Employer name: All Native Services Co.

Investigation site: 375 Perry St.
Robins Air Force Base, Georgia 31096

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division, Atlanta District Office, found that All Native Services violated the McNamara-O’Hara Service Contract Act. The employer failed to pay the correct prevailing wage rates as required for technical writers, drafters/computer aided design operators and production control clerks employed on a contract at Robins AFB to perform technical data support services such as editorial support and publication editing.

Resolution: All Native Services has signed an agreement confirming its commitment to comply with the SCA and has paid 64 workers $507,610 in prevailing wages due.

Quote: “When an employer receives federal tax dollars to provide services to the government, they must comply with all applicable laws and ensure that employees are paid the legally required prevailing wages their contract requires,” said Eric Williams, the Wage and Hour Division’s district director in Atlanta. “All Native Services denied its workers their hard-earned wages and gained an unfair advantage over other contractors. We will continue our vigorous enforcement of the law to ensure that taxpayer-funded projects such as this one deliver a fair day’s pay for a fair day’s work, and maintain a level playing field for all contractors.”

Background: All Native Services is a subsidiary of Ho-Chunk Inc., a tribal development corporation owned by the Winnebago Tribe of Nebraska. Ho-Chunk Inc. operates 34 subsidiaries and employs more than 1,000 workers spanning more than 16 states and eight foreign countries. Other subsidiary operations include information technology, construction, government contracting, green energy, retail, wholesale distribution, marketing and transportation.

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/.

Date of action:  December 29, 2016

Type of action:  McNamara-O’Hara Service Contract Act Debarment Action

Names of respondents:  Restaurant Associates LLC, Restaurant Associates Inc., and Dick Cattani
132 West 31^st Street, Suite 601, New York, NY 10001

Background:  In July 2016, federal contractors Restaurant Associates, LLC., Restaurant Associates, Inc., and their subcontractor, Personnel Plus, agreed to pay back wages in the amount of $1,008,302 to 674 workers after the department’s Wage and Hour Division found the contractors violated the McNamara-O’Hara Service Contract Act by paying workers less than the wages required under the Act and failing to pay for all hours worked. The workers prepared and served meals for Capitol Hill lawmakers and their staffs in the U.S. Senate cafeteria. In September 2016, the contractors agreed to pay an additional $12,443 in back wages the division found due to four employees.

As a result of these violations of the Act, the department is initiating debarment proceedings to prevent Restaurant Associates LLC, Restaurant Associates Inc., and their principal officer, Dick Cattani, from serving as federal contractors. If debarred, the contractors would be placed on a list of ineligible government contract bidders for a three-year period.

Quote:  “Doing business with the federal government is a privilege and not a right,” said Oscar L. Hampton III, regional solicitor in Philadelphia. “Federal contractors should conduct their business in accordance with the highest standards and comply with the law by paying their workers the wages to which they are legally entitled. The complaint underscores those principles, and was filed to ensure a fair and level competitive playing field for all federal contractors and a fair day’s pay for a fair day’s work for all those who perform work pursuant to federal contracts.”

Court: U.S. Department of Labor Office of Administrative Law Judges

PASSAIC, N.J. – Fifty-five low-wage production workers who spend long work days sewing and loading mattresses at a Passaic mattress refurbishment company will soon receive their share of $292,998 in back wages and liquidated damages after the company entered into a consent judgment with the U.S. Department of Labor.

The agreement resolves the department’s Wage and Hour Division investigation of Citi Mattress Inc., which found the company violated the Fair Labor Standards Act by not paying the workers the proper overtime pay when they worked in excess of 40 hours in a workweek.

“The outcome in this case demonstrates our commitment to protecting the nation’s vulnerable, low-wage workers from exploitation,” said John Warner, district director for the department’s Wage and Hour Division in Northern New Jersey. “This agreement guarantees that the workers will be compensated properly for all of the hours they worked and provides added safeguards to protect employees in the future.”

