US Department of Labor requires Tennessee parts manufacturer to turn over profits from oppressive child labor use, compensate victims

News Release

US Department of Labor requires Tennessee parts manufacturer to turn over profits from oppressive child labor use, compensate victims

Tuff Torq Corp. to pay $296K civil penalty for employing children to operate dangerous machinery, requiring them to work more hours than the law allows

GREENVILLE, TN – The U.S. Department of Labor’s Office of the Solicitor has obtained a federal consent judgment that requires a Morristown manufacturer of outdoor power equipment components for major companies including John Deere, Toro and Yamaha to stop employing children illegally and to follow federal child labor laws in the future. 

The judgment, which comes after the department’s Wage and Hour Division identified several children employed in dangerous jobs, includes a $296,951 civil money penalty. The employer must also set aside $1.5 million as disgorgement of 30 days’ profits related to its use of child labor. The proceeds paid by Tuff Torq will be used for the benefit of the children employed illegally. 

Entered in the U.S. District Court for the Eastern District of Tennessee at Greenville on March 22, 2024, the action addressed Tuff Torq Corp.’s illegal employment of children. To date, the department has determined that Tuff Torq subjected 10 children to oppressive child labor.

Division investigators began its probe months ago but obtained clear evidence of the unlawful conduct on Jan. 23, 2024, when they returned to the Tuff Torq facility and observed a child operating a power-driven hoisting apparatus, an occupation prohibited for workers under the age of 18. As a result, the department objected to the shipment of goods from the Morristown facility, citing the Fair Labor Standards Act’s “hot goods” provision, which prevents employers from shipping goods produced by oppressive child labor. 

“Even one child working in a dangerous environment is too many,” said Wage and Hour Division Administrator Jessica Looman. “Over the past year, we have seen an alarming increase in child labor violations, and these violations put children in harm’s way. With this agreement, we are ensuring Tuff Torq takes immediate and significant steps to stop the illegal employment of children. When employers fail to meet their obligations, we will act swiftly to hold them accountable and protect children.”

In addition to an agreement to comply with the child labor provisions of the FLSA, payment of the full civil money penalty, and disgorgement of profits, Tuff Torq has agreed, among other provisions, to do the following:

  • Contract with a community-based organization to provide regular training to staff, managers and contractors.
  • Establish an anonymous tip line for reporting child labor and other suspected FLSA violations.
  • Allow unannounced and warrantless searches of its facility to three years.
  • Refrain from entering any new contracts with staffing agencies or other contractors with child labor violations and will require contractors to disclose child labor violations and hiring protocols.

“This consent decree holds Tuff Torq accountable while also discouraging future violations, focusing on the supply chain, and striving to make the victims whole,” said Solicitor of Labor Seema Nanda. “This agreement puts in practice what we have long been saying. The department will not tolerate companies profiting on the backs of children employed unlawfully in dangerous occupations. Tuff Torq has agreed to disgorge profits, which will go to the benefit of the children. This sends a clear message: putting children in harm’s way in the workplace is not only illegal, but also comes with significant financial consequences.”

In fiscal year 2023, the department investigated 955 cases with child labor violations, involving 5,792 children nationwide, including 502 children employed in violation of hazardous occupation standards. The department addressed those violations by assessing employers more than $8 million in civil money penalties. 

Learn more about the Wage and Hour Division, including child labor regulations on dangerous jobs that are prohibited for workers under age 18.

The division offers confidential compliance assistance to anyone – regardless of where they are from – with questions about their wages or how to stay in compliance with the law by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The department can speak with callers in more than 200 languages.

Agency
Wage and Hour Division
Date
March 25, 2024
Release Number
24-206-NAT
Media Contact: Jake Andrejat
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers $1.5M for laborers, mechanics working on multi-billion-dollar federal program at California Navy base

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US Department of Labor recovers $1.5M for laborers, mechanics working on multi-billion-dollar federal program at California Navy base

35 contractors violated federal labor laws, shortchanging 413 workers

SACRAMENTO – Widespread violations of federal labor and contracting regulations by nearly three dozen employers with federally funded contracts at Naval Air Weapons Station China Lake resulted in the U.S. Department of Labor recovering more than $1.5 million in back wages and damages for more than 400 workers at the Ridgecrest facility.

