Court orders Minnesota carnival operators to pay $146K in back wages to temporary foreign workers denied wages, $63K in civil money penalties

News Brief

Court orders Minnesota carnival operators to pay $146K in back wages to temporary foreign workers denied wages, $63K in civil money penalties

Employers:    GoldStar Amusements Inc., owner Michael Featherston, Fairbault, Minnesota

                         Lee’s Concessions Inc., owner Connie Featherston, Fairbault, Minnesota          

Action:           U.S. Department of Labor Administrative Law Judge decision

Court:             U.S. Department of Labor, Office of Administrative Law Judges, Cincinnati, Ohio

Court action: U.S. Department of Labor Administrative Law Judge Steven Bell issued a decision on March 13, 2024, affirming the findings of a Wage and Hour Division investigation that determined — during their 2016 and 2017 seasons — carnival operators GoldStar Amusements Inc. and Lee’s Concessions Inc. did not pay prevailing wages, pay inbound and outbound transportation costs, and keep accurate earning statements for foreign workers employed under the H-2B visa program. The program permits employers to hire nonimmigrant workers to perform temporary nonagricultural work on a one-time, seasonal, peak load or intermittent basis.

The decision follows hearings held in January and July 2023 before Administrative Law Judge Steven Bell and affirmed the division’s violations.

Wages and damages recovered:      $146,243 to 55 employees

Penalties assessed:     $63,584 in civil money penalties. 

Quote: “The H-2B visa program includes very specific terms regarding wages, transportation and other requirements, which are clearly defined for employers when they apply to hire foreign workers,” said Wage and Hour District Director Kristin Tout in Minneapolis. “Employers such as these are legally responsible for knowing and complying with federal wage laws.”

Background: Owned by Michael Featherston, GoldStar Amusements provides amusement rides at carnivals and fairs while Lee’s Concessions — owned by Michael’s spouse, Connie Featherston — provides food and games at carnivals and fairs. Both companies share principal offices in Faribault. 

Learn more about the Wage and Hour Division, 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, 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.

Administrator, Wage and Hour Division, United States Department of Labor V. GoldStar Amusements Inc., Lee’s Concessions Inc.

Case Nos. 2021-Tne-00027; 2021-Tne-00028

Agency
Office of the Solicitor
Date
March 27, 2024
Release Number
24-600-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
Share This

Investigation recovers $560K for workers denied full wages, benefits by District of Columbia behavioral health department’s group homes provider

News Release

Investigation recovers $560K for workers denied full wages, benefits by District of Columbia behavioral health department’s group homes provider

Department of Labor finds Lamont Homes violated federal pay laws

WASHINGTON – The U.S. Department of Labor has recovered more than $560,000 after its investigation found an operator of group homes deprived 34 workers in the District of Columbia-area of their full wages and fringe benefits.

The department’s Wage and Hour Division determined Lamont Homes Inc. violated the Fair Labor Standards Act and the McNamara-O’Hara Service Contract Act. The district’s Department of Behavioral Health contracted the company to provide residences for people needing mental and behavioral support. Federal Service Contract Act worker protections, including the payment of prevailing wages and fringe benefits, apply to most service contracts entered into by the District of Columbia.

Division investigators found Lamont Homes violated federal law by failing to do the following:

  • Classify workers properly based on the duties they performed.
  • Pay the prevailing wage rate required by the SCA wage determination.
  • Compensate workers for all hours worked, including weekend hours.
  • Pay fringe benefits, including health and welfare, vacation and holiday pay.
  • Pay proper overtime rates for hours over 40 in a workweek.
  • Maintain records of actual hours worked.

“Under the Service Contract Act, employers like Lamont Homes that provide services for the District of Columbia must pay workers prevailing wages and fringe benefits, protections that help ensure that government contracts build the middle class,” said Wage and Hour Administrator Jessica Looman. “Violations like those found in this case can be prevented when employers meet their contractual obligations.”

In addition to paying back wages and fringe benefits, Lamont Homes agreed to implement accurate record-keeping of hours worked, pay required wages in the future, not deduct lodging expenses from employees’ pay and receive training on FLSA and SCA compliance.

Learn more about the FLSA and the SCA. Workers can use the division’s Workers Owed Wages search tool to check if they are owed back wages collected by the division. Download the agency’s new Timesheet App, available for iOS and Android devices in English and Spanish, to ensure hours and pay are accurate. Employers and workers can contact the division confidentially at its toll-free number, 1-866-4-US-WAGE (487-9243). The division can speak with callers in more than 200 languages, regardless of where a caller is from.