In addition to paying the back wages and damages, the judgment requires the company to take the following measures to ensure future compliance with the FLSA:

• Use a time clock or other automated timekeeping system.
• Permanently display the poster “Employee Rights Under the Fair Labor Standards Act” in English and Spanish.
• Provide information about the FLSA to current and new employees in English and Spanish.
• Maintain proper time records for all employees.
• Provide non-exempt employees with a statement reflecting the hours worked for each day in the workweek and total hours each workweek.

“Employers have a legal responsibility to pay employees the proper wages,” said Jeffrey S. Rogoff, the department’s regional solicitor in New York. “This action underscores how aggressively we plan to enforce the law when employers fall short of that responsibility.”

The division’s Northern New Jersey office conducted the investigation. Daniel Hennefeld and Molly Biklen in the department’s New York regional solicitors’ office litigated the case.

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. Employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages. Both back wages and liquidated damages are paid directly to the affected employees.

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

Employer name: Southern Sanitation Inc.

Investigation site: 7706 B Hampton Place
Loganville, Georgia 30052

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division’s Atlanta District Office, investigators found that Southern Sanitation violated the overtime and recordkeeping provisions of the Fair Labor Standards Act.

Investigators found the waste management company failed to pay overtime to 32 employees. The employer paid truck drivers and helpers a fixed rate per day, without regard to how many hours they worked. By doing so, Southern Sanitation caused overtime violations when the employees worked more than 40 hours in a work week and the employer failed to pay the required time-and-one-half their regular rate of pay. Additional overtime violations occurred when the employer made deductions illegally for time spent in short rest breaks – which are compensable – and when deductions from pay were made for meal breaks that employees did not take. The employer also failed to maintain required time and payroll records.

Resolution: Southern Sanitation will comply with the FLSA and pay 32 employees a total of $37,933 in back wages.

Quote: “This case is another example of a recycling company paying a flat day rate to drivers and failing to pay employees the overtime pay that they have legally earned,” said Eric Williams, the Wage and Hour Division’s district director in Atlanta. “The Wage and Hour Division is committed to educating employers about their legal responsibilities while also investigating those companies that employ practices that cheat workers out of their proper compensation and that undercut their competitors.”

Background: Southern Sanitation provides residential curbside solid waste and recycling services throughout the state of Georgia.

Information: For more information about the FLSA, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or the Atlanta District Office at 678-237-0521. Information is also available at http://www.dol.gov/whd.

Employer: Amigo Farms, Inc.

Sites:4245 East 32^nd St.
Yuma, Arizona

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division found that Amigo Farms, Inc. failed to pay lettuce pickers at fields in Winterhaven, California, for time spent on the job waiting for ice to melt off the produce in the winter months. At times, the thaw could take 1 to 3 hours per day.

Resolution: Amigo Farms, Inc. will pay $13,000 in unpaid wages to 32 workers. The employer will also pay $1,400 in civil penalties and change its recordkeeping practices.

Quote: “We have a growing concern over the illegal practice of failing to pay workers for time spent waiting while they’re on the clock,” said Rodolfo Cortez, director of the Wage and Hour Division office in San Diego. “Employers have a responsibility to know what counts as work time, and to pay their workers accordingly. The Wage and Hour Division has provided annual training to farmers in Southeastern California and in parts of Arizona, primarily in Spanish, to help them understand their responsibilities. Employers should have a contingency plan during inclement weather so workers are not left standing in the cold and not being paid as required.”

Information: Amigo Farms owns and harvests a total of 6,517 acres primarily in lettuce and cabbage, supplying lettuce and leafy greens to consumer brands such as Taylor Farms, Dole, Fresh Ex, Ready Pack, True Leaf and Green Gate. 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/.

Background: The Migrant and Seasonal Agricultural Worker Protection Act requires farm labor contractors, agricultural employers and agricultural associations that employ any migrant or seasonal agricultural worker to pay the minimum wage, promised wage, and pay for all hours worked in accordance with federal labor laws.

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Employer: El Calamar Inc.

Site: 315 West 17th St.
Santa Ana, California

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that the El Calamar restaurant violated the Fair Labor Standards Act when it failed to pay required overtime  to 11 workers employed as cooks. The employer sometimes paid these workers straight time for overtime, in cash; sometimes made only partial overtime payments, in cash; and sometimes recorded only 80 hours worked in a two-week period on the payroll when, in fact, the employees worked 60 to 90 hours per week on average.