Part of an initiative by the department’s Wage and Hour Division, the investigations sought to ensure contractors working on the $3.9 billion earthquake recovery program at NAWS China Lake met federal regulations for the employment of workers on projects supported with federal funds. The initiative seeks to bring construction employers into compliance and hold them responsible for paying workers prevailing wages and health and welfare benefits as required. 

In investigations of 35 contractors spanning a two-year period, division investigators recovered more than $1.5 million in back wages and $32,291 in liquidated damages for a total of 413 workers for violations of the Davis-Bacon and Related Acts, the Contract Work Hours and Safety Standards Act, the Service Contract Act and the Fair Labor Standards Act. The division also assessed employers with $14,020 in civil money penalties as a result.

“Federal projects like these often strengthen the region’s economy, but when employers fail to pay workers all the required wages and fringe benefits they’ve earned, the full benefits are not felt,” explained Wage and Hour Division Regional Administrator Ruben Rosalez in San Francisco. “Employers unclear of their legal obligations and workers unsure of their rights can contact us to learn what it takes to comply with federal laws.” 

Among the largest violators were subcontractors working on projects awarded to Environmental Chemical Corp., a Burlingame design and construction company doing business as ECC. The company was awarded two contracts as part of the Earthquake Recovery Program, including the largest construction project, the South Airfield Complex at NAWS China Lake. The subcontractors found in violation include:

  • Adecco USA Inc., a Jacksonville, Florida, recruitment and staffing service, failed to pay required prevailing wage rates, health and welfare benefits, and overtime while providing temporary staffing for food service, clerical, maintenance and housekeeping work. The division recovered $626,341 in back wages for 115 workers – some of whom were owed nearly $40,000 – for the violations.
  • Blue Knight Security & Patrol Inc., a Rancho Cordova security guard and patrol service providing security at a temporary housing site for construction workers, failed to pay overtime wages, prevailing wage rates and health and welfare benefits as required by law. The division recovered $313,045 in back wages for 54 workers.
  • Hensel Phelps, a Greeley, Colorado, commercial and institutional building contractor providing construction services, failed to pay prevailing wage rates, health and welfare benefits, and overtime compensation. The division recovered $184,172 in back wages for 37 workers.
  • ATCO Structures and Logistics, a Spring, Texas, prefabricated wood building manufacturer building living units for construction employees, failed to pay prevailing wage rates and overtime wages. The division determined ATCO owed $104,935 in back wages to seven workers.

In addition to these contractors, 31 additional contractors violated federal labor laws. View a list of all employers cited in these investigations. 

As part of the initiative, the division coordinated with the Officers in Charge of Construction China Lake at NAWS to provide in-person and virtual education, monthly meetings with stakeholders, an outreach event with Ironworkers Local 433 and to develop multimedia informational materials. 

“We could not be more grateful for the Wage and Hour Division and the Naval Facilities Engineering Systems Command compliance efforts at the Naval Air Weapons Station China Lake,” said Ironworkers Local 433 Business Agent Daniel Osborne. “The last people who should be getting shortchanged are the men and women helping to build our nation’s defenses.” 

Learn more about the DBRA, the CWHSSA and other laws enforced by the division, as well as a search tool to use if you think you may be owed back wages collected by the division. The division can speak with callers confidentially in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App, available for Android and iOS devices in English and Spanish, to ensure hours and pay are accurate.

Learn more about the Wage and Hour Division.

Agency
Wage and Hour Division
Date
March 20, 2024
Release Number
24-468-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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El Departamento de Trabajo de los EE. UU. recupera casi $200K para trabajadores mal pagados por subcontratista de Massachusetts en obra de Rhode Island

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El Departamento de Trabajo de los EE. UU. recupera casi $200K para trabajadores mal pagados por subcontratista de Massachusetts en obra de Rhode Island

Stone Art Inc. suspendida de determinados contratos federales durante 3 años

BOSTON. El Departamento de Trabajo de los EE. UU. recuperó $199,433 en salarios atrasados para 37 trabajadores tras descubrir que un subcontratista de construcción de Lawrence no pagó los salarios vigentes ni las prestaciones complementarias a los empleados que trabajaban en un proyecto financiado con fondos federales en un centro médico del Departamento de Asuntos de Veteranos en Providence, Rhode Island.

