Employer:                  Mackenzie River Pizza

                                    1490 Milligan Road

Idaho Falls, ID 83402 

Type of action:          Consent Judgment and Order

Name of defendants: Granite Mountain Restaurants LLC; MRP Idaho Falls LLC; and Mark Thompson

Background: Aninvestigation by the U.S. Department of Labor’s Wage and Hour Division found Granite Mountain Restaurants LLC and MRP Idaho Falls LLC – owners and operators of a Mackenzie River Pizza restaurant in Idaho Falls – withheld a portion of servers and bartenders earned tips. The employer paid the servers and bartenders less than the federal minimum wage of $7.25 per hour by taking a tip credit and counting customers’ tips towards their hourly wage. The employer organized and oversaw the tip-pool arrangement, requiring employees to share their tips with back-of-the-house staff. Mackenzie River Pizza retaliated against one employee who spoke out against the practice. The employer also failed to pay overtime rates and violated federal child labor laws by allowing minors between the ages of 14 and 15 to work during school hours and later and longer than permitted by the Fair Labor Standards Act. Furthermore, the division found a 15-year-old performing baking activities, a prohibited occupation for minors. 

Resolution: The consent judgment orders the employer to pay $139,981 in tips, unpaid minimum wage and overtime wages and an equal amount in damages to 69 workers and prohibits the employers from further violations. The court also ordered the payment of $5,000 in punitive damages and $34,077 in penalties.   

Court: U.S. District Court for the District of Idaho

Docket Number: 4:24-cv-00059-DCN

Quote: “Illegal practices by restaurant employers such as Mackenzie River Pizza in Idaho Falls hurt employees and the entire restaurant employer community facing unfair competition due to prohibited labor practices, including wage theft and retaliation against workers exercising their rights,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “The resolution of this case should remind employers that we are determined to protect workers and bring bad actors into compliance.” 

The division’s Portland Area Office conducted the investigation. The San Francisco Regional Office of the Solicitor reached the consent judgment at the court.

“In the last two years we recovered more than $1.7 million in unpaid tips for more than 1,000 workers in Oregon and Idaho” said Katherine Walum, District Director for the Wage and Hour Division in Portland, Oregon. “Wage theft is a major concern for restaurant workers, who are some of the most vulnerable employees in our community, and we will continue to protect workers’ rights and hold employers accountable by ensuring their workers receive all of the hard-earned wages, including tips.”

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. You can find other information on the agency’s website if you think you may have been misclassified as an independent contractor, or want to know how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.

Employer:      Taqueria Los Inmortales 

                        3131 Fruitridge Road

Sacramento, CA 95820                                                                                                     

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found the employer, operating three Taqueria Los Inmortales restaurants in Sacramento under three different corporations, did not pay employees required overtime wages for the hours they worked beyond 40 per week, a violation of the Fair Labor Standards Act. The employer paid overtime hours at regular hourly rates in cash and failed to maintain accurate records. 

Back Wages and Liquidated Damages Recovered: $90,383 in unpaid overtime for 22 employees and an equal amount in liquidated damages.

Civil Money Penalties Assessed:   $7,980 in civil money penalties for the willful violations.

Quote: “Restaurant workers, who are often some of the lowest earners in our communities, deserve to take home every dollar they earn,” said Wage and Hour Division District Director Cesar Avila in Sacramento. “The U.S. Department of Labor is determined to help restaurant employers and workers understand their obligations and rights under the law. We offer free compliance assistance toolkits and other resources that can help them avoid costly violations like those found in this case.”

Context: Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for help at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including the agency’s restaurant compliance assistance toolkit and an overview of FLSA protections for restaurant workers. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish.

This news release is also available in Spanish. 

Employer name:        Gaston Group LLC operating as 7-Eleven

Investigation site:      1401 West 7th St.

                                              Fort Worth, TX 76102

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that Gaston Group LLC – operating as 7-Eleven in Fort Worth – failed to pay 21 employees for all hours worked, leading to minimum wage and overtime violations. The employer paid salary non-exempt employees straight time for all hours including those over 40 in a workweek and failed to keep accurate records as required by the Fair Labor Standards Act. 

Back wages and penalties: $20,914 in owed back wages, $20,914 in liquidated damages and $13,965 in civil money penalties.

Quote: “Employees must be paid for all hours actually worked not just those that an employer schedules them to work,” said Wage and Hour District Director Jesus A. Valdez in Dallas. “Employers who have questions or concerns about what are considered hours worked are encouraged to contact us for assistance.”

