WASHINGTON – The Department of Labor today announced its Wage and Hour Division will offer contracting agencies, contractors, unions, workers and other stakeholders opportunities in May or August to attend an online seminar on meeting federal requirements for paying prevailing wages on federally funded construction and service contracts.

Part of the continuing effort by the division to increase awareness and improve compliance, the day-long seminars will offer sessions on the labor standards protections in the Davis-Bacon Act and the Service Contract Act, including how the department sets and administers prevailing wages and other topics. Participants can choose from several sessions to get the information they need. 

“Prevailing wage laws empower workers by ensuring that federally funded construction and service jobs are good jobs with fair wages and benefits,” said Wage and Hour Administrator Jessica Looman. “The Biden-Harris administration’s historic investments in our nation’s infrastructure means a significant increase in the number of federal and federally funded projects, and the Wage and Hour Division is committed to ensuring stakeholders understand the labor standards protections critical to these investments.”

Seminars will be held online on May 15 and Aug. 29 from 11 a.m. to 5:30 p.m. EDT. The seminars are free to attend but registration is required. Additional information and links to the online seminars will be sent to registered participants. Sign up to receive event updates. 

Learn more about the requirements for federal contractors.

Employer name:                    Paredes Inc., operating as Superior Service

Investigation sites:               75 Garrett Trail 

                                                         Maxwell, TX 78656

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found Paredes Inc. – a mobile home transportation company operating as Superior Service – misclassified 32 laborers and drivers as independent contractors when, in fact, the division determined they are employees. Drivers moved mobile homes from the local pickup location to locations in Texas, while the laborers took care of all electrical, foundation, plumbing and other requirements to complete mobile home installations. Investigators found Paredes violated federal law by failing to pay the required time and one-half its employees’ hourly wages for hours over 40 per workweek, and by not keeping federally required records.

In January 2024, the department published a final rule, effective March 11, revising the department’s guidance on how to determine who is an employee and who is an independent contractor under the Fair Labor Standards Act. Learn more about the final rule.

Back wages recovered: $84,740 in owed wages.                                       

Quote: “Misclassifying employees as independent contractors deprives workers of their full wages, benefits and employment protections and allows their employers to gain an unfair advantage over law-abiding competitors,” said Acting District Director Rosalinda Huffman in Austin, Texas. “Employers who wrongly believe they can abuse employees’ rights to be paid all of their hard-earned wages will find the consequences for violating the law can be costly.”

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MANCHESTER, NH – A Vermont restaurant server will receive $50,000 in punitive damages and $829 in back pay, after a U.S. Department of Labor Wage and Hour Division investigation found the employer retaliated against them by terminating their employment for refusing to share tips with a manager.

The division found Trareeba Ltd., doing business as Colatina Exit in Bradford, Vermont, violated the Fair Labor Standards Act by unlawfully including managers in its tip pool, which invalidated the employer’s tip credit, and also failed to pay workers time and one-half their regular rates of pay for hours over 40 in a workweek. 

The division also determined the restaurant employed two 17-year-old delivery drivers to make time-sensitive deliveries, a violation of federal child labor regulations. 

In an administrative settlement with the division, Colatina Exit paid $119,605 in back wages and an equal amount in liquidated damages to 43 employees affected by the tip and overtime violations. The employer has paid the department $28,132 in civil money penalties for its child labor violations and $3,393 in penalties for the tip violations. 

“Colatina Exit’s illegal employment practices hurt workers and undercut law-abiding employers who treat their employees fairly. The law requires that tips go to employees, not their manager,” said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire.

“The Wage and Hour Division does not tolerate retaliation against employees who exercise their rights under the Fair Labor Standards Act and we will take all necessary action to protect workers and ensure they receive the wages they are owed,” McKinney emphasized.

The FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. Employers may not require workers to give their tips to the employer, a supervisor or a manager.

Learn more about protections against unlawful retaliation to workers.

The Department of Labor’s YouthRules! initiative promotes positive and safe work experiences for teens by providing information about protections for young workers to youth, parents, employers and educators. Through this initiative, the department and its partners promote developmental work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law. Learn more about the Fair Labor Standards Act’s child labor provisions. 

Workers and employers can contact the division confidentially at its toll-free number, 1-866-4-US-WAGE (487-9243). Learn more about the Wage and Hour Division, including the agency’s restaurant compliance assistance toolkit, an overview of FLSA protections for restaurant workers and Workers Owed Wages, a search tool to use if you think you may be owed back wages collected by the division. Workers and employers alike can help track their hours worked and pay by downloading the department’s Android and iOS Timesheet App for free in English or Spanish.  

