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.

WASHINGTON, DC – The U.S. Department of Labor today announced plans to undertake new rulemaking with regard to overtime.

On July 26, 2017, the Department of Labor published a Request for Information (RFI) regarding the Overtime Final Rule, which was published on May 23, 2016, asking for public input on what changes the Department should propose. That comment period has ended and the Department is reviewing those submissions.

On August 31, 2017, U.S. District Court Judge Amos Mazzant granted summary judgment against the Department of Labor in consolidated cases challenging the Overtime Final Rule. The court held that the Final Rule’s salary level exceeded the Department’s authority, and concluded that the Final Rule is invalid.

On October 30, 2017, the Department of Justice, on behalf of the Department of Labor, filed a notice to appeal this decision to the U.S. Court of Appeals for the Fifth Circuit. Once this appeal is docketed, the Department of Justice will file a motion with the Fifth Circuit to hold the appeal in abeyance while the Department of Labor undertakes further rulemaking to determine what the salary level should be.

GRAND RAPIDS, MI – The U.S. District Court in Western Michigan has entered a consent judgment resolving violations of the Family and Medical Leave Act (FMLA) found at two Michigan nursing homes by the U.S. Department of Labor’s Wage and Hour Division. The nursing homes are Pine River Healthcare LLC, which operates as Pine River Healthcare Center, and Fremont Healthcare LLC, which operates as Transitional Healthcare Service of Fremont.

Wage and Hour Division investigators found both nursing facilities failed to inform employees that their conditions potentially qualified for FMLA leave and failed to provide notice and information to employees on the FMLA. The nursing homes assessed attendance points to and/or disciplined employees who exceeded absence limits while missing work for potentially FMLA-qualified reasons and required employees to make arrangements with other workers to cover their shifts when absent.

The order requires the nursing homes to provide workers with timely information about their right to request FMLA leave and to train supervisors and administrators on the law’s requirements. Additionally, the nursing homes will train head floor nurses and human resource administrators on the qualifying reasons for FMLA, how to recognize and respond to information from employees that indicates a potential need for FMLA leave, and how to provide FMLA notification. Employees will also receive FMLA fact sheets.

“The Family Medical Leave Act provides workers protection to attend their own medical appointments, and to care for family members without risking their jobs,” said Wage and Hour Division District Director Mary O’Rourke, in Grand Rapids. “Our education and outreach efforts continue to ensure that employers understand their responsibilities.”

Both facilities are operated by Consulate Healthcare of Maitland, Florida, which manages more than 200 facilities nationwide.

Workers and employers with questions about the FMLA 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/.

Case number: 2:17-cv-12321

BLUE SPRINGS, MO – The U.S. Department of Labor’s Wage and Hour Division and a Blue Springs buffet restaurant have reached an agreement to resolve violations of the Fair Labor Standards Act (FLSA). The Wage and Hour Division determined Blue Springs-based Legend of Asia and its manager, Yu Min Xiao, failed to comply with FLSA minimum wage, overtime, and record-keeping provisions.

As a result, 17 workers will receive a total of $150,000 – representing $75,000 in back wages and an equal amount in liquidated damages. The restaurant will also pay a civil money penalty of $10,000 for willful violations.

Investigators found the employer paid cooks a monthly salary and provided them housing, meals, and transportation. Given the number of hours the restaurant required cooks to work, their compensation did not equal at least the minimum wage, and overtime was not paid when they worked more than 40 hours in a workweek. The employer also failed to pay servers overtime.

Under terms of a consent judgment, entered in the U.S. District Court for the Western District of Missouri, Legend of Asia will implement a computerized time-keeping system; have a third party audit its time and payroll practices for compliance; provide payroll statements to employees that clearly articulate the amount earned, as well as deductions for items provided such as housing and food; and provide training and notices to all employees regarding the requirements of the FLSA.

“Companies that fail to pay their workers in accordance with the law gain an unfair advantage over their competitors,” said Wage and Hour Division Regional Administrator Karen Chaikin, in Chicago. “Through its education and outreach efforts, the Department continues to ensure that employers and employees understand their responsibilities and rights under the Fair Labor Standards Act.”

