LONG ISLAND, NY – A U.S. Department of Labor investigation has found that a Southampton landscaping company failed to comply with requirements of the Fair Labor Standards Act and the federal H-2B worker program and will recover over $1 million in back wages and liquidated damages for 54 underpaid workers.

The investigation by the department’s Wage and Hour Division determined that over a three-year period, Dario’s Landscaping & Masonry Inc., doing business as Dario’s Landscaping, violated the FLSA when it did not pay employees any overtime for hours worked over 40 in a workweek and provided false records to division investigators to attempt covering up wage violations.

The division found that between October 2018 and October 2021, the employer failed to pay H-2B workers the correct rate, threatened that H-2B workers would not be re-hired if they cooperated with division investigators and coached workers to give false testimony. These actions violated the requirements of the H-2B worker program, which allows businesses to employ workers on temporary visas for seasonal labor.

On Feb. 16, 2024, a federal judge issued a consent judgment, requiring Dario’s Landscaping to pay $484,690 in FLSA back wages and an equal amount in liquidated damages to 54 workers. On Jan. 22, 2024, an administrative law judge approved H-2B consent findings, ordering Dario’s Landscaping to pay an additional $31,710 in back wages to 29 of the workers. Dario’s Landscaping will also pay civil money penalties of $98,908. In total, the employer will pay $1.1 million, plus $12,021 in post-judgment interest, and will be debarred from the H-2B program for one year. The order also requires that Dario’s Landscaping engage a compliance consultant, train managers and educate workers about their rights.

“The U.S. Department of Labor will pursue all necessary legal actions to ensure that employers are held accountable when they fail to uphold their obligations to comply with federal laws,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.

“Unfortunately, H-2B program workers are vulnerable to being shortchanged by employers,” said Wage and Hour Division District Director David An in Westbury, New York. “H-2B employers that willfully disregard the law could face debarment and costly penalties.”   

The federal H-2B worker program permits employers to temporarily hire nonimmigrants to perform nonagricultural labor or services in the U.S. The employment must be for a limited period, such as a one-time occurrence, seasonal, peak load or intermittent need.

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 where they are from. The department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App for iOS and Android devices – free and now available in Spanish – to track hours and pay.

Employer:      Prior Vision LLC

                             590 Farrington Highway, Suite 524-445

 Kapolei, HI 96707

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that Prior Vision misclassified 110 security guards and patrol officers as independent contractors and denied the employees required overtime pay for hours worked beyond 40 in a workweek, a violation of the Fair Labor Standards Act. 

Based on an evaluation of the significant factors of an employment relationship, investigators determined the claimed independent contractors were dependent on Prior Vision – not persons engaged in their own businesses. The division also found the employer failed to keep accurate records of all hours worked and wages paid.

Back wages recovered:       $65,642 in back wages for 110 employees

                                                         $65,642 in liquidated damages for 110 employees

                                                         $36,000 in civil money penalties for the reckless nature of the violations.        

Quote: “A worker’s right to overtime pay for hours worked over 40 in a workweek can’t be waived by employers,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Mischaracterizing employees as independent contractors to avoid lawfully required wage standards, social security contributions or state-mandated insurance protections is illegal.” 

Background: The U.S. Department of Labor announced a final rule to help employers and workers better understand when a worker qualifies as an employee and when they may be considered an independent contractor under the Fair Labor Standards Act. The rule provides guidance and seeks to combat employee misclassification, a serious problem that impacts workers’ rights to minimum wage and overtime pay, facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at large. 

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 name:          Izumi Sushi & Hibachi All You Can Eat LLC 

Investigation site:      2844 Thousand Oaks Drive

                                              San Antonio, TX 78232 

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer operated an illegal tip pool policy whereby employer kept the tips and gave them to the managers – an illegal action under federal law. As a result, the tip credit claimed by the employer became invalid and the employer was required to return the tips to employees and pay the full federal minimum wage in addition to the tips. Additionally, the employer failed to pay proper overtime compensation.

Back wages and damages: $159,525 in back wages to 26 employees

Quote: “Restaurant employers must ensure that tipped employees receive all the wages they earn – including tips. Employers may not keep tips provided to the employee, this includes not allowing a manager or supervisor to retain tips,” explained Wage and Hour District Director Cynthia Ramos in San Antonio, Texas. “We encourage employers and employees to contact the Wage and Hour Division with any questions or concerns regarding pay practices.”

