WHD News Release: More than $1.6M in unpaid overtime for 1,543 workers in the Gulf Coast recovered by US Labor Department [07/10/2014]

News Release

More than $1.6M in unpaid overtime for 1,543 workers in the Gulf Coast recovered by US Labor Department

Ongoing initiative reveals evasive pay practices in the temporary staffing industry

HOUMA, La. — B & D Contracting Inc., a labor recruiting and staffing agency that caters to oil field services and maritime fabrication facilities along the Gulf Coast, has agreed to pay $1,660,438 in back wages to 1,543 current and former employees. An investigation by the U.S. Department of Labor found that the company engaged in improper pay and record-keeping practices that resulted in employees being denied overtime compensation in violation of the Fair Labor Standards Act. The employees were assigned to client work sites throughout Louisiana, Mississippi and Alabama to work as welders, pipe fitters and shipfitters.

Investigators from the Wage and Hour Division's New Orleans District Office found the company mischaracterized certain wages as per diem payments and impermissibly excluded these wages when calculating overtime premiums, denying employees earned overtime compensation.

"Temporary staffing agencies serve valuable and legitimate business needs in today's economy," said Dr. David Weil, administrator for the Wage and Hour Division, "But employers may not manipulate these arrangements and use evasive pay practices to avoid paying workers their rightful wages."

"The labor violations we found in this case are not unique to B & D Contracting Inc.," said Cynthia Watson, regional administrator for the division in the Southwest. "We are increasingly finding the use of per diem schemes as a means of decreasing overtime pay and tax obligations in the staffing and support services industry in this region. The resolution of this case demonstrates our continued focus on combating such labor violations in order to improve compliance in this industry."

Following the investigation, B & D Contracting agreed to pay back wages owed to employees. The company also signed a settlement agreement with the department, committing itself to implement specific measures to prevent future FLSA violations. These measures include: setting standards to accurately identify and compensate workers who qualify for bona fide per diem payments; paying accurate overtime and ensuring per diem payments are not automatically excluded from overtime calculations; informing employees about their pay and employment conditions; and obtaining written acknowledgment from employees that they understand the criteria for receipt of per diem payments.

Additionally, B & D Contracting agreed to maintain accurate records demonstrating that employees received bona fide per diem payments and that such payments are based either on applicable Internal Revenue Service guidelines or upon a reasonable approximation of the expenses incurred.

Pursuant to the department's partnerships with the IRS and the Louisiana Workforce Commission, this case has also been referred to those agencies for review under their respective laws.

This investigation was conducted under the Wage and Hour Division's ongoing initiative focused on strengthening labor compliance among temporary labor providers, such as staffing and support services companies in the Gulf Coast region. The division's enforcement and compliance assistance efforts are focused on identifying and remedying labor violations involving temporary employment arrangements, and the agency is also working with stakeholders and state agencies to ensure compliance with all applicable laws. Between fiscal years 2011 and 2013, the division's New Orleans District Office conducted 24 investigations in the temporary help industry securing more than $2.5 million in back wages for more than 3,000 workers.

An employee's regular pay rate, upon which overtime must be computed, includes all wages for employment, except certain payments excluded by the FLSA, such as reimbursements for work-related expenses. Payments reasonably approximating travel or other expenses incurred on the employer's behalf may be excluded from the employee's regular rate of pay when computing overtime. However, where an employee receives such payments but actually incurs no such additional expenses, such payments do not constitute bona fide reimbursements and must be included in the employee's regular rate of pay for purposes of computing an overtime premium.

The FLSA requires that covered employees be paid at least the national 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.

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

 

Agency
Wage and Hour Division
Date
July 10, 2014
Release Number
14-0818-DAL

WHD News Release: Nearly $2M in back wages and penalties sought in US Labor Department lawsuit against Calif. strawberry grower [04/30/2014]

News Release

Nearly $2M in back wages and penalties sought
in US Labor Department lawsuit against Calif. strawberry grower

3-year debarment from temporary worker program also requested

SAN FRANCISCO — The U.S. Department of Labor is seeking to obtain a judgment against strawberry grower Fernandez Farms Inc., based in Watsonville, Calif., and its president, Gonzalo Fernandez, requiring payment of nearly $1 million in back wages to approximately 400 farm workers for minimum wage and overtime violations. Additionally, the department seeks more than $1 million in penalties for those wage violations and for egregious violations of the H-2A temporary non-immigrant worker program, which include a failure to hire qualified U.S. workers and allegedly requiring workers to pay a substantial sum of their earnings to cover costs of the program.