La investigación de la División de Horas y Salarios del departamento descubrió que Stone Art Inc. no pagaba a los carpinteros, instaladores y peones que instalaban paneles de yeso la tasa salarial vigente ni las prestaciones complementarias exigidas por la Ley Davis-Bacon.

Los investigadores también descubrieron que Stone Art Inc. falsificaba los registros de nóminas certificados, no creaba ni mantenía registros básicos y de nóminas precisos, no pagaba las horas extras adecuadas en virtud de la Ley de Horas de Trabajo y Normas de Seguridad Ocupacional en Contratos (CWHSSA, por sus siglas en inglés) y no permitía a los empleados acumular una hora de licencia pagada por enfermedad por cada 30 horas trabajadas o en relación con un contrato cubierto por el gobierno federal, como exige la Orden Ejecutiva 13706

Los salarios atrasados recuperados por la división resuelven las infracciones a la Ley de Base de Defensa (DBA, por sus siglas en inglés), la CWHSSA y la Orden Ejecutiva 13706. Además, el departamento inhabilitó a Stone Art Inc. para trabajar en cualquier contrato federal sujeto a la Orden Ejecutiva 13706 durante tres años. 

“El Departamento de Trabajo de los EE. UU. inhabilitó a Stone Art Inc. para trabajar en determinados contratos federales durante tres años, específicamente por no pagar debidamente las licencias pagadas por enfermedad a los empleados de determinados contratistas federales”, declaró el director de distrito de la División de Horas y Salarios, Carlos Matos, en Boston. “La División de Horas y Salarios no tolerará que los contratistas violen sus responsabilidades legales en virtud de la ley federal”.

Stone Art Inc. es una empresa de construcción ubicada en Lawrence que se dedica a la fabricación e instalación de encimeras de granito y mármol principalmente. El contratista principal del proyecto, Carrigg Commercial Builders LLC de Manchester, Nuevo Hampshire pagó los salarios atrasados resultantes de la resolución de este caso.

La División de Horas y Salarios ofrece numerosos recursos tanto para empleadores como para trabajadores, incluida información sobre la Ley Davis-Bacon y Leyes Relacionadas y la Orden Ejecutiva 13706, la línea de ayuda gratuita de la agencia en el 866-4US-WAGE (487-9243) y seminarios web que tienen lugar durante todo el año. Los trabajadores y empleadores pueden llamar a la división para hacer preguntas de forma confidencial, independientemente de su estatus de inmigración, y la división puede hablar con las personas que llaman en más de 200 idiomas. Obtenga más información sobre la División de Horas y Salarios, incluida una herramienta de búsqueda que puede utilizar si cree que le pueden deber salarios atrasados cobrados por la división.

Descargue la nueva aplicación gratuita Timesheet App de la agencia para dispositivos Android y iOS, disponible en inglés y español, para realizar un seguimiento de las horas de trabajo y la remuneración.

Este comunicado de prensa también está disponible en inglés.     

Agency
Wage and Hour Division
Date
March 20, 2024
Release Number
24-124-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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US Department of Labor recovers nearly $200K for workers underpaid by Massachusetts subcontractor at Rhode Island worksite

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US Department of Labor recovers nearly $200K for workers underpaid by Massachusetts subcontractor at Rhode Island worksite

Stone Art Inc. debarred from certain federal contracts for 3 years

BOSTON – The U.S. Department of Labor has recovered $199,433 in back wages for 37 workers after finding a Lawrence construction subcontractor failed to pay prevailing wages and fringe benefits to employees working on a federally funded project at a Department of Veterans Affairs medical center in Providence, Rhode Island.

The department’s Wage and Hour Division investigation found Stone Art Inc. failed to pay carpenters, tapers and laborers installing drywall the required prevailing wage rate and fringe benefits required under the Davis-Bacon Act.

Investigators also found that Stone Art Inc. falsified certified payroll records, failed to create and maintain accurate payroll and basic records, did not pay proper overtime under the Contract Work Hours and Safety Standards Act and failed to allow employees to accrue one hour of paid sick leave for every 30 hours worked on or in connection with a federally covered contract as required under Executive Order 13706

The back wages recovered by the division resolve the DBA, CWHSSA and Executive Order 13706 violations. In addition, the department has debarred Stone Art Inc. from working on any federal contract that is subject to Executive Order 13706 for three years. 

