US Department of Labor recovers $155K in back wages, damages from Kansas supermarket for 158 workers denied overtime

News Brief

US Department of Labor recovers $155K in back wages, damages from Kansas supermarket for 158 workers denied overtime

Employer:      Supermart El Torito Inc.

                        1409 Central Avenue

                         Kansas City, KS 

 

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division recovered $155,990 ‒ representing $77,995 in back wages and an equal amount in liquidated damages ‒ for 158 employees of Supermart El Torito Inc. in Kansas City, Kansas. The division also assessed the employer with $187,546 in civil money penalties for repeated violations of Fair Labor Standards Act’s overtime provisions.

Investigators found that Supermart El Torito paid employees overtime at time and a-half the employee’s rate of pay, as required when they worked between 41 and 58 hours a week. When an employee worked more than 58 hours per week, the employer paid the additional time at the worker’s straight-time hourly rate in cash. By law, Supermart El Torito should have paid employees time and one-half their hourly rate for all hours over 40 in a workweek. The employer also failed to record and retain accurate employee time records. 

The division cited the employer for violations found at its Kansas City location at 1409 Central Avenue. Supermart El Torito operates two food stores in Kansas City and one in Topeka. 

Quote: “When an employer shortchanges its workers their rightfully earned wages, such as overtime, knowingly, they take money out of workers’ pockets,” explained Wage and Hour District Director Reed Trone in Kansas City, Missouri. “Our investigation found Supermart El Torito chose to ignore the law.”

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.

Agency
Wage and Hour Division
Date
March 12, 2024
Release Number
24-329-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor releases research on continued economic effects of job segregation, pay disparities on Black, Hispanic women

News Release

US Department of Labor releases research on continued economic effects of job segregation, pay disparities on Black, Hispanic women

‘Bearing the Cost’ research shows gender, racial wage gap costs billions annually

WASHINGTON – New research released today by the U.S. Department of Labor reveals that Black women lost $42.7 billion in wages compared to white men in 2023, and Hispanic women lost $53.3 billion in wages. These losses are driven entirely by the fact that Black and Hispanic women are concentrated disproportionately in jobs that, on average, pay lower wages than those held by white men.

“As we mark Equal Pay Day today, the Department of Labor’s ‘Bearing the Cost’ report is further evidence that women have long been undervalued in jobs and industries where they are overrepresented,” said Acting Secretary of Labor Julie Su. “The Biden-Harris administration is centering racial and gender equity in our economic growth plan, working to close the racial and gender pay gaps by expanding both opportunity and job quality for women.”

Job segregation is a long-standing driver of the persistent pay inequities experienced by women in the U.S. In 2022, the gender wage gap – the difference between the median wages of men and women working full-time year-round – was 16 percent, which means women working full-time year-round received 84 cents for every dollar paid to men. Compared to white, non-Hispanic men, the wage gaps were 20 percent for white, non-Hispanic women; 31 percent for Black women; and 43 percent for Hispanic women. 

“Job segregation results in lower wages for women, especially women of color and their families, and hurts the whole economy,” said Women’s Bureau Director Wendy Chun-Hoon. “The Biden-Harris administration is implementing proven strategies to address economic disparities and working to eliminate the wage gap for all workers.”

Learn more about the research

Agency
Women's Bureau
Date
March 12, 2024
Release Number
24-491-NAT
Media Contact: Monica Vereen
Media Contact: Jake Andrejat
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Department of Labor recovers $129K in wages, damages for 26 home healthcare workers denied overtime by employer

News Brief

Department of Labor recovers $129K in wages, damages for 26 home healthcare workers denied overtime by employer

Family Hands Adult Care Facility assessed $9,684 in penalties for willful violations

Employer:      Family Hands Adult Care Facility LLC 

                        10016 LaSalle Ave.

Los Angeles, CA 90047                                                                                                     

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that Family Hands Adult Care Facility, operator of three residential care facilities for special needs patients in Los Angeles, blatantly disregarded the overtime pay requirements of the Fair Labor Standards Act. Investigators determined the employer paid regular hourly rates to employees for overtime hours worked beyond 40 in a workweek. During the review, owner Tina Scruggs-Tate told investigators that she did not maintain employee time records despite the fact that workers used identification numbers and fingerprints to clock in and out of work daily.

Back Wages Recovered:       $64,800 in unpaid overtime for 26 employees

                                                $64,800 in liquidated damages for 26 employees

                                                $9,684 in civil money penalties for willful violations

Quote: “The U.S. Department of Labor too often finds residential care employers taking advantage of vulnerable workers who provide critical services for people in need,” said Wage and Hour Division Assistant District Director Susan Bacon in Los Angeles. “Family Hands Adult Care Facility’s flagrant denial of required overtime pay violated the rights of employees to be paid fully. We will hold such bad actors to account for their workplace abuse and exploitation.”

BackgroundIn 2023, the division’s Los Angeles District Office completed 12 investigations of care industry employers, recovered more than $983,000 in wages and liquidated damages for care workers and conducted 14 educational outreach events for this industry. 

