PORTLAND, OR – A federal judge has entered a consent judgment ordering a Portland drywall company to pay $285,000 in back wages and liquidated damages to 82 employees for overtime violations after a U.S. Department of Labor investigation.

The judge also ordered Moshen Salem, owner of Westside Drywall Inc., to refrain from retaliating against its employees and to provide training on the Fair Labor Standards Act (FLSA) to all of its supervisors within six months. The consent judgment ordered the company to pay $142,500 in back wages plus an equal sum of $142,500 in liquidated damages.  

“The U.S. Department of Labor welcomes this resolution to restore back wages owed to these hard-working employees,” said Wage and Hour Division Director Thomas Silva, in Portland. “Our goal is to ensure that employers adhere to their responsibilities and to level the playing field in this highly competitive industry.”

Investigators found that the company failed to pay piece-rate insulation installers overtime at one-and-one-half times their regular rates of pay when they worked more than 40 hours in a week from 2012 to 2014. Workers paid on a piece rate are compensated per unit they produce, but are entitled to compensation at the overtime rate –one and one half times their regular rate of pay—for all hours worked beyond 40 in a week. Westside Drywall also failed to pay workers for time spent in travel between job sites, which should have been counted as work time. 

In 2015, the Department’s Solicitor’s Office filed a lawsuit to compel Westside Drywall and Salem to comply with the FLSA after investigators found willful and repeat violations. The Department also sued Westside for similar violations in 2010. In that case, the Department recovered $200,000 for 62 drywall workers.

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 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 Portland Office at 503-326-3057. Information also is available at http://www.dol.gov/whd. 

CARMEL, IN – An Indiana construction contractor has paid $103,788 in back wages to 29 employees working on a U.S. Department of Housing and Urban Development project to renovate the Flagstone Village apartment complex in Hammond.

An investigation by the U.S. Department of Labor’s Wage and Hour Division determined CRG Residential, the prime contractor, failed to incorporate the required Davis-Bacon and Related Acts (DBRA) and Contract Work Hours and Safety Standards Act (CWHSSA) stipulations into the contracts of its subcontractors – Hubinger Landscaping of Crown Point and 8 Aces Construction of Lansing, Illinois. CRG is based in Carmel.

“Federal contractors owe it to taxpayers to comply with all applicable laws, including paying their workers fairly and fully,” said Wage and Hour District Director Patricia Lewis, in Indianapolis. “Prevailing wage laws level the playing field for all contractors.”

The Wage and Hour Division determined that CRG Residential failed to pay one employee for time spent transporting other workers to the job site at the start of the week and home from the job site at the end of the week. The company also classified the worker improperly and paid him a lower rate than required for his job classification when operating heavy equipment. Hubinger Landscaping classified a heavy equipment operator improperly and paid the worker a lower rate than his job required. And, 8 Aces Construction failed to pay required fringe benefits and paid less than the required hourly rates to finishers, painters, and carpenters. As the prime contractor, CRG was responsible for all violations and back wages owed because the subcontracts did not include the contract stipulations.

The DBRA requires that all contractors and subcontractors performing work on federal and certain federally funded construction projects pay their laborers and mechanics at least the prevailing wage rates associated with their occupation, as determined by the Secretary of Labor.

The CWHSSA applies to contractors and subcontractors with federal service contracts and federally funded and assisted construction contracts exceeding $100,000. It requires contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one-and-one-half times their basic rate of pay for all hours worked over 40 in a work week.

For more information about the DBRA, the CWHSSA, and other federal laws, contact the Wage and Hour Division’s Indianapolis District Office at 317-808-7910 or call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

INDIANAPOLIS, IN – The U.S. Department of Labor’s Wage and Hour Division and a large Midwest health care management company have reached an agreement to resolve overtime violations at 23 skilled nursing and assisted living facilities in Iowa, Illinois, and Indiana.

Ide Management Group LLC, which operates the facilities as IMG, has agreed to pay 594 workers $165,379 in back wages and damages.