WASHINGTON – The Biden-Harris administration today announced a final rule that expands overtime protections for millions of the nation’s lower-paid salaried workers by increasing the salary thresholds required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements. 

Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025. The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update. On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.

“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” said Acting Secretary Julie Su. “Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay. That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity.”

The department conducted extensive engagement with employers, workers, unions and other stakeholders before issuing its proposed rule in September 2023, and considered more than 33,000 comments in developing its final rule. The updated rule defines and delimits who is a bona fide executive, administrative and professional employee exempt from the Fair Labor Standards Act’s overtime protections. 

“The Department of Labor is ensuring that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families,” said Wage and Hour Administrator Jessica Looman. “This rule establishes clear, predictable guidance for employers on how to pay employees for overtime hours and provides more economic security to the millions of people working long hours without overtime pay.”

Key provisions of the final rule include the following:

• Expanding overtime protections to lower-paid salaried workers.
• Giving more workers pay or valuable time back with their family: By better identifying which employees are executive, administrative or professional employees who should be overtime exempt, the final rule ensures that those employees who are not exempt receive time-and-a-half pay when working more than 40 hours in a week or gain more time with their families.
• Providing for regular updates to ensure predictability. The rule establishes regular updates to the salary thresholds every three years to reflect changes in earnings. This protects future erosion of overtime protections so that they do not become less effective over time.

The rule’s effective date is July 1, 2024. Learn more about the department’s efforts to restore and extend overtime protections. 

WASHINGTON – The U.S. Department of Labor has obtained a consent judgment in federal court that orders a Virginia concrete contractor to pay nearly $1.2 million in back wages, damages and penalties after its investigation found the employer misclassified 29 employees as independent contractors and failed to pay proper overtime to its employees.

The action in the U.S. District Court for the Eastern District of Virginia in Alexandria follows an investigation by the department’s Wage and Hour Division of Village Concrete Inc., a Manassas employer that allegedly misclassified the affected employees as independent contractors. By doing so, the employer failed to pay required overtime rates for hourly, day-rate and salaried workers.

The division also found the company allegedly falsified records to make it appear they had paid workers overtime, wrongly categorized salaried employees as exempt from overtime and denied employees pay for distances traveled related to work. In addition, Village Concrete failed to keep accurate records of the hours employees worked and compensation the company paid them. 

“Misclassification denies employees access to critical benefits and protections, such as overtime, minimum wage, family and medical leave and — in some cases — safe workplaces,” explained Wage and Hour Administrator Jessica Looman. “The Wage and Hour Division will continue to make combatting misclassification a priority to protect some of the nation’s most vulnerable workers and their families from the harm it causes.” 

The consent judgment requires the employer to pay 81 employees $563,938 in back wages and an equal amount in liquidated damages, bars Village Concrete from future Fair Labor Standards Act violations and affirms civil money penalties of $67,473 the department assessed for the employer’s willful violations. 

“The Solicitor’s Office uses all available tools to address the serious workplace problem of misclassification,” said Solicitor of Labor Seema Nanda. “In this case, Village Concrete even tried to conceal its violations by falsifying records. We will use all legal tools available to us to hold employers accountable for deliberate and inexcusable attempts to obfuscate the facts, including civil monetary penalties.”

Village Concrete Inc. is a contractor serving residential and commercial customers in the District of Columbia, Maryland and Virginia.

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek. It also prohibits the misclassification of employees as independent contractors.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Employers and workers can call the division confidentially with questions, regardless of their immigration status. The division can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free, available in English and Spanish.

Su v. Village Concrete Commercial Inc., Agostinho Costa

PHOENIX – The U.S. Department of Labor announced today that efforts to protect residential construction workers from unlawful pay practices have recovered a total of $3.2 million in wages and damages from four Arizona contractors for 890 workers.

After a series of investigations, the department’s Wage and Hour Division determined that 4-E Painting LLC and Liberty Constructors LLC in Mesa and BCK Coatings Inc. and Geronimo Wall Systems LLC in Tempe willfully and recklessly shortchanged the affected workers and violated the overtime and minimum wage provisions of the Fair Labor Standards Act.