“The U.S. Department of Labor has debarred Stone Art Inc. from working on certain federal contracts for three years, specifically for failing to pay proper paid sick leave to employees of certain federal contractors,” said Wage and Hour Division District Director Carlos Matos in Boston. “The Wage and Hour Division will not tolerate contractors violating their legal responsibilities under federal law.”

Stone Art Inc. is a construction company located in Lawrence and is engaged primarily in fabricating and installing granite and marble counter tops. The back wages that resulted from the settlement of this case were paid by the project’s prime contractor, Carrigg Commercial Builders LLC of Manchester, New Hampshire.

The Wage and Hour Division offers numerous resources for employers and workers alike, including information about the Davis-Bacon and Related Acts and Executive Order 13706, the agency’s toll-free helpline at 866-4US-WAGE (487-9243) and webinars that take place throughout the year. Workers and employers can call the division confidentially with questions, regardless of immigration status, and the division can speak with callers in more than 200 languages. Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.

Download the agency’s, free Timesheet App for Android and iOS devices, available in English and Spanish, to help track work hours and pay.

This press release is also available in Spanish.

Agency
Wage and Hour Division
Date
March 20, 2024
Release Number
24-124-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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US Department of Labor recovers nearly $369K in wages, damages for 16 workers denied overtime pay by prominent Oahu restaurant

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US Department of Labor recovers nearly $369K in wages, damages for 16 workers denied overtime pay by prominent Oahu restaurant

Owned by Japan’s Suntory Holdings, Restaurant Suntory assessed $12,105 in penalties

HONOLULU The U.S. Department of Labor’s Wage and Hour Division has recovered $368,992 in back wages and damages for 16 employees of an Oahu restaurant — owned by one of Japan’s largest brewing and distilling companies — whose operators denied overtime wages to salaried cooks and chefs, some of whom worked up to 70 hours per week.

Investigators determined Restaurant Suntory wrongly excluded these salaried employees from overtime eligibility and, by doing so, did not pay them legally required overtime when they worked more than 40 hours in a workweek. The restaurant also failed to keep accurate wage records.

The division recovered $184,496 in unpaid overtime and an equal amount in liquidated damages for the affected employees, some of whom the employer owed as much as $46,000 in back pay. In addition, the department assessed Suntory $12,105 in civil money penalties for its reckless disregard of the Fair Labor Standards Act.

“The outcome of our investigation at Restaurant Suntory should serve to remind restaurant industry employers that they cannot simply ignore the rights of kitchen staff to overtime wages because these employees are paid on a fixed salary basis,” explained Wage and Hour Division District Director Terence Trotter in Honolulu. “Employers must pay workers who cook and prepare food for customers overtime rates for hours worked over 40 in a workweek.” 

“We strongly encourage restaurant industry employers to use the free resources we offer, including our compliance assistance toolkits to avoid costly violations like those found in this case,” Trotter added.

Owned by Suntory Holdings, Restaurant Suntory opened in Waikiki in 1980 and is the sole remaining Restaurant Suntory in the U.S. Founded in 1899, Suntory Holdings is a global provider of premium spirits, beer and wine, brewed teas, bottled water, carbonated soft drinks, ready‐to‐drink coffee and energy drinks, and health and wellness products. Its product line includes American spirits Jim Beam and Maker’s Mark as well as Sauza Tequila and the popular non‐alcoholic beverage, Orangina. The company operates in the Americas, Europe, Africa, Asia and Oceania, and had a reported annual revenue of $20.4 billion in 2020.