The Wage and Hour Division found the Indianapolis-based company failed to include non-discretionary bonuses and shift-differentials paid to employees in overtime rate calculations, a violation of the Fair Labor Standards Act (FLSA) that resulted in workers being paid less than they were legally owed. The omission also led to violations of the FLSA’s record-keeping provisions. In addition to paying the back wages and damages, Ide Management Group has employed a new payroll service and is using new software to ensure correct computation of pay rates in the future.

“Failing to include shift differentials and bonuses – such as those paid for attendance and retention – when computing an employee’s regular rate of pay is a common overtime violation,” said Regional Wage and Hour Division Administrator Karen Chaikin. “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 calculate overtime rates.”

The Division determined employees are owed back wages and equal amounts in damages as follows:

Compliance information specific to the home care industry is available on the division’s website at https://www.dol.gov/whd/homecare/.

Persons with questions can get more information about this topic and all of the federal wage laws administered by the Division by calling 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/.

DENVER, CO – The U.S. Department of Labor’s Wage and Hour Division is conducting a statewide survey of wages paid to workers on heavy construction projects in North Dakota to establish prevailing wage rates required under the Davis-Bacon and Related Acts (DBRA).

The agency is seeking data from employers and interested parties on wages paid to workers on all active heavy construction projects in North Dakota from June 1, 2016, through May 31, 2017. The survey is not limited to federal or federally funded construction projects.

“An accurate and complete wage determination that reflects the wages and fringe benefits being paid to heavy construction employees in the county where the work is performed helps ensure workers receive the proper wages and benefits,” said Southwest Regional Wage and Hour Administrator Betty Campbell. “Participating in the survey leads to accurate wage determinations and levels the playing field for all contractors bidding on federally funded projects.”

Without significant contractor and interested party participation, DBRA wage determinations may not precisely reflect locally prevailing wages and may be incomplete, which can lead to contract-specific requests to add missing classifications. Davis-Bacon prevailing wage rates should reflect the wages and fringe benefits being paid to workers in the county where the work is being performed.

Notification letters and data collection forms (WD-10s) are being sent to all interested parties and contractors of which the Wage and Hour Division is aware. Data must be postmarked by March 30, 2018, in order to be considered. If you would like to receive a notification letter, please contact Craig L. Jackson at (214) 749-2021. You also may complete the North Dakota Wage Survey online.

The electronic data collection form, information regarding the Davis-Bacon survey program and instructions for completing this form are also available at this web site.

If you have any questions relating to the survey process and or the completion of the WD-10 form, please contact Craig L. Jackson at (214) 749-2021.

For more information about the DBRA and other federal wage laws, contact the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

NEWBERRY, SC – A federal court has ordered a South Carolina company providing laborers to a turkey processing plant to pay four disabled workers $165,402 in back wages and liquidated damages after the U.S. Department of Labor’s Wage and Hour Division found the employer violated the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

Work Services Inc. provides employees to work at Kraft Foods Global Inc.’s plant in Newberry. Investigators found that Work Services and its owner Joseph Byrd and supervisor David Perez willfully and repeatedly failed to pay certain intellectually and developmentally disabled employees at least the federal minimum wage and overtime for the work they performed for decades.

The court found the company and its owner and supervisor forged the workers’ signatures on paychecks, Social Security checks, and yearly state and federal tax returns, and then kept the funds. The court also found that the company’s owner charged the disabled workers plainly unreasonable rent to live in two connected double-wide mobile homes crowded with as many as 10 people.

In its order, the court found that the defendants did not pay the workers “any of their wages during the relevant time period.” 

“The defendants willfully violated the FLSA over many years and engaged in a course of conduct that violated the rights of these employees,” said Southeast Regional Wage and Hour Administrator Wayne Kotowski. “Through a coordinated effort involving multiple local, state, and federal agencies, the affected disabled workers have been removed from the employer’s custody”

The court ordered the defendants to pay $82,701 in back wages plus an equal amount in damages to the four affected employees on Feb. 14, 2017. The court stated that the defendants failed “to offer any defense for their egregious conduct in forging the disabled workers’ signatures, cashing their paychecks, and retaining the funds other than to state that this is always how it had been done.” The court also granted a permanent injunction that enjoins the defendants, their agents, servants, employees, and all individuals in active concert or participation from violating the FLSA in the future. The company did not appeal, making the court’s decision final.