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.  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.

Agency
Wage and Hour Division
Date
March 7, 2024
Release Number
24-470-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor, Southeast Louisiana Building and Construction Trades Council establish partnership to improve industry compliance

News Release

US Department of Labor, Southeast Louisiana Building and Construction Trades Council establish partnership to improve industry compliance

Agreement facilitates joint outreach, cross-training, referrals of potential violations

NEW ORLEANS – The U.S. Department of Labor announced today that its Wage and Hour Division’s New Orleans district office has signed a collaborative agreement with the Southeast Louisiana Building and Construction Trades Council to protect workers and promote compliance with federal labor laws. 

Wage and Hour District Director Troy Mouton and Executive Secretary for the Southeast Louisiana Building and Construction Trades Council Andy O’Brien sign a three-year agreement to establish a partnership to protect construction workers and promote compliance with federal laws.
Wage and Hour District Director Troy Mouton and Executive Secretary for the Southeast Louisiana Building and Construction Trades Council Andy O’Brien sign a three-year agreement to establish a partnership to protect construction workers and promote compliance with federal laws.

The partnership will help both organizations cross-train staff, ease outreach efforts and identify possible labor violations. It will also expand information sharing and create opportunities to inform workers about their legal protections and improve employer awareness of their obligations.

“The Wage and Hour Division is pleased to enter this partnership with the Southeast Louisiana Building and Construction Trades Council,” explained Wage and Hour Division District Director Troy Mouton in New Orleans. “Our agencies’ goals complement each other and create unique opportunities to provide critical services to those who need them most.”

The three-year agreement will help provide construction workers in Louisiana with information, guidance and access to educational and training resources to help them exercise their rights, particularly those protected by minimum wage, overtime, recordkeeping and child labor laws. It also will include compliance assistance activities to help employers understand their labor compliance obligations.

Learn more about the laws enforced by the division or contact its toll-free helpline at 866-4US-WAGE (487-9243). Calls can be answered in more than 200 languages, regardless of where you are from.

Learn more about the Southeast Louisiana Building and Construction Trades Council.

Agency
Wage and Hour Division
Date
March 6, 2024
Release Number
24-455-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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US Department of Labor recovers $196K after investigators found owners, managers of Subway restaurants in Washington illegally pocketed tips

News Brief

US Department of Labor recovers $196K after investigators found owners, managers of Subway restaurants in Washington illegally pocketed tips

Franchisees assessed $22,017 in penalties for willful violations

Employer:      Jani Enterprises Inc., operating one Subway restaurant in Des Moines and one in Kent, WA

Keeyarah Enterprises Inc., operating two Subway restaurants in Lake Stevens, WA

Kian Enterprises Inc., operating three Subway restaurants in Marysville and one in Arlington, WA

Quantum Enterprises USA Inc., operating one Subway restaurant in Monroe and one in Sultan, WA

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found 10 Subway restaurants under common ownership allowed owners and managers to participate in employees’ tip pools, a violation of the Fair Labor Standards Act. Division investigators determined the illegal practice deprived 100 employees in Arlington, Des Moines, Kent, Lake Stevens, Marysville, Monroe and Sultan of the tips left by customers though credit card payments. Additionally, the employer manually adjusted employee timesheets to reduce hours worked to 40 hours or fewer per week and failed to combine hours worked at multiple locations to evade its legal obligation to pay overtime rates. 

Back Wages Recovered:       $80,528 in tips and $17,546 in overtime wages for 100 employees

                                                $98,074 in liquidated damages for 100 employees

                                                $22,017 in civil money penalties for the willful nature of the violations

Quote: “These Subway owners and managers willfully violated the Fair Labor Standards Act by underpaying employees and pocketing tips that did not belong to them,” said Wage and Hour Division District Director Thomas Silva in Seattle. “We encourage employers to review their practices and avoid the costly consequences of illegal actions.”

ContextWorkers 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.  

This news release is also available in Spanish. 

Agency
Wage and Hour Division
Date
March 5, 2024
Release Number
24-402-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers $108K in back wages, damages for workers at popular Oklahoma restaurant chain

News Brief

US Department of Labor recovers $108K in back wages, damages for workers at popular Oklahoma restaurant chain

Boom-a-Rang Diner no pagó las horas extras a los trabajadores

Employer name:        Boom-a-Rang Diner

Investigation site:      53 locations in Oklahoma

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found 53 locations of 

Boom-a-Rang Diner failed to include employee monthly performance bonuses to non-exempt management personnel in their regular pay rate when computing overtime wages, as required by the Fair Labor Standards Act

Back wages and damages: $54,423 in back wages and $54,423 in liquidated damages to 107 employees

Quote: “Restaurant employers must ensure that workers receive all the wages they earn – including proper overtime wages. They must include all non-discretionary bonus payments in overtime computations,” explained Wage and Hour District Director Michael Speer in Oklahoma City. “The Wage and Hour Division is here to answer any questions or concerns regarding pay practices from employers or workers.”

