H&H Lawn Service and Snowplowing to pay $38K in back wages, damages to 11 employees for overtime violations

News Brief

H&H Lawn Service and Snowplowing to pay $38K in back wages, damages to 11 employees for overtime violations

Type of Action: Fair Labor Standards Act consent judgment

Name of Defendants: H&H Lawn Service and Snowplowing LLC, Muskegon, Michigan
Darrell Hinken

Investigation Findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found the company and its owner Darrell Hinken violated the FLSA’s overtime and record keeping provisions. 

Specifically, the employer:

  • Misclassified some employees as independent contractors instead of employees, and subsequently failed to pay them overtime when they worked more than 40 hours in a week.
  • Paid some employees a flat salary, without regard to the number of hours they worked; this led to overtime violations when they worked more than 40 hours per week.
  • Banked overtime hours for some employees, to be paid out in future workweeks at straight time, rather than paying overtime in the pay period during which the hours were worked.
  • Failed to keep required payroll records.

Resolution: Under terms of a consent judgment entered into U.S. District Court for the Western District of Michigan, Southern Division, H&H Lawn Service and Snowplowing will pay a total of $38,000 in back wages and liquidated damages to 11 employees.

The company has agreed to abide by the FLSA in the future and specifically to:

  • Notify employees in writing if they are claiming an overtime exemption for them, and why.
  • Provide Wage and Hour Division facts sheets to all employees, describing the definition of an employee versus an independent contractor, among other topics.
  • Retain a certified public accounting firm to conduct an annual audit of the firm’s payroll practices to determine compliance with the FLSA.

Quote: “Banking of overtime and misclassifying employees as independent contractors occurs all too often in seasonal businesses such as lawn care and snowplowing,” said Mary O’Rourke, district director for the Wage and Hour Division in Grand Rapids. “These pay practices hurt workers, and give the employer an unfair advantage over businesses that play by the rules. This case demonstrates our commitment to using every tool available to us, including litigation, to ensure that these hard-working employees receive every cent they have earned.”

Information: The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records.

Court: U.S. District Court for the Western District of Michigan, Southern Division

Docket Number: Perez v. H & H Lawn Service and Snowplowing LLC, et al.
1:15-cv-00197-PM

Agency
Wage and Hour Division
Date
May 17, 2016
Release Number
16-0939-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

US Labor Department initiative finds 14 Lawrence restaurants owe more than $112K in back wages to 130 workers

News Release

US Labor Department initiative finds 14 Lawrence restaurants owe more than $112K in back wages to 130 workers

LAWRENCE, Kan. – Hospitality industry jobs are often filled by students, temporary, or foreign workers – many of whom are new to the workforce. Among the nation’s lowest-paid workers, they are often unfamiliar with wage laws and their rights. Language barriers, fear of retaliation, and fears about immigration status can also cause them to be among those least likely to exercise their rights, leaving them vulnerable to labor violations.

To protect these workers and to prevent employers who violate the law from gaining an unfair competitive advantage, the U.S. Department of Labor’s Wage and Hour Division is engaged in an education and enforcement initiative in the hospitality industry.

In the Lawrence area, the effort has found 14 employers who owe back wages of $112,191 to 130 restaurant and hotel workers. Investigators have found violations of the Fair Labor Standards Act's overtime, minimum wage, child labor, and recordkeeping provisions.

“Unfortunately, labor violations like these are all too common in the restaurant and hotel industry,” said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago. “For these low-wage employees, being shorted in your paycheck can mean the difference between being able to feed your family, or not.  We are committed to ensuring that workers take home every cent they have rightfully earned, and to providing a level playing field for employers who play by the rules.”

In the Lawrence cases violations include:

  • Paying employees fixed salaries without regard to how many hours they worked, leading to overtime violations when they worked more than 40 hours in a week. 
  • Failing to combine hours that employees worked at multiple job sites for the same employer, leading to overtime violations when total hours exceeded 40 per week.
  • Deducting the cost of uniforms from workers’ pay which reduced workers’ effective hourly wages to below the federal minimum wage.
  • Improperly calculating overtime for tipped employees by paying time and one-half the cash wage of $2.13 per hour, rather than basing overtime on the full minimum wage as the law requires.
  • Failing to pay for all the hours employees work.
  • Requiring servers to work only for tips, and failing to show them on the payroll as employees.
  • Failing to maintain accurate records of employees’ wages and hours worked.

