NEW YORK – The U.S. Department of Labor has filed an injunction against the owners of two medical offices in Brooklyn to prevent further retaliation against employees who refused to provide false information to obstruct the department’s investigation into alleged violations of the federal Fair Labor Standards Act.

In a complaint filed June 30, 2017, the department alleges that almost immediately after the department’s Wage and Hour Division notified Neurological Care P.C. of its overtime and record keeping violations, the employer demanded that employees submit false written statements to investigators in which they were to state they had been paid legally. When two employees refused to do so, the employer demoted them and slashed their work hours in retaliation. 

Specifically, the complaint alleges the employer:

• Instructed employees to provide false information to investigators.
• Retaliated against employees who refused to provide false information to investigators, demoting the general manager and a medical technician to receptionist jobs, reducing their hours of work, and singling them out for disproportionate discipline and other hostile treatment at work.
• Paid approximately 41 employees only for their scheduled hours of work, and generally refused to compensate employees for hours worked over 40 when many employees worked approximately 45 hours per week or more.
• Advised employees that the company had an office policy of not paying overtime.
• Failed to pay employees for working during apparent lunch breaks.
• Regularly required employees to work substantial hours before and after the office closed to the public without compensation.
• Created handwritten records that generally recorded only the weekly scheduled hours worked (rather than the actual hours worked) for each employee.
• When the employer did record hours employees worked beyond 40 scheduled hours in a week, the employer paid employees for those hours only at their straight time rates, rather than paying them overtime premium pay.

The defendants have since agreed by stipulation to the provisions set forth in the injunction, which the court ordered to prevent further retaliation or intimidation.

“The Wage and Hour Division will utilize all tools under the Fair Labor Standards Act to prevent employer retaliation and to ensure that employees can exercise their legal rights free from intimidation,” said David An, district director of the division’s New York City District Office. “Such an environment not only protects workers but also helps to level the playing field for employers who play by the rules.”

“Employers cannot expect to mislead the government with impunity,” said Jeffrey S. Rogoff, regional solicitor New York Regional Office. “When an employer engages in egregious retaliatory conduct, we will use every mechanism at our disposal, including litigation, to protect workers and safeguard the integrity of the government’s investigatory process.”

Senior  trial attorneys Elena S. Goldstein and Daniel Hennefeld of the department’s New York Regional Solicitor’s Office are litigating the case for the department.

The FLSA requires that employees receive one-and-one-half 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. It is a violation of the FSLA for any person to discharge or in any other manner discriminate against any employee because he or she has filed a complaint or cooperated in an investigation. See Retaliation Fact Sheet.

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. 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 New York City District Office at 212-264-8185. Information also is available at http://www.dol.gov/whd.   

Who: U.S. Department of Labor’s Wage and Hour Division
U.S. Department of Labor’s Office of Federal Contract Compliance Programs
U.S. Department of Labor’s Occupational Safety and Health Administration
National Labor Relations Board
Louisiana Workforce Commission/Office of UI Administration

What: U.S. Department of Labor Employer Compliance Assistance Training

When: Aug. 3, 2017
8 a.m. – 3:30 p.m. CDT

Where: F. Edward Hebert Federal Building.
600 South Maestri Place, Suite 400
New Orleans, LA 70130

Background: The U.S. Department of Labor provides compliance assistance and training events to assist employers in complying with federal workplace laws. On Aug. 3, representatives from the department’s Occupational Safety and Health Administration, Office of Federal Contract Compliance Programs, Wage and Hour Division, National Labor Relations Board and the Louisiana Workforce Commission will be on-hand in New Orleans to provide area employers, company managers, human resources professionals and others with the useful resources and training.

This is a “one-stop” training opportunity for employers to hear and speak directly with many of the agencies that support key workplace issues such as wages, recordkeeping, safety and health and government contracting, and unemployment insurance.

There is no cost to attend, but space is limited.Click here to register to attend the event.

For more information about the event, send your questions to Sabikkandel.williams@dol.gov.

EAST ORANGE, N.J. – Three East Orange construction companies have entered into a consent judgment  with the U.S. Department of Labor and will pay $850,000 in back wages and damages to 153 workers to resolve violations of the federal Fair Labor Standards Act.

The department’s Wage and Hour Division investigators found that DKNJ Masonry Corp., Roy Rock LLC and Silver Construction Inc. – all controlled and operated by Rui Pires – violated the FLSA’s overtime and recordkeeping provisions.

Investigators found that the companies and Rui Pires, which all admitted that they jointly employed their workers in each workweek, failed to pay overtime at time-and-a-half when employees worked more than 40 hours. Instead, the employer paid for overtime hours at straight-time rates and failed to keep adequate records of hours worked. The division found DKNJ violated the law by hiding overtime in a separate payroll of another company, Silver Construction. Silver shared the same space, staff and management as DKNJ Masonry/Roy Rock. Investigators determined the second company was used to evade FLSA requirements.

