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/

ATLANTA, GA – The U.S. Department of Labor’s Wage and Hour Division is conducting a statewide survey of wages paid to workers in Alabama on all active highway 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 highway construction workers throughout the state from Aug. 1, 2016, to Jan. 31, 2017. This survey is not limited to federally funded construction projects.

“An accurate and complete wage determination that reflects the wages and fringe benefits being paid to construction workers where the work is performed helps ensure workers receive the proper wages and benefits,” said Wage and Hour Division Regional Administrator Wayne Kotowski. “We can only accomplish this with full participation of employers in the Alabama construction industry.”

Without significant employer participation, wage rates may not reflect actual wages or create incomplete wage determinations, which 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 by mid-August. Data must be postmarked by Dec. 15, 2017, to be included in the survey. Click here to 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.

LAWRENCEVILLE, N.J. – The U.S. Department of Labor’s Wage and Hour Division has reached a settlement agreement with owners of six southern New Jersey gas stations to pay nearly $500,000 in back wages and damages to 27 employees working as gas station attendants.

The Division found that R & R Store Inc. – doing business as USA Gas – and its co-owners Prabhjit Singh and Harbir Riar, violated the overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act. The employers paid 27 workers a flat monthly salary between $2,200 and $2,400, without regard to minimum wage and overtime requirements. These employees worked an average of 70 hours per week, and were not paid premium pay for their overtime hours. Additionally, the employers failed to maintain time and payroll records.

“Not paying employees the wages they’ve earned seriously impacts low-wage employees, such as gas station attendants, causing them hardships as they try to support themselves and their families,” said Charlene Rachor, director of the Wage and Hour Division’s Southern New Jersey District Office. “The U.S. Department of Labor remains focused on New Jersey’s gas stations to determine if FLSA violations exist. If violations are found, we will vigorously pursue corrective action to ensure accountability, deter future violations, and prevent violators from gaining a competitive advantage.”

As part of the settlement agreement, the employers agreed to future FLSA compliance and to pay back wages and an equal amount in liquidated damages totaling $463,453.52 at the company’s locations as follows:

• $39,116 to four employees at 47 Chestnut St. in Elmer.
• $34,670 to five employees at 206 Hanover St. in Pemberton.
• $39,983 to three employees at 106 W. Main St. in Maple Shade.
• $39,936 to three employees at 402 Landis Ave. in Vineland.
• $38,698 to nine employees at 2523 Route 206 in Mount Holly.
• $39,321 to three employees at 3970 N. Delsea Drive in Newfield.

New Jersey is one of only two U.S. states that bars motorists from pumping their own gas. Gas stations there must employ full-service gas station attendants to operate gas pumps and provide other related customer services.

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 a state law have different minimum wage rates, the higher standard applies. Employers also must maintain accurate time and payroll records.

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

WASHINGTON, Pa. – A Pittsburgh-area wholesale nursery has paid nearly $150,000 in back wages and penalties after the U.S. Department of Labor found the company failed to recruit and hire American workers from Puerto Rico before hiring foreign workers under the H-2A visa program, in violation of section 218 of the Immigration and Nationality Act. 

U.S. Secretary of Labor Alexander Acosta announced in June that the Department will increase protections of American workers while more aggressively confronting entities committing visa program fraud and abuse.

“Employers must give Americans the opportunity to be hired for an open job before they look overseas,” said Secretary Acosta. “The Department of Labor is committed to ensuring Americans have access to good, safe jobs and will continue taking legal action on those who abuse our country’s visa programs.”

Investigators with the Department’s Wage and Hour Division found George Godwin, doing business as Godwin’s Nursery & Trees, owed back wages after the employer illegally denied five qualified U.S. workers from Puerto Rico the opportunity to work at the nursery. Instead, the employer hired four H-2A farmworkers from Mexico.

The division also found that the Washington-based employer failed to provide housing for agricultural workers that met required housing safety and health standards. Godwin also failed to post required information about agricultural workers’ rights.

Godwin’s Nursery has paid $117,449 in back wages and $29,593 in civil money penalties to resolve the matter.

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/.

PORTLAND, Ore. – The owner of an Oregon concrete company that contracted with the federal government recently started a two-month prison sentence for lying to federal investigators. The crime occurred when he told U.S. Department of Labor officials that he had paid employees more than $93,000 in back wages that the Department’s Wage and Hour Division found the company owed its workers following a 2014 investigation.