The division’s investigations found:

• 4-E Painting LLC did not pay overtime wages when the employer paid employees piece-rate wages for painting work or a combination of hourly wages and piece-rate wages. The division determined 4-E Painting owed $432,633 in overtime wages and an equal amount in liquidated damages to 158 workers. The department also assessed $24,732 in penalties.
• Liberty Constructors LLC denied employees required overtime pay and tried to conceal its violations by falsely showing a higher hourly rate or fewer hours worked on payroll records. The division found the contractor owes $401,049 in unpaid wages and $401,049 in liquidated damages to 100 employees. The department also assessed $17,900 in civil penalties.
• Geronimo Wall Systems LLC denied overtime pay to 195 employees for hours over 40 in a workweek. The lath, stucco, siding and stone contractor misclassified many of the employees as independent contractors. The division determined the employer owes $443,115 in overtime wages and $443,115 in damages to 195 employees, and the department assessed $22,770 in civil money penalties.
• BCK Coatings Inc. failed to pay required overtime wages for hours over 40 in a workweek. The apartment remodeling contractor misclassified employees as independent contractors, made improper deductions of up to $20 per week from employees’ pay, required workers to cash their paychecks at a check-cashing business that charged a fee and failed to pay one employee for eight weeks of work. The investigation found BCK owes $360,000 in unpaid minimum and overtime wages and an equal amount in liquidated damages to 437 employees. The department also assessed $30,000 in penalties for the employer’s willful violations.

“Our investigators have found that schemes to pay straight-time for all hours worked and avoid paying required overtime rates at time and one-half are pervasive among employers in Arizona’s construction industry,” said Wage and Hour Division District Director Eric Murray in Phoenix. “These unlawful practices create the false impression that piece-rate workers’ wages comply with the Fair Labor Standards Act when, in fact, these employees are being stripped of their earned wages. The Wage and Hour Division is committed to holding employers accountable and ensuring that they do not obtain an unfair competitive advantage by denying workers their full wages.” 

Following these investigations, the department’s Office of the Solicitor sought and obtained consent judgments in the U.S. District Court for the District of Arizona. The court orders require the contractors to pay the workers their share of more than $3.2 million in back wages and liquidated damages, and to pay the department $95,402 in penalties for their willful and reckless violations.

“More and more construction companies in Arizona are recognizing piece-rate workers’ right to overtime and are promptly resolving the department’s investigations when they are found to violate this right,” said Regional Solicitor Marc Pilotin in San Francisco. “The Solicitor’s Office will continue to obtain court judgments to recover back wages, liquidated damages and penalties against employers who violate the FLSA. Companies can avoid these damages and penalties by paying correctly in the first place.” 

The division urges workers who believe they may be owed wages by these construction employers to call the Wage and Hour Division in Phoenix at 602-514-7100.

The Wage and Hour Division’s Phoenix District Office conducted the investigations. The department’s Regional Solicitor’s Office in San Francisco litigated the cases.

In fiscal year 2023, the division recovered more than $35 million in back wages for more than 17,000 construction industry workers nationwide. 

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The division can speak with callers confidentially in more than 200 languages, regardless of their immigration status. Download the agency’s new Timesheet App for Android and iOS devices – free and now available in English and Spanish – to ensure hours and pay are accurate.

Julie A. Su, Acting Secretary of Labor, U.S. Department of Labor vs. Geronimo Wall Systems LLC et al

Case; Julie A. Su, Acting Secretary of Labor, U.S. Department of Labor vs. BCK Coatings Inc. et al

Case; Julie A. Su, Acting Secretary of Labor, U.S. Department of Labor vs. 4-E Painting LLC et al

Case; and Julie A. Su, Acting Secretary of Labor, U.S. Department of Labor vs. Liberty Constructors LLC et al

Case 

SACRAMENTO, CA – The U.S. Department of Labor has recovered $447,952 in back wages and damages from the operator of three Kern County grocery stores for 60 workers after a federal investigation found the employer illegally withheld overtime wages for hours over 40 in a workweek.

The department’s Wage and Hour Division determined the owners of Fiesta Market and Mi Rancho Market in McFarland and Fiesta Market #2 in Lamont excluded the affected employees from overtime eligibility and, by doing so, failed to pay them overtime as required by law. The division also found the employer did not meet federal recordkeeping requirements. The employer’s actions violated provisions of the Fair Labor Standards Act. 

The investigation led the division to recover $223,976 in unpaid overtime wages and an equal amount in liquidated damages. In addition, the department assessed $24,210 in civil money penalties for the willful nature of the employer’s violations.