“Many of the violations found were consistent across multiple locations, so outreach has been key to educating employers and workers,” said Ricky Robinson, acting director for the wage and hour district office in Kansas City. “Just because a pay practice appears to be an industry or local standard, doesn’t mean that it’s legal.  As our work in this sector continues, we will continue both our enforcement and our education efforts.” 

Investigators found wage violations at the following Lawrence establishments:

  • El Potro Mexican Café
  • Marisco’s Restaurant
  • La Parrilla Latin American Cuisine
  • Genovese Italian Restaurant
  • Ten Restaurant (in the Eldridge Hotel)
  • Paisano’s Ristorante’
  • Tres Mexicanos Mexican Grill & Cantina
  • King Buffet
  • Henry T’s Bar & Grill
  • Mad Greek
  • Zen Zero, Incorporated
  • El Sol Mexican Restaurant
  • The Bird Dog Bar.

During an education and enforcement initiative, in addition to conducting investigations, the division conducts outreach events for employers and industry stakeholders to provide compliance assistance and information on legal rights and responsibilities. The initiatives also raise awareness among workers, community organizations and others regarding federal wage and hour laws and protections.

In 2014, the division began an education and enforcement initiative in the hospitality industry in Midwest college towns and resorts. Currently, the division is investigating restaurants and hotels in Madison, Wisconsin and Iowa City, Iowa. In the coming months, the effort will expand to other cities, and other states.  

Nationwide, the Wage and Hour Division recovered more than $38 million for 46,902 workers in the restaurant industry in fiscal year 2015.

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 for hours worked beyond 40 per week. An employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages, provided that amount plus the tips received equals at least the federal minimum wage of $7.25 per hour. If an employee’s tips, combined with the employer’s direct wages do not equal the minimum wage, the employer must make up the difference. Employers also are required to provide employees notice of the FLSA tip credit provisions and to maintain accurate time and payroll records. 

Accessible and searchable information on enforcement activities by the department is available at http://ogesdw.dol.gov/homePage.php. For more information about the FLSA and other federal labor laws, call the division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Kansas City Office at 913-551-5721. Information also is available at http://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
May 17, 2016
Release Number
16-0950-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

US Labor Department investigation finds child labor, minimum wage and other violations at Street’s Seafood Restaurant

News Brief

US Labor Department investigation finds child labor, minimum wage and other violations at Street’s Seafood Restaurant

Restaurant to pay nearly $43k in back wages and damages

Employer name: Street’s Seafood Restaurant

Investigation site: 251 Highway 31, Bay Minette, Alabama 36507

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Birmingham District Office, found that Street’s Seafood Restaurant violated child labor, minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The restaurant employed four minors ages 15 to 17 to work regularly in occupations prohibited for any workers less than 18-years-old. Specifically, investigators found the employer:

Resolution: Street’s Seafood Restaurant will pay $14,288 in minimum wage and overtime back wages and an equal amount in liquidated damages totaling $28,577 to eight employees. Additionally, the employer was also assessed a civil money penalty of $14,125 for child labor violations.

Quote: “Employing young people provides valuable experience, but that experience must never come at the expense of their safety,” said Kenneth Stripling, director of the division’s Birmingham District Office. “Additionally, employers have an obligation to pay employees what they have legally earned. All workers deserve a fair day’s pay for a fair day’s work. Unfortunately, Street’s Seafood violated not only child labor laws, but has also shorted workers’ pay. The resolution of this case sends a strong message that we will not tolerate either of those behaviors.”