Workers can use the Wage and Hour Division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the division confidentially for help at its toll-free number, 1-866-4-US-WAGE (487-9243). Learn more about the Wage and Hour Division, including the agency’s restaurant compliance assistance toolkit and an overview of FLSA protections for restaurant workers. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish

Agency
Wage and Hour Division
Date
March 19, 2024
Release Number
24-533-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor obtains judgment ordering a Sacramento Fastrip convenience store operator to pay $132K in owed wages, damages

News Brief

US Department of Labor obtains judgment ordering a Sacramento Fastrip convenience store operator to pay $132K in owed wages, damages

Employer:                              Fastrip Sacramento Inc., operating as Fastrip Food Store

                                                8061 Florin Road

Sacramento, CA 95828           

Type of action:                      Consent judgment and order

Name of defendants:             Fastrip Sacramento Inc., Amrik Singh

Background: Aninvestigation by the U.S. Department of Labor’s Wage and Hour Division found the operators of a Fastrip gas station and convenience store failed to pay federal minimum wage and overtime rates to seven employees for hours over 40 in a workweek, in violation of the Fair Labor Standards Act. After learning of the investigation, the employer attempted to interfere by instructing employees not to speak with investigators, including offering bribes; requiring employees to sign blank timecards that the employer later backdated and falsified; and by trying to retaliate and intimidate employees by threatening to report their immigration status and by visiting or calling family or friends.

Resolution: The consent judgment orders Fastrip and Amrik Singh to pay $57,340 minimum wage and overtime, an equal amount in liquidated damages and $17,500 in compensatory damages to seven workers. The court also ordered Fastrip to pay $4,655 in civil penalties assessed by the division.  

Court: U.S. District Court for the Eastern District of California

Docket Number: 2:24-cv-00761-DJC-DB

Quote: “One of the U.S. Department of Labor’s priorities is to protect workers against the types of atrocious and illegal acts these employers took to retaliate against employees and interfere with our investigation,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “Their despicable actions to mask their deliberate efforts to deny vulnerable employees their hard-earned wages proved pointless and costly.” 

Background: Jaco Oil Co. owns more than 54 convenience stores branded as Fastrip Food Stores in Arizona and California; most are which are leased to independent operators.

The division’s Sacramento District Office conducted the investigation. The San Francisco Regional Office of the Solicitor reached the consent judgment at the court.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. You can find other information on the agency’s website if you think you may have been misclassified as an independent contractor, or want to know how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
March 19, 2024
Release Number
24-492-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor extends compliance, awareness campaign in Southeast agricultural industry to protect vulnerable farmworkers

News Release

US Department of Labor extends compliance, awareness campaign in Southeast agricultural industry to protect vulnerable farmworkers

2023 investigations recovered more than $2M in wages, assessed $3.8M in penalties

Lea esto en español.

ATLANTA – After recovering more than $2 million in back wages for nearly 3,000 workers in the Southeast agricultural industry in 2023 and assessing employers with more than $3.8 million in civil money penalties, the U.S. Department of Labor and its Wage and Hour Division is continuing its multi-year initiative to educate industry employers about compliance and workers about their legal protections under federal law. The division’s enforcement and outreach efforts in the Southeast are part of a national initiative to improve compliance in the agricultural industry.

In 2023, investigators with the division’s Southeast Region identified violations in 90 percent of the approximately 240 completed investigations of agricultural employers. This was an increase from 2022, when the division’s Southeast investigators found violations in 85 percent of nearly 220 investigations. 

In addition, the division also debarred 8 Southeast growers and farm labor contractors in 2023 from participation in the H-2A agricultural guest worker program.

“The U.S. Department of Labor is committed to protecting dedicated farm workers who put food on America’s tables,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “When employers attempt to unlawfully increase their profits at the expense of the dignity, respect and, in some cases, freedom of workers, we will use every tool at our disposal to hold them accountable.”

The division will host a free virtual Agricultural Seminar on March 28 from 10:30 a.m. to 6 p.m. EST to provide guidance on federal requirements governing agricultural employment for growers, farmers, shippers, contractors, farm labor contractors, buyers and agricultural workers nationwide. Registration is required.

The division will continue to partner with industry stakeholders to instill greater industry awareness and provide tools to improve compliance, with the goal of lowering the overall number and rate of violations that occur. As the growing season approaches, the division will conduct vigorous investigations, inform workers and employers of their rights and responsibilities, and act to prevent violations of federal programs used by employers to find temporary, seasonal and migrant workers to meet labor demands. 

“Our enforcement and educational efforts go hand-in-hand. When workers are aware of their rights and understand they have a channel to discuss their wage concerns with us without fear of retaliation, it makes it harder for wage theft to go unpunished,” Coria added. 