Resolution: To resolve the violations, El Calamar has entered into an agreement with the department and will pay $48,007 in overtime back wages and an equal, additional amount in damages to 11 employees. Owners Hugo and Maria Camacho also have agreed to implement a new electronic time-keeping system and cease the practice of cash payments.

Quote: “Failing to pay overtime, making cash payments, and keeping inaccurate payroll records are all-too-common labor violations in the restaurant industry,” said Rodolfo Cortez, district director of the Wage and Hour Division in San Diego. “These underpaid employees will now receive their rightfully earned wages. The resolution of this case should send a clear message to other employers who may be paying their workers in this manner – we will continue to use every enforcement tool available to improve compliance in this industry, and to ensure that workers take home every penny they have earned.”

Information: 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, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. The law also provides that employers who violate the law are liable to employees for back wages and an equal amount in liquidated damages.

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.

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HOUSTON – On a motel housekeeper’s wages, Iris Castro lives on a budget that barely makes ends meet. When her aging parents’ ill health demanded medications, she couldn’t afford to send money home to her native Honduras. Unable to return home, she is left to mourn their deaths in the past two years and saddened by her inability to help pay for their care.

Castro is one of the hundreds of low-wage workers in Southeast Texas’ hotel industry whose hard work doesn’t always equal fair pay. She is also one of 125 workers who will benefit after investigations by the U.S. Labor Department’s Wage and Hour Division’s Clear Lake District Office. The division found Castro’s employer – Baymont Inn of Galveston – failed to pay her overtime and, as a result, owes her $13,000 in back wages and liquidated damages – more than half her yearly income of roughly $20,000.

Sadly, she is not alone. Similar stories are often heard in hotel break rooms in the Houston area which, since 2014, has welcomed nearly 15 million tourists. In February 2017, the city will host Super Bowl LI.

In Fiscal Year 2016, division investigations of area employers in the hotel industry found employees working off the clock, being paid straight time for overtime hours and not getting paid for mandatory training time. Investigators also found employers violating child labor regulations that restrict the hours minors may work.  In all, 41 investigations will recover back wages and assess liquidated damages totaling $285,000 for more than 125 workers. Like Castro, the amounts some of them receive will represent more than half a year’s wages.

“The violations we have found are all too common in this industry.  For many workers, the funds we recovered for them are very significant sums,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “The findings in these cases tell us we still have work to do. Our ongoing enforcement initiative will continue to use every enforcement tool we have available, such as administrative subpoenas, liquidated damages, and civil money penalties to create incentives for employers to comply with federal wage and hour laws, and to ensure that these workers take home every penny they have rightfully earned.”

The recent investigations also found employers that failed to pay overtime to employees working at multiple locations or when working dual jobs for the same employer, paying for each separately, at straight time. They also found employers that “banked” employees’ overtime hours, to be paid out in future workweeks at straight time. Others violated the Fair Labor Standards Act by failing to maintain time and payroll records, or display posters to inform workers about their workplace rights.

Castro’s employer, Baymont Inn was just one of the many recognizable hospitality brands that drew the attention of federal investigators. In Galveston, they found violations at Baymont Inn, Super 8 and Travelodge Hotel locations.

At the Baymont Inn and Super 8 hotels, 10 housekeepers and maintenance workers received approximately $103,000 in back wages and liquidated damages.

At a Galveston Travelodge Hotel, 11 housekeepers, front desk and maintenance workers received nearly $20,000 in back wages and liquidated damages.

The Wage and Hour Division uses data and evidence to focus its resources strategically on where violations rates are high but the likelihood of workers speaking up is low, and employs a combination of enforcement and education to boost compliance. In Houston, the division continues to engage key employer associations and employee advocates to educate the hotel industry about the systemic violations typically found, and to provide employers with FLSA compliance assistance information to improve compliance in the future.

In 2017, the division will expand outreach, education, and enforcement in the industry to more cities and states in the Southwest and beyond to continue to combat these widespread violations.