Background: The Wage and Hour Division enforces laws governing pay practices and other labor standards, including the Fair Labor Standards Act. Please review our Fact Sheet for general information regarding the regular rate of pay under the FLSA. 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.

Lea en Español

Agency
Wage and Hour Division
Date
March 5, 2024
Release Number
24-347-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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US Department of Labor recovers $119K in unpaid wages, damages for 43 workers denied overtime by Hawaii construction employer

News Brief

US Department of Labor recovers $119K in unpaid wages, damages for 43 workers denied overtime by Hawaii construction employer

H.K. Construction assessed $14,526 in penalties

Employer:      H.K. Construction Corp. 

                        2046 South King St.

Hawaii, HI 96826                                                                                                     

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that H.K. Construction, a company offering residential construction services on the island of Oahu, recklessly disregarded the requirements of the Fair Labor Standards Act and underpaid dozens of field employees the wages they legally earned. Investigators determined H.K. Construction failed to pay overtime rates by banking or saving hours worked over 40 in a workweek for payment in another pay period where employees worked fewer than 40 hours. The employer also attempted to substitute the cost of tools for the employee for the wages it owed. Additionally, H.K. Construction did not record and pay hours worked by office employees and incorrectly misclassified several workers as exempt for overtime pay.

Back Wages Recovered:       $59,679 in unpaid overtime and unrecorded hours worked for 43 employees

                                                $59,679 in liquidated damages for 43 employees

                                                $14,526 in civil money penalties for reckless violations

Quote: “Employers can’t delay payment or borrow against earned wages, including overtime premium wages,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “This construction company recklessly violated their employees’ right to receive the overtime pay they earned. This case should serve as a reminder to all employers that wages due must be paid correctly and on time.”

ContextWorkers 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.  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.  

Agency
Wage and Hour Division
Date
March 4, 2024
Release Number
24-454-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor seeks input from South Dakota building, heavy construction industry for wage survey to establish prevailing wage rates

News Release

US Department of Labor seeks input from South Dakota building, heavy construction industry for wage survey to establish prevailing wage rates

Survey seeks information on construction wages paid from March 2023 to June 2024

SIOUX FALLS, SD – The U.S. Department of Labor’s Wage and Hour Division is surveying the building and heavy construction industry of South Dakota to set prevailing wage rates, as required under the Davis-Bacon and Related Acts, for the payment of construction workers on federally funded and federally assisted construction projects.

The DBRA directs the department to set the prevailing wage rates that reflect the actual wages and fringe benefits paid to construction workers in the county where the work takes place. 

This survey requests information about wages paid to construction workers on building and heavy construction projects in South Dakota where construction occurred between March 25, 2023, and June 25, 2024. This is a statewide survey and is not limited to federally funded construction projects. The data collection period will begin March 25, 2024, and will conclude on June 25, 2024. The department encourages all stakeholders to participate in the survey.

Participation in the survey process is critical to the publication of prevailing wage and fringe benefit rates that accurately reflect the rates paid in the area being surveyed. Complete determinations reduce the need for contractors to request additional labor classifications. 

The best way to participate in the survey is online. The Wage and Hour Division will send notification letters to interested parties and contractors known to the agency. The letter will direct you to the website where you can complete the survey online. To be included, please complete and submit the online survey by June 25, 2024. If you would prefer to submit the information by mail, you can contact the team at (866) 236-2773 and request a form be mailed to you. All contractors and other interested parties are encouraged to participate in the survey and do not need to have received a letter to participate. The survey can be completed online.

If you have questions about the survey process and forms, please contact the Davis-Bacon Survey Center at 866-236-2773 or davisbaconinfo@dol.gov. 

People interested in getting more information about this survey may attend one of two free, online briefings that will describe the survey process and offer instructions for completing the survey. These briefings will be held on March 26 and March 28, 2024. 

 Register to attend an upcoming briefing. 

Learn more about the surveys

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. For confidential compliance assistance, workers and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

 

Agency
Wage and Hour Division
Date
February 29, 2024
Release Number
23-381-DAK
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor obtains court judgment ordering Idaho Falls restaurant to pay $319K for illegal tip sharing, child labor, overtime violations

News Brief

US Department of Labor obtains court judgment ordering Idaho Falls restaurant to pay $319K for illegal tip sharing, child labor, overtime violations

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.

Agency
Wage and Hour Division
Date
February 28, 2024
Release Number
24-176-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers $180K in wages, damages for 22 workers denied overtime pay by Sacramento restaurant employer

News Brief

US Department of Labor recovers $180K in wages, damages for 22 workers denied overtime pay by Sacramento restaurant employer

Taqueria Los Inmortales also assessed $7,980 in penalties

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.”

ContextWorkers 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. 

Agency
Wage and Hour Division
Date
February 28, 2024
Release Number
24-393-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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