Federal law empowers the division to suspend, revoke or withhold renewal of farm labor certificates for contractors who commit violations under the Migrant and Seasonal Agricultural Worker Protection Act. Employers are encouraged to review the MSPA registered farm labor contractor list and H-2A debarment list prior to contracting for labor. The division offers compliance assistance resources, including an agriculture compliance assistance toolkit, where employers can access the information they need to comply with the law.

For information about MSPA, H-2A and other laws enforced by the division, contact the toll-free helpline confidentially at 866-4US-WAGE (487-9243). The division can speak with callers in more than 200 languages, regardless of where a caller is from.

Agency
Wage and Hour Division
Date
March 19, 2024
Release Number
24-283-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Federal wage investigations recover $607K for 227 workers on extension of Valley Metro Light Rail in Phoenix

News Release

Federal wage investigations recover $607K for 227 workers on extension of Valley Metro Light Rail in Phoenix

Subcontractors underpaid workers, wrongly classified tradesmen as general laborers

PHOENIX – The U.S. Department of Labor has recovered $607,395 in back wages for 227 people working on an extension of the Valley Metro Light Rail system in the Phoenix metro area. 

Several investigations of the companies working for Omaha, Nebraska-based Kiewit Infrastructure West Co. — the federally supported project’s prime contractor — identified violations of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act.

“A prime contractor is responsible for ensuring that subcontractors follow all regulations and procedures for projects supported, in part or fully — with federal funds — including paying prevailing wages and providing required benefits,” explained Wage and Hour Division District Director Eric Murray in Phoenix. “The Wage and Hour Division is determined to ensure that federally funded construction projects provide workers and local communities with the intended economic benefits.”

Division investigators found subcontractors’ violations of federal contract laws included the following: 

  • Kimbrell Electric Inc., a Glendale electrical contractor, failed to pay correct prevailing wage rates and fringe benefits. The company incorrectly classified electricians and paid them as pipelayers, common and general laborers, and power tool operators. The division recovered $350,659 for 107 employees. After a separate 2015 investigation of Kimbrell Electric, the division recovered $184,389 owed to 61 workers.
  • Specialized Services Co, a Phoenix excavation services provider, wrongly classified employees as power tool operators when they were working as vacuum truck hose operators, which led the employer to underpay prevailing wages and fringe benefits to 42 employees. The division recovered $23,772 owed to these employees.
  • Badger Infrastructure Solutions, a Brownsburg, Indiana-based hydro-excavation services company that operates as Badger Daylighting, incorrectly classified vacuum truck operators as common and general laborers. By doing so, the employer failed to pay employees the required prevailing wages, fringe benefits and overtime rates. The division recovered $76,745 for 35 employees.
  • AJ Roberts Industrial Inc., a Chandler employer, incorrectly classified iron workers as power tool operators. By doing so, the company paid them significantly lower prevailing wage rates and fringe benefits than required for iron workers. The division recovered $142,659 for 23 workers.
  • Roadway Electric LLC, a Phoenix electrical contractor incorrectly classified electricians as common and general laborers and pipelayers and, by doing so, did not pay them the correct electricians’ prevailing wage rates. The division recovered $13,458 in back wages owed to 20 workers. A separate 2020 investigation by the division also found violations of federal labor laws, leading to the recovery of $81,909 for 34 employees.

The division frequently finds contractors on DBRA projects incorrectly classify specific trades as laborers; fail to pay full prevailing wages, including fringe benefits; fail to maintain complete and accurate records; and do not post Davis-Bacon Act informational posters and the applicable wage determination at worksites.

Funded by the U.S. Department of Transportation through President Biden’s Bipartisan Infrastructure Law and with support provided by the Phoenix Transportation 2050 plan and the regional Proposition 400 initiative, the Northwest Phase II extension of the Valley Metro Light Rail opened to the public on Jan. 27, 2024.

Learn more about the DBRA, the CWHSSA and other laws enforced by the division, as well as a search tool to use if you think you may be owed back wages collected by the division. The division can speak with callers confidentially in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App, available for Android and iOS devices in English and Spanish, to ensure hours and pay are accurate.

Learn more about the Wage and Hour Division.