Background: The Wage and Hour Division enforces laws governing pay practices and other labor standards, including the Fair Labor Standards Act, and determines if employers have misclassified employees as independent contractors, denying them critical benefits and worker protections. 

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 contact the division confidentially at its toll-free number, 1-866-4-US-WAGE (487-9243). The division protects workers regardless of immigration status and can communicate with workers in more than 200 languages.

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MCALLEN, TX – The U.S. Department of Labor’s recovery of more than $1 million in minimum and overtime wages owed to 859 home healthcare workers employed by two Texas companies show that improper pay practices in the industry remain a systemic problem in Texas and across the nation.

Investigations by the department’s Wage and Hour Division determined that Alegre Home Health Care LLC in Mission and Pas Home Care LLC in Weslaco shortchanged employees by violating numerous federal regulations that govern how workers must legally be paid.

Specifically, division investigators found both employers failed to combine all hours worked for the purpose of calculating employees’ overtime wages. The employers paid the affected employees straight-time rates for all hours worked, including for hours over 40 in a workweek when an overtime rate applies. In addition, the division found Alegre Home Health Care and Pas Home Care adjusted employees’ established wage rates during weeks when they worked overtime to avoid paying the required overtime rates. 

The findings are the result of investigations by the division’s McAllen District Office, which reviewed Alegre Home Health Care’s employment practices and identified violations at the employer’s Austin, Corpus Christi, Eagle Pass, El Paso, Mission, Presidio and San Antonio locations. A separate investigation of Pas Home Care was done at its Weslaco location. 

“Employers who fail to pay minimum wage and required overtime rates make it more difficult for workers to care for their needs and those of their families,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas. “The Department of Labor is determined to protect the rights of the nation’s care workers, people who provide vital services to those in need and who deserve to be paid all of their legal wages and benefits in return for their hard work.”

In all, the division’s investigations led to a combined recovery of $1,041,406 in minimum wage and overtime back wages for the affected employees, which included $900,786 for 716 employees of Alegre Home Health Care LLC and $140,620 for 143 employees of Pas Home Care LLC.

The Wage and Hour Division enforces laws governing pay practices and other labor standards, including the Fair Labor Standards Act, and determines if employers have misclassified employees as independent contractors and denied them critical benefits and worker protections. 

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. The division protects workers regardless of where they are from and can communicate with workers and employers confidentially in more than 200 languages at 1-866-4-US-WAGE (487-9243).

Download the agency’s new Timesheet App, which is available in English and Spanish for Android and Apple devices, to ensure hours and pay are accurate.     

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Empleador:    Universal Welding and Construction Inc.

                              12558 Snow Road

                              Bakersfield, CA 93314                                                                                                     

Hallazgos de la investigación: Una investigación de la División de Horas y Salarios del Departamento de Trabajo de EE. UU. descubrió que Universal Welding and Construction Inc. no pagó a 74 trabajadores tarifas de sobretiempo por horas trabajadas más allá de las 40 a la semana, privándoles así de su salario íntegro, en violación de la Ley de Normas Justas de Trabajo.

Salarios atrasados recuperados:     $85,004 en horas extraordinarias no pagadas a 74 empleados

                                                                           $85,004 en indemnizaciones por daños y perjuicios para 74 empleados

                                                                           $34,954 en sanciones civiles

Cita: “Los empleadores deben pagar a sus trabajadores todos los salarios que hayan ganado por su trabajo, incluidas las horas extraordinarias”, declaró el director distrital de la División de Horas y Salarios, César Ávila, en Sacramento. “Pedimos encarecidamente a los empleadores que nos llamen para solicitar asistencia sobre cumplimiento y que conozcan nuestras herramientas educativas para evitar violaciones como las de este caso”. 

Contexto: La FLSA exige que la mayoría de los empleados de EE. UU. cobren al menos el salario mínimo federal por todas las horas trabajadas y que las horas extraordinarias se paguen a razón de una vez y media el salario normal por todas las horas que superen las 40 semanales. Obtenga más información sobre la División de Horas y Salarios y los derechos de los trabajadores, incluida una herramienta de búsqueda que puede utilizar si cree que se le pueden deber salarios atrasados recaudados por la división.

Los empleadores y los trabajadores pueden llamar de forma confidencial al personal de la división para hacer preguntas, independientemente de su lugar de origen, y el departamento puede hablar con las personas que llaman de forma confidencial en más de 200 idiomas a través de la línea de ayuda gratuita de la agencia al 866-4US-WAGE (487-9243). Descargue la nueva aplicación gratuita Timesheet App de la agencia para dispositivos Android, disponible en inglés y español, para llevar un registro de las horas de trabajo y el pago.

