Employers: Lorraine Cerezo Lim doing business as LQC Care Home and Richlee Care Home
Luzviminda Cerezo doing business as White Oaks Manor, Cerezo Residential Care Home and Ross Senior Care Home

Sites: 427 Richlee Drive, Campbell, California
2064 Cherry Ave., San Jose, California
2991 Faircliff Court, San Jose, California
1573 Willow Oaks Drive, San Jose, California
2858 Ross Ave., San Jose, California
1680 White Oaks Ave., Campbell, California
2934 Jessie Court, San Jose, California

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the owners of the two residential care enterprises in violation of the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. Specifically, the employers paid most workers a flat rate per day, ranging from $75 to $103, for working at least 12 hours per day, 5 to 6 days a week. As a result, the employer violated minimum wage laws when the day rates failed to cover at least $7.25 per hour for all the hours employees worked. The employer also failed to pay workers time and one-half their regular rates when they worked more than 40 hours in a week, as overtime laws require, and failed to record the hours actually worked by employees in violation of the FLSA’s provisions. 

Resolution: The employers will pay 32 workers more than $359,000 in back wages and an equal, additional amount in liquidated damages.

Quote: “Workers in the residential care industry, who work long hours taking care of our loved ones, often struggle to take care of their own families. When they are denied hard and rightfully earned wages, it's unacceptable,” said Susana Blanco, director of the Wage and Hour Division’s San Francisco District Office. “The violations found here are all too common. The resolution of this case sends a strong message that we are committed to making sure that these workers take home every penny they have rightfully earned.”

Background: The department’s Wage and Hour Division continues to find violations in the residential care field, particularly in the Bay Area. In the 2015 fiscal year, the division’s San Francisco District Office concluded more than 100 investigations of residential care facilities and nursing homes, resulting in $3 million in back wages and damages for more than 475 employees.

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/.

WASHINGTON – A Chantilly-based technology company contracted to install audio-visual equipment at government installations nationwide will pay $1.53 million in back wages and benefits to 140 information technology professionals in federal consent findings.

The consent findings come in response to a 2015 lawsuit filed by the U.S. Department of Labor against Innovative Technologies Inc. after the department’s Wage and Hour Division identified violations of federal labor laws.

The division found ITI violated the McNamara-O’Hara Service Contract Act of 1965 when it failed to pay legally required prevailing wages, fringe benefits, vacation and holiday wages to its direct employees or to ensure such payment to those employed by 10 of its subcontractors.

The lawsuit was filed based on the division’s investigation, which found ITI:

• Incorrectly categorized and paid approximately 127 engineering technicians as lower-paid audio-visual and installation technicians.
• Incorrectly categorized and paid approximately 10 warehouse specialists and supply technicians as lower-paid warehouse assistants.
• Failed to provide legally required fringe benefits to approximately 130 employees.
• Failed to properly provide vacation pay and holiday pay to several employees, including those employed by subcontractors.

The division also concluded that the contractor failed to pay employees overtime at time and one-half the required prevailing wage rates when they worked over 40 hours in a workweek, in violation of the Contract Work Hours and Safety Standards Act.

“In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the wages and fringe benefits required by law,” said Dr. David Weil, administrator of the Wage and Hour Division. “Taxpayers have a right to expect that federal contractors – who are paid with tax dollars – will comply with the law, and the U.S. Department of Labor will not allow companies to abuse that trust. This investigation demonstrates our commitment to ensuring that employees are paid the wages they have rightfully earned and to leveling the playing field among all employers who do business with the government.”

Along with ITI employees, the consent judgement covers employees of the following subcontractors:

• Ace Contractor, Springfield, Virginia
• AeroTek, Hanover, Maryland
• ALEX, Chantilly, Virginia
• Arrow Technologies, Arrow Technologies, Littleton, Colorado
• AvTek Staffing, Washington, D.C.
• MSI, Centerville, Virginia
• Northern VA Staffing, Bethesda, Maryland
• Quadrant Inc., Reston, Virginia
• Tech USA, Millersville, Maryland
• Volt Technical Resources, Vienna, Virginia

The U.S. Department of Defense’s Media Agency awarded a contract to ITI in November 2006, with 155 task orders at 100 locations nationwide.  DMA provides news and information to U.S. forces deployed worldwide through the department’s media outlets, including radio, TV, Internet, print and emerging media technologies.

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing wage rates and fringe benefits found in the locality, or the rates contained in a predecessor contractor’s collective bargaining agreement.