Agency
Wage and Hour Division
Date
March 14, 2024
Release Number
24-481-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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El Departamento de Trabajo de los EE. UU. intenta distribuir el dinero adeudado a los trabajadores empleados por Empone Inc., Talenique Inc.

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El Departamento de Trabajo de los EE. UU. intenta distribuir el dinero adeudado a los trabajadores empleados por Empone Inc., Talenique Inc.

Las agencias de reclutamiento de Massachusetts deben $256,000 a 238 trabajadores

BOSTON – Un tribunal federal de Boston dictó una sentencia acordada por las partes en mayo de 2023, en la que ordenó a dos agencias de reclutamiento del condado de Middlesex y a sus propietarios pagar un total de $256,992 en concepto de salarios atrasados e indemnización por daños y perjuicios a 238 empleados actuales y exempleados que ocupaban puestos en empresas de Maine, Massachusetts y New Hampshire.

El Departamento de Trabajo de los EE. UU. logró el fallo a raíz de su investigación de las prácticas de pago de las agencias de reclutamiento en virtud de la Ley de Normas Justas de Trabajo (Fair Labor Standards Act, FLSA). La División de Horas y Salarios del departamento está tratando de localizar y distribuir el dinero a los trabajadores a los que se deben estos salarios e indemnización por daños y perjuicios.

Empone Inc. de Lowell y Talenique Inc. de Tyngsboro suministraron empleados temporales a empresas como Greenhead Lobster Products LLC de Stonington, Maine; Maine Coast Shellfish LLC de York, Maine; Bombay Duck Company Ltd. de Acton, Massachusetts; y Alene Candles LLC de Milford, New Hampshire.

Los investigadores de la División de Horas y Salarios descubrieron que Empone y Talenique infringieron la FLSA porque no les pagaron a los empleados su remuneración con un recargo del 50 % por cada hora trabajada más allá de las 40 horas semanales. En la investigación, también se descubrieron infracciones de la FLSA en materia de registros contables.

Empone y Talenique han abonado los salarios y la indemnización por daños y perjuicios adeudados a la división, que está distribuyendo estos fondos entre los trabajadores. También pagarán $463,407 en concepto de sanciones pecuniarias civiles al Departamento de Trabajo, debido a la naturaleza intencionada de sus infracciones.

“Estas agencias de reclutamiento no les pagaban a sus trabajadores una remuneración con un recargo del 50 % por cada hora trabajada más allá de las 40 horas semanales. En lugar de ello, Empone y Talenique les negaron a los trabajadores los salarios íntegros que deberían haber percibido”, explicó el director de distrito de la División de Horas y Salarios, Carlos Matos, en Boston.

“Los trabajadores temporales pueden ser vulnerables a la explotación y a salarios más bajos de los que corresponden, pero las empresas que contratan a trabajadores temporales también pueden tener responsabilidades”, señaló Matos. “También pueden ser responsables como empleadores conjuntos si los trabajadores temporales no perciben un salario adecuado. La División de Horas y Salarios anima a los empleadores conjuntos, incluidos los que recurren a agencias de reclutamiento temporal, a verificar que todos los empleados perciban un salario adecuado conforme a la Ley de Normas Justas de Trabajo”.

“Los empleadores conjuntos, incluidas las agencias de reclutamiento y las empresas anfitrionas en algunas circunstancias, pueden estar sujetos al cumplimiento de la Ley de Normas Justas de Trabajo, lo que comprende la garantía de que los empleados perciban toda la remuneración que ganan”, comentó la procuradora regional de trabajo Maia Fisher en Boston. “Este caso envía un mensaje claro de que el Departamento de Trabajo de los EE. UU. no tolerará que los empleadores despojen a los trabajadores de los salarios que tanto les ha costado ganar y de que tales acciones pueden tener costosas consecuencias para los empleadores que hagan caso omiso a la ley”.

La Asociación Camboyana de Asistencia Mutua de Lowell está ayudando a la División de Horas y Salarios a localizar a los empleados a los que se les deben salarios atrasados e indemnizaciones por daños y perjuicios, ya que muchos de los trabajadores hablan jemer y es posible que se hayan mudado o desconozcan que se les debe el dinero que ganaron. Los trabajadores pueden llamar a la asociación al 978-454-6200 o a la oficina del distrito de Boston de la División de Horas y Salarios al 617-624-6700.