The FLSA establishes a minimum age of 18 for workers in those nonagricultural occupations that the secretary of labor declares to be particularly hazardous for 16- and 17-year-old workers or detrimental to their health or well-being. Youth ages 14 and 15 may be employed outside of school hours in a variety of nonmanufacturing, non-mining and non-hazardous jobs for limited periods of time and under specified conditions. These rules must be followed unless a specific exemption applies. A list of hazardous occupations prohibited for minors is available on the division’s website at http://www.dol.gov/elaws/esa/flsa/docs/haznonag.asp . More information on child labor rules can be found at http://youthrules.dol.gov/ or call the division’s toll-free helpline at 866-4US-WAGE (487-9243) for more information.

Agency
Wage and Hour Division
Date
May 17, 2016
Release Number
16-0960-ATL
Media Contact: Michael D'Aquino
Media Contact: Lindsay Williams
Phone Number

US Labor Department obtains order to stop Arlington restaurant owners from intimidating workers who cooperate with federal investigators

News Release

US Labor Department obtains order to stop Arlington restaurant owners from intimidating workers who cooperate with federal investigators

Aroma Indian Cuisine attempts to hinder federal wage and hour investigation

ARLINGTON, Va. – A suburban Washington, D.C.-area restaurant and its owners have entered into an agreement ensuring that they would not intimidate or retaliate against employees who cooperate with a U.S. Department of Labor wage and hour investigation and subsequent ongoing litigation. The owners also agreed to stop soliciting “waivers” from employees to relinquish their rights under the Fair Labor Standards Act.

The department obtained a consent order in the U.S. District Court for the Eastern District of Virginia prohibiting Aroma Indian Cuisine in Arlington from terminating employment; retaliating or discriminating against employees they believe have spoken with or will speak to federal Wage and Hour Division investigators; and asking employees to sign “waivers” of their FLSA rights.

The order also requires the defendants to allow a department representative to provide employees with an oral and written statement about their right to speak with investigators and participate in the litigation without fear of retaliation. The owners signed the statement and posted it at the restaurant.

“Our investigation concluded, and our suit alleges, that the owners failed to pay employees the wages they were owed. We also believe the owners attempted to use intimidation tactics to pressure employees to cease cooperating with our investigation,” said Mark Lara director of the Wage and Hour Division’s Baltimore District Office. “This case should send a strong message to employers: hindering an investigation by intimidating employees will not be tolerated, and will not prevent federal labor laws from being upheld.”

The division began an investigation of Aroma Indian Cuisine in August 2013 to confirm its compliance with FLSA provisions. After the investigation disclosed violations, and the department filed suit to enforce regulations, the restaurant’s employees reported to investigators that the business’ owner asked employees to sign waivers purportedly waiving their right to recover back wages under the FLSA and their right to participate in the investigation and ongoing litigation. Employees also reported feeling threatened for their potential involvement in the department’s case. 

Aroma Indian Cuisine is a full-service Indian food restaurant and catering service. The division’s area office in Arlington conducted the investigation. The department’s Regional Office of the Solicitor in Arlington is litigating the case.

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, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. These requirements may not be “waived” by employees. Employers are required to maintain accurate time and payroll records. Employers are prohibited from discharging or discriminating against an employee in any way because such employee has filed a complaint with the Wage and Hour Division or cooperated in an investigation.

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) or its Arlington Area Office at (703) 235-1182. Information also is available at http://www.dol.gov/whd/.  

# # #

Perez v. Aroma Indian Cuisine.
Civil Action Number:  1:15-cv-01259

Agency
Wage and Hour Division
Date
May 16, 2016
Release Number
16-0957-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

US Department of Labor’s ongoing initiative to get hospitality workers the ‘bucks’ they’ve legally earned would make even ‘Bucky Badger’ proud

News Release

US Department of Labor’s ongoing initiative to get hospitality workers the ‘bucks’ they’ve legally earned would make even ‘Bucky Badger’ proud

Investigators find more than $724K in back wages owed to 275 workers

MADISON, Wis. – In a town where images of the state university’s mascot “Bucky Badger” are common in restaurants and hotels alike, U.S. Department of Labor investigators are actively engaged in an education and enforcement effort to make sure employers do not deny hospitality workers the “bucks” they have earned legally.

Too often, many low-wage restaurant and hotel workers fall victim to their employers’ violations of the Fair Labor Standards Act’s overtime, minimum wage and record-keeping provisions. In college towns like Madison, hospitality jobs may be transient and seasonal, making those who fill these jobs especially vulnerable to unscrupulous employers.  

The department’s Wage and Hour Division ongoing initiative in the hospitality industry has found 24 area  restaurants and hotels owe more than $724,000 in back wages to 275 workers. Investigations at additional establishments continue

“Hospitality industry jobs are often filled by students, temporary, or foreign workers – many of whom are new to the workforce. They are often unfamiliar with wage laws and their rights,” said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago. “Language barriers, fear of retaliation and fears about immigration status can cause these workers to be among those least likely to speak up leaving them vulnerable to exploitation. We are committed to using every tool at our disposal to ensure that these workers are paid every penny they have rightfully earned, and that employers in this industry who play by the rules do not find themselves at a disadvantage to those who do not.”

Violations disclosed in these investigations include:

  • Paying employees fixed salaries without regard to how many hours they worked, leading to overtime violations when they worked more than 40 hours in a week. 
  • Improperly calculating overtime for tipped employees..
  • Paying overtime in cash, off-the-books,  at “straight time” rates. Deducting the cost of uniforms, breakages, or shortages from workers’ pay; reducing their hourly wages below the federal minimum wage.
  • Failing to keep accurate and thorough records of employees’ wages and hours worked.
  • Failing to pay for all hours worked.
  • Paying servers tips only.
  • Requiring tipped employees to surrender tips to an illegal tip pool; and
  • Requiring minor-aged employees to work outside of the hours allowed by the law.

Investigators found violations at the following 24 Madison area establishments:

  • Laredo’s Mexican Restaurant: (Two Madison and one Fitchburg location) 86 employees are due $402,391.
  • Cocina Real in Middleton: 27 employees are due $118,471
  • World Buffet (D’Onofino Street and South Town Mall, and one location in Monona): 17 employees have received $61,131 in back wages.
  • Food Fight Restaurant Group:17 employees are due $23,603.
  • Journey Sushi and Seafood Buffet: Five employees are due $19,568.
  • Pasqual’s Cantina: (Three locations) Four employees are due $18,388.
  • State Street Brats: 84 employees are due $15,033.
  • Wisco Hotel Group in Fond du Lac: Four employees are due $11,924.
  • Benvenuto’s Italian Grill: Six employees are due $8,454.
  • Bluephies: Two employees have been paid $7,389 in back wages.
  • Takara Japanese Restaurant: (Two locations) 10 employees are due $7,305.
  • Brocach Irish Pub: (Two locations) Two employees are due $6,981.
  • Comfort Suites: One employee is due $2,731.
  • Holiday Inn Hotel & Suites- Madison West: Four employees are due $2,494.
  • Parkway Family Restaurant: Two employees have received $915 in back wages.
  • Staybridge Suites, Madison East Hotel Group, 3301 City View Drive: One employee has been paid $29 in back wages.

During an education and enforcement initiative, in addition to conducting investigations, the division conducts outreach events for employers and industry stakeholders to provide compliance assistance and information on legal rights and responsibilities. The initiatives also raise awareness among workers, community organizations and others regarding federal wage and hour laws and protections.

“We have provided informational sessions to student groups at the University of Madison and the Worker Rights Center of Madison on wage rights and laws,” said David King, district director for the Wage and Hour Division in Minneapolis, which conducted the initiative. “The violations disclosed in this initiative are far too common. We are doing everything we can to increase knowledge and awareness of the laws so workers are paid their hard earned wages.”

In 2014, the division began an education and enforcement initiative in the hospitality industry in Midwest college towns and resorts. The division has conducted investigations of restaurants and hotels in Ann Arbor, Michigan, Bloomington, Indiana, Lawrence, Kansas; Ames and Iowa City, Iowa. The initiative will continue in additional locations. 

Nationwide, the Wage and Hour Division recovered more than $38 million for 46,902 workers in the restaurant industry in fiscal year 2015.

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 for hours worked beyond 40 per week. In accordance with the FLSA, an employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages, provided that amount plus the tips received equals at least the federal minimum wage of $7.25 per hour. If an employee’s tips, combined with the employer’s direct wages do not equal the minimum wage, the employer must make up the difference. Employers also are required to provide employees notice of the FLSA tip credit provisions and to maintain accurate time and payroll records. 