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, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records.

For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Clear Lake District Office at 281-488-0690. Information also is available at http://www.dol.gov/whd/.

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TROY, Mich. – A Michigan-based auto components manufacturer and supplier will pay 526 workers $75,064 – representing $37,532 in unpaid overtime wages and an equal amount in liquidated damages – after federal investigators determined the company calculated their overtime pay incorrectly.

The U.S. Department of Labor’s Wage and Hour Division found Inteva Products LLC violated Fair Labor Standards Act provisions when it failed to include workers’ shift differentials when calculating overtime rates for hourly employees at one facility in Michigan and two in Alabama. The employer based overtime payment on the employees’ base hourly rates, rather than paying time and one-half of their total earnings per hour, as the law requires.

“The U.S. Department of Labor takes very seriously its responsibility to ensure workers receive the wages they have rightfully earned. This agreement recovers money owed to hardworking people and their families,” said Timolin Mitchell, the division’s district director in Detroit. “We encourage employees who believe they are not being paid properly, or employers with questions about how to comply with the law to reach out to the Wage and Hour Division for compliance assistance.”

Investigators found violations at the following locations:

• Adrian, Michigan: back wages of $21,451 due to 243 employees.
• Cottondale, Alabama: back wages of $2,656 due to 64 employees.
• Gadsden, Alabama: back wages of $13,424 due to 219 employees.

In addition to paying the back wages owed, the company will pay an equal, additional amount to each employee in liquidated damages. The employer has also redesigned the payroll system at its facilities to ensure overtime is properly calculated in the future, and includes shift differentials.

Based in Troy, Michigan, Inteva Products is a global company employing more than 15,000 people in 50 locations on five continents.

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 hourly rates for hours worked beyond 40 per week. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees. Additionally, the law requires employers to maintain accurate time and payroll records and prohibits retaliation against employees who exercise their rights under the law.

For more information about the FLSA, visit https://www.dol.gov/whd or call the division’s toll-free helpline at 866-4US-WAGE (487-9243).

PROVIDENCE, R.I. – An investigation by the U.S. Department of Labor’s Wage and Hour Division has recovered $123,574 in back wages and damages for 22 underpaid workers at four Mozzarella’s and Fitzy’s Pub Family restaurants in southern New England. The employers also paid $4,114 in civil monetary penalties.

The investigation – conducted by the division’s Hartford district and Providence area offices – led the division to obtain subpoenaed records from a third-party payroll service provider and revealed overtime and record-keeping violations of the Fair Labor Standards Act .

Specifically, the employers:

• Failed to pay overtime when employees worked more than 40 hours per week.
• Failed to maintain accurate payroll records.
• Failed to pay some tipped employees at least the federal minimum wage.
• Required one tipped employee to purchase uniform aprons, resulting in a minimum wage violation.
• Deducted withholdings in excess of the amount allowed by law for child support payments.

“The violations found in this case are all too common in the restaurant industry. Employers who short their employees not only hurt workers and their families, but also gain an unfair advantage over law-abiding competitors,” said Donald Epifano, assistant district director of the Wage and Hour Division’s Providence area office. “As part of the resolution of this case, the restaurants have entered into an agreement which commits them not only to obey the law, but to take additional actions to ensure they pay employees properly now and in the future.”

That agreement commits the restaurants to:

• Conduct annual training for management on FLSA compliance requirements.
• Conduct biannual meetings to educate employees about their rights under the FLSA.
• Amend their employee handbook to include a section on employee rights under the FLSA, as well as prohibited practices such as improper wage deductions. The handbook will also define tipped and non-tipped occupations.
• Engage an independent consultant with specific knowledge and experience regarding the requirements of the FLSA. The consultant will create a system to ensure that the restaurants’ pay and recordkeeping practices are in compliance with the FLSA.
• Have a quarterly audit of all four restaurants performed by the consultant to determine compliance. If violations are found, the consultant will take any corrective action necessary, compute any back wages due, ensure that the employer issues back wage checks to the affected employees, and create and maintain a report of the violations and any applicable corrective action taken. The report must be provided to the Wage and Hour Division upon request.