"This employer blatantly disregarded the law — underpaying low-wage workers, demanding kickbacks and circumventing rules on proper hiring," said Laura Fortman, deputy administrator of the Wage and Hour Division. "Because of the nature of these violations, the department has no choice but to seek a debarment order that prohibits Fernandez Farms Inc. and its president, Gonzalo Fernandez, from applying to the H2-A program for three years, the maximum allowed."

Investigators from the Wage and Hour Division's San Francisco district office found that from May 2010 to December 2011, Fernandez Farms failed to pay workers the proper hourly wage and keep complete and accurate personnel and payroll records. The employer also required each temporary worker to kickback more than $1,600 from their earnings per season, allegedly to cover administrative costs of the program, in direct violation of H-2A program rules. The grower was also found in violation of federal housing safety and health requirements under the H-2A program. Additionally, the employer is alleged to have impeded the department's investigation by intimidating workers and coercing them to hide from or lie to investigators, resulting in an extended investigation.

The H-2A temporary agricultural worker program establishes a means for employers who anticipate a shortage of domestic workers to bring non-immigrant foreign workers to the United States to perform temporary or seasonal agricultural work. The employer must file an application stating that a sufficient number of domestic workers are not available and the employment of these workers will not adversely affect the wages and working conditions of similarly employed workers in the United States. Employers using the H-2A program must meet a number of specific conditions relating to recruitment, wages, housing, meals and transportation. More information about H-2A requirements is available at http://www.dol.gov/whd/regs/compliance/whdfs26a.htm.

The case is being litigated by the department's Regional Office of the Solicitor in San Francisco. For more information about the H-2A program, the Fair Labor Standards Act 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/.

# # #

In the Matter of: Fernandez Farms Inc. and Gonzalo Fernandez, an individual. Civil Action Case Number: 1633146

Agency
Wage and Hour Division
Date
April 30, 2014
Release Number
14-0661-SAN
Media Contact: Jose Carnevali

WHD News Release: More than $6.8 million in back wages, liquidated damages to be paid to current & former Chickie's & Pete's employees for serious wage violations [02/20/2014]

News Release

More than $6.8 million in back wages, liquidated damages to be paid to
current & former Chickie's & Pete's employees for serious wage violations

US Labor Dept. finds popular bar & restaurant chain improperly took tips from servers

PHILADELPHIA — Philadelphia sports bar and restaurant chain Chickie's & Pete's has signed a consent judgment agreeing to pay current and former employees more than $6.8 million in back wages and damages for improperly taking tips from servers and violating federal minimum wage, overtime and record-keeping requirements. Following one of the U.S. Department of Labor's largest tipped employee investigations in recent years, the company and its owner, Peter Ciarrocchi, Jr., have agreed to pay $6,842,412 to 1,159 employees at nine of the company's locations, plus a $50,000 civil money penalty. The proposed consent judgment has been filed in the U.S. District Court for the Eastern District of Pennsylvania and is subject to the review and approval by the court.

"The egregious actions by Chickie's & Pete's harmed real people and violated the promise that a fair day's work deserves a fair day's pay," said U.S. Secretary of Labor Thomas E. Perez. "Restaurant servers are among the lowest paid workers in this country, with many earning incomes below the poverty line. Tipped workers deserve better and this action shows that the Department of Labor is ready to stand up for them."

Under the Fair Labor Standards Act, tips are the property of the employee who receives them; however, restaurant operators can benefit by claiming a credit based on the tips towards their obligation to pay those employees the full minimum wage. If an employee's tips combined with the employer's direct wages do not equal the minimum wage, the employer must make up the difference during the pay period. An employer that claims a tip credit is required to pay a tipped employee only $2.13 an hour in direct wages provided that amount plus the tips received equals at least the federal minimum wage of $7.25 an hour. The federal minimum wage of $7.25 per hour was last increased in 2009 and the federal tip credit's cash wage requirement of $2.13 has not been increased since 1991.