“The construction industry is highly competitive. A company that avoids paying legally required wages gains an unfair advantage over its competitors,” said John Warner, director of the Northern New Jersey District Office. “Our goal is to ensure that workers receive the wages they have earned and that law-abiding businesses can compete fairly in the marketplace,” said Jeffrey S. Rogoff, regional solicitor.

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, 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 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.

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

This case was investigated by the Wage and Hour Division’s Northern New Jersey District Office and litigated by Stacy Goldberg and Jacob Heyman Kantor of the Solicitor’s Office.

• Read this release in Spanish
• Read this release in Portuguese

Employer: Colima’s Carniceria y Taqueria

Site: 611 Tulare St., Parlier, California

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that Colima’s Carniceria y Taqueria owners Maria and Martin Cobian violated the Fair Labor Standards Act by failing to pay employees time-and-a-half their regular hourly rates for hours worked beyond 40 in a week. The employer also failed to make, keep and preserve accurate records of the wages, hours and other conditions and practices of employment.

Resolution: An agreement between the department and Colima’s owners was reached, and a consent judgment was filed in the U.S. District Court for the Eastern District of California in Fresno on June 15, 2017. The restaurant and its owners agreed to pay $50,000 in overtime due to workers and an equal amount in damages, totaling $100,000 for the employees. The owners will also implement a new time-keeping system and arrange for an all-employee meeting with Wage and Hour Division officials to inform workers of their FLSA rights.

Quote: “We look forward to continuing to work with employers and workers alike in the Central Valley to ensure they understand federal labor requirements for overtime and minimum wage,” said Nora Pedraza, the Wage and Hour Division’s assistant director in Fresno. “This settlement puts money back in workers’ pockets while also ensuring the company complies with the Fair Labor Standards Act in the future.”

Information: 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 – The U.S. Department of Labor will reinstate the issuance of opinion letters, U.S. Secretary of Labor Alexander Acosta announced today. The action allows the department’s Wage and Hour Division to use opinion letters as one of its methods for providing guidance to covered employers and employees.

An opinion letter is an official, written opinion by the Wage and Hour Division of how a particular law applies in specific circumstances presented by an employer, employee or other entity requesting the opinion. The letters were a division practice for more than 70 years until being stopped and replaced by general guidance in 2010.

“Reinstating opinion letters will benefit employees and employers as they provide a means by which both can develop a clearer understanding of the Fair Labor Standards Act and other statutes,” said Secretary Acosta. “The U.S. Department of Labor is committed to helping employers and employees clearly understand their labor responsibilities so employers can concentrate on doing what they do best: growing their businesses and creating jobs.”

The division has established a webpage where the public can see if existing agency guidance already addresses their questions or submit a request for an opinion letter. The webpage explains what to include in the request, where to submit the request, and where to review existing guidance. The division will exercise discretion in determining which requests for opinion letters will be responded to, and the appropriate form of guidance to be issued. 

Employers: Forge Building Company, LLC

Site: 2619 West Lampert Drive, Boise, Idaho

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that Forge Building Company violated the Fair Labor Standards Act’s minimum wage and overtime provisions. The company – a provider of customized manufactured galvanized steel structures and storage facilities – failed to pay workers overtime at time-and-one-half for hours worked beyond 40 in a work week. In addition, the employer made illegal deductions from workers’ paychecks to recoup the cost of tools it required them to purchase. These deductions had the effect of lowering the workers’ pay below the federal minimum wage of $7.25 per hour.

Resolution: In an agreement with the department, Forge will pay minimum wages to eight employees and overtime premium to 97 employees, with total back wages calculated at $358,601. The company also agreed to pay an equal sum of $358,601 in damages, totaling $717,202 for the workers.

Quote: “Our investigation has discovered violations resulting in wages that these workers had rightfully earned,” said Wage and Hour Division District Director Thomas Silva. “This case allows us to level the playing field for all of the employers who play by the rules. We are dedicated to protect both workers and employers.”

Information: 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.

Employer: Freshore Hospitality, LLC doing business as Willows Inn on Lummi Island

Site: 2579 West Shore Drive, Lummi Island, Washington

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that Willows Inn violated the Fair Labor Standards Act by failing to pay overtime and minimum wage to its employees. The restaurant required entry-level kitchen staff known in the industry as “stages” to work one month as a free try-out period before they were considered for paid employment. Once on the payroll, the kitchen workers were paid daily rates from $50 per day for up to 14 hours per day with no consideration of weekly overtime premium.

Resolution: Willows Inn reached a settlement with the department in which the company agreed to pay $74,812 in unpaid overtime to 19 kitchen workers and an equal amount in damages, totaling $149,624 for the employees. The company also canceled its “stage program” and agreed to comply with federal wage laws in the future.

Quote: “We hope this case can educate others in the high-end restaurant world that “staging,” while common, is unfair to workers, and it is illegal,” said Jeanette Aranda, director of the Wage and Hour Division’s office in Seattle. “This case allows us to level the playing field for employers who play by the rules by complying with the law. We are dedicated to educating and protecting both workers and employers.”

Background: Recognized recently as one of the world’s best luxury farm stays, the Willows Inn on Lummi Island specializes in serving meals created from local Pacific Northwest ingredients. Like many restaurants, Willows Inn relied on “stages” (originates from the French word “stagiaire,” meaning trainee, apprentice or intern) to supply unpaid labor. The stages were asked to perform kitchen work including cleaning dishes, polishing silverware, collecting herbs, prepping vegetables and assembling dishes. The stages also devoted hours to cleaning facilities and painting the exterior of Willow Inn buildings.

Information: 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.

NEW YORK – A company that operates 138 parking garages in New York City and surrounding areas has paid $296,836 in back wages for 1,164 employees and amended its payroll practices to align with the federal Fair Labor Standards Act as part of an agreement with the U.S. Department of Labor.

An investigation by the department’s Wage and Hour Division found that Quik Park NYC LLC; RL Holdings 2 LLC; and Quik Park NYC (Fee) LLC, which does business as “Quik Park,” did not comply with the FLSA’s overtime and recordkeeping requirements between Oct. 1, 2014, and July 31, 2016. The division found the company’s practice of rounding hours resulted in employees not receiving correct overtime when they worked more than 40 hours in a workweek. Also, it erroneously programmed its timekeeping system to automatically record employees’ scheduled work hours instead of the actual hours they worked. This resulted in employees not getting paid for hours they worked beyond those scheduled.

“This agreement recovers back wages for thousands of workers in an industry that employs some of the most vulnerable workers. Quik Park’s prompt payment and commitment to current and future compliance ensures that its employees will receive all the wages they are due now and in the future,” said David An, director of the division’s New York City District Office. “Overtime and recordkeeping are not uncommon wage and hour issues. We encourage employers and workers to familiarize themselves with the FLSA’s requirements and to contact us with any questions they may have.”

The division has received the back wages and is in the process of distributing them to the employees. In the agreement, Quik Park neither admits nor denies the findings of the division’s investigation.

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

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, including resources 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 New York City District Office at 212- 264-8185. Information also is available at http://www.dol.gov/whd.

Employer: Zenefits FTW Insurance Services

Site: 303 2^nd St. San Francisco, California
Two closed offices in Tempe and Scottsdale, Arizona

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that Zenefits violated the Fair Labor Standards Act by misclassifying 743 account executives and sales development representatives in San Francisco, and in Tempe and Scottsdale, Arizona, as exempt from minimum wage and overtime. The company incorrectly paid the workers a flat salary for all hours worked, regardless of overtime or training time.

Resolution: Zenefits will pay $3.4 million in unpaid overtime to 743 account executives and sales representatives in California and Arizona. The software company has also entered into an enhanced compliance agreement that includes monitoring by the department to prevent future wage and hour violations.

Quote: “We have put money back in workers’ wallets while also working with Zenefits to ensure future compliance with federal labor law,” said Ruben Rosalez, the Wage and Hour Division’s regional administrator in San Francisco. “This case allows us to level the playing field for all of the employers who play by the rules. We are dedicated to protecting both workers and employers.”

Background: Zenefits provides products and services, including software for payroll, timekeeping, hiring and employee benefits. The company also serves as an insurance broker.

Information: 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/.

PHILADELPHIA – The owners of two establishments – a produce market and a restaurant – at Reading Terminal Market have entered into a stipulation agreement with the U.S. Department of Labor that requires the payment of $660,117 in back wages and liquidated damages to 140 present and past workers to resolve violations of the federal Fair Labor Standards Act.

The department’s Wage and Hour Division investigators found that Iovine Bros Inc. – doing business as Iovine Brothers Produce – and Iovine Brothers Bar and Grill Inc. – doing business as Molly Malloy – violated the overtime and recordkeeping provisions of the FLSA. Both businesses are owned by James and Vincent Iovine.

Investigators found that the employer failed  to pay overtime at time-and-a-half when employees at the produce market and restaurant worked more than 40 hours in a workweek.  Instead, the employer paid for the overtime hours at straight time rates, in cash.  The failure affected regular hourly employees, and tipped employees, such as servers and bartenders. The employer also failed to maintain some of the payroll records required by  law. A civil money penalty of $62,007 was assessed due to the willful nature  of the violations.

“For workers in the restaurant and service sectors, money earned through overtime can make a big difference to their livelihood,” said James Cain, director of the division’s Philadelphia District Office. “For employers in this competitive industry, maintaining a level playing field is critical.  Our top priorities are to ensure that workers are aware of their rights, and to help companies come into compliance with the law.”

In the agreement, the owners agreed to change their business practices to ensure compliance with the law.

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, 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 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.

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