a Memphis construction company – misclassified employees as independent contractors. As a result, Mulrooney failed to pay overtime when employees worked more than 40 hours per work week. Mulrooney also withheld several employees’ last paychecks, resulting in minimum wage violations.

“Monetary judgments such as this one ensure that employees are paid for their work,” said Regional Solicitor Stanley Keen. “The injunction ensures that employers do not derive an unfair advantage over their competitors by violating the law.”

Mulrooney Enterprises agreed to pay owed wages and damages to the 94 affected workers and to comply fully with the FLSA in the future.

The company provides construction services such as clearing, demolition, dirt work, grading, concrete work, and garbage disposal.

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. 

ROANOKE, VA – As a result of a U.S. Department of Labor Wage and Hour Division investigation, the U.S. District Court for the Western District of Virginia entered a consent judgment ordering six Roanoke area restaurants and their owners to pay $1.5 million in back wages and an equal amount in liquidated damages, to 149 employees. The consent judgment rectifies federal Fair Labor Standards Act (FLSA) violations. 

The Division’s investigation found from Jan. 29, 2012, to Jan. 25, 2015, the defendants willfully violated FLSA minimum wage and overtime provisions by only compensating servers through tips and not paying the federal minimum wage and one-and-one-half their regular rates of pay when they worked more than 40 hours in a workweek. The defendants also paid non-exempt kitchen staff – cooks, assistant cooks, and dishwashers – straight time for the overtime hours they worked. Investigators also found the defendants’ failed to keep and maintain accurate records of the hours employees worked as required. 

“This resolution secures proper compensation for these hard-working employees, and helps ensure that the law will be followed in the future,” said Wage and Hour District Director Carmen E. Otero-Infante, in Richmond.

“The agreement recovers wages owed to employees for work performed years ago,” said Regional Solicitor Oscar L. Hampton III.  “The outcome in this case positively impacts voluntary compliance in the food service industry in Virginia, and will level the competitive playing field for employers that comply with the law.”

The defendants are El Rodeo-Electric Inc., El Rodeo-Orange Inc., Bravo Brandon Inc., Arellano Inc., El Toreo-Thirlane Inc. El Rodeo-Wildwood Inc., and individual owners Elijio Arellano, Jesus Arellano, and Augustin Arellano.

View the complaint and consent judgment.

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. 

Acosta v. El Rodeo-Electric, Inc., et al.
Civil Action Number: 7:1Q-cv-00265-MFU

BOSTON, MA – A Chestnut Hill restaurant and its owner will pay $141,132 in back wages and an equal amount in liquidated damages to 15 employees in a settlement with the U.S. Department of Labor. Café Misono Inc. and owner Kenneth Lee have also amended their pay practices to comply with federal Fair Labor Standards Act (FLSA) requirements. They will also pay a $7,000 civil money penalty to the Department.

The Department’s Wage and Hour Division found that the company and its owner failed to comply with the FLSA’s minimum wage, overtime, and recordkeeping requirements between March 31, 2013, and March 28, 2016. Specifically, they failed to pay the federal minimum wage of $7.25 per hour to dishwashers who worked more than 60 hours per week and a server who worked about 17 hours per week for tips only. They also failed to pay overtime to cooks, dishwashers, and servers who worked more than 40 and up to 60 hours per week. Additionally, they supplied inaccurate information to the Division concerning the employees’ working hours.

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 workweek and that employers maintain adequate and accurate records of employees’ wages and work hours.

“Employers that choose to underpay their workers, and then attempt to mask their behavior by providing inaccurate information to the government, are doubly violating the law. This hurts workers; it hurts taxpayers, and it hurts responsible employers who obey the law,” said Regional Solicitor of Labor Michael Felsen.

“The Wage and Hour Division is fully committed to ensuring that workers receive the wages they have rightfully earned. Violations such as these can be avoided if employers know and heed the requirements of the law,” said Division District Office Director Carlos Matos, in Boston.  

The Department’s consent judgment was filed on Oct. 16, 2017. Judge Rya W. Zobel of the U.S. District Court for the District of Massachusetts signed the judgement on Oct. 23, 2017.      

The Wage and Hour Division’s Boston District Office conducted the investigation. Senior Trial Attorney James Glickman of the Boston Regional Office of the Solicitor litigated the case for the Division.

The Division is committed to providing employers with the tools they need to understand and comply with the variety of labor laws the Division enforces in a variety of languages. It offers useful resources ranging from an interactive E-laws advisor to a complete library of free, downloadable workplace posters. 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, 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.  

Acosta v. Café Misono Inc. and Kenneth Lee Inc., et al, CA No.17-cv-11993-RWZ.