“The U.S. Department of Labor is committed to ensuring that all workers receive a fair day’s pay for a fair day’s work,” said Wage and Hour Division District Director Cesar Avila in Sacramento. “The division uses every tool at its disposal to protect workers’ rights and help employers understand their obligations and avoid violations. We invite anyone with questions to contact us for assistance.” 

Workers can use the Wage and Hour Division’s Workers Owed Wages search tool to check if they are owed back wages collected by the division. Employers and workers can contact the division confidentially for help at its toll-free number, 1-866-4-US-WAGE (487-9243), regardless of where they are from. The division can speak with callers in more than 200 languages. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and i-OS Timesheet App for free in English or Spanish.  

This news release is also available in Spanish.   

WHO:             U.S. Department of Labor 

WHAT:          2024 Forum: 

                        “Ensuring a Strong Foundation of Compliance with Federal Labor Laws in Construction”

WHEN:          May 8-9, 2024

                       9 a.m. to 4:30 p.m. CDT

WHERE:       No cost to attend this online event. Registration is required for each day individually. 

Register to attend the forum on May 8           

Register to attend the forum on May 9

Background: The Department of Labor in Dallas will host a two-day online forum on compliance with federal laws governing wages, safety and other workplace issues. The event will include presentations and panel discussions with representatives from across the department, including those from the Bureau of Labor Statistics, Employment Benefits Security Administration, Employment and Training Administration, Office of Federal Contract Compliance Programs, Office of Labor-Management Standards, Occupational Safety Health Administration, Veterans’ Employment Training Service, Wage and Hour Division and the Women’s Bureau.

In addition, representatives from the Department of Housing and Urban Development, the IRS, the Small Business Administration, Equal Employment Opportunity Commission and the National Labor Relations Board will participate. Presentations will range between 30 and 90 minutes.                               

QUOTE: “The Department of Labor has responsibility for protecting the rights of our nation’s workforce ensuring a safe and healthy workplace while assisting employers to understand their responsibilities under the law,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas. “That’s why the department offers workers and employers the tools and guidance they need to understand federal regulations at events like this, in our regional offices and through our many of the department’s web sites.”

Simultaneous Spanish translation will be offered. To request an accommodation or for inquiries about accessibility, please contact sabik.william@dol.gov by May 2, 2024.

See the Forum’s agenda.

Forum flyer.

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Employer name:       

John Mirza Landscaping Inc.  

Employer address:    

49 Spring Valley Road

Montvale, NJ 07645 

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found the employer failed to pay non-exempt landscapers the overtime premium of time and one-half employees’ hourly rates for hours worked over 40 in a workweek, in violation of the Fair Labor Standards Act. 

Back wages recovered: $127,496 to 20 employees

Liquidated damages recovered: $127,496 to 20 employees

Quote: “The onus is on landscaping employers to understand federal labor laws and not shortchange employees' hard-earned wages by paying straight time hourly rates for overtime hours worked,” said Wage and Hour Division District Director Paula Ruffin in Mountainside, New Jersey.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.

Employer name:       Day-Debut Mechanical Inc.

Employer address:    22421 Goshen School Road, Gaithersburg, MD 20882

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division determined that Day-Debut Mechanical Inc., a federal subcontractor on the Paxton Apartments construction project in the District of Columbia, misclassified nine sheet metal workers and insulators as laborers. By doing so, the employer did not pay them the proper prevailing wages and fringe benefits in violation of the Davis-Bacon and Related Acts. The division also determined Day-Debut had incomplete payroll records, submitted falsified payrolls and failed to provide required records, all violations of the Fair Labor Standards Act.

Another subcontractor on the project, Titan Mechanical Inc. of Manassas Park, Virginia, paid the owed back wages and fringe benefits after Day-Debut Mechanical was unreachable after the division’s investigation. Titan had hired Day-Debut Mechanical to complete work on the project, an affordable housing development slated for completion in spring 2024 with funds from the U.S. Department of Housing and Urban Development.

Recoveries: $20,921 to back wages and $13,221 in fringe benefits for nine employees.

Quote: “Contractors on projects supported by federal funds must classify workers correctly and pay them their full wages and benefits or face costly consequences for not complying with the law,” said Wage and Hour Division District Director John DuMont in Pittsburgh.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers and employers can call the division confidentially with questions or concerns – regardless of where they are from – and the division can speak with callers in more than 200 languages. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish.