Employer name: Elk Springs Resort Cabin Rentals LLC  

Investigation site: 1088 Powdermill Road, Gatlinburg, Tennessee

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Knoxville Area Office, found that Elk Springs violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The employer misclassified employees working as cabin cleaners, customer service representatives, cabin inspectors, laundry workers, maintenance workers and an operations manager as independent contractors, and failed to pay at least the federal minimum wage of $7.25 per hour and overtime compensation at time-and-one-half employees’ regular rates for hours worked beyond 40 in a work week.

Resolution: Elk Springs has agreed to comply with the FLSA, and will pay back wages of $55,586 to 33 employees.

Quote: “Misclassified employees often are denied access to critical benefits and protections to which they are entitled, such as the minimum wage, overtime compensation, family and medical leave, unemployment insurance and safe workplaces,” said Nettie Lewis, the Wage and Hour Division’s district director in Nashville. “Employee misclassification generates substantial losses for federal and state governments in the form of lower tax revenues, as well as to state unemployment insurance and workers’ compensation funds. It hurts taxpayers and undermines the economy.”

Information: More information regarding the Department of Labor’s initiative to combat the misclassification of employees can be found at http://www.dol.gov/whd/workers/Misclassification/index.htm The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 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 Nashville District Office at 615-781-5344 or visit http://www.dol.gov/whd.

Employers: St. James Home for the Elderly, Inc.

Sites:  

• St Elizabeth Home for the Elderly, 257 North Stephora Street, Covina, CA 91724
• St Elizabeth Home for the Elderly II, 837 North Sunflower Avenue, Covina, CA  91724
• St Therese Home for the Elderly, 1301 North Birchnell Avenue, San Dimas CA  91773
• St Anthony’s Home for the Elderly, 1312 East Mountain View Avenue, Glendora, CA 91740
• St James Home for the Elderly, 1042 Claraday Street, Glendora, CA  91740
• St John’s Home for the Elderly, 167 Sutter Court, San Dimas, CA  91773
• St Michael’s Home for the Elderly, 1506 South Candish Avenue, Glendora, CA  91740

Investigation findings: Investigators from the U.S. Labor Department’s Wage and Hour Division found that St James Home for the Elderly violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. The firm paid the employees only for their scheduled hours, and failed to pay for any time spent caring for patients or performing other work-related duties before or after their scheduled shifts.  Failing to pay for this time resulted in employees not receiving their legally-required overtime when they worked more than forty hours in a workweek. The firm also failed to keep an accurate record of hours worked.

Resolution: The employer will pay $103,724 to 40 employees for the overtime violations.

Quote: “We must ensure that workers in this industry, who are caring for our loved ones, are paid for all the hours that they work,” said Skarleth Kozlo, assistant district director for the Wage and Hour Division office in West Covina.  “Other employers in this industry should take note of this investigation, and other workers who are being paid in this manner should give the Wage and Hour Division a call.  We are committed to ensuring that workers are paid every penny they have rightfully 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. In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Employers also must maintain accurate time and payroll records, and are prohibited from retaliating against workers who exercise their rights under the law. 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.

RALEIGH, N.C. – Investigations by the U.S. Department of Labor’s Wage and Hour Division have found violations of the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act at 10 San Jose Mexican Restaurant locations throughout the state. As a result, the restaurants will pay a total of $511,745 in back wages to 125 employees. The division’s Raleigh District Office led the initiative.

Violations found include:

• Paying workers a fixed salary without regard to the number of hours they actually worked, which allowed the employer to pay workers less than the federal minimum wage for every hour worked.
• Failing to pay workers overtime when they worked beyond 40 hours in a workweek.
• Requiring wait staff to work only for tips, resulting in minimum wage and overtimes violations.
• Reducing workers’ pay below minimum wage by charging employees for mandatory uniforms.
• Failing to maintain required time and payroll records, and falsifying payroll documents.

“The restaurant industry employs some of our country’s lowest-paid workers, who are often vulnerable to disparate treatment and wage violations. Failure to pay these workers the wages they have worked long hours to earn hurts them and their families, and it provides a competitive advantage over law-abiding employers. Enforcement actions like these should motivate all North Carolina restaurant owners to follow the law and provide a fair day’s pay for a fair day’s work to all employees,” said Richard Blaylock, the Wage and Hour Division’s Raleigh district director.

