SAN FRANCISCO – The U.S. Department of Labor’s Wage and Hour Division is conducting a residential construction survey in the state of Alaska. The division is currently collecting data on all residential construction projects active between July 1, 2015 and June 30, 2016 statewide. The survey is not limited only to federally funded construction projects. The division will use the information provided to establish prevailing wage rates required under the federal Davis Bacon and Related Acts.

“Participation by contractors and interested parties in this survey is crucial to the process,” said Ruben Rosalez, the division’s regional administrator for the West. “Davis Bacon prevailing wage rates should reflect the wages and fringe benefits paid to construction workers in the counties in which they are working. Accurate wages can only be determined with full participation by Alaska’s construction industry community. A lack of participation leads to wage rates that do not reflect ‘your’ wages, as well as incomplete wage determinations – which lead to increased requests for additional classifications.”

Notification letters and “WD-10” data collection forms are being sent to interested parties and contractors known to the Wage and Hour Division. Participants’ responses must be postmarked by March 3, 2017, to be included. To complete the survey electronically, visit http://www.dol.gov/whd/programs/dbra/wd10/index.htm.

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 Luis Cabuhat at (415)241-3538 or Rose Huynh at (415)241-3539.

Date of Action: Oct. 5, 2016

Type of Action: Filing of lawsuit

Name of Defendants: Bailey Picker Repair
Burley Glenn Bailey, owner and manager

Allegation: After an investigation by the U.S. Department of Labor’s Wage and Hour Division found that Bailey Picker Repair, and its owner Burley Glenn Bailey of Lake City, Arkansas, violated the Fair Labor Standards Act by failing to pay 10 current and former employees $32,133 in overtime pay, the department filed suit. Investigators in the division’s Little Rock District Office determined Bailey paid employees straight time for all hours worked, including overtime hours. The employer claimed that the business is exempt from paying overtime because its employees maintain and repair agricultural equipment and power tools. The division determined the exemption does not apply since the mechanics rarely work on site on a farm for a farmer; instead, they work on site at the owner’s shop for the overwhelming majority of the work day.

Quote: “Employers like Bailey Picker Repair are required to know and apply the law correctly, especially when they are claiming an exemption,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “Applying an exemption incorrectly costs workers the wages they’ve rightfully earned, and can result in accumulating a significant back wage liability, additional liquidated damages and court costs.”

Resolution: The department seeks $32,133 in back wages and an equal amount in liquidated damages for a total of $64,266, and an injunction against future FLSA violations.

Background: Bailey Picker Repair maintains and repairs agricultural equipment and power tools. With approximately six mechanics, the establishment is located in Lake City.

Additional Information: The FLSA provides an exemption from overtime for employees engaged in agriculture,  and for any salesman, parts man or mechanic primarily engaged in selling or servicing automobiles, trucks or farm implements if employed by a non-manufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers.    Neither exemption was found to apply to the employees in this investigation.

Court: U.S. District Court for the Eastern District of Arkansas, Jonesboro, Arkansas Division 3

Docket Number:  3:16-cv-273-KGB

Type of Action: Fair Labor Standards Act lawsuit filing

Names of Defendant(s): ARS Ohio LLC
Gary C. (“Chris”) Finn
Karen Finn

Complaint: The U.S. Department of Labor has filed a lawsuit in federal court to recover approximately $41,323 in back wages and an equal amount in liquidated damages for 30 current and former employees of a Cincinnati vehicle repossession service. The suit also names the company’s owner Gary Finn and his wife, Karen Finn, who assisted in managing the company’s payroll.

An investigation by the department’s Wage and Hour Division revealed that ARS Ohio violated the FLSA by:

• Failing to pay employees for all hours worked.
• Paying straight time and/or commission only to workers employed as “camera car” drivers who locate vehicles pending repossession, office personnel and lot technicians.  This practice resulted in minimum wage and overtime violations when commissions failed to cover all hours employees worked at $7.25 per hour, and when they worked more than 40 hours in a week without overtime compensation.
• Failing to keep accurate records of employee’s hours worked and pay received.

The investigation found at least 14 employees due $11,759 in minimum wage and at least 19 employees due $29,564 in overtime pay.

The complaint also seeks injunctive relief for willful violations of the FLSA. The Wage and Hour Division has assessed civil money penalties of $28.050 in the case.

Quote: “ARS Ohio failed to pay its employees properly and, as our suit alleges, presented false records to our investigators to avoid paying worker’s their rightfully earned wages,” said George Victory, district director for the Wage and Hour Division in Columbus. “This employer is acutely aware of wage laws covering its employees. Our action demonstrates our commitment to ensuring that workers receive every penny they have rightfully earned. We encourage other employees being paid in this manner to notify the Wage and Hour Division.”