The Department’s investigation revealed that Westwind Concrete had failed to pay the proper prevailing wage rates on a project in Tualatin in violation of the Davis Bacon and Related Acts, which applied because the U.S Department of Housing and Urban Development financed the project. Westwind Concrete is based in Cloverdale.

Westwind owner Jeffery Hurliman assured the division that he would pay more than $93,000 in back wages he owed to 27 workers and later provided certifications that he claimed were from his employees attesting to having received back wages.

The Department’s Office of Inspector General investigated Hurliman after officials in the division’s Portland office noted discrepancies on the proofs of payment. The investigation revealed that the certifications were falsified and that when Hurliman learned about the investigation, he offered money to employees to lie to investigators.  

The Department's findings led to federal criminal prosecution against Hurliman and a two-month prison sentence. Hurliman agreed to a deal in January 2017 in which he pleaded guilty to witness tampering and providing false statements to the government, both felonies, and began his sentence on June 15, 2017. He will be on supervised release for three years following his release from prison on Aug. 15, 2017. In the meantime, the department has sued to prevent him from obtaining future government contracts.

“The resolution of this case sends a clear message – the U.S. Department of Labor will continue to enforce the law to level the playing field for employers who play by the rules, and to ensure that workers are paid what they have legally earned,” said Portland Wage and Hour Division Director Thomas Silva. “We remain committed to educating employers, workers, and the public to improve compliance with federal labor laws across the board.”

The DBRAs require all contractors and subcontractors performing work on federal and certain federally funded projects to pay their laborers and mechanics the proper prevailing wage rates and fringe benefits, as determined by the secretary of labor. The prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors on these projects.

OKLAHOMA CITY – The U.S. Department of Labor’s Wage and Hour Division and Sonic Industries Services Inc. – franchisor of the SONIC Drive-In restaurant chain – have signed a voluntary agreement to help SONIC’s independently owned and operated franchise locations comply with federal labor laws. As part of the agreement, the Oklahoma City-based franchisor will provide a forum and the resources needed to assist the division in educating SONIC Drive-In owners, managers, and employees nationwide.

“We encourage other franchisors to follow SONIC’s example and take similar steps to benefit their franchises’ employees and owners by complying with the law,” said Wage and Hour Division Deputy Administrator for Program Operations, Patricia Davidson. “Abiding by the law makes better business sense than facing the prospect of paying back wages, damages, and penalties for violations of the Fair Labor Standards Act.”

The Division will provide easy-to-use compliance assistance tools designed for the franchise restaurant industry. The package will include video and online training, educational articles for use in internal company publications, and sample training materials for use in company staff meetings. The Division will also make representatives available to provide training and compliance assistance to SONIC franchisees, and the Division and SONIC will collaborate using publicly available data to promote franchisee compliance with the FLSA.

SONIC Drive-In is the nation’s largest drive-in restaurant chain, serving approximately 3 million customers daily. Nearly 94 percent of its 3,500 drive-in locations are locally owned and operated.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour as well as time-and-one-half their regular rates for every hour they work beyond 40 per week. The law further requires employers to maintain accurate records of employees’ wages, hours, and other conditions of employment. It also establishes a minimum age of 18 for workers in those nonagricultural occupations that the secretary of labor declares to be particularly hazardous for 16- and 17-year-old workers or detrimental to their health or well-being. The FLSA also prohibits employers from retaliating against employees who exercise their rights under 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/.

WASHINGTON – The U.S. Department of Labor will publish a Request for Information for the overtime rule on Wednesday, July 26, 2017. The RFI is an opportunity for the public to provide information that will aid the department in formulating a proposal to revise these regulations which define and delimit exemptions from the Fair Labor Standards Act’s minimum wage and overtime requirements for certain employees.

The RFI solicits feedback on questions related to the salary level test, the duties test, varying cost-of-living across different parts of the U.S., inclusion of non-discretionary bonuses and incentive payments to satisfy a portion of the salary level, the salary test for highly compensated employees, and automatic updating of the salary level tests. 

The RFI will be published in the Federal Register with a 60-day public comment period. Instructions on submitting public comments are in the RFI. Comments may also be submitted electronically at http://www.regulations.gov. 

Click here for a preview copy of the RFI.