Background: In fiscal year 2023, investigations by the Wage and Hour Division recovered more than $274 million in back wages for nearly 163,000 workers. These were wages owed for work performed, but not paid by employers.

NORFOLK, VA – The U.S. Department of Labor’s Wage and Hour Division has recovered nearly $900,000 in back wages and damages after its investigation found a Norfolk home care employer denied 108 workers their hard-earned overtime pay. 

The division’s investigation found that Advantage Home Care LLC and co-owners Dondra Nichols and Phillip Simons failed to pay required overtime rates for all hours worked over 40 in a workweek and did not maintain accurate records of hours worked. The employers paid $438,277 in back wages and an equal amount in liquidated damages for these violations of the Fair Labor Standards Act. 

“Workers in the low-wage home care industry must stretch their wages as far as they can go to make ends meet, making Advantage Home Care’s wage theft especially harmful,” said Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia. “We encourage other home care employers to evaluate their own pay practices to ensure they are in compliance with the law.”

Advantage Home Care LLC provides nurses and home health aides for in-home care services in the Hampton Roads area.

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 the regular rate of pay for all hours worked over 40 in a workweek. It also prohibits employers from firing or taking adverse action against employees for exercising their rights.

Learn more about protections for domestic service workers under the FLSA. A self-assessment tool for workers is also available to help them determine if they are entitled to federal minimum wage and overtime pay.

For more information about the FLSA and other laws the division enforces, contact its 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. Workers can call the division confidentially with questions or concerns – regardless of where they are from – and the department 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. 

WHO:         U.S. Department of Labor’s Wage and Hour Division 

                      Office of the Attorney General of the Commonwealth of Pennsylvania

WHAT: A five-year memorandum of understanding signed on February 21 that establishes a formal partnership with these agencies.

BACKGROUND: The MOU maximizes and improves the enforcement of the laws administered by both agencies and provides greater coordination between them.

The agencies formed this partnership to more effectively and efficiently communicate and cooperate on areas of common interest, including sharing training materials, conducting joint investigations and sharing other information as appropriate.

QUOTE: “The Wage and Hour Division recognizes the value of enhancing our collaborative relationship with the Pennsylvania Office of the Attorney General to maximize the enforcement of the laws administered by the two agencies,” said Wage and Hour Division Regional Administrator Mark Watson in Philadelphia. “Our partnership reflects a joint commitment to improve our effectiveness in serving workers and ensuring employers are compliant with federal and state laws.” 

Learn more about the Wage and Hour Division. Workers can call the Wage and Hour Division confidentially with questions – regardless of where they are from – and the department can speak with callers in more than 200 languages.

Employer:     Matryoshka LLC, operating as Matryoshka Deli Food

                       18100 Collins Ave. 

                        North Miami Beach, FL 33160

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the retail deli market paid employees straight-time rates for all hours worked and failed to pay the additional half-time rate they earned when they exceeded 40 hours in a workweek, in violation of the Fair Labor Standards Act. The employer noted the overtime payments as bonuses on payroll records and paid them at straight-time rates. In addition, Matryoshka Deli violated FLSA recordkeeping requirements by not recording the appropriate overtime pay and not keeping an accurate record of hours worked for all employees.

Back wages and liquidated damages recovered: The division recovered $97,635 in back wages and liquidated damages for 26 workers.                                               

Quote: “Failure to pay overtime correctly continues to be one of the most common violations we encounter. Masking overtime hours and payments as bonuses does not forgive the employer’s obligation to pay employees the wages owed – at the correct rate,” said Acting Wage and Hour Division District Director Michael Gannet in Miami. “Employers unsure of their legal obligations under the law should contact their local Wage and Hour Division office for assistance. That’s the best way to ensure they pay employees all their rightful wages. Failure to do so could result in a costly lesson.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App available for free in English or Spanish. 

Employer:      EAS Homes LLC

                        9012 Timber St.

                        Charleston, SC 29406

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found a Charleston commercial construction contractor misclassified some workers as independent contractors. By doing so, EAS Homes failed to pay the additional half-time rate for all hours worked over 40 in a workweek in violation of the Fair Labor Standards Act. 

Back wages recovered: The division recovered $37,155 in back wages for 37 workers.                                            

Quote: “Misclassification of workers as independent contractors denies them overtime wages and benefits they legally earned and rightly deserve. In addition, it denies them employer contributions toward their social security benefits,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “It would be wise for employers to review their pay practices and take advantage of the many tools the Wage and Hour Division has to assist them in complying with the law.”