"When employers exploit tipped workers, they not only harm their employees who are working hard to earn a living, but also take advantage of the trust of their customers," said Laura Fortman, principal deputy administrator for the department's Wage and Hour Division. "Customers might not realize it, but their tips frequently are paying part of their servers' wages, not just giving them a little extra to go with their pay. Chickie's and Pete's behavior is troubling because they both unlawfully took tips from their workers and failed to pay them even the $2.13 per hour the law requires when an employer takes a tip credit."

Investigators from the Wage and Hour Division's Philadelphia and Southern New Jersey offices conducted investigations at locations in Northeast Philadelphia, South Philadelphia, Philadelphia International Airport, Parx Casino in Bensalem, Pa., Warrington, Pa., Drexel Hill, Pa., Audubon, Pa., Egg Harbor Township, N.J., and Bordentown, N.J. Investigators found that the company improperly retained a fixed portion of the tips servers received from customers.

The investigation disclosed that the company required servers to contribute a portion of their tips to an improper "tip pool," or tip-sharing arrangement, which was approximately between 2 percent and 4 percent of the server's daily table sales. The owner illegally retained approximately 60 percent of the tip pool. This amount had come to be known as "Pete's Tax" and was required to be paid to the manager in cash at the end of each shift, even if the server received all tips on credit cards and therefore did not have cash on hand. In some cases, the company required employees to use their own money to contribute to this pool by withdrawing cash from a nearby ATM or borrowing from another server.

Additionally, servers and bartenders were paid only a flat rate of $15 per shift at all locations except for Chickie's and Pete's airport establishment — an amount that was not sufficient in all cases to even cover the minimum cash wage of $2.13 per hour that must be paid to a tipped employee when an employer claims a tip credit under federal law. Additionally, the employer failed to pay the required overtime wages to these employees when they worked in excess of 40 hours in a week. Investigators also determined that employees were not paid for time spent in mandatory meetings and training, and were improperly required to pay for uniforms.

Under the provisions of the consent judgment filed in U.S. District Court for the Eastern District of Pennsylvania, and subject to court approval, the company will pay minimum wage and overtime back wages and is required to return the improperly retained tips to the servers, as well as pay liquidated damages. In addition, the company has agreed to enhanced compliance, including:

  • External compliance monitoring for an 18-month period;
  • Internal compliance monitoring for an additional 18-month period;
  • Training for all employees on their rights under the FLSA;
  • Providing a statement to any employee required to contribute to a tip pool detailing the amounts that were contributed by the employee, the job categories of workers included in the tip pool and the specific percentage each category receives; and
  • Peter Ciarrocchi, Jr., will write an article for a restaurant trade publication that addresses an employer's obligations under the FLSA.

The consent judgment also calls for Chickie's & Pete's and Ciarrocchi to be permanently enjoined and restrained from violating the provisions of the FLSA in the future.

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 also are required to provide employees notice about the FLSA tip credit provisions, to maintain accurate time and payroll records and to comply with the hours, hazardous orders and other restrictions applying to workers under age 18.

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

Agency
Wage and Hour Division
Date
February 20, 2014
Release Number
13-0044-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

WHD News Release: Hibachi Grill & Supreme Buffet sued by US Labor Department to recover nearly $2 million in unpaid wages and damages for 84 employees [12/17/2013]

News Release

Hibachi Grill & Supreme Buffet sued by US Labor Department to recover nearly $2 million in unpaid wages and damages for 84 employees

JONESBORO, Ga. — The U.S. Department of Labor has filed a lawsuit against Wang's Partner Inc., doing business as Hibachi Grill & Supreme Buffet in Jonesboro, and its owner, Shu Wang, to recover unpaid wages and damages under, Fair Labor Standards Act. The department is seeking $1,997,726 in back wages and liquidated damages for 84 employees. The lawsuit is based on an investigation by the department's Wage and Hour Division, which revealed numerous violations of the FLSA. The lawsuit has been filed by the department's Office of the Solicitor in the U.S. District Court for the Northern District of Georgia.

Investigators from the division's Atlanta district office found that the employer misclassified servers as independent contractors, failed to pay servers and kitchen staff at least the federal minimum wage of $7.25 per hour and failed to pay overtime compensation at time and one-half employees' regular rates for hours worked beyond 40 in a work week. Additionally, the employer did not maintain accurate records of hours worked and wages paid.

"The U.S. Department of Labor is committed to ensuring that all workers receive the wages to which they are legally entitled," said Secretary of Labor Thomas E. Perez. "We will not stand by while employers use business models that hurt workers, their families and law-abiding employers. This lawsuit illustrates that the department will use every enforcement tool necessary to resolve cases where employees are unlawfully treated as independent contractors, and vulnerable workers are not paid the minimum wage."