The CWHSSA applies to federal service contracts and federal and federally assisted construction contracts over $100,000. These require contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rate of pay for all hours worked over 40 in a workweek.

Employer: Junior’s Inc., doing business as Junior’s Supper Club

Site: 2601 NW Expressway, Oklahoma City, Oklahoma

Investigation Findings: A U.S. Department of Labor Wage and Hour Division investigation found Junior’s Supper Club violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The investigation by the division’s Oklahoma City District Office revealed the employer:

• Failed to combine hours worked by employees who performed more than one job duty at the restaurant.  For example, if an employee worked both as a server and as a busser, those hours were recorded and paid for separately. As a result, the employer failed to recognize when these employees worked more than 40 hours in a week and failed to pay them overtime as required by the FLSA.
• Illegally deducted time from workers’ pay when no work was available or when the owner perceived an employee to be disengaged, although workers were ready and able to work. This resulted in minimum wage and overtime violations for the unpaid time.
• Failed to keep an accurate record of the total number of hours employees worked in a workweek, a record-keeping violation under the FLSA.

Resolution: Junior’s Supper Club paid $26,243 in minimum wage and overtime back wages and an equal amount in liquidated damages, for a total of $52,487 to nine employees. The restaurant agreed to keep proper records and comply with all provisions of the FLSA in the future.  

Quote: “Restaurant workers are among the most vulnerable workers we see in Oklahoma,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “If an employer requires workers to be ready to serve customers whenever they walk in, the employer must pay workers for the times when there may be no customers in the facility. These workers depend on every penny they rightfully earn; cheating them out of overtime has a tremendous impact on them and their families. The resolution of this case signals the division’s commitment to protecting restaurant workers, and leveling the playing field for employers who pay their workers legally.” 

Background:  A well-known destination since 1973, Junior’s Supper Club has served steaks and other entrees at its Oklahoma City location. It has 31 employees.

Information: 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 Oklahoma City District Office at 405-231-4158. Information is also available at http://www.dol.gov/whd/.

Employers: Alpha Services, LLC
Eco Group, LLC

Sites: 1141 North 3^rd St., Coeur d’Alene, Idaho
10936 SW Marilyn, Tualatin, Oregon

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that Alpha Services, violated both the Service Contract Act and Migrant and Seasonal Agricultural Worker Protection Act when the company failed to pay workers legally required wages for pruning and planting work in national forests in Oregon and Idaho. A reforestation contractor for the U.S. Forest Service and the U.S. Bureau of Land Management, Alpha paid reforestation workers on a piece-rate basis that failed to yield at least the prevailing hourly rate required by federal law. The contractor also failed to keep accurate records of the number of hours worked by employees, providing records to investigators that showed a reduced number of hours, creating the false appearance that the piece-rate earnings covered the rates required.

Alpha Service’s labor subcontractor, Eco Group paid workers at hourly rates that fell below the prevailing wage rates required for federal government contracts covered by the SCA, and failed to pay workers required fringe benefits. Investigators found that both firms were jointly responsible for the wages found due. 

Resolution: Both firms agreed to comply with the federal labor law, and pay employees their required prevailing wages due. Alpha Services paid $66,295 to 57 employees and Eco Group paid $37,339 to 48 employees. In addition, the division has assessed civil money penalties of $59,500 against Alpha Services, and $10,600 against Eco Group for the violations found under MSPA.

Quote: “Reforestation workers regularly face language barriers, often fear stepping forward when wage or safety violations occur, and have limited access to public services since they work and live in isolated areas,” said Thomas Silva, the Wage and Hour Division’s district director in Portland. “When companies fail to pay these vulnerable workers their hard-earned wages, the Wage and Hour Division will continue to use every tool available to protect their rights. We encourage workers in similar circumstances to contact us.”  

Information: The SCA requires that contractors and subcontractors performing services on covered federal contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality, or rates contained in a predecessor contractor’s collective bargaining agreement.

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: As the summer peach festival season approaches, investigators from the U.S. Department of Labor and its Wage and Hour Division’s Tulsa Area Office are offering festival coordinators, growers, farm workers and others interested in labor issues in the industry an opportunity to learn about the federal laws that protect the industry’s workers. “Cultivating Compliance” is part of the division’s ongoing education and enforcement initiatives. Division representatives will also be on-hand at the Porter Peach festival on July 15, to provide information and answer questions.