As a result of the investigation, the restaurants paid back wages, damages and civil money penalties as follows:

• Mozzarella’s Grill & Bar in Dayville, Connecticut, paid three employees $25,255 in back wages and an equal, additional amount in liquidated damages. The restaurant also paid $561 in civil monetary penalties.
• Fitzy’s Pub Family Restaurant in Plainville, Massachusetts, paid five employees $20,639 in back wages and an equal, additional amount in liquidated damages. The restaurant also paid $935 in civil monetary penalties.
• Fitzy’s Pub Family Restaurant in North Providence paid four employees $5,283 in back wages. The restaurant also paid $748 in civil monetary penalties.
• Fitzy’s Pub Family Restaurant in East Greenwich paid five employees $10,610 in back wages and an equal, additional amount in liquidated damages, and also paid $1,870 in civil monetary penalties.

For more information about the FLSA, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Providence area office at 401-528-4431. Information also is available at http://www.dol.gov/whd.

PROVIDENCE, R.I. – An investigation by the U.S. Department of Labor’s Wage and Hour Division has recovered $123,574 in back wages and damages for 22 underpaid workers at four Mozzarella’s and Fitzy’s Pub Family restaurants in southern New England. The employers also paid $4,114 in civil monetary penalties.

The investigation – conducted by the division’s Hartford district and Providence area offices – led the division to obtain subpoenaed records from a third-party payroll service provider and revealed overtime and record-keeping violations of the Fair Labor Standards Act.

Specifically, the employers:

• Failed to pay overtime when employees worked more than 40 hours per week.
• Failed to maintain accurate payroll records.
• Failed to pay some tipped employees at least the federal minimum wage.
• Required one tipped employee to purchase uniform aprons, resulting in a minimum wage violation.
• Deducted withholdings in excess of the amount allowed by law for child support payments.

“The violations found in this case are all too common in the restaurant industry. Employers who short their employees not only hurt workers and their families, but also gain an unfair advantage over law-abiding competitors,” said Donald Epifano, assistant district director of the Wage and Hour Division’s Providence area office. “As part of the resolution of this case, the restaurants have entered into an agreement which commits them not only to obey the law, but to take additional actions to ensure they pay employees properly now and in the future.”

That agreement commits the restaurants to:

• Conduct annual training for management on FLSA compliance requirements.
• Conduct biannual meetings to educate employees about their rights under the FLSA.
• Amend their employee handbook to include a section on employee rights under the FLSA, as well as prohibited practices such as improper wage deductions. The handbook will also define tipped and non-tipped occupations.
• Engage an independent consultant with specific knowledge and experience regarding the requirements of the FLSA. The consultant will create a system to ensure that the restaurants’ pay and recordkeeping practices are in compliance with the FLSA.
• Have a quarterly audit of all four restaurants performed by the consultant to determine compliance. If violations are found, the consultant will take any corrective action necessary, compute any back wages due, ensure that the employer issues back wage checks to the affected employees, and create and maintain a report of the violations and any applicable corrective action taken. The report must be provided to the Wage and Hour Division upon request.

As a result of the investigation, the restaurants paid back wages, damages and civil money penalties as follows:

• Mozzarella’s Grill & Bar in Dayville, Connecticut, paid three employees $25,255 in back wages and an equal, additional amount in liquidated damages. The restaurant also paid $561 in civil monetary penalties.
• Fitzy’s Pub Family Restaurant in Plainville, Massachusetts, paid five employees $20,639 in back wages and an equal, additional amount in liquidated damages. The restaurant also paid $935 in civil monetary penalties.
• Fitzy’s Pub Family Restaurant in North Providence paid four employees $5,283 in back wages. The restaurant also paid $748 in civil monetary penalties.
• Fitzy’s Pub Family Restaurant in East Greenwich paid five employees $10,610 in back wages and an equal, additional amount in liquidated damages, and also paid $1,870 in civil monetary penalties.

For more information about the FLSA, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Providence Area Office at 401-528-4431. Information also is available at http://www.dol.gov/whd.