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. 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. Additionally, the law requires that accurate records of employees' wages, hours and other conditions of employment be maintained.

The misclassification of workers as something other than employees, such as independent contractors, presents a serious problem for affected employees, employers and to the entire economy. Misclassified employees are often denied access to critical benefits and protections, such as family and medical leave, overtime, minimum wage and unemployment insurance. Employee misclassification also generates substantial losses to state and federal treasuries, and to the Social Security and Medicare funds, as well as to state unemployment insurance and workers compensation funds.

Accessible and searchable information on enforcement activities by the Department of Labor is available at http://ogesdw.dol.gov/views/search.

The Wage and Hour Division's Atlanta District Office can be reached at 404-893-4600. Information about the Service Contract Act and other federal labor laws is available by calling the division's toll free helpline at 866-4US-WAGE (487-9243) or visiting http://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
December 17, 2013
Release Number
13-2290-ATL
Media Contact: Michael D'Aquino
Media Contact: Lindsay Williams
Phone Number

WHD News Release: Minimum wage, overtime protections extended to direct care workers by US Labor Department [09/17/2013]

News Release

Minimum wage, overtime protections extended to direct care workers by US Labor Department

Nearly two million home health and personal care workers to benefit

WASHINGTON — Fulfilling a promise by President Obama to ensure that direct care workers receive a fair day's pay for a fair day's work, the U.S. Department of Labor announced a final rule today extending the Fair Labor Standards Act's minimum wage and overtime protections to most of the nation's workers who provide essential home care assistance to elderly people and people with illnesses, injuries or disabilities. This change will result in nearly two million direct care workers — such as home health aides, personal care aides and certified nursing assistants — receiving the same basic protections already provided to most U.S. workers. It will also help guarantee that those who rely on the assistance of direct care workers have access to consistent and high-quality care from a stable and increasingly professional workforce.

"Many American families rely on the vital services provided by direct care workers," said Secretary of Labor Thomas E. Perez. "Because of their hard work, countless Americans are able to live independently, go to work and participate more fully in their communities. Today we are taking an important step toward guaranteeing that these professionals receive the wage protections they deserve while protecting the right of individuals to live at home."

"Direct care workers play a critical role in ensuring access to high-quality home care that many people need in order to remain healthy and independent in their communities, and they should be compensated fairly for this important work," said Secretary of Health and Human Services Kathleen Sebelius. "We will continue to engage with consumers, states, advocates and home care providers in the implementation of this rule to help people with disabilities, older adults and their families receive quality, person-centered services."

The home care industry has grown dramatically over the last several decades as more Americans choose to receive long-term care at home instead of in nursing homes or other facilities. Despite this growth and the fact that direct care workers increasingly receive skills training and perform work previously done by trained nurses, direct care workers remain among the lowest paid in the service industry. There are an estimated 1.9 million direct care workers in the U.S., with nearly all currently employed by home care agencies. Approximately 90 percent of direct care workers are women, and nearly 50 percent are minorities.

Today's announcement extends minimum wage and overtime protections to all direct care workers employed by home care agencies and other third parties. Fifteen states already extend state minimum wage and overtime protections to direct care workers, and an additional six states and the District of Columbia mandate state minimum wage protections.

"The department carefully considered the comments received from individuals who receive home care, workers, third-party employers and administrators of state programs that support home care," said Laura Fortman, the principal deputy administrator of the Wage and Hour Division, the agency that administers and enforces the FLSA. "In response, the final rule provides increased flexibility, and gives programs sufficient time to make any needed adjustments. Together these changes will allow the rule to better meet consumers' needs while better protecting direct care workers."

The final rule also clarifies that direct care workers who perform medically-related services for which training is typically a prerequisite are not companionship workers and therefore are entitled to the minimum wage and overtime. And, in accordance with Congress' initial intent, individual workers who are employed only by the person receiving services or that person's family or household and engaged primarily in fellowship and protection (providing company, visiting or engaging in hobbies) and care incidental to such activities, will still be considered exempt from the FLSA's minimum wage and overtime protections.