Accessible and searchable information on enforcement activities by the department is available at http://ogesdw.dol.gov/homePage.php.

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

Agency
Wage and Hour Division
Date
May 12, 2016
Release Number
16-0936-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

Bay Area medical center to pay nearly $38K to employee it fired illegally after the worker sought medical attention

News Brief

Bay Area medical center to pay nearly $38K to employee it fired illegally after the worker sought medical attention

Employers: Muir Orthopedics Specialists

Sites: 2625 Shadeland Drive, Walnut Creek, California

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found that Muir Orthopedics Specialists violated the Family Leave Medical Act by terminating an employee who needed to take medical leave despite the fact that the employee provided written notice from her health care provider that demonstrated she needed the time off for a FMLA-qualifying health condition. The investigation determined that the employer failed to notify the employee of her rights, and failed to designate the leave as FMLA-protected. 

Resolution: Muir Orthopedics paid $18,683 in back wages and an equal, additional amount in damages to the terminated employee to remedy the violation.

Quote: “In this case, an employee was suddenly left without a job or a paycheck because her employer terminated her illegally,” said Susana Blanco, director of the San Francisco District Office. “This employee suffered emotional and financial stress at a time when she could least afford it. This investigation demonstrates the U.S. Department of Labor’s commitment to ensuring that employees are not retaliated against or prevented from exercising their FMLA rights.”

Information: The FMLA provides eligible employees up to 12 weeks of unpaid, job-protected leave due to their own or a family member’s serious health condition with continuation of health care coverage under the same terms and conditions as if the employee had not taken leave. 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/.

Agency
Wage and Hour Division
Date
May 12, 2016
Release Number
16-0725-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

Vegetable supplier to major grocery chains assessed over $1.4M in civil money penalties after two-year federal investigation

News Brief

Vegetable supplier to major grocery chains assessed over $1.4M in civil money penalties after two-year federal investigation

Red Diamond Farms also pays $149,572 in back wages to 380 workers

Employer’s names: Red Diamond Enterprises Inc., doing business as Red Diamond Farms
German “Javier” Torres, president and owner

Investigation sites: Wimauma, Sarasota, Quincy and West Palm Beach, Florida

Investigation findings: Investigators from the department’s Wage and Hour Division Tampa District Office found that Red Diamond Farms and Torres violated provisions of the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act and H-2A temporary agricultural program. Specifically, investigators found the employer:

  • Provided preferential treatment to H-2A guest workers over corresponding domestic workers when it paid the guest workers higher rates and offered them more hours than the domestic workers, and failed to offer free housing or pay transportation costs to the domestic workers;
  • Failed to disclose the conditions of employment to the domestic workers when they were not provided a contract, as the law requires;
  • Concealed the presence of the domestic workers by segregating the payrolls, and denying their presence during the investigation;
  • Failed to keep accurate and complete payroll records.

In the course of the two-year investigation, agency investigators also determined that 380 employees were due back wages stemming from underpayments and the company’s failure to meet the full terms and conditions of the H-2A contract.

Proposed Penalties: The department has assessed Red Diamond Farms and Torres civil money penalties totaling $1,488,800 for the H-2A, MSPA violations. The employer has paid the back wages totaling $149,572. In addition to collecting civil penalties, the department is also moving forward with debarring the employer from the H-2A program.

Quote: “Red Diamond Farms and its owner willfully disobeyed federal labor laws and exploited vulnerable, low-wage workers. These actions are unacceptable,” said Wayne Kotowski, regional administrator for the Wage and Hour Division in Atlanta. “Guest worker programs must protect U.S. and foreign workers simultaneously.  This is another example of the department’s commitment to use every enforcement tool available – including civil penalties and debarment from these programs – to combat these violations and protect workers.”