“The mistreatment of these workers was appalling,” said Southeast Regional Solicitor Stanley Keen. “The fact that this employer was able to obtain an unfair competitive advantage in the marketplace makes the whole situation worse.”

The action follows an investigation that led the Department to file a complaint in November 2015 in U.S. District Court for South Carolina, Greenwood Division, against Work Services, Byrd, and David Perez seeking back wages, damages, and to permanently enjoin the defendants from violating the FLSA in the future.

The FLSA requires that covered, nonexempt 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 of pay for hours worked beyond 40 per work week. Employers also are required to maintain accurate time and payroll records and to comply with the hours worked requirements.

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.

DETROIT, MI – Henry Ford Health System has paid $90,004 in back wages to 22 workers in the Detroit hospital’s cardiac sonography department to resolve violations of overtime and record-keeping provisions of the Fair Labor Standards Act (FLSA) found by the U.S. Department of Labor Wage and Hour Division.

The Division found cardiac sonographers would start work up to 45 minutes prior to their shifts to prepare for the patient workload. Additionally, they frequently worked through lunch hours and breaks to complete time-sensitive patient diagnostic reports before the end of their shifts. FLSA overtime rules were violated when deductions were made for 30-minute meal breaks from workers’ pay when those breaks were not actually taken, and when employees were not paid for work they performed prior to their shifts. This failure to consider all of the employees’ hours of work also resulted in a recordkeeping violation.

Henry Ford Health System, which has paid the back wages, will in the future pay for any pre-shift work and lunch breaks not taken, and maintain accurate records as required.

“The Wage and Hour Division provides education and outreach services to assist companies in fulfilling their legal responsibilities,” said Wage and Hour Division District Director Timolin Mitchell. “As this matter underscores, employees must be paid for all work time. If patient scheduling and other patient care duties cause employees to start work before their scheduled shift or to work through a scheduled lunch hour, the employees must be compensated.”

For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

INDIANAPOLIS, IN – The U.S. Department of Labor's Wage and Hour Division and a large Midwest health care management company have reached an agreement to resolve overtime violations at 23 skilled nursing and assisted living facilities in Iowa, Illinois, and Indiana.

Ide Management Group LLC, which operates the facilities as IMG, has agreed to pay 594 workers $165,379 in back wages and damages.

The Wage and Hour Division found the Indianapolis-based company failed to include non-discretionary bonuses and shift-differentials paid to employees in overtime rate calculations, a violation of the Fair Labor Standards Act (FLSA) that resulted in workers being paid less than they were legally owed. The omission also led to violations of the FLSA's record-keeping provisions. In addition to paying the back wages and damages, Ide Management Group has employed a new payroll service and is using new software to ensure correct computation of pay rates in the future.

"Failing to include shift differentials and bonuses – such as those paid for attendance and retention – when computing an employee's regular rate of pay is a common overtime violation," said Regional Wage and Hour Division Administrator Karen Chaikin. "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 calculate overtime rates."

The Division determined employees are owed back wages and equal amounts in damages as follows:

Compliance information specific to the home care industry is available on the division's website at https://www.dol.gov/whd/homecare/.

Persons with questions can get more information about this topic and all of the federal wage laws administered by the Division by calling 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/.

ELKHART, IN – The U.S. Department of Labor’s Wage and Hour Division and an Indiana recreational vehicle manufacturer have reached an agreement to resolve overtime and minimum wage violations at nine production plants in Elkhart and Wakarusa.

Thor Motor Co. of Elkhart, has paid 386 workers a total of $59,514 – representing $29,757 in back wages and an equal amount in damages.

