US Labor Department finds clubhouse and administrative workers not paid properly

SAN FRANCISCO — The San Francisco Giants baseball team paid $544,715 in back wages and liquidated damages to 74 employees after a U.S. Department of Labor investigation determined that the Major League Baseball club failed to properly pay the workers over a three-year period. As a result of the investigation, MLB and the department are now working to ensure that all teams are aware of and adhere to the requirements of the Fair Labor Standards Act.

Investigators with the department's Wage and Hour Division found violations of the Fair Labor Standards Act's minimum wage, overtime pay and record-keeping provisions. The violations affected a range of employees in the organization at the major and minor league levels, including clubhouse assistants and managers. San Francisco Baseball Associates LLC, the club's ownership group, has entered into an agreement with the department to ensure continued and future compliance with the FLSA.

"We are pleased that the Giants addressed this matter, and it is our hope that other Major League Baseball teams will take a close look at their pay practices to ensure they are in compliance with the law," said Laura Fortman, principal deputy administrator of the Wage and Hour Division. "MLB has agreed to work collaboratively with the department to ensure all MLB teams are in compliance with the FLSA."

Susana Blanco, director of the San Francisco District Office of the Wage and Hour Division, said the case underscores the importance of wage protections: "I am encouraged that the Giants acted to resolve this issue, but it was disappointing to learn that clubhouse workers providing services to high-paid sports stars weren't making enough to meet the basic requirements of minimum-wage law."

During the investigation, the department determined that clubhouse employees were working more hours than were recorded, under an employment agreement required by the club that established a flat rate of pay of $55 for working 5.5 hours per day. However, investigators found that the employees actually worked an average of 12 to 15 hours daily, and the workers received less than the hourly federal minimum wage of $7.25 and were also not paid overtime for hours exceeding 40 in a workweek.

Investigators found the club had improperly classified a number of employees as exempt from overtime pay, including clubhouse managers at the major and minor league levels and video operators at the team's major and minor league affiliates. The non-exempt employees were paid a straight salary and no overtime premium, as required based on their job duties. Additionally, the investigation determined that the club failed to pay overtime or incorrectly calculated overtime pay for administrative staff participating in the Giants' bonus program, in violation of the FLSA.

The FLSA requires that covered 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 hours worked over 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and it prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.

For more information about the FLSA, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or its San Francisco District Office at 415-625-7720. Information also is available at http://www.dol.gov/whd/.

WASHINGTON — —The U.S. Department of Labor's Wage and Hour Division announced today that T.G.I .Fridays, a subsidiary of Minnesota-based Carlson, has agreed to change its leave policy to be in compliance with the Family and Medical Leave Act. The move affects employees at its 272 company-owned locations. The company has also agreed to correct violations of the FMLA found during an investigation of one of its restaurants in Shreveport, La., and pay an employee $1,455 in back wages.

"Workers should not have to choose between their job, and the family members who need their care," said Laura Fortman, principal deputy administrator for the Wage and Hour Division. "Ensuring a work-life balance is the cornerstone of the Family and Medical Leave Act, which has been the law of the land for 20 years. It gives America's workers the right to take unpaid, job-protected leave to care for themselves or a loved one. As we move into its third decade, we are more dedicated than ever to enforcing the law when necessary to protect workers, yet continue to offer assistance to those employers who need help to come into compliance."

The agency's investigation found that the company violated the FMLA by failing to reinstate the employee to the same or equivalent position, including pay, benefits and other terms of employment, and that the worker was not allowed to return to work immediately following FMLA-covered leave. The delay in allowing the employee to return to work caused the employee to lose three weeks of pay.

Additionally, the investigation found that the company's FMLA policy and worker rights notification practices were not in keeping with the law. Specifically, the policy did not include information on the FMLA's military family leave provisions, information on the right to take FMLA-covered leave on an intermittent or reduced schedule basis, and misstated the 12-month employment requirement for FMLA eligibility as being 12 continuous months.

The FMLA entitles eligible employees of covered employers to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. Under certain circumstances, military family leave entitlements allow eligible employees up to 26 weeks of leave. Employers are prohibited from interfering with, restraining or denying the exercise of (or the attempt to exercise) any FMLA right. Employers also are prohibited from discriminating or retaliating against an employee or prospective employee for having exercised or attempted to exercise any FMLA right. For example, an employer may not use an employee's request for or use of FMLA leave as a negative factor in employment actions such as hiring, promotions or disciplinary procedures.