Obtenga más información sobre la División de Horas y Salarios, incluida su herramienta de búsqueda que puede utilizar si cree que se le adeudan salarios atrasados cobrados por la división. Los empleadores y los trabajadores pueden llamar de forma confidencial a la división para hacer preguntas, independientemente de su situación migratoria. La división puede hablar con las personas que llaman en más de 200 idiomas a través del teléfono gratuito de ayuda del organismo, el 866-4US-WAGE (487-9243). Descargue la nueva aplicación Hoja de Tiempo del organismo para dispositivos iOS y Android en inglés o español para asegurarse de que las horas y el pago sean correctos.

Este comunicado de prensa también está disponible en inglés.    

Agency
Wage and Hour Division
Date
March 14, 2024
Release Number
24-2-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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US Department of Labor seeks to distribute money owed to workers employed by Empone Inc., Talenique Inc.

News Release

US Department of Labor seeks to distribute money owed to workers employed by Empone Inc., Talenique Inc.

Massachusetts staffing agencies owe $256K to 238 workers

BOSTON – A federal court in Boston entered a consent judgment in May of 2023, ordering two Middlesex County employment staffing agencies and their owners to pay a total of $256,992 in back wages and liquidated damages to 238 current and former employees who were placed with businesses in Maine, Massachusetts and New Hampshire. 

The U.S. Department of Labor obtained the judgment following its investigation of the staffing agencies’ payment practices under the Fair Labor Standards Act. The department’s Wage and Hour Division is seeking to locate and distribute the money to the workers who are owed these wages and damages.  

Empone Inc. of Lowell and Talenique Inc. of Tyngsboro supplied temporary employees to companies such as Greenhead Lobster Products LLC in Stonington, Maine; Maine Coast Shellfish LLC in York, Maine; Bombay Duck Company Ltd. in Acton, Massachusetts; and Alene Candles LLC in Milford, New Hampshire. 

Wage and Hour Division investigators found that Empone and Talenique violated the FLSA when they failed to pay employees time and one half their regular rate of pay for hours worked over 40 in a work week. The investigation also uncovered FLSA recordkeeping violations. 

Empone and Talenique have paid the wages and liquidated damages owed to the division, which is distributing these funds to the workers. Empone and Talenique will also pay $463,407 in civil money penalties to the labor department, due to the willful nature of their violations.

“These staffing agencies failed to pay their workers time and a half for hours worked over 40 per week. Instead, Empone and Talenique denied the workers the full wages they should have received,” said Wage and Hour Division District Director Carlos Matos in Boston. 

“Temporary workers can be vulnerable to exploitation and underpayment, but the companies who contract for temporary workers can have responsibilities as well,” noted Matos. “They may also be liable as joint employers if the temporary employees are not paid properly. The Wage and Hour Division encourages joint employers, including those who use temporary staffing agencies, to verify that all employees are being paid properly under the Fair Labor Standards Act.”

“Joint employers, including staffing agencies and host companies in some circumstances, can both be responsible for complying with the Fair Labor Standards Act, including ensuring that employees receive all the compensation they earn,” said Regional Solicitor of Labor Maia Fisher in Boston. “This case sends a clear message that the U.S. Department of Labor will not tolerate employers that shortchange workers of their hard-earned wages and that such actions can have costly consequences for employers who disregard the law.”

The Cambodian Mutual Assistance Association in Lowell is assisting the Wage and Hour Division in locating employees that are due back wages and damages, as many of the workers speak Khmer and may have moved or are unaware they are owed the monies they earned. Workers can contact the association at 978-454-6200 or the Wage and Hour Division’s Boston District Office at 617-624-6700. 

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Employers and workers can call the division confidentially with questions, regardless of immigration status. The division can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App for iOS and Android devices in English or Spanish to ensure hours and pay are accurate.

Su v. Empone Inc, Talenique Inc. Vanchan Tok and Natalie Sokhom a/k/a Jenny Tok

Civil Action No. 1:23-cv-10963

This press release is also available in Spanish.

Agency
Wage and Hour Division
Date
March 14, 2024
Release Number
24-2-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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