Employer: Humanage Acquisitions LLC, doing business as Riverbend Hand Car Wash

Site: 22290 La Palma Avenue, Yorba Linda, California 92887

Investigation findings: Investigators from the department’s Wage and Hour Division found that Riverbend Hand Car Wash failed to pay for all the hours employees worked, and failed to pay legally-required overtime when they worked beyond 40 hours in a work week, in violation of the Fair Labor Standards Act. The company required employees to arrive at the car wash at a certain time in the morning but did not allow them to clock in until a manager called them to clean and detail cars. This unpaid waiting time was not recorded or paid for and resulted in an overtime violation when employees worked more than forty hours in a week.  Even when recorded hours did exceed 40, the employer paid only straight time. Some employees were paid by check for the hours worked during the week and in cash for hours worked during weekends, all at straight time rates.  The car wash was also found in violation of FLSA’s recordkeeping requirements.

Resolution: The car wash agreed to comply with the FLSA and will pay $34,329 in overtime back wages plus an equal additional amount in liquidated damages, totaling $68,658 to 16 workers.

Quote: “Workers in this industry are among the most vulnerable that we see,” said Rodolfo Cortez, director of the Wage and Hour Division’s district office in San Diego. “Denying these workers their hard-earned wages can make it difficult for them to care for themselves and their families. This case should serve as an example to other employers who may be shorting their workers, and demonstrates our commitment to ensuring that workers are paid what they have legally earned.  Other employees who are being paid this way should give us a call.”

Information: The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates for every hour they work 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. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees 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: Today’s Generation LLC, doing business as Jaws Shirts & Gifts

Investigation site: 3535 Parkway, Pigeon Forge, Tennessee

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Knoxville Area Office, found that Jaws Shirts & Gifts violated the overtime and record-keeping provisions of the Fair Labor Standards Act. Specifically, the employer paid workers straight time without regard to the number of hours they worked and failed to pay them time and a half when they worked over 40 hours in a workweek. The employer operates three locations and did not combine the hours employees worked at each location to determine the total hours worked. Some employees worked as many as 80 hours in a workweek at different locations and were paid straight time. Additionally, the employer did not keep legally required records of all hours worked by employees.

Resolution: Today’s Generation has agreed to comply with the FLSA, and pay 38 employees back wages and an equal amount in liquidated damages totaling $60,394.

Quote: “Employers cannot choose to pay employees less than what they are legally required because it is cheaper for them; they must comply with the law. Workers deserve to be paid fairly for the work they do,” said Nettie Lewis, the Wage and Hour Division’s district director in Nashville. “The Wage and Hour Division offers compliance assistance to help employers, because ignorance of the law is not an excuse. We strongly encourage workers who may be in similar situations, where their employer is not paying overtime after 40 hours of work in a workweek, to reach out to us.”  

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. 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); or visit the Knoxville Area Office at 710 Locust St., Room 101, Knoxville, Tennessee 37902 or http://www.dol.gov/whd.

TULSA, Okla. – A federal judge in Tulsa overturned a jury verdict and ruled that El Tequila LLC and owner Carlos Aguirre willfully violated the minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act. El Tequila and Aguirre must pay $2.1 million in back wages and liquidated damages to over 300 vulnerable workers.

The department’s case was so strong that before the trial the court, ruling on summary judgment, found that El Tequila and Aguirre had violated the FLSA’s minimum wage, overtime, and recordkeeping provisions. The court also granted the Secretary’s summary judgment motion with respect to his calculation of damages and the application of liquidated damages, and enjoined the employer from committing future violations of the FLSA. In the end, only one question was left for the jury: whether the defendants’ violations of the FLSA between Oct. 22, 2009 and Oct. 21, 2010, were willful. After a five-day trial, a jury found that El Tequila and Aguirre’s violations were not willful. The department filed a motion to set aside the verdict, arguing that the evidence presented at trial proved as a matter of law that El Tequila and Aguirre’s violations were willful. The judge agreed with the department. A ruling that the violations were willful means the statute of limitations to recover unpaid minimum wages, overtime compensation, and liquidated damages can be extended from two to three years.

“This ruling is a victory for the department, but more importantly for these hard-working and vulnerable employees. The employer willfully violated the FLSA and the judge’s decision means these workers will be able to collect more of the wages they rightfully earned,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “This employer went to great lengths to avoid paying his employees wages they rightfully earned. Employers who violate the law should know: the department has been enforcing the Fair Labor Standards Act for more than 75 years and will continue to use all tools at its disposal, including the assessment of liquidated damages and, when necessary, litigation, to ensure that workers are properly paid.”

In his Dec. 22, 2015 order, U.S. District Judge John Dowdell of the Northern District of Oklahoma determined that the jury’s verdict, clearing the employer of willful violations, was not supported legally. At trial, the department showed undeniably that El Tequila and Aguirre underpaid employees willfully; lied to a federal investigator, instructed employees to do the same; falsified payroll and time records; accepted kickbacks; and used an accountant to cover up their wage theft violations.

El Tequila operates four Mexican restaurants in the Tulsa area.

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/.

Docket Number: 12-CV-588-JED-PJC

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/.