Read in English

Employer:      Universal Welding and Construction Inc.

                        12558 Snow Road

Bakersfield, CA 93314                                                                                                     

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found Universal Welding and Construction Inc. failed to pay 74 workers overtime rates for the hours they worked beyond 40 in a workweek, denying workers their full earnings in violation of the Fair Labor Standards Act.

Back Wages Recovered:       $85,004 in unpaid overtime wages for 74 employees

$85,004 in liquidated damages for 74 employees                                                                             

                                                $34,954 in civil money penalties

Quote: “Employers must pay their workers all the wages they have earned for their work, including overtime,” said Wage and Hour Division District Director Cesar Avila in Sacramento. “We urge employers to call us for compliance assistance and learn about our online educational tools to avoid violations like those in this case.” 

Context: 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 over 40 in a workweek. Learn more about the Wage and Hour Division and workers’ rights, including a search tool to use if you think you may be owed back wages collected by the division.

Employers and workers can call division staff confidentially with questions, regardless of where they are from, and the department can speak with callers confidentially in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new, free Timesheet App for android devices, available in English and Spanish, to help track work hours and pay.

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Employers:    NurseRight Staffing Agency LLC

    Kwame Adjekum

Actions:          Fair Labor Standards Act complaint filing

Courts:           U.S. District Court for the Northern District of Illinois, Western Division

Investigation findings: On Feb. 7, 2024, the U.S. Department of Labor filed a complaint in the U.S. District Court for the Northern District of Illinois seeking a total of $140,976 ‒ representing $70,488 in back wages and an equal amount in liquidated damages ‒ for 41 people employed by NurseRight Staffing Agency LLC of Rockford, Illinois.

An investigation by the department’s Wage and Hour Division alleged NurseRight Staffing Agency LLC

misclassified its employees – registered nurses, licensed practical nurses and certified nursing assistants – as independent contractors and, therefore, failed to pay them overtime at time and one-half their hourly rate of pay for hours worked over 40 in a workweek. The company also failed to make and maintain complete and accurate time and pay records that indicated actual work hours and earned wages on a weekly basis for all employees, all of which violated the Fair Labor Standards Act.

The suit also names the company’s manager, Kwame Adjekum, who is responsible for daily operations, including setting schedules and pay rates and hiring and firing employees.

Quote: “When employers misclassify workers as independent contractors, they deny them wages due under the Fair Labor Standards Act – such as overtime – and fail to pay employment taxes or workers’ compensation on their behalf,” explained Wage and Hour District Director Tom Gauza in Chicago. “There are clear conditions that must be met for an individual to be classified as an independent contractor. Employers or workers with questions about whether they are independent contractors or employees should contact the Wage and Hour Division for guidance.”

“This case demonstrates the U.S. Department of Labor’s ongoing commitment to ensuring workers receive their rightfully earned pay by using all legal tools available,” added Regional Solicitor Christine Heri in Chicago.  

Background: 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 and how to file an online complaint, including if you think you are misclassified as an independent contractor. 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.

U.S. Department of Labor v. NurseRight Staffing Agency LLC

Civil Action No. 3:24-cv-50063

# # #

Employer:              Pizzicato Inc.

                                    121 South Bancroft St.

 Portland, OR 97239                                                                                        

Type of action:          Consent Judgment and Order

Name of defendants: Pizzicato Inc; Mark Frankel; Tracy Frankel; and John-Felix Rippel

Background: Aninvestigation by the U.S. Department of Labor’s Wage and Hour Division found 11 restaurants operating under Portland-based restaurant chain Pizzicato illegally allowed managers to participate in tip pools and by doing so withheld a portion of employees’ earned tips. Federal law prohibits restaurant employers from tipping out managers from a tip pool, including managers paid on an hourly basis. The investigation also revealed the employer hired a 17-year-old minor to drive a motor vehicle, a violation of the Fair Labor Standards Act’s hazardous occupations for minors.

Resolution: The consent judgment permanently enjoins Pizzicato owners Mark and Tracy Frankel and company officer John-Felix Rippel from violating the FLSA and orders the payment of $270,101 in back wages as well as $270,101 in liquidated damages, for a total of $540,202 for 367 employees. The court also ordered Pizzicato to pay $29,797 in penalties. 

