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.

WASHINGTON — A nearly five-year federal investigation of illegal business practices by 16 defendants in Utah and Arizona has yielded $700,000 in back wages, damages, penalties and other guarantees for more than 1,000 construction industry workers in the Southwest, the U.S. Department of Labor announced today.

Consent judgments put an end to an effort by the defendants — operating collectively as CSG Workforce Partners, Universal Contracting, LLC and Arizona Tract/Arizona CLA — to claim that their workers were not employees. The defendants required the construction workers to become "member/owners" of limited liability companies, stripping them of federal and state protections that come with employee status. These construction workers were building houses in Utah and Arizona as employees one day and then the next day were performing the same work on the same job sites for the same companies but without the protection of federal and state wage and safety laws. The companies, in turn, avoided paying hundreds of thousands of dollars in payroll taxes.

"Hiding behind deceptive legal partnerships to reduce wages owed to employees is wrong. We will not tolerate denying overtime and other employment rights to workers," said U.S. Secretary of Labor Thomas E. Perez. "We will combat schemes like these with every enforcement tool we have, including partnering with other federal and state agencies to ensure that workers are not misclassified as owners or members of LLCs or otherwise. Deceptions like these deny workers hard-earned wages, hurt families who depend most on those wages, and leave workers without important protections if they're injured on the job or laid off."

A misclassified employee — with independent contractor or other non-employee status — lacks minimum wage, overtime, workers compensation, unemployment insurance, and other workplace protections. Employers often misclassify workers to reduce labor costs and avoid employment taxes. By not complying with the law, these employers have an unfair advantage over competitors who pay fair wages, taxes due, and ensure wage and other protections for their employees. These illegal practices lower standards for all workers, especially in highly competitive markets and industries where employers try to reduce overhead, often at the expense of their workers.

"Employers who misclassify workers do not pay their fair share of payroll taxes, which cheats critical state and federal programs," Perez added. "The misclassification of workers shortchanges every single taxpayer by forcing them to pick up the slack for those who break the law."

The consent judgments are the result of a combined effort of the U.S. Department of Labor, U.S. Department of Justice and the state of Utah. The investigation began in southern Utah and then moved to Arizona after the passage of state legislation in Utah that required LLCs to provide workers' compensation and unemployment insurance to their "members." To avoid legal jeopardy in Utah, the defendants moved their operations south to Arizona.

Utah officials assisted the department by sharing information through the state's Worker Classification Coordinated Enforcement Council, an entity created by the state legislature to combat misclassification. Working together in the investigation and litigation, the U.S. Attorney's Office for the District of Utah and the U.S. Department of Labor presented findings to federal courts in Utah and Arizona. The courts, in turn, approved consent judgments on April 21 against the above-named companies and their respective owners.

The consent judgments require the defendants to:

• Pay $600,000 in back wages and liquidated damages to employees in Utah and Arizona and an additional $100,000 in civil penalties;
• Stop using limited liability companies to avoid Fair Labor Standards Act compliance;
• Treat themselves as "employers" and their current and future workers as "employees" under the FLSA;
• Comply with the FLSA's minimum wage, overtime, recordkeeping, and anti-retaliation provisions;
• Pay all applicable federal, state and local taxes; and
• Work with the department to identify those workers who were harmed by their misclassification scheme and determine proper individual payment of back wages.

"Legitimate independent contractors are valuable contributors to our economy, but those who deliberately misclassify actual employees as independent contractors — or partners — are a serious problem in many industries, especially in construction," said Wage and Hour Division Administrator David Weil. "We will continue to work together with other enforcement authorities to ensure a fair and level playing field for businesses, and fair and full pay for workers."

"We are pleased that this multi-agency effort has helped so many workers find justice, and produced a change in business practices in the regional construction industry," said M. Patricia Smith, U.S. Solicitor of Labor. "This kind of cooperation among state and federal law enforcement authorities will serve as a model for preventing misclassification and similar practices that deny workers' their wages and protections, and undermine law-abiding employers. The resolution of this case should send a strong message to any other employers, in any industry, contemplating such a scheme."