Learn more about the Wage and Hour Division.

Agency
Wage and Hour Division
Date
March 25, 2024
Release Number
24-528-NAT
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
Share This

US Department of Labor recovers more than $140K in back wages, damages for 118 home healthcare workers employed by two Louisiana companies 

News Release

US Department of Labor recovers more than $140K in back wages, damages for 118 home healthcare workers employed by two Louisiana companies 

Twin City Home Care Services, Divine Services LLC shortchanged workers 

NEW ORLEANS  Among the nation’s lowest paid workers, home healthcare employees are asked to work long hours routinely to provide help to people in need. Too often, these workers are shortchanged by employers’ unfair pay practices as was the case for 118 employees of two North Louisiana home healthcare providers, Twin City Home Care Services in Monroe and Divine Services LLC in Minden. 

Investigators with the U.S. Department of Labor’s Wage and Hour Division determined that Twin City Home Care Services and Divine Services paid affected employees straight-time rates for all hours worked, including for hours over 40 in a workweek when an overtime rate applies.

The division recovered $84,586 in back wages and liquidated damages for 98 employees of Twin City Home Care Services, and $56,067 in back wages and liquidated damages for 20 employees of Divine Services.

“Employees eligible for overtime pay must receive time and one-half their regular rate when they work more than 40 hours in a workweek,” said Wage and Hour Division District Director Troy Mouton in New Orleans. “Employers must calculate the hours worked and regular rate correctly to ensure that workers are properly compensated. Employers with questions about how to make these determinations should contact the Wage and Hour Division for free assistance to help them avoid costly consequences.” 

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.        

Agency
Wage and Hour Division
Date
March 25, 2024
Release Number
24-392-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
Share This

US Department of Labor requires Tennessee parts manufacturer to turn over profits from oppressive child labor use, compensate victims

News Release

US Department of Labor requires Tennessee parts manufacturer to turn over profits from oppressive child labor use, compensate victims

Tuff Torq Corp. to pay $296K civil penalty for employing children to operate dangerous machinery, requiring them to work more hours than the law allows

GREENVILLE, TN – The U.S. Department of Labor’s Office of the Solicitor has obtained a federal consent judgment that requires a Morristown manufacturer of outdoor power equipment components for major companies including John Deere, Toro and Yamaha to stop employing children illegally and to follow federal child labor laws in the future. 

The judgment, which comes after the department’s Wage and Hour Division identified several children employed in dangerous jobs, includes a $296,951 civil money penalty. The employer must also set aside $1.5 million as disgorgement of 30 days’ profits related to its use of child labor. The proceeds paid by Tuff Torq will be used for the benefit of the children employed illegally. 

Entered in the U.S. District Court for the Eastern District of Tennessee at Greenville on March 22, 2024, the action addressed Tuff Torq Corp.’s illegal employment of children. To date, the department has determined that Tuff Torq subjected 10 children to oppressive child labor.

Division investigators began its probe months ago but obtained clear evidence of the unlawful conduct on Jan. 23, 2024, when they returned to the Tuff Torq facility and observed a child operating a power-driven hoisting apparatus, an occupation prohibited for workers under the age of 18. As a result, the department objected to the shipment of goods from the Morristown facility, citing the Fair Labor Standards Act’s “hot goods” provision, which prevents employers from shipping goods produced by oppressive child labor. 

“Even one child working in a dangerous environment is too many,” said Wage and Hour Division Administrator Jessica Looman. “Over the past year, we have seen an alarming increase in child labor violations, and these violations put children in harm’s way. With this agreement, we are ensuring Tuff Torq takes immediate and significant steps to stop the illegal employment of children. When employers fail to meet their obligations, we will act swiftly to hold them accountable and protect children.”

In addition to an agreement to comply with the child labor provisions of the FLSA, payment of the full civil money penalty, and disgorgement of profits, Tuff Torq has agreed, among other provisions, to do the following:

  • Contract with a community-based organization to provide regular training to staff, managers and contractors.
  • Establish an anonymous tip line for reporting child labor and other suspected FLSA violations.
  • Allow unannounced and warrantless searches of its facility to three years.
  • Refrain from entering any new contracts with staffing agencies or other contractors with child labor violations and will require contractors to disclose child labor violations and hiring protocols.