Background:  Based in Wimauma, the company has farms in Florida, Georgia and Tennessee. Red Diamond Farms grows several varieties of vine-ripened tomatoes, peppers and squash and through Tomato Thyme Corp. ships to major grocery chains and numerous retailers across the U.S., Canada and Puerto Rico. Customers include; Safeway, Amish Markets, Publix, Meijer’s, Stew Leonard’s, Morton Williams, King Kullen, Eataly, Manhattan Fruit Exchange, Grace’s Market Place Agatha Gourmet Garage, Garden of Eden, Loblaw’s, Kroger, Schuck’s Market, AWI, Tops Friendly Markets, Sendinks Market, Brennan’s Market, Fairway and Sobey’s. 

Information: For more information about MSPA and H-2A requirements please visit:

http://www.dol.gov/whd/regs/compliance/whdfs49.pdf https://www.foreignlaborcert.doleta.gov/faqsanswers.cfm#gotoh2

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 Tampa District Office at 813-288-1242 or visit http://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
May 12, 2016
Release Number
16-0728-ATL
Media Contact: Lindsay Williams
Phone Number
Media Contact: Michael D'Aquino

US Department of Labor invites contractors, unions and workers to seminar on prevailing wage requirements for federal contracts

News Release

US Department of Labor invites contractors, unions and workers to seminar on prevailing wage requirements for federal contracts

Seminar to be held in Charlotte, May 23-25, 2016

CHARLOTTE, N.C. – The U.S. Department of Labor’s Wage and Hour Division will offer a comprehensive compliance seminar for federal contractors, unions and workers to provide information on the rules governing prevailing wage requirements under the Davis-Bacon Act, McNamara-O’Hara Service Contract Act, Executive Order 13495 wage rules for non-displacement of qualified workers and Executive Order 13658 establishing a minimum wage for contractors.

The division will hold the event May 23-25 at the Sheraton Charlotte Airport, 3315 Scott Futrell Drive.   

“The U.S. Department of Labor’s Wage and Hour Division invites federal contractors, union leaders and workers to attend our upcoming prevailing wage seminar. The event seminar provides an opportunity for the agency to give face-to-face training to federal contractors, unions, workers, contracting officials, and other interested parties. We are committed to ensuring that all stakeholders understand compliance with the wage and fringe benefit requirements that apply to federal and federally assisted contracts,” said Wayne Kotowski, regional administrator for the Wage and Hour Division in Atlanta.  

Seminar attendance is free; however, preregistration is required. Registration can be completed through the online registration link at Charlotte Prevailing Wage Seminar.

Check-in for the conference will be from 7-9:30 a.m. on May 23, the program will run from 9:30 a.m. to 4:30 p.m. that day. On May 24 and 25, the seminar will run from 8 a.m. to 4:30 p.m.

For more information on DBRA, SCA and other federal wage laws related to government contracts administered by the Wage and Hour Division, call the department’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the agency’s website at http://dol.gov/whd/.

Agency
Wage and Hour Division
Date
May 11, 2016
Release Number
16-0906-ATL
Media Contact: Lindsay Williams
Phone Number
Media Contact: Michael D'Aquino

Lawsuit seeks more than $60K in back wages, damages for 56 nursing assistants employed by Generations Home Care

News Brief

Lawsuit seeks more than $60K in back wages, damages for 56 nursing assistants employed by Generations Home Care

Type of Action: Fair Labor Standards Act lawsuit filing

Names of Defendant(s): Sage Holding Group Ltd, doing business as Generations Home Care
Vincent F. Salvia

Complaint: The U.S. Department of Labor has filed a lawsuit in federal court to recover approximately $32,200 in back wages and an equal, additional amount in liquidated damages for 56 employees of Sage Holding Group Ltd. The company operates as Generations Home Care in Rochester Hills, Michigan. The suit also names the company’s owner, Vincent Salvia.

An investigation by the department’s Wage and Hour Division revealed that the employer failed to pay overtime when it incorrectly applied an exemption meant for workers who perform companionship services to hourly nursing assistants working in an assisted living facility. The employer paid straight time for overtime hours, despite the fact that the hourly nursing assistants did not work “in or about a private home,” as is required for the companionship services exemption to apply. Instead, the hourly nursing assistants worked in a large facility where many of the residents lived in secured units. The facility did not allow residents to cook, or to control who could access their residences, and required residents to have homecare services to live in the facility.