Workers who believe they might be owed back wages by the defendants can contact the Wage and Hour Division's Salt Lake City District Office at 801-524-5706, or Arizona District Office at 602-514-7100.

In a separate but related case, the department obtained a consent judgment against a major client of the Arizona defendants in this case. The judgement in the U.S. District Court for the District of Arizona against Paul Johnson Drywall, LLC, required the company to stop using the Arizona defendants' unlawful LLC business model and to pay $600,000 in back wages, liquidated damages and civil money penalties.

The Wage and Hour Division has aggressively expanded its efforts to combat employee misclassification in sectors where workers are especially vulnerable and violations are rampant. The department currently has 20 Memoranda of Understanding with states, including the Utah Labor Commission, through which it collaborates with states agencies to combat misclassification. More information is available on the department's misclassification Web page at http://www.dol.gov/misclassification.

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, piece-rate earnings and incentive pay, for hours worked beyond 40 per week. Additionally, the law requires that accurate records of employees' wages, hours and other conditions of employment be maintained.

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 http://www.dol.gov/whd.

The named defendants are:

Arizona Arizona CLA, LLC Arizona Tract, LLC Arizona Superstition Management, LLC Cory Atkinson Jared Martin Glen Ormiston Alpine Building, LLC

Utah Universal Contracting, LLC Grove Creek, LLC CSG Workforce Partners, LLC CSG Exteriors, LLC CSG Drywall, LLC CSG Framing, LLC CSG Interiors, LLC CSG Painting, LLC CSG Landscaping, LLC. Cory Atkinson Jared Martin Alpine Building, LLC Arizona CLA, LLC

Perez v. Universal Contracting LLC et al Civil Action Number: 2:13-cv-253-DS

Perez v. Arizona CLA LLC et al

Civil Action Number: 2:15-cv-00461-JAT

Arizona press should contact Leo Kay, and Utah press should contact Juan Rodriguez using the contact information provided above.

NEW YORK — The U.S. Department of Labor has obtained a settlement by consent judgment that provides for the recovery of $1.42 million in back wages and liquidated damages for more than 300 current and former employees of four Long Island City plumbing and heating contractors. The related businesses are Danica Group LLC; Copper Plumbing & Heating LLC; Copper II Plumbing & Heating LLC; Copper III Plumbing & Heating LLC, and the owners are Thomas Andreadakis, Leonidas Andreadakis and Helen Andreadakis.

Investigations by the department's Wage and Hour Division found that the contractors violated the overtime and recordkeeping requirements of the Fair Labor Standards Act. Specifically, they paid employees straight time wages rather than time and one-half when employees worked beyond 40 hours in a workweek, and issued separate paychecks for the overtime hours from a petty cash account.

Additionally, they misclassified at least 25 employees as independent contractors, paying them a weekly salary that did not compensate the employees at time and one-half when employees worked beyond 40 hours in a workweek. The defendants also frequently paid many employees late, sometimes requiring workers to wait several weeks to be paid. Finally, they maintained incomplete and inaccurate payroll records.

"Hundreds of workers were denied their lawful pay when they were not paid promptly and correctly or were misclassified as independent contractors," said Dr. David Weil, administrator for the Wage and Hour Division. "The misclassification of employees as independent contractors deprives workers of wages and benefits they are entitled to under the law, thereby hurting our economy. It also leads to unfair competition because businesses that play by the rules operate at a disadvantage to those that don't."

Under the terms of a consent judgment entered with the U.S. District Court for the Eastern District of New York, the defendants will pay the workers $710,000 in back wages covering the time period between September 2010 and April 2014, and an equal amount in liquidated damages. The judgment also includes enhanced compliance provisions that will commit the defendants to taking effective steps to improve their payroll recordkeeping, ensure that employees are paid on time each week, reclassify as employees those who were previously misclassified as independent contractors and properly pay them.