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/.

ASHEBORO, NC – A national food distribution company based in Asheboro has agreed to pay $136,266 in back wages and damages to 47 employees after a U.S. Department of Labor Wage and Hour Division investigation found overtime and other violations of the Fair Labor Standards Act (FLSA).

The Division’s Raleigh District Office found that El Club Mexicano Inc. had misclassified employees as independent contractors, and subsequently failed to pay them minimum wage or overtime. The employer paid workers a piece-rate based on their production without regard to the number of hours they worked. In some cases, that resulted in workers being paid less than the required minimum wage of $7.25 per hour. The company also failed to pay employees overtime when they worked more than 40 hours in a work week, and instead continued to pay only their piece rates for those hours.

As a result, 47 employees were found due $68,133 in minimum wage and overtime back wages, plus an equal amount in damages, totaling $136,266. 

“Paying a piece-rate does not establish an independent contractor relationship or relinquish the employer from their legal responsibility to pay the required minimum wage and overtime,” said Wage and Hour Division District Director Richard Blaylock. “We appreciate El Club Mexicano’s decision to comply with the law and will continue our enforcement efforts on behalf of American workers, and to level the playing field for employers who play by the rules.”

The investigation also found El Club Mexicano hired minors, ages 14 and 15, to operate a forklift and paper box bailer, both for which the FLSA prohibits use by workers under 18. The agency assessed the company $6,638 in civil money penalties for the child labor violations.

The employer has agreed to comply with all FLSA provisions in the future as well as pay all back wages, damages, and penalties in full.

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

MINNEAPOLIS, MN – The U.S. District Court for the District of Minnesota entered a consent judgment agreed to by the Department of Labor’s Wage and Hour Division and a Minneapolis employment agency to resolve overtime violations. As a result, 92 healthcare workers will receive $401,384 in back wages and damages.

The Division found violations of the Fair Labor Standards Act’s (FLSA) overtime and recordkeeping provisions when All Temporaries Midwest Inc. and its owner, Mark Liveringhouse, failed to pay healthcare workers one-and-one-half times their regular hourly rates for all the hours they worked over 40 in a workweek. The company paid workers time-and-one-half for hours they worked between 41 and 47 in a workweek, but then paid only straight time for any hours worked beyond 47.

“We are pleased that these workers will receive their rightfully earned wages through this agreement and that the employer will be complying with the law going forward,” said Wage and Hour Division District Director David King, in Minneapolis. “Our education and outreach efforts seek to ensure that companies understand their responsibilities. Our efforts on both fronts protect responsible employers and hard-working employees.”

The company places registered nurses, licensed practical nurses, and certified nursing assistants with area clients. 

For information about this topic and all of the federal wage laws administered by the Division, 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/.

Civil action no.: 17-cv-3330

ZEBULON, NC – The U.S. Department of Labor has obtained a temporary restraining order against a plastics manufacturer after an investigation found the company failed to pay minimum wage and overtime to its employees.

The Department’s complaint seeks to keep Aimet Technologies LLC from shipping any products manufactured between June 19 and July 2, 2017. The Division believes the company’s plastic components – used in commercial and residential appliances – were produced by employees who were paid less than the federal minimum wage during that time period.

Investigators from the Wage and Hour Division found the employer either failed to pay any wages at all to salaried employees, or paid hourly employees at a rate less than 30 percent of their regular rates of pay, resulting in some employees earning less than $7.25 per hour. The employer also failed to pay affected employees overtime at one-and-one-half times their regular rates of pay when they worked more than 40 hours in a week. These infractions violated the overtime and minimum wage provisions of the Fair Labor Standards Act.

“Federal wage law prohibits the interstate shipment of any goods produced in violation of its provisions,” said Wage and Hour Division District Director Richard Blaylock. “Our goal is to ensure that workers are paid properly, and that law-abiding employers do not find themselves at an economic disadvantage to those who do not follow the law.”

In all, the Wage and Hour Division determined that 77 employees were due $43,554 in minimum wage and overtime back wages. The complaint was filed in U.S. District Court for the Eastern District of North Carolina.

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.