“This consent decree holds Tuff Torq accountable while also discouraging future violations, focusing on the supply chain, and striving to make the victims whole,” said Solicitor of Labor Seema Nanda. “This agreement puts in practice what we have long been saying. The department will not tolerate companies profiting on the backs of children employed unlawfully in dangerous occupations. Tuff Torq has agreed to disgorge profits, which will go to the benefit of the children. This sends a clear message: putting children in harm’s way in the workplace is not only illegal, but also comes with significant financial consequences.”

In fiscal year 2023, the department investigated 955 cases with child labor violations, involving 5,792 children nationwide, including 502 children employed in violation of hazardous occupation standards. The department addressed those violations by assessing employers more than $8 million in civil money penalties. 

Learn more about the Wage and Hour Division, including child labor regulations on dangerous jobs that are prohibited for workers under age 18.

The division offers confidential compliance assistance to anyone – regardless of where they are from – with questions about their wages or how to stay in compliance with the law by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The department can speak with callers in more than 200 languages.

Agency
Wage and Hour Division
Date
March 25, 2024
Release Number
24-206-NAT
Media Contact: Jake Andrejat
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
Share This

US Department of Labor recovers $1.5M for laborers, mechanics working on multi-billion-dollar federal program at California Navy base

News Release

US Department of Labor recovers $1.5M for laborers, mechanics working on multi-billion-dollar federal program at California Navy base

35 contractors violated federal labor laws, shortchanging 413 workers

SACRAMENTO – Widespread violations of federal labor and contracting regulations by nearly three dozen employers with federally funded contracts at Naval Air Weapons Station China Lake resulted in the U.S. Department of Labor recovering more than $1.5 million in back wages and damages for more than 400 workers at the Ridgecrest facility.

Part of an initiative by the department’s Wage and Hour Division, the investigations sought to ensure contractors working on the $3.9 billion earthquake recovery program at NAWS China Lake met federal regulations for the employment of workers on projects supported with federal funds. The initiative seeks to bring construction employers into compliance and hold them responsible for paying workers prevailing wages and health and welfare benefits as required. 

In investigations of 35 contractors spanning a two-year period, division investigators recovered more than $1.5 million in back wages and $32,291 in liquidated damages for a total of 413 workers for violations of the Davis-Bacon and Related Acts, the Contract Work Hours and Safety Standards Act, the Service Contract Act and the Fair Labor Standards Act. The division also assessed employers with $14,020 in civil money penalties as a result.

“Federal projects like these often strengthen the region’s economy, but when employers fail to pay workers all the required wages and fringe benefits they’ve earned, the full benefits are not felt,” explained Wage and Hour Division Regional Administrator Ruben Rosalez in San Francisco. “Employers unclear of their legal obligations and workers unsure of their rights can contact us to learn what it takes to comply with federal laws.” 

Among the largest violators were subcontractors working on projects awarded to Environmental Chemical Corp., a Burlingame design and construction company doing business as ECC. The company was awarded two contracts as part of the Earthquake Recovery Program, including the largest construction project, the South Airfield Complex at NAWS China Lake. The subcontractors found in violation include:

  • Adecco USA Inc., a Jacksonville, Florida, recruitment and staffing service, failed to pay required prevailing wage rates, health and welfare benefits, and overtime while providing temporary staffing for food service, clerical, maintenance and housekeeping work. The division recovered $626,341 in back wages for 115 workers – some of whom were owed nearly $40,000 – for the violations.
  • Blue Knight Security & Patrol Inc., a Rancho Cordova security guard and patrol service providing security at a temporary housing site for construction workers, failed to pay overtime wages, prevailing wage rates and health and welfare benefits as required by law. The division recovered $313,045 in back wages for 54 workers.
  • Hensel Phelps, a Greeley, Colorado, commercial and institutional building contractor providing construction services, failed to pay prevailing wage rates, health and welfare benefits, and overtime compensation. The division recovered $184,172 in back wages for 37 workers.
  • ATCO Structures and Logistics, a Spring, Texas, prefabricated wood building manufacturer building living units for construction employees, failed to pay prevailing wage rates and overtime wages. The division determined ATCO owed $104,935 in back wages to seven workers.

In addition to these contractors, 31 additional contractors violated federal labor laws. View a list of all employers cited in these investigations. 

