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/.

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.