Information: The FLSA requires that employers pay covered, nonexempt employees 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. As a general rule, the FLSA provides that employers who violate the law are 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 and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at www.dol.gov/whd/fmla .

Court: 1:16-cv-00963-MRB
U.S. District Court for the Southern District of Ohio, Western Division, Cincinnati

Date of Action: Oct. 3, 2016

Type of Action: Filing of lawsuit

Name of Defendants: Solid Drywall LLC
Solid Construction Group LLC
Frank LeBaron

Allegation: A U.S. Department of Labor Wage and Hour Division investigation found Solid Drywall LLC and Solid Construction Group LLC of Midvale, Utah; and owner Frank LeBaron violated the Fair Labor Standards Act when they failed to pay minimum wage to 15 employees and pay the applicable overtime rate to 133 or more employees misclassified as independent contractors. The division is unable to identify all of the employees to whom Solid owes back wages because the company failed to keep required records for employees it funneled and paid through a labor provider.

The division also determined that company payroll records show it paid workers by check for up to 80 hours in a semi-monthly pay period, and paid a straight time rate in cash or with a prepaid debit card for all overtime hours worked in violation of the law. Investigators also found Solid paid some workers “off the books” in cash at the straight time rate for all hours worked including overtime hours. These violations demonstrate a willful disregard for the FLSA’s overtime requirements.

The department’s suit seeks to establish the employment relationship between Solid and a number of its employees; that the company paid minimum wage to some employees improperly; and that it denied overtime pay to all of the company’s employees.

In addition, the action by the Secretary of Labor seeks a court order to require Solid to:

• Comply with the FLSA’s minimum wage, overtime and record-keeping provisions in the future.
• Pay back wages owed to employees, plus an equal amount in liquidated damages.
• Keep employee records as required by the FLSA.

Quote: “Construction work is hard enough without worrying about getting paid fairly,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “Solid Drywall and Solid Construction’s employees deserve to be paid for all the time they spend working, including overtime. This lawsuit shows the department’s commitment to root out and remedy these violations, protecting the workers and leveling the playing field for contractors who play by the rules.”

Resolution: The department seeks a court ruling for unpaid minimum wage and overtime compensation and an equal amount in liquidated damages for Solid employees. The suit also seeks the court to order Solid and related companies to abide by labor laws, maintain required time and pay records, and ultimately pay its employees accordingly.

Additional Information: The Wage and Hour Division continues to conduct investigations in low-wage industries where data and evidence show high rates of non-compliance, and where workers are less likely to complain. Both education and enforcement continue in the construction industry in which a high violation rate exists.

Court: U.S. District Court for the Utah Central Division

Docket Number: 2:16-cv-01025-BCW

Employer: Buy Back Inc.

Locations: 1405 W. Shields Ave., Fresno
1435 S. Cedar Ave., Fresno
3190 E. Tulare St., Fresno
370 B St., Fresno
1435 Fresno St., Fresno

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found that Buy Back violated the minimum wage and recordkeeping provisions of the Fair Labor Standards Act. The company collects and recycles aluminum, plastic and glass in five locations in Fresno, California, as a CalRecycle program participant.

The employer paid homeless workers identified as ‘helpers’ either a daily rate, food and drinks, or a few dollars regardless of the hours worked – resulting in the company’s failure to pay workers at least $7.25 per hour, in violation of  the federal minimum wage requirements. Affected employees worked assisting customers, sorting recycling materials, dumping recyclables into chained baskets and cleaning the locations at the end of the day. Recordkeeping violations resulted from the employer’s failure to record all the hours employees worked and their rates of pay.

Resolution: Buy Back has paid $15,272 in back wages and an equal, additional amount in damages to six employees.

Quote: “These vulnerable workers held up their end of the bargain and provided their hard work – they deserve to be paid every cent they have legally earned,” said Nora Pedraza, assistant district director of the Wage and Hour Division in Fresno. “Designating someone a ‘helper’ instead of an employee does not allow companies to avoid paying minimum wage. The Wage and Hour Division is committed to continuing its work in this industry and in others where our data and evidence show vulnerable workers are more likely subject to these types of violations.”

Background:  In 2015, the division began an education and enforcement initiative in the Southern California recycling industry. Working with the California Department of Resources, Recycling and Recovery on joint investigations and sharing facility information, the division found violations of the FLSA in more than 77 percent of facilities investigated.

Information: The FLSA requires that employers pay covered, nonexempt workers at least the federal minimum wage of $7.25 per hour for all hours worked, plus overtime at one and one-half times their regular wages for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. The law prohibits employers from retaliating against workers who exercise their rights.