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

Quotes: “The resolution of this case should remind restaurant employers that the law forbids managers and supervisors to participate in tip-pools and pocket a portion of employees’ tips,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “The U.S. Department of Labor is committed to ensuring that employees receive all the money they earn, including tips paid by customers.”

“Wage theft, including employers’ pocketing workers’ tips, is a major concern for restaurant industry workers, who are some of the most vulnerable, low-wage workers in our community,” added Wage and Hour Division District Director Katherine Walum in Portland. 

The division’s Portland district office conducted the investigation. The San Francisco Regional Office of the Solicitor reached the consent judgment in court.

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.

Docket Number: 3:34-cv-00202-SI

Employer:      Maui L&L Food Inc., operating as L&L Hawaiian Barbecue

                        270 Dairy Road

Kahului, HI 96732                                                                                                     

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found Hui Bing Zhang, owner of Kahului-based L&L Hawaiian Barbecue on Maui, illegally kept a portion of employees tips and deprived them of their lawful overtime earnings by knowingly underpaying their earned premium pay and recording the deficient cash payments separately and outside their normal payroll, both violations of the Fair Labor Standards Act.  

Back Wages Recovered:       $58,600 in unpaid overtime wages and $8,791 in withheld tips for 21 employees

$67,391 in damages for 21 employees                                                                             

                                                $5,685 in civil money penalties

Quote: “The U.S. Department of Labor is determined to fight wage theft in the restaurant industry and across all sectors of the economy,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “This restaurant employer willfully violated the law by deliberately underpaying workers their overtime wages and pocketing a portion of the tips they earned.” 

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.  

TAMPA, FL – The U.S. Department of Labor has recovered $184,139 in back wages and liquidated damages for 56 seasonal guest workers and U.S. workers of a Naples restaurant after finding multiple violations of federal nonimmigrant work program regulations and federal minimum wage and overtime regulations. 

The department’s Wage and Hour Division found Sails Restaurant LLC violated provisions of the H-2B worker visa program by misrepresenting job requirements, including willfully misrepresenting access to high-paid server positions – suggesting unlimited earnings potential when instead no such job existed and promotional positions out of reach for many – and shifting a dining room attendant to another job as a construction laborer. The agency also found the employer:

• Imposed special experience requirements for H-2B workers to qualify for jobs. 
• Failed to list all qualifications in the job order.
• Did not give proper notices related to job termination, denying H-2B workers U.S. work status rights.
• Improperly classified jobs or excluded job tasks on work orders.
• Failed to provide job orders or notify workers of their rights. 
• Did not reimburse visa expenses for H-2B workers, despite being aware of the requirement.

The division assessed $53,536 in civil money penalties.

“Federal law protects nonimmigrant workers employed under the H-2B program, and Sails Restaurant – which has used the program before and is well aware of its requirements – violated those laws,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “All workers, both U.S. and nonimmigrant workers, must be paid their lawfully earned wages.”

Investigators also found the employer illegally kept the tips of some H-2B and U.S. workers, failed to pay one worker their last paycheck and paid an incorrect overtime rate to tipped employees, all violations of the Fair Labor Standards Act.

“Hospitality and food industry employers must understand that regardless of whether the employer is taking a tip credit, employers are prohibited from keeping employee tips or requiring that an employee give their tips to the employer, a supervisor, or manager. The division has numerous resources available on our website and has staff available who are able to answer questions and provide compliance assistance to employers,” Ratmiroff added.

On Feb. 22 from 9 a.m. to 4 p.m. (EDT), the Wage and Hour Division will host a free webinar to educate employers in the hospitality industry of the requirements under the Fair Labor Standards Act and H-2B provisions. Information related to requirements under Occupational Safety and Health Administration, Equal Employment Opportunity Commission, and Employment and Training Administration Office of Foreign Labor Certification will also be provided. The event is free but registration is required.

The federal H-2B visa program permits U.S. employers to temporarily hire nonimmigrants to perform nonagricultural labor or services. The employment must be for a limited, specific period of time, such as a one-time occurrence, seasonal, peak load or intermittent need.

Sails Restaurant is a full-service dining establishment in Naples. The restaurant opened in February 2018 and employs about 60 workers during season.

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). Workers and employers can contact the division confidentially and the department can assist callers in more than 200 languages.

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. Download the agency’s timesheet app, which is free and available in English and Spanish for Android and iOS devices, to track hours and pay.