Investigators report training and outreach events like these improve compliance with federal labor laws such as the Fair Labor Standards Act, the Migrant and Seasonal Agricultural Worker Protection Act, the labor provisions of the H-2A visa program, and the field sanitation provisions of the Occupational Safety and Health Act.  

For more information about federal wage laws, or for information about attending a training event, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243), its Oklahoma City District Office at 405-231-4158, or the Tulsa Area Office at 918-581-6303. Information also is available at http://www.dol.gov/whd/ag/.

Participants: U.S. Department of Labor’s Wage and Hour Division
Virginia Employment Commission

Partnership description: The U.S. Department of Labor’s Wage and Hour Division and the Virginia Employment Commission signed a three-year Memorandum of Understanding intended to protect employees’ rights by preventing their misclassification as independent contractors or other non-employee statuses. The two agencies will provide clear, accurate and easy-to-access outreach to employers, employees and other stakeholders; share resources; and enhance enforcement by conducting coordinated investigations and sharing information consistent with applicable law.

Background: The division and the U.S. Internal Revenue Service are working with Virginia and 30 U.S. states to combat employee misclassification and to ensure that workers get the wages, benefits and protections to which they are entitled. Labeling employees as something they are not – such as independent contractors – can deny them basic rights such as minimum wage, overtime and other benefits. Misclassification also improperly lowers tax revenues to federal and state governments, as create losses for state unemployment insurance and workers’ compensation funds.

More information on misclassification and the effort are available at http://www.dol.gov/misclassification/.

Quotes: “The Wage and Hour Division continues to attack this problem head on through a combination of a robust education and outreach, and nationwide, data-driven strategic enforcement across industries,” said David Weil, administrator of the Wage and Hour Division. “Our goal is always to strive toward workplaces with decreased misclassification, increased compliance and more workers receiving a fair day’s pay for a fair day’s work.”

David Weil, U.S. Department of Labor Wage and Hour Division Administrator

“Virginia is excited to partner with the U.S. Department of Labor’s Wage and Hour Division on this important issue. Virginia has increased its emphasis on identifying misclassified workers. This MOU is another tool Virginia has in our effort to end misclassification of workers and the harm it causes.”

Ellen Marie Hess, Commissioner, Virginia Employment Commission

Employer name: Concrete Supply Co. Inc.

Investigation site: 155 Greencastle Road, Tyrone, Georgia 30290

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division, Atlanta District Office, found that Concrete Supply Co. violated the overtime and recordkeeping provisions of the Fair Labor Standards Act.

Specifically, the employer misapplied an overtime exemption meant for interstate truck drivers, driver’s helpers, loaders or mechanics, and improperly categorized its dump truck drivers as exempt, denying them overtime compensation when they worked over 40 hours in a workweek. The employer also failed to maintain required time and payroll records.

Concrete Supply hauls sand, stone, topsoil, construction and bulk materials within Georgia’s state lines.

Resolution: Concrete Supply will comply with the FLSA and pay 45 workers $78,938 in back wages.

Quote: “Concrete Supply denied its workers their hard-earned wages, impacting their ability to meet their financial obligations,” said Eric Williams, the Wage and Hour Division’s district director in Atlanta. “This case is a reminder to all employers to ensure their payroll practices comply with the law. If employers have concerns or are unsure of their obligations under the law, they should contact the division for assistance.”

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 of pay for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records and to comply with the hours worked requirements. For more information about the FLSA and wage laws or to file a complaint, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243), the Atlanta District Office at 678-237-0521, or visit http://www.dol.gov/whd/.

Employer name: C&N Do Inc., doing business as Little Italy

Investigation site: 2901 Parkway Blvd., Kissimmee, Florida 34747

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division found that Little Italy, an Italian restaurant and pizzeria in Kissimmee, violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. Specifically, the employer failed to pay legally required minimum wage when some hours worked by employees went unpaid. Overtime violations occurred when hourly paid servers and cooks were paid straight time for their overtime hours, when overtime was paid occasionally after 80 hours in a two-week period rather than after 40 hours in one week, and when overtime for tipped employees was not based upon the full minimum wage of $7.25 per hour. The employer also failed to maintain required time and payroll records, and was found to have reported inaccurate numbers of hours worked to the company that processed its payroll.

Resolution: The employer will comply with the FLSA and pay $40,979 in back wages to 15 employees.