The San Jose Mexican Restaurants involved in the investigation are:

• San Jose Mexican Restaurant Elizabethtown Inc., 1320 Broad St., Elizabethtown
• San Jose Mexican Restaurant of Lumberton Inc., 3027 North Roberts Ave., Lumberton
• San Jose Mexican Restaurant No. 2 of Lumberton Inc., 5039 Fayetteville Road, Lumberton
• San Jose Mexican Restaurant of Pembroke Inc., 938-B East 3^rd St., Pembroke
• San Jose of Roanoke Rapids Inc., 309 Premier Blvd., Roanoke Rapids
• San Jose Flores Inc., 1565-67 Benvenue Road, Rocky Mount
• San Jose Restaurant Inc., 1700 Raleigh Road Parkway, Suite 120, Wilson
• San Jose of Zebulon Inc., 877 E. Gannon Road, Zebulon
• Flores Restaurant Inc., 1616 S. Madison St., Suite A, Whiteville
• San Jose Mexican Restaurant of Raleigh Inc., 5811 Poyner Village Parkway, Raleigh

In addition to paying back wages, the restaurant owners have agreed to comply with the FLSA.

The FLSA requires the payment of at least the federal minimum wage of $7.25 per hour to covered, nonexempt employees for all hours worked. It also requires that employees receive time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Additionally, employers must maintain accurate time and payroll records.

Under the FLSA, an employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage of $7.25 an hour. If an employee’s tips combined with the employer’s direct wages do not equal at least the minimum wage, the employer must make up the difference. Employers may create a tip-pooling or sharing arrangement among employees who customarily and regularly receive tips, but a valid tip pool may not include employees who do not customarily and regularly receive tips, such as dishwashers, cooks, chefs and janitors. Finally, paycheck deductions for patrons who do not pay for their orders, broken dishes or cash register shortages are illegal if they reduce an employee’s wages below the minimum wage.

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

Employer: Taqueria La Herradura LLC

Site: 6613 S. Jackson Rd., Pharr, Texas

Investigation Findings: U.S. Department of Labor’s Wage and Hour Division investigators found that Taqueria La Herradura LLC violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The investigation revealed that the firm paid varying wages, all below the federal required minimum wage of $7.25 per hour, to 21 kitchen workers and failed to pay time-and-a-half when these employees worked beyond 40 hours in a workweek. Additionally, the employer failed to keep accurate records for all of its employees.

Resolution: Taqueria La Herradura has paid more than $33,000 in minimum wage and overtime back wages and liquidated damages, and agrees to comply with the FLSA.

Quote: “Restaurant industry employees are some of the most vulnerable workers we see. Many have limited English proficiency and, for a variety of reasons, may be unlikely to step forward to complain when they are cheated out of legally earned wages,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “Employers need to know that failing to play by the rules can be a costly decision. There should be no doubt that the Wage and Hour Division will use any and all tools available to remedy violations, and to make sure that working people in the U.S. are paid the wages they have rightfully 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, and are prohibited from retaliating against workers who exercise their rights under the law. For more information about the FLSA, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.

• Read this news release in Spanish.

Employer: Bonifacio Ontiveros, doing business as Benny’s Tire and Road Service

Site: 31514 Castaic Road, Castaic, California 91384

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division found that Benny’s Tire and Road Service violated the minimum wage, overtime,  and recordkeeping requirements of the Fair Labor Standards Act. Specifically, the employer paid workers a flat weekly salary without regard to the number of hours they actually worked. For three of these employees, this salary, when divided by the hours they worked, was not enough to cover the federal minimum wage, currently $7.25 per hour. The firm also failed to pay legally-required overtime for hours worked beyond 40 in a work week.  Employees routinely worked well over 50 hours per week. This is the second time the company has been investigated.  Identical violations were found in 2006, resulting in the employer paying $23,843 back to workers.

Resolution: Bonifacio Ontiveros will pay $59, 029 in back wages and an additional, equal amount  in liquidated damages totaling $118,058 to 11 workers. The Wage and Hour Division has also assessed $4,235 in penalties due to the repeat nature of the violations.

Quote: “The Wage and Hour Division will not tolerate egregious violations such as those found in this case.  Paying these hard-working employees less than the minimum wage, and denying them their legally-required overtime pay hurts not only the workers and their families, but provides the employer an unfair competitive edge,” said Kimchi Bui, director of the Wage and Hour Division’s Los Angeles District Office. “Other employers should take note of this investigation, and ensure that they are in compliance with the law.  Other employees being paid in this manner should give us a call.  Our services are free, and confidential.”

Information: Simply paying employees a salary does not mean they are not entitled to minimum wage and overtime. The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. On June 30, 2015, the Wage and Hour Division announced a Notice of Proposed Rulemaking to update the regulations defining which white collar workers are eligible to receive pay for hours worked over 40 in a workweek. For more information, please visit www.dol.gov/whd/overtime/NPRM2015.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours they work beyond 40 per week. Employers also must maintain accurate time and payroll records, and are prohibited from retaliating against workers who exercise their rights under the law. For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.