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

WASHINGTON – The U.S. Department of Labor announced today a consent judgment requiring the owners of two Johnny Rockets restaurants in the Washington, D.C. metropolitan area to pay $571,460 in back wages and liquidated damages to 55 servers denied the minimum wage and overtime.

Judge Colleen Kollar-Kotelly of the U.S District Court for the District of Columbia entered the consent judgment against Dariush Inc. and Rockets and Rockets Inc. – both doing business as “Johnny Rockets” – and co-owner Gholam Kazemian.

The judgment resolves a lawsuit filed by the department after an investigation by its Wage and Hour Division focused on the fast food restaurants’ franchise locations at Union Station in the District of Columbia, and in Arlington, Virginia. The lawsuit sought to recover $285,730 in minimum wages and overtime back wages, including the misappropriated tips, plus an equal amount in liquidated damages, for the 55 employees.

The investigation found that as early as February 2013 until at least May 2015, the defendants violated the Fair Labor Standards Act when they required 55 servers to contribute a portion of their total tips back to the employer, who then distributed the money to cooks and dishwashers, who were not tipped employees. Also, in doing so, the employer paid servers less than the federal minimum wage of $7.25 as required.

Additionally, the defendants failed to pay required overtime wages to employees when they worked more than 40 hours in a week, and did not keep accurate records of all hours worked by employees.

The consent judgment orders the defendants to pay $285,730 in back wages and an equal amount in liquidated damages.

“When employers like these two Johnny Rockets restaurants fail to pay legally required wages to tipped workers, they violate the FLSA in an industry where all too often unscrupulous employers short employees’ pay,” said Mark Lara, director of the Wage and Hour Division’s Baltimore District Office. “The U.S. Department of Labor is determined to protect vulnerable restaurant workers by identifying and remedying wage violations.”

Many restaurants require servers to pool their tips for workers to share equally. A valid tip pool may not include employees who do not receive tips customarily and regularly, such as dishwashers, cooks, chefs and janitors. When an employer utilizes employees’ tips for any purpose other than a valid tip pool, as was the case at Johnny Rockets, it is a violation of the tip credit provision of the FLSA. As a result, no tip credit may be claimed, and the employees are entitled to receive the full cash minimum wage on a retroactive basis, as well as a return of the tips that were misappropriated.

“As demonstrated in this case, we will use all enforcement tools available, including litigation and the assessment of liquidated damages, to ensure employees receive the wages they have rightfully earned,” said Oscar L. Hampton, the department’s regional solicitor in Philadelphia.

The FLSA requires that covered, nonexempt workers be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus one-and-one-half times their regular wages 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 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: Oct. 3, 2016

Type of Action: Settlement reached to resolve allegations of retaliation

Name of Defendants: Maria R. Mendez Zuniga, dba as La Iguana Restaurant #4 and Jesus Zuniga in Portland, Texas

Allegation: The U.S. Department of Labor’s Wage and Hour Division investigated the October 2015 termination of a cook at La Iguana Restaurant in Portland that occurred less than a week after the division informed the company it owed $25,427 in back wages to nine employees for violations of the Fair Labor Standards Act found in a previous investigation.

The division’s investigation reviewed alleged violations of the FLSA’s anti-retaliation protections. The employer mistakenly believed the worker, employed by the company for 13 years, filed a complaint with the division. Federal law prohibits an employer from firing or discriminating against any employee who files a complaint with the division. The FLSA also protects employees who complain about wage or safety issues to their employers or who cooperate with federal investigations.

Quote: “We want to send a very clear message to employers that retaliation will not be tolerated, under any circumstances,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest.  “Without strong protections for exploited workers who find the courage to step forward, those subject to violations would remain in the shadows. Undocumented workers are particularly vulnerable to retaliation in the workplace. The law is very clear: the Wage and Hour division enforces the law regardless of a person’s immigration status.”

Resolution: The employers – Jesus Serrato Zuniga and Maria Zuniga – will pay the terminated employee $2,500 in lost wages and an equal amount in liquidated damages. The company will also prominently post the division’s Fact Sheet #77A in English and Spanish with information on the FLSA’s anti-retaliation laws.

Background: La Iguana Restaurant #4 is a full-service restaurant and bar specializing in seafood and Tex-Mex cuisine. Based in Portland, an area of Corpus Christi, where the company has operated since 2000.

Additional Information: The division continues to conduct investigations in low-wage industries where data and evidence show high rates of non-compliance, and where workers are less likely to complain. Both education and enforcement continue in the restaurant industry in which a high violation rate exists.

Date of Action: Sept. 9, 2016

Type of Action: Lawsuit

Name of Defendant: Wok on Wheels USA LLC, Shin Oak Investments LLC and Cedars Enterprises LLC —doing business as Wok on Wheels; owners Said Al-Haj and Rhonda Al-Haj.