As part of the initiative, the division coordinated with the Officers in Charge of Construction China Lake at NAWS to provide in-person and virtual education, monthly meetings with stakeholders, an outreach event with Ironworkers Local 433 and to develop multimedia informational materials. 

“We could not be more grateful for the Wage and Hour Division and the Naval Facilities Engineering Systems Command compliance efforts at the Naval Air Weapons Station China Lake,” said Ironworkers Local 433 Business Agent Daniel Osborne. “The last people who should be getting shortchanged are the men and women helping to build our nation’s defenses.” 

Learn more about the DBRA, the CWHSSA and other laws enforced by the division, as well as a search tool to use if you think you may be owed back wages collected by the division. The division 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 Timesheet App, available for Android and iOS devices in English and Spanish, to ensure hours and pay are accurate.

Learn more about the Wage and Hour Division.

Agency
Wage and Hour Division
Date
March 20, 2024
Release Number
24-468-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
Share This

El Departamento de Trabajo de los EE. UU. recupera casi $200K para trabajadores mal pagados por subcontratista de Massachusetts en obra de Rhode Island

News Release

El Departamento de Trabajo de los EE. UU. recupera casi $200K para trabajadores mal pagados por subcontratista de Massachusetts en obra de Rhode Island

Stone Art Inc. suspendida de determinados contratos federales durante 3 años

BOSTON. El Departamento de Trabajo de los EE. UU. recuperó $199,433 en salarios atrasados para 37 trabajadores tras descubrir que un subcontratista de construcción de Lawrence no pagó los salarios vigentes ni las prestaciones complementarias a los empleados que trabajaban en un proyecto financiado con fondos federales en un centro médico del Departamento de Asuntos de Veteranos en Providence, Rhode Island.

La investigación de la División de Horas y Salarios del departamento descubrió que Stone Art Inc. no pagaba a los carpinteros, instaladores y peones que instalaban paneles de yeso la tasa salarial vigente ni las prestaciones complementarias exigidas por la Ley Davis-Bacon.

Los investigadores también descubrieron que Stone Art Inc. falsificaba los registros de nóminas certificados, no creaba ni mantenía registros básicos y de nóminas precisos, no pagaba las horas extras adecuadas en virtud de la Ley de Horas de Trabajo y Normas de Seguridad Ocupacional en Contratos (CWHSSA, por sus siglas en inglés) y no permitía a los empleados acumular una hora de licencia pagada por enfermedad por cada 30 horas trabajadas o en relación con un contrato cubierto por el gobierno federal, como exige la Orden Ejecutiva 13706

Los salarios atrasados recuperados por la división resuelven las infracciones a la Ley de Base de Defensa (DBA, por sus siglas en inglés), la CWHSSA y la Orden Ejecutiva 13706. Además, el departamento inhabilitó a Stone Art Inc. para trabajar en cualquier contrato federal sujeto a la Orden Ejecutiva 13706 durante tres años. 

“El Departamento de Trabajo de los EE. UU. inhabilitó a Stone Art Inc. para trabajar en determinados contratos federales durante tres años, específicamente por no pagar debidamente las licencias pagadas por enfermedad a los empleados de determinados contratistas federales”, declaró el director de distrito de la División de Horas y Salarios, Carlos Matos, en Boston. “La División de Horas y Salarios no tolerará que los contratistas violen sus responsabilidades legales en virtud de la ley federal”.

Stone Art Inc. es una empresa de construcción ubicada en Lawrence que se dedica a la fabricación e instalación de encimeras de granito y mármol principalmente. El contratista principal del proyecto, Carrigg Commercial Builders LLC de Manchester, Nuevo Hampshire pagó los salarios atrasados resultantes de la resolución de este caso.

La División de Horas y Salarios ofrece numerosos recursos tanto para empleadores como para trabajadores, incluida información sobre la Ley Davis-Bacon y Leyes Relacionadas y la Orden Ejecutiva 13706, la línea de ayuda gratuita de la agencia en el 866-4US-WAGE (487-9243) y seminarios web que tienen lugar durante todo el año. Los trabajadores y empleadores pueden llamar a la división para hacer preguntas de forma confidencial, independientemente de su estatus de inmigración, y la división puede hablar con las personas que llaman en más de 200 idiomas. Obtenga más información sobre la División de Horas y Salarios, incluida una herramienta de búsqueda que puede utilizar si cree que le pueden deber salarios atrasados cobrados por la división.