Quote: “Violations like these are far too common in the restaurant industry,” said Daniel White, district director for the Wage and Hour Division in Jacksonville. “We are committed to protecting workers’ rights and to improving industry compliance by partnering with state agencies – such as the Florida Department of Revenue – to identify non-compliant businesses and conduct investigations. Employers who play by the rules should not find themselves at an economic disadvantage to those who do not.”

Information: The division has agreements with 30 states, including Florida, to ensure workers get the wages, benefits and protections they are entitled to by law. The division and the Florida Department of Revenue regularly accept referrals from one another related to potential violations of state or federal law.

The FLSA requires that covered, nonexempt employees be paid for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week. Employers are prohibited from retaliating against workers who exercise their rights under the law.

For more information about the FLSA and wage laws or to file a complaint, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243); the Jacksonville District Office at 904-359-9292 or visit http://www.dol.gov/whd/.

Employer: Foothill Packing, Inc.

Location: 1582 G-Moffet St., Salinas, California

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division determined that the termination of 18 American workers by Foothill Packing, a packing and labeling company, violated the labor provisions of the H-2A guest worker program. The employer claimed the workers – who were U.S. citizens – had failed to meet production standards. Investigators found that many of them had consistently exceeded the production of many of the foreign workers doing the same jobs, yet Foothill did not terminate these foreign workers.

Resolution:  Foothill Packing paid $180,000 in back wages to the 18 terminated workers and also paid $55,000 in penalties for the violations of H-2A provisions of the Immigration and Nationality Act, and provisions of the Migrant and Seasonal Agricultural Worker Protection Act. Foothill agreed to future compliance and signed an agreement with the department requiring the company to:

• Designate a staff member whose primary job duties consist of monitoring and reporting the firm’s compliance with all H-2A regulatory requirements.
• Provide annual training to all frontline supervisors involved with the H-2A program.
• Provide detailed reasons for any future terminations to the U.S. Department of Labor.    

Quote:  “The H-2A visa program is explicit in stating that all jobs in this country must be offered to U.S. citizens before an employer may receive authorization to hire foreign workers. That same tenet also pertains to keeping workers on the payroll who are meeting performance standards,” said Susana Blanco, director of the Wage and Hour Division office in San Francisco. “We appreciate Foothill Packing’s cooperating with us to compensate the laid-off workers while also stepping up to the plate to ensure future compliance with federal labor laws.”

Information: The H-2A visa program allows companies and farm labor contractors to bring in foreign agricultural workers on a temporary basis when an adequate amount of qualified U.S. workers cannot be found to perform the work.  Employers must comply with a number of provisions, including providing housing, potential costs of inbound and outbound transportation from their home country to the U.S., in some cases meals, and must pay the adverse effect wage rate set by the department.  In addition, the employer must demonstrate that they made required efforts to hire U.S. workers prior to having their visas approved.  Employers must not give H-2A workers preferential treatment or wrongfully discharge U.S. workers. 

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/.

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Employer: Hibachi City Buffet, Inc.

Sites: 72600 Dinah Shore Drive, Palm Desert, California

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division found that Hibachi City Buffet violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. They found the employees – cooks, dishwashers and servers – worked more than 60 hours per workweek on average, yet the employer paid a fixed salary, without regard to the number of hours employees worked. Minimum wage violations resulted when those salaries failed to cover all the hours employees worked at the federal minimum wage of $7.25 per hour. Overtime violations occurred when workers exceeded 40 hours in a week, yet the employer still paid workers only their fixed salaries. Hibachi City Buffet also failed to keep time records showing how many hours employee worked, or how much they paid employees, as the law requires.

Resolution: A federal judge in U.S. District Court for the Central District of California approved a consent judgment between the department, Hibachi City Buffet, and its owners Wei Chen, Wu Chen and Honglin Chen. As a result, the restaurant and owners will pay 44 employees $90,000 in back wages. The judge has ordered the restaurant and its owners to pay $38,335 in penalties. The court also prohibited the employer from retaliating or taking any adverse employment action against any worker who exercises or asserts their rights under the FLSA.

Quote: “Vulnerable restaurant employees are often reluctant to complain when their employer fails to pay them the wages they’ve earned,” said Danny Pasquil, district director for the Wage and Hour Division in West Covina. “We urge all employees who are not paid legally to step forward. Cheating workers out of their hard-earned wages is illegal. As this consent judgment illustrates, we will continue to use every available tool, including asking the courts to step in, to ensure that workers receive a fair day’s pay for a fair day’s work.” 

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/.

Read this news release en españól.