Division investigators found violations of the Fair Labor Standards Act (FLSA) occurred when recruitment bonuses paid to employees were not included in overtime rate calculations, resulting in workers being paid less than they were legally owed. The hourly rate earned by some piece rate workers fell below the minimum wage, and the company paid time-and-half on those same sub-minimum wage rates when calculating overtime for piece-workers. The company also failed to keep accurate records of hours worked.

“Failing to properly compute wages for piece workers and include bonuses when computing an employee’s regular rate of pay for overtime pay denies worker’s their rightfully earned wages,” said Wage and Hour Division District Director Patricia Lewis, in Indianapolis. “We encourage all businesses to take advantage of the Division’s education and outreach efforts to help them understand their responsibilities and how to properly calculate pay rates.”

Thor Motor Coach is a subsidiary of Thor Industries, Inc., the parent company of 12 RV manufacturing companies located in the Midwest.

Workers and employers with questions can get more information about this topic and all of the federal wage laws administered by the Division by calling 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/.

ATLANTA, GA – The U.S. Department of Labor’s Wage and Hour Division is conducting a statewide survey of wages paid to workers in Tennessee on all active building construction projects to establish prevailing wage rates required under the Davis-Bacon and Related Acts.

The agency is seeking data from employers on wages paid to building construction workers throughout the state from April 1, 2016, to March 31, 2017. This survey is not limited to federally funded construction projects. 

“Davis-Bacon prevailing wage rates should reflect the wages and fringe benefits being paid to construction workers in the county where the work is being performed. This survey relies on the full participation of the Tennessee construction industry,” said Wage and Hour Division Regional Administrator Wayne Kotowski.

Without significant employer participation, wage rates may not reflect actual wages or may lead to incomplete wage determinations, which then lead to more requests for further classifications.

Notification letters and “WD-10” data collection forms are being sent to interested parties and contractors known to the Wage and Hour Division on August 25, 2017.  Data must be postmarked by February 28, 2018, to be included in the survey. Complete the survey electronically.

You do not need to receive a letter to answer the survey. If you would like to participate, or have questions regarding the survey process and forms, contact Kim Chu at 678-237-0488.

BALTIMORE, MD – A Virginia company that provided human resources and other services to federal agencies nationwide paid more than $3 million in back wages and fringe benefits to resolve the findings of a U.S. Department of Labor Wage and Hour Division investigation.

FPMI Solutions Inc. (FPMI) of Alexandria, Virginia, violated the prevailing wage and fringe benefits provisions of the McNamara-O’Hara Service Contract Act (SCA) and failed to pay $3,159,214 in prevailing wage and health and welfare benefits to 167 employees working in the Washington, D.C. area, the investigation determined.

The company failed to pay employees and independent contractors during several payroll periods from early June 2016 to October 2016, according to the Wage and Hour Division. When the Department learned that the company filed for Chapter 11 bankruptcy protections, its Office of the Solicitor actively participated in the case, which was handled in the U.S. Bankruptcy Court for the Eastern District of Virginia. Department attorneys negotiated with the debtor and purchaser on cash collateral and sale terms, advocating for the payment of salaries and benefits owed as well as retention in employment, where possible, with the purchaser. On Sept. 30, 2016, the company was sold.

“During court proceedings and the acquisition process, the Wage and Hour Division and the Office of the Solicitor intervened to ensure that federal contract funds were withheld to cover the payrolls that FPMI failed to make,” said Baltimore District Office Director Mark Lara. “Our goal was to protect the interests of workers and to level the playing field for companies who play by the rules.”

During the time period covered by the investigation, FPMI Solutions had contracts with 11 federal agencies including the U.S. Departments of Labor, Justice, and Health and Human Services, as well as the Environmental Protection Agency and Federal Communications Commission.

The SCA applies to every contract valued in excess of $2,500 entered into by the U.S. government or the District of Columbia, the principal purpose of which is to furnish services in the U.S. using service employees. Contractors and subcontractors performing on covered service contracts must observe minimum wage and safety, health, and welfare benefits and maintain certain records.

For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/