Allegation: The U.S. Department of Labor filed a lawsuit against Wok on Wheels USA LLC, Shin Oak Investments LLC, Cedars Enterprises LLC—doing business as Wok on Wheels and owners Said Al-Haj and Rhonda Al-Haj after an investigation by the department’s Wage and Hour Division found that the employers willfully violated the Fair Labor Standards Act. The defendants failed to pay 20 current and former employees $82,280 in overtime pay. Investigators from the division’s San Antonio District Office found Wok on Wheels failed to pay the proper overtime rate to tipped delivery drivers and paid a salary instead of proper overtime to non-exempt cooks. Additionally, investigators determined the employer failed to keep track of all hours worked each day and the total hours worked each week, leading to a record-keeping violation. Wok on Wheels has been investigated three times in the last six years with the same or similar violations found in the current investigation.

Quote: “Willful practices that violate the law and cheat workers on their pay are taken seriously by the division,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest.  “All workers deserve a fair day’s pay for a hard day’s work.”

Resolution: The department seeks $82,280 in back wages and an equal amount in liquidated damages, and an injunction against future violations of the FLSA by Wok on Wheels and owners Said Al-Haj and Rhonda Al-Haj.

Background: Based in San Antonio, Texas, Wok on Wheels operates three delivery and dine-in restaurants.

Court: U.S. District Court for the Western District of Texas, San Antonio Division

Docket Number: 5:16-CV-00902-FB

Employer name: Patterson Services Inc.

Investigation site: 5800 Riverview Road
Mableton, Georgia 30126

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

Specifically, the waste management company failed to pay overtime to 29 truck drivers. The employer paid the drivers a fixed rate per day, without regard to how many hours they worked. This practice resulted in overtime violations when the employees worked more than 40 hours in a week and the employer failed to pay the required time and one-half their regular rate of pay for overtime. The employer also failed to maintain required time and payroll records.

Resolution: Patterson Services will comply with the FLSA and pay 29 employees a total of $150,000 in back wages.  

Quote: “These Patterson Services’ truck drivers put in long hours to support their families and deserve to be paid properly,” said Eric Williams, district director for the Wage and Hour Division in Atlanta. “This case highlights the urgency for employers’ to review and comply with the labor laws that apply to their businesses. It is the employer’s responsibility to know and ensure employees receive the proper wages they have legally earned. The Wage and Hour Division will continue to enforce the law and to provide education to make sure that happens.”

Background: The FLSA provides an exemption from the overtime requirements for drivers, driver’s helpers, loaders and mechanics whose duties affect the safety of operation of motor vehicles in transportation on public highways in interstate commerce. That exemption did not apply to drivers in this case because they worked only within the state of Georgia. Patterson Services is a transportation company that provides dump-truck services to remove debris and waste from Georgia construction sites.

Information: 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/.

Employer name: Key Resources Inc.

Investigation site: 3703 West Market St.
Greensboro, North Carolina 27403

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division’s Raleigh District Office found the employer violated overtime and minimum wage provisions of the Fair Labor Standards Act.

Division investigators examined compliance for the company’s temporary staff performing warehouse assembly line work. They determined that Key Resources:

• Failed to pay employees at least the legally required federal minimum wage for all hours worked.  The employer failed to pay employees when they clocked in and waited at the start of their shifts to be assigned to an assembly line, and for cleaning their work areas at the end of their shifts.
• This practice also resulted in overtime violations when employees worked more than40 hours in a work week while this pre and post-shift time remained unpaid. 

Resolution: Key Resources will comply with the FLSA and will pay 450 employees $107,684 in back wages. As part of its adjustments to its operations to facilitate compliance with the law, the employer moved its time clock closer to the warehouse, reducing the amount of time workers need prior to their shifts, and will no longer use the time clock only for keeping attendance; it will now use the time clock to record and compensate workers for actual hours worked. In addition, employees with clean-up duties at the end of their shifts will remain on the clock until their duties are completed.

Quote: “Violations of federal minimum wage and overtime provisions have a tremendous economic impact on low-wage workers and their families. The law is very clear about what must be considered work time. It is the employer’s responsibility to know and comply with the regulations,” Richard Blaylock, the Wage and Hour Division’s district director in Raleigh. “We offer plenty of compliance assistance and are available to help both workers and employers to ensure every worker gets a fair day’s pay for a fair day’s work.”  

Background: Based in Greensboro, Key Resources is a staffing agency specializing in distribution, product, clerical and skilled labor.

Information: 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); the Raleigh District Office at 919-790-2742 or visit http://www.dol.gov/whd/.