Employer name: Financial Carrier Services Inc.

Investigation site: 13325 South Point Blvd., Charlotte, North Carolina

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Raleigh District Office, found that Financial Carrier Services violated the overtime and record keeping provisions of the Fair Labor Standards Act. Specifically, the employer paid some of its employees a fixed salary or a salary plus commission without regard to the number of hours these employees actually worked. The employer also improperly required hourly employees to clock out for all rest breaks and activities not work related resulting in employees clocking out for as little as 5-10 minute periods. The law allows employers to deduct time for bona fide meal periods of 30 minutes or more, but short rest breaks must be paid for. These practices resulted in workers being paid for fewer hours than they had worked, creating overtime violations when the employees worked beyond 40 hours in a workweek. Additionally, the employer failed to keep accurate records of hours worked by employees.

Financial Carrier Services provides financial services and support for companies in the transportation industry.

Resolution: Financial Carrier Services will pay $13,400 in back wages and an equal, additional amount in liquidated damages totaling $26,800 to 33 employees.

Quote: “When an employer does not pay its workers for all hours worked, including short breaks, it creates a hardship for workers who must sacrifice their wages for a moment’s rest,” said Richard Blaylock, the Wage and Hour Division’s district director in Raleigh. “The law is very clear about what must be considered work time, and it is the responsibility of employers to learn about and comply with the laws that apply to their businesses.  The Wage and Hour Division offers a great deal of compliance assistance and stands ready to help both workers and employers. We are committed to ensuring that every worker receives the wages they have rightfully earned.”

Information: Simply paying employees a salary does not mean they are not entitled to overtime. The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. On June 30, 2015, the Wage and Hour Division announced a Notice of Proposed Rulemaking to update the regulations defining which white collar workers are eligible to receive pay for hours worked over 40 in a workweek. For more information, please visit www.dol.gov/whd/overtime/NPRM2015.

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

Employer name: One Global Security Inc.

Investigation site: 8552 Keswick Pointe Drive, Orlando, Florida 32829

Investigation findings: Investigators from the U.S. Department of Labor's Wage and Hour Division, Jacksonville District Office, found that One Global Security violated the overtime provisions of the Fair Labor Standards Act. Specifically, the employer paid security guards straight time wages for all hours worked instead of paying legally-required time and a half for hours worked in excess of 40 in a workweek.

Resolution: One Global has agreed to future compliance with the FLSA and to pay 46 employees back wages totaling $33,029.

Quote: "An employer cannot decide to pay workers less than what they've legally earned because the labor costs are too high, they must pay workers according to all applicable labor laws," said Daniel White, the Wage and Hour Division's district director in Jacksonville. "These security officers often worked long hours in dangerous conditions and did not receive their proper wages. The division is committed to holding employers accountable for paying workers the wages they have rightfully earned."

Information: The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week. Simply paying employees a salary does not exempt them from minimum wage and overtime protections. Employers also are required to maintain accurate time and payroll records and to comply with the hours. 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 name: Vartek LLC

Investigation site: 6715 North 53rd St., Tampa, Florida 33610

Investigation findings: Investigators from the department's Wage and Hour Tampa District Office found that Vartek, a manufacturer of PVC Flexible Hose and Tubing, violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. The firm paid employees on a bi-weekly basis and paid overtime after 80 hours in two weeks, rather than legally mandated time and a half for hours worked beyond 40 hours in a single workweek. The employer also required hourly employees to perform various tasks and attend meetings, for as much as 30 minutes each day, before and after their scheduled shifts, and did not record or pay for those additional hours, resulting in an overtime violation when employees worked more than 40 hours in a workweek.

Resolution: The employer, a manufacturer of PVC flexible hose and tubing, agreed to comply with the FLSA and to pay $29,193 in back wages plus an additional equal amount in liquidated damages totaling $58,386 to 38 employees.

Quote: "All employees must be compensated for all of the hours they work. When an employer requires employees to work "off-the-clock" they are denying them a fair day's pay for a fair day's work," said James Schmidt, the Wage and Hour Division's district director in Tampa. "We want to ensure a level playing field so that businesses do not get an unfair advantage over competitors that are following the rules."

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

ATLANTA — U.S. Department of Labor Wage and Hour Division investigations have identified widespread violations of the minimum wage, overtime and record-keeping requirements of the Fair Labor Standards Act in Georgia's restaurant industry. As a result, restaurants are paying a total of $2,277,480 in back wages and damages to more than 3,000 employees.

Since the initiative began two years ago, the division's Atlanta District Office has conducted nearly 400 investigations of full-service restaurants.

Common violations have included the following:

• Paying workers a fixed salary without regard to the number of hours they worked, leading to minimum wage and overtime violations.
• Requiring tipped employees to turn over a portion of their tips to management.
• Reducing workers' pay below minimum wage by charging employees for mandatory uniforms.
• Failing to maintain required time and payroll records.

"Wage violations are common in the restaurant industry where businesses employ many workers who are typically uninformed of their rights or afraid to speak up when they know them. As a result, they're vulnerable to violations — sometimes deliberate — as some employers will intentionally cheat them out of pay to which they are legally entitled," said Wayne Kotowski, the Wage and Hour Division's regional administrator in Atlanta. "The department's initiative is about protecting workers from wage violations and workplace retaliation, and informing them of their rights. It's also about ensuring that restaurant operators who are playing by the rules aren't competing against businesses that cheat."

Jesus Velasquez, a 23-year veteran of the restaurant industry who was employed as a server at Atlanta's El Potro Mexican Restaurant, was denied more than $1,000 in income due to his employer's failure to pay him at least the minimum wage and overtime pay. In particular, his employer failed to pay him the mandatory federal tipped minimum wage rate of $2.13 per hour before tips.

Under the FLSA, when customers tip employees, restaurant operators can benefit by claiming a credit toward their obligation to pay those employees the full minimum wage. An employer that claims this tip credit is
required to pay a tipped employee only $2.13 per hour in direct wages. If an employee's tips, when added to the wages paid directly by the employer, do not equal the federal minimum wage of $7.25 per hour the employer must make up the difference.

The federal minimum wage of $7.25 per hour was last increased in 2009, and the minimum cash wage for tipped workers was last increased in 1991. Tips are the property of the employee who receives them.

Before the Wage and Hour Division's investigation, Velasquez struggled to pay bills. Afterward, he received enough in back wages to pay his car insurance.

Restaurants found to be in violation included the following:

• Antico Pizza Napoletana, Bar Amalfi, Gio's Chicken Amalfitano, El Potro Mexican Restaurant, Atlanta.
• Taqueria Los Hermanos I, Tucker.
• Taqueria Los Hermanos II, Lilburn.
• Taqueria Los Hermanos III, Lawrenceville.
• Taqueria Los Hermanos IV, Suwanee.
• PURE Taqueria, Inman Park and Duluth.
• Sri Krishna Vilas Indian Bar & Restaurant, Smyrna.
• Papi's Cuban & Caribbean Grill, Kennesaw.
• The Pirate's House and Alligator Soul, Savannah.

In addition to paying back wages and damages to affected employees, several restaurant owners have signed agreements with the department demonstrating their commitment to remain in compliance going forward.

"These agreements call for employers to abide by the law and to take specific, proactive steps to monitor compliance," said Eric Williams, director of the division's Atlanta Office. "Our message is clear: We will continue to use every enforcement tool at our disposal to educate employers, change behavior in this industry and enforce the law. We remain vigilant in our pursuit of a fair day's pay for a fair day's work."

The FLSA requires the payment of at least the federal minimum wage to covered, nonexempt employees for all hours worked. Paycheck deductions for patrons who do not pay for their orders, broken dishes or cash register shortages are illegal if they reduce an employee's wages below the minimum wage. Applicable state labor laws may also limit allowable deductions. The FLSA also requires that employees receive time and one-half their regular rate of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Additionally, employers must maintain accurate time and payroll records.

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

Employers: VLS, LLC doing business as Vegas Limousine Service

Sites: 1400 Commerce Street Las Vegas Nevada 89102

Investigation findings: Investigators from the U.S. Department of Labor's Wage and Hour Division found that VLS paid their drivers solely on a commission basis, which led to minimum wage and overtime violations of the Fair Labor Standards Act. The commissions earned, when divided by the actual hours worked by employees, were less than the federal minimum wage, currently $7.25 per hour. The firm also failed to pay legally-required overtime to drivers when they worked beyond forty hours in a workweek.

Resolution: The firm is complying with the FLSA and will pay $239,555 back wages and to 88 employees.

Quote: "These drivers have been working long hours to support their families. Thanks to this settlement, dozens of workers will receive their rightfully-earned wages," said Gaspar Montanez, director of the department's Wage and Hour Division in Las Vegas. "This case illustrates the critical need for employers to fully understand and comply with the labor laws that apply to their businesses, and to ensure their employees receive the wages they have legally earned. It also illustrates our commitment to enforcing the federal law fairly and equitably. Other workers being paid in this manner should call the Wage and Hour Division."

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, and are prohibited from retaliating against workers who exercise their rights under the law.

Read the press release about another Las Vegas limousine company found in violation of the FLSA here.

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.