PHILADELPHIA, PA – The U.S. Department of Labor’s Wage and Hour Division is conducting a construction survey in 24 New York counties to collect data on wages paid to workers to help establish prevailing wage rates, as required under the Davis-Bacon and Related Acts.

The survey includes wages paid on all building construction projects that occurred between June 1, 2016, and May 31, 2017, in the following counties: Allegany, Cattaraugus, Cayuga, Chenango, Chautauqua, Clinton, Columbia, Cortland, Delaware, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Lewis, Montgomery, Otsego, Schuyler, Seneca, Steuben, St. Lawrence, Sullivan, and Wyoming. It is not limited to federal or federally funded construction projects.

“Davis-Bacon prevailing wage rates should reflect the actual wages and fringe benefits paid to construction workers in the locations where the work takes place. This can only happen with full participation by the construction industry community in these 24 New York counties,” said the Division’s Northeast Regional Administrator Mark Watson. “Participation by contractors and interested parties is crucial. Low response can lead to wage rates that do not reflect wages and incomplete wage determinations, which leads to an increase in requests for additional classifications.”

Notification letters and data collection forms, known as WD-10s, are being sent to interested parties and contractors known to the Division. Data must be postmarked by March 25, 2018, to be included. You may also complete the survey online.

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 or completing the WD-10 form, contact William E. Schweizer at 267-687-4031.

ATLANTA, GA – A U.S. District Court for the Southern District of Georgia has ordered Bland Farms Production and Packing LLC – an onion producer in Vidalia – to pay $1,480,268 in back wages and liquidated damages after the U.S. Department of Labor’s Wage and Hour Division found the employer violated the Fair Labor Standards Act (FLSA).

Bland failed to pay overtime to approximately 460 employees over the span of six years, the Division determined. Under the FLSA, employers must pay workers time-and-a-half when they exceed 40 hours in a work week. The overtime rule exempts company workers involved in primary agriculture, the act of growing product; or secondary agriculture, the act of processing, and packaging the product grown by that company.

Bland violated that rule when it failed to pay overtime wages to packing-shed employees involved in the processing and packaging of onions grown by other farmers who were contracted with the company to grow onions for sale to Bland. The contract farmers planted and grew the onions only to be packed and sold by Bland.

“This decision recovers back wages for hundreds of workers in an industry where these violations are all too common,” said Southeast Regional Administrator for the Wage and Hour Division, Wayne Kotowski. “We are committed to enforcement and educational efforts to ensure that workers know their rights and employers know their responsibilities.”

The Department and the court rejected Bland’s contention that the advice the company provided to the contract farmers was sufficient to make Bland a farmer of the onions grown by those farmers. The Department and the court determined that because Bland was not the farmer of the onions grown by the contract farmers, processing and packaging those onions was not incidental to Bland’s farming operations. As such, the agricultural exemption from the FLSA’s overtime requirements did not apply to the packing-shed employees when they processed onions not grown on Bland property.

The court also found that Bland did not act in good faith in continuing to fail to pay overtime after the Department filed its complaint and awarded over $500,000 in liquidated damages to workers from the time of the lawsuit in 2014 to the present.

“This case makes it clear to agricultural producers like Bland that if you’re not growing the produce, the agricultural exemption from overtime does not apply,” said Regional Solicitor Stanley Keen. “A decision like this one levels the playing field for other large producers who pay their packing house employees as the law requires.”

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.

KANSAS CITY, MO – The owner of a Kansas City-area restaurant pleaded guilty in federal court to two felony counts of providing falsified payroll records to impede an investigation by the U.S. Department of Labor’s Wage and Hour Division into violations of federal wage laws.

Yong Lin – president of China Garden Buffet Inc. in Merriam, Kansas – entered the plea on Sept. 12, 2017, before U.S. District Court Judge Carlos Murguia. Sentencing is expected before the end of the year. Falsification of records could result in a sentence of up to 20 years imprisonment, $250,000 in fines, and three years of supervised release, as well as restitution.

“This case demonstrates our commitment to preventing companies that choose to break the law from gaining an unfair advantage over their competitors,” said Regional Wage and Hour Division Administrator Karen Chaikin, in Chicago. “The case also helps ensure that workers are paid what they have earned.”

During the Division’s inquiry, Lin presented falsified payroll records to investigators in February 2013 and January 2014. After determining back wages of $709,539 were due to 56 employees of China Garden Buffet for violations of overtime, minimum wage and record-keeping provisions of the Fair Labor Standards Act (FLSA), the Department filed a lawsuit on Aug. 21, 2014, to recover back wages and liquidated damages.

In 2011, China Garden Buffet paid back wages of $15,504 to 16 employees after the Division found similar FLSA violations.

The Department’s Regional Solicitors Office in Kansas City and the Office of Inspector General assisted with the case.

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/.

PHILADELPHIA, PA – A Philadelphia restaurant has agreed to pay 63 workers a total of $197,917 in back wages, and an equal amount in liquidated damages, to resolve alleged federal wage violations, including requiring employees to work unpaid hours. The agreement is part of a proposed consent judgment filed on Oct. 16, 2017, pending review and approval by a federal judge.

An investigation conducted by the U.S. Department of Labor’s Wage and Hour Division in Philadelphia found that Washington Square Restaurant Partners LP – doing business as Talula’s Garden – violated the overtime, minimum wage, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

“The workers at Talula’s Garden did not receive the required minimum wage and overtime pay,” said Wage and Hour Division District Director James Cain, in Philadelphia. “Our agency is committed to ensuring that workers not only receive the wages they have rightfully earned, but that employers are provided all the tools they need to understand and comply with the law.”

Division investigators found that line cooks did prep work off-the-clock before the start of their shifts, resulting in unpaid overtime work.  Servers and bartenders also worked – off-the-clock and without pay – to prepare food, the restaurant, and their individual work stations, resulting in minimum wage and overtime violations. The Division also found the restaurant failed to maintain accurate records of work hours for bartenders, servers, and line cooks.

“The off-the-clock work performed by Talula’s Garden employees resulted in clear violations of the Fair Labor Standards Act,” said Regional Solicitor Oscar L. Hampton III.  “This enforcement action, and the consent judgment resolving it, advances our goal of ensuring not only that restaurant employees are properly compensated, but that employers in this industry operate on a level playing field.”

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 leveling the playing field for all employers and 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/.

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.