For more information about the FMLA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or the division's New Orleans District Office at 504-589-6171. Information is available at http://www.dol.gov/whd/fmla/.

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez released the following statement on the five-year anniversary of the last increase in the federal minimum wage:

"It's been exactly five years since workers at the bottom of the income ladder have gotten a raise. Since then, the cost of a gallon of milk, a week of child care, a month's rent and everything else a working family needs has gone up. But the federal minimum wage remains frozen at $7.25 per hour.

"President Obama believes five years is far too long, and a clear majority of Americans agree. Too many people are working harder but falling further behind, and it's just plain wrong that men and women working full-time in America should have to raise their families in poverty.

"A minimum wage increase to $10.10 would benefit 28 million people, giving them a little bit of breathing room and peace of mind. And it would help their bosses as well. As I've traveled around the country, employers of all sizes and in varied sectors have told me they see higher wages as a sound business investment. They know that it boosts productivity and reduces training costs. They know that, in an economy driven by consumer demand, more money in people's pockets means more customers for them. This isn't just anecdotal — a recent poll shows that more than 3-in-5 small business owners support a $10.10 minimum wage.

"Thirteen states and the District of Columbia, responding to grass-roots energy in their communities, have increased their minimum wages since the beginning of 2013. And the president has signed an Executive Order mandating a $10.10 minimum wage for workers under federal service contracts. But still, Congress has failed to act on behalf of all workers.

"This step is long overdue. Our workers need it and they've earned it. After five years, it's time to reward hard work and raise the wage."

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez issued the following statement today regarding the U.S. Supreme Court's Harris v. Quinn decision:

"Home care workers do heroic work, providing high-quality, compassionate care that allows seniors and people with disabilities to live at home with independence and dignity.

"By organizing together, these workers have improved both their own working conditions and the quality of services they provide. The demand for skilled home care workers will only increase as the population ages and more people require these services.

"Today's Supreme Court decision will make it more difficult for home care workers to have a united voice and the support they need to best serve their clients. We can and will continue to work in partnership with home care workers, consumers, employers, unions and states to ensure both good jobs and quality home care."

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez today issued the following statement regarding the resolution under consideration at the meeting of the United States Conference of Mayors in Dallas, Texas, June 20-23 that calls for an increase in the national minimum wage:

"For nearly five years, workers at the bottom of the income ladder have not seen a raise even as their housing, transportation, food, utility and child care costs have all gone up. No one who works full time in America should have to raise their families in poverty.

"That's why President Obama has fought to increase the national minimum wage from $7.25 to $10.10 per hour and boost the incomes of 28 million Americans, lifting two million out of poverty. These workers are not teenagers earning weekend spending money, but hard-working adults with bills to pay and mouths to feed. They deserve a raise.

"From coast to coast, we're seeing a surge of momentum on this issue, with states, localities and forward-thinking businesses raising wages. They're not just responding to overwhelming public support for higher wages; they know that it's good for the bottom line and invigorates an economy driven by consumer spending.

"I support the resolution before the U.S. Conference of Mayors calling on Congress to raise the national minimum wage and encouraging states and local governments to do the same. This resolution, coupled with grassroots-powered action nationwide, is part of a groundswell that proves change doesn't always come from Washington, sometimes it comes to Washington. I applaud San Francisco Mayor Ed Lee and his colleagues from cities across the country for leading on this issue and introducing the resolution. I urge its swift adoption."

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez released the following statement after the Senate's vote on the Harkin-Reid-Merkley legislation that would have raised the federal minimum wage to $10.10 per hour:

"Today, a minority of U.S. senators blocked a minimum wage increase that a strong majority of the American people supports. In so doing, they have rejected a long bipartisan tradition of rewarding hard work with a fair wage.

"No one who works full time in the United States should have to raise their family in poverty. But that is exactly the situation for millions of people barely surviving on as little as $7.25 per hour. Life is a daily struggle for these workers who want nothing more than the dignity of a paycheck that can support their families. Too many of them are forced to rely on public assistance just to get by.

"Raising the federal minimum wage to $10.10 per hour would benefit 28 million workers. And, as I've seen in my travels across the country, many employers see higher wages as an investment that makes good business sense. Raising the federal minimum wage is the right thing to do for our workers and the smart thing to do for our economy.

"On behalf of minimum wage workers in their states, I hope that senators who opposed moving forward on this bill will reconsider their position. It's time to give America a raise — a raise our workers need, a raise they've earned, a raise they deserve."