The division assessed a total of $61,600 in civil money penalties for willful and repeated violations of the FLSA. In 2010, the division investigated the company for paying straight time for overtime to nurses. The company paid back wages and agreed to comply with the FLSA in the future at that time.

Quote: “Nursing assistants provide dignified care for individuals who can no longer care for themselves. These hard-working attendants deserve to be properly compensated for their compassionate work,” said Timolin Mitchell, district director for the Wage and Hour Division in Detroit. “Generations Home Care is acutely aware of wage laws that are applicable to its employees. Yet, the company continues to fail to meet its wage obligations. This lawsuit demonstrates our commitment to ensuring that workers receive every penny they have rightfully earned. Other employees being paid in this manner are encouraged to notify the Wage and Hour Division.”

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 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 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: 2:16-cv-11627-BAF-MKM
U.S. District Court for the Eastern District of Michigan, Detroit

Agency
Wage and Hour Division
Date
May 10, 2016
Release Number
16-0934-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

Temporary workers to receive $763K in back wages, damages from jewelry distributer, global mailing company after Labor Department investigations

News Release

Temporary workers to receive $763K in back wages, damages from jewelry distributer, global mailing company after Labor Department investigations

Jewelry supplier to Macy’s, Kohl’s, and JCPenney failed to pay minimum wage, overtime

PHILADELPHIA – The failure by two Philadelphia-area businesses – a custom jewelry distributer and an international shipping and direct mail company – to pay a combined 797 temporary workers minimum wage and overtime will cost the companies a total of $763,000 in back wages and damages.

U.S. Department of Labor's Wage and Hour Division investigators found Stanley Creations Inc. in Melrose Park and Asendia USA in Folcroft violated the Fair Labor Standards Act when they did not pay legally required minimum wages and overtime to the workers for more than two years. Investigators also cited both for failing to maintain records the law requires. In separate agreements with the division, the two employers will pay a total of $381,580 in back wages and an equal amount in liquidated damages.

"Our investigations found that Stanley Creations and Asendia were clearly taking advantage of these low-wage, temporary workers by denying them the wages they had rightfully earned," said Mark Watson, administrator of the Wage and Hour Division's Northeast Region. "Those who contract with outside companies for temporary help have an obligation to ensure these workers are paid in compliance with the law.  In both of these cases, we found the host companies responsible for payment of the temporary workers as joint employers.  This should send a strong message to other employers who use staffing services – when you're benefitting from their labor, you cannot ignore your obligations to these workers."

Investigators found that Stanley employed a core crew of temporary workers supplied by staffing company, International Labor Inc., and paid the workers each week in cash at a rate of $6 per hour. The company did not pay overtime when the workers' hours exceeded 40 in a workweek. The company distributes its custom jewelry to major retailers, including Macy's, Kohl's, JCPenney and Boscov's.

In the second investigation, the division found Asendia, a global provider of business-to-consumer shipping and mailing services, paid temporary workers supplied by Northeast Staffing LLC, an average of $6.69 per hour, in cash. Although the company paid workers overtime when they worked more than 40 hours in a workweek, the rates upon which they based their time-and-one-half calculation were below the legally-required federal minimum wage of $7.25 per hour.

In addition to paying back wages and damages, Asendia agreed to take the following steps to ensure future compliance with the law:

  • Hire a human resources manager as a liaison between the staffing agency and company management.
  • Interview staffing agencies and request references.
  • Require the staffing agency have a supervisor on site and pay temporary workers electronically.
  • Maintain records of all temporary workers at the site.
  • Periodically check the staffing agency's payroll records.

Asendia USA is an international shipping and direct mail company, which operates as a subsidiary of parent companies, La Poste in France and Swiss Post in Switzerland.

The cases are the latest reported in the division's temporary help initiative.  The division previously released findings of over $3.6 million in back wages and liquidated damages due to 843 employees. 

The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. The FLSA provides that employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages.

Agency
Wage and Hour Division
Date
May 9, 2016
Release Number
16-0802-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
Subscribe to Wages