The rule will be effective Jan. 1, 2015. The Department of Labor has created a new web portal with interactive web tools, fact sheets and other materials to help families, other employers and workers understand the new requirements. These, along with information about upcoming webinars on the rule, are available at www.dol.gov/whd/homecare/.

Agency
Wage and Hour Division
Date
September 17, 2013
Release Number
13-1922-NAT
Media Contact: Jason Surbey
Phone Number

WHD News Release: Judge finds Ohio-based Cascom Inc. liable for nearly $1.5 million in back wages, damages to employees misclassified as independent contractors [08/29/2012]

News Release

Judge finds Ohio-based Cascom Inc. liable for nearly $1.5 million in back wages, damages to employees misclassified as independent contractors

US Department of Labor filed lawsuit to recover wages for 250 employees

DAYTON, Ohio —— The U.S. District Court for the Southern District of Ohio has found Cascom Inc. liable for back wages and liquidated damages totaling $1,474,266 owed to approximately 250 cable installers the Fairfield, Ohio, company misclassified as independent contractors in violation of the Fair Labor Standards Act.

The findings of fact were issued following a damages hearing in a lawsuit filed by the U.S. Department of Labor in 2009, after an investigation conducted by the Columbus District Office of the department's Wage and Hour Division. The court ruled in September 2011 that Cascom Inc. and its owner, Julia J. Gress, violated the FLSA by failing to compensate employees for hours worked in excess of 40 per work week because they were misclassified as independent contractors.

"The findings in this case bring justice to workers and their families by providing them with their rightfully earned wages," said Secretary of Labor Thomas E. Perez. "Cascom's business model also hurt law-abiding employers, who were undercut by this illegal practice. The Labor Department is committed to ensuring compliance to protect middle-class workers and to level the playing field for responsible employers."

The installers were found to be employees covered by the FLSA, rather than independent contractors. Cascom Inc. was found to be liable for $737,133 in back wages and an equal amount in liquidated damages, which can be collected both from the company and its owner. The company has ceased operations, so the department will seek to collect from the owner as well.

The misclassification of employees as something other than employees, such as independent contractors, presents a serious problem for affected employees, employers and the economy. Misclassified employees are often denied access to critical benefits and protections — such as family and medical leave, overtime, minimum wage and unemployment insurance — to which they are entitled. Employee misclassification also generates substantial losses to the Treasury and the Social Security and Medicare funds, as well as to state unemployment insurance and workers' compensation funds.

Under the FLSA, an employment relationship must be distinguished from a strictly contractual one. 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, 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 worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records. For more information about the FLSA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit http://www.dol.gov/whd.

# # #

Solis v. Cascom Inc., et al. Civil Action Number: 3:09-cv-00257 U.S. District Court, Southern District of Ohio, Western Division at Dayton

 

Agency
Wage and Hour Division
Date
August 29, 2012
Release Number
13-1807-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

WHD News Release: San Francisco Giants pay employees $545,000 in back wages, damages [08/29/2013]

News Release

San Francisco Giants pay employees $545,000 in back wages, damages

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/.

Agency
Wage and Hour Division
Date
August 29, 2013
Release Number
13-1276-SAN
Media Contact: Jose Carnevali

WHD News Release: US Labor Department finds violations of federal job-protected leave, back wages for worker at T.G.I. Fridays [08/07/2013]

News Release

US Labor Department finds violations of federal job-protected leave, back wages for worker at T.G.I. Fridays

Restaurant chain makes corrections to comply with Family and Medical Leave Act

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/.

 

Agency
Wage and Hour Division
Date
August 7, 2013
Release Number
13-1161-DAL
Media Contact: Jason Surbey
Phone Number

OPA News Release: Statement by US Labor Secretary Thomas E. Perez on the need to raise the minimum wage to benefit workers and the economy [07/24/2014]

News Release

Statement by US Labor Secretary Thomas E. Perez
on the need to raise the minimum wage to benefit workers and the economy

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."

Date
July 24, 2014
Release Number
14-1375-NAT
Media Contact: Jason Surbey
Phone Number

OPA News Release: Statement by US Secretary of Labor Thomas E. Perez on Harris v. Quinn Supreme Court ruling [06/30/2014]

News Release

Statement by US Secretary of Labor Thomas E. Perez
on Harris v. Quinn Supreme Court ruling

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."

Date
June 30, 2014
Release Number
14-1265-NAT
Media Contact: Michael Trupo
Phone Number
Subscribe to Wages