Background: As part of its efforts to address misclassification, the Wage and Hour Division published a final rule, which is effective March 11, 2024, and revises guidance on how to analyze whether a worker is an employee or independent contractor under the FLSA. 

Employers and workers alike can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division. Workers and employers can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App available for free in English or Spanish. 

Read this news release En Español. 

Employer:      R&I Corp., operating as Mura Ichiban Restaurant and Nam Dae Moon Restaurant

                            PMB 303 Box 10003

Saipan, MP 96950                                                                                                     

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found R&I Corporation, operating as Mura Ichiban Restaurant and Nam Dae Moon Restaurant, illegally kept credit card tips from its tipped employees at both locations, failed to pay at least federal minimum wage for all hours worked and did not pay overtime wages to several Mura Ichiban employees, all violations of the Fair Labor Standards Act.  

Back Wages Recovered:     $12,316 in withheld credit card tips for 10 employees

$11,093 in unpaid minimum wage for 6 employees                                                                             

                                                        $2,736 in unpaid overtime for 6 employees

                                                        $26,146 in liquidated damages for 13 employees

                                                        $1,500 in civil money penalties

Quote: “The U.S. Department of Labor is determined to fight against wage theft in the restaurant industry,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “This restaurant recklessly violated their employees’ most basic rights, including pocketing a portion of their tips. This case should remind restaurant employers that all tips, including those left on customer credit cards, are the property of the workers who earned them.”

Context: Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for help and assistance at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including the agency’s restaurants compliance assistance toolkit and an overview about the FLSA protections for restaurant workers. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and IOS Timesheet App for free in English or Spanish.  

Who:               U.S. Department of Labor

What:             2024 Virtual Agricultural Seminar

When:             March 28, 2024, 9:30 a.m. to 5 p.m. CST

Where:           Online event. Register to attend.

Background: The U.S. Department of Labor’s Wage and Hour Division will hold a 2024 Virtual Agricultural Seminar to provide guidance on federal requirements governing agricultural employment for growers, farmers, shippers, contractors, farm labor contractors, buyers and agricultural workers nationwide.

Presented in coordination with other agencies and stakeholders, the virtual seminar will focus on federal laws and regulations governing agricultural employment and include discussions on the H-2A temporary agricultural program, Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act and Office of Foreign Labor Certification. 

Participating agencies include the Department of Labor’s Wage and Hour Division, Bureau of International Labor Affairs’ Office of Trade and Labor Affairs and Employment and Training Administration’s Office of Foreign Labor Certification; the U.S. Citizenship and Immigration Services; the U.S. Consulate General Monterrey, Fraud Prevention Unit; and the  Immigrant and Employee Rights Section of the Department of Justice’s Civil Rights Division.

Discussions will include overviews of the requirements for wages, housing, transportation, field sanitation, farm labor contractor certification, the H-2A petition process and each agency’s role in therein, and more.

Simultaneous Spanish translation will be offered at this event. To request an accommodation or for inquiries about accessibility, please contact William Sabik at Sabik.william@dol.gov by March 23, 2024.

Lea en Español 

Employer name:        Covington-AMG Rehabilitation Hospital LLC, doing business as AMG Physical

                                            Rehab

Investigation site:     5025 Keystone Blvd. 

                                            Covington, LA 70433                                                                                                      

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found AMG Physical Rehab violated the Family and Medical Leave Act by denying a key employee’s request for medical leave and subsequently terminated her. Key employees are covered by FMLA and are eligible to receive leave under the Act. AMG Physical Rehab also failed to provide required notices on FMLA eligibility, rights and responsibilities to the employee. 

Back wages and damages: $8,967 in back wages and $8,967 in liquidated damages.

Quote: “This case demonstrates the importance of providing required notifications to employees about their Family and Medical Leave Act rights and responsibilities,” said Troy Mouton, District Director in New Orleans. “Employees who are eligible for FMLA have rights that must be honored, and terminating an employee who attempts to exercise those rights can have costly consequences.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division. The FMLA provides eligible employees of covered employers with job-protected leave for qualifying family and medical reasons. It protects leave in a number of circumstances, including the birth or care of a child, placement of a child for adoption or foster care, and care for a spouse or parent who has a serious health condition. 

Learn more about the FMLA.