"Underpaying and misclassifying employees as independent contractors are illegal and unacceptable actions. The Labor Department will pursue all available legal measures to ensure that workers are properly classified and compensated for their work," said Jeffrey Rogoff, regional Solicitor of Labor in New York. "If the defendants fail to adhere to the terms of the judgment, they could be subject to contempt sanctions by the Court."

The case was investigated by the Wage and Hour Division's New York City District Office and litigated by the Department's regional Office of the Solicitor in New York City.

Under the FLSA, employers misclassify workers by failing to distinguish employees from bona fide independent contractors. An employee — as distinguished from a person who is engaged in a business of his or her own — is one who, as a matter of economic reality, follows the usual path of an employee and is dependent on the business that he or she serves. For more information, visit http://www.dol.gov/whd/regs/compliance/whdfs13.htm.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 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. Liquidated damages are paid directly to the affected employees.

The case was investigated by the Wage and Hour Division's New York City District Office and litigated by attorneys Daniel Hennefeld, Lindsey Rothfeder and Orly Shoham of the department's Regional Office of the Solicitor in New York City.

For more information about the FLSA, call the Wage and Hour Division's New York City District Office in Manhattan at 212-264-8185 or its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

# # #

Perez v. Thomas Andreadakis; Leonidas Andreadakis; Helen Andreadakis; Danica Group LLC; Copper Plumbing & Heating LLC; Copper II Plumbing & Heating LLC; Copper III Plumbing & Heating LLC Civil action number: CV13-5155

SEATTLE — Although a Bellingham restaurant and a spa have closed, 101 workers once employed by the businesses will receive more than $1.3 million in back wages and damages, thanks to a Washington State jury. The decision is the result of a U.S. Department of Labor investigation that revealed numerous violations of federal labor law.

A unanimous verdict found that the workers were systematically denied minimum wage and overtime pay under the Fair Labor Standards Act by business owners Huang "Jackie" Jie and Zhao "Jenny" Zeng Hong. The lawsuit was filed in 2013 against the two owners and their companies, Pacific Coast Foods, Inc., doing business as J&J Mongolian Grill, and J&J Comfort Zone, Inc., doing business as Spa Therapy. The jury also found that the defendants interfered with and retaliated against workers, most of whom spoke little to no English, who cooperated in the Labor Department's investigation.

"No one who works hard and plays by the rules should be cheated out of the wages to which they are legally entitled," said U.S. Secretary of Labor Thomas E. Perez. "In this case, the business owners took advantage of their workers and continued to do so even after being informed by investigators that they were operating in violation of federal labor law. That's unconscionable. We will hold accountable those businesses that break the law, and just like in this case, ensure that justice prevails for workers."

The department's Wage and Hour Division found that employees of the J&J Mongolian Grill and Spa Therapy put in on average more than 70 hours during a six to seven day workweek. A number of the workers were paid less than the federal minimum wage of $7.25 per hour, and none of them received overtime pay for hours worked beyond 40 in a workweek. Both businesses were located in Bellingham's Bellis Fair Mall.

"Dozens of brave men and women will now get the long overdue back wages they rightfully earned following years of abuse, trickery and retaliation," said Janet Herold, the department's regional solicitor in San Francisco. "This verdict is a warning to others: We will find you and the courts will back us when employers try to shortchange their workers to maximize profits."

The department brought the case to court to stop the business owners, who have since divorced, from continuing to break the law and to recover wages owed to 101 cooks, kitchen helpers, cashiers and masseurs. The jury awarded the back wages and also awarded compensatory damages to four employees who had suffered retaliation, including threats, reduction of hours and, finally, termination of employment because they refused to be silenced about the defendants' labor law violations.

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. The FLSA also prohibits employers from retaliating against employees and requires employers to maintain accurate records.

These proceedings were held in the U.S. District Court for the Western District of Washington. The department was represented by its regional Office of the Solicitor in Seattle. For more information about the FLSA, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or its Seattle office at 206-398-8039. Information also is available at http://www.dol.gov/whd/.