Descargue la nueva aplicación gratuita Timesheet App de la agencia para dispositivos Android y iOS, disponible en inglés y español, para realizar un seguimiento de las horas de trabajo y la remuneración.

Este comunicado de prensa también está disponible en inglés.     

Agency
Wage and Hour Division
Date
March 20, 2024
Release Number
24-124-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
Share This

US Department of Labor recovers nearly $200K for workers underpaid by Massachusetts subcontractor at Rhode Island worksite

News Release

US Department of Labor recovers nearly $200K for workers underpaid by Massachusetts subcontractor at Rhode Island worksite

Stone Art Inc. debarred from certain federal contracts for 3 years

BOSTON – The U.S. Department of Labor has recovered $199,433 in back wages for 37 workers after finding a Lawrence construction subcontractor failed to pay prevailing wages and fringe benefits to employees working on a federally funded project at a Department of Veterans Affairs medical center in Providence, Rhode Island.

The department’s Wage and Hour Division investigation found Stone Art Inc. failed to pay carpenters, tapers and laborers installing drywall the required prevailing wage rate and fringe benefits required under the Davis-Bacon Act.

Investigators also found that Stone Art Inc. falsified certified payroll records, failed to create and maintain accurate payroll and basic records, did not pay proper overtime under the Contract Work Hours and Safety Standards Act and failed to allow employees to accrue one hour of paid sick leave for every 30 hours worked on or in connection with a federally covered contract as required under Executive Order 13706

The back wages recovered by the division resolve the DBA, CWHSSA and Executive Order 13706 violations. In addition, the department has debarred Stone Art Inc. from working on any federal contract that is subject to Executive Order 13706 for three years. 

“The U.S. Department of Labor has debarred Stone Art Inc. from working on certain federal contracts for three years, specifically for failing to pay proper paid sick leave to employees of certain federal contractors,” said Wage and Hour Division District Director Carlos Matos in Boston. “The Wage and Hour Division will not tolerate contractors violating their legal responsibilities under federal law.”

Stone Art Inc. is a construction company located in Lawrence and is engaged primarily in fabricating and installing granite and marble counter tops. The back wages that resulted from the settlement of this case were paid by the project’s prime contractor, Carrigg Commercial Builders LLC of Manchester, New Hampshire.

The Wage and Hour Division offers numerous resources for employers and workers alike, including information about the Davis-Bacon and Related Acts and Executive Order 13706, the agency’s toll-free helpline at 866-4US-WAGE (487-9243) and webinars that take place throughout the year. Workers and employers can call the division confidentially with questions, regardless of immigration status, and the division can speak with 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, free Timesheet App for Android and iOS devices, available in English and Spanish, to help track work hours and pay.

This press release is also available in Spanish.

Agency
Wage and Hour Division
Date
March 20, 2024
Release Number
24-124-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
Share This

US Department of Labor recovers nearly $369K in wages, damages for 16 workers denied overtime pay by prominent Oahu restaurant

News Release

US Department of Labor recovers nearly $369K in wages, damages for 16 workers denied overtime pay by prominent Oahu restaurant

Owned by Japan’s Suntory Holdings, Restaurant Suntory assessed $12,105 in penalties

HONOLULU The U.S. Department of Labor’s Wage and Hour Division has recovered $368,992 in back wages and damages for 16 employees of an Oahu restaurant — owned by one of Japan’s largest brewing and distilling companies — whose operators denied overtime wages to salaried cooks and chefs, some of whom worked up to 70 hours per week.

Investigators determined Restaurant Suntory wrongly excluded these salaried employees from overtime eligibility and, by doing so, did not pay them legally required overtime when they worked more than 40 hours in a workweek. The restaurant also failed to keep accurate wage records.

The division recovered $184,496 in unpaid overtime and an equal amount in liquidated damages for the affected employees, some of whom the employer owed as much as $46,000 in back pay. In addition, the department assessed Suntory $12,105 in civil money penalties for its reckless disregard of the Fair Labor Standards Act.

“The outcome of our investigation at Restaurant Suntory should serve to remind restaurant industry employers that they cannot simply ignore the rights of kitchen staff to overtime wages because these employees are paid on a fixed salary basis,” explained Wage and Hour Division District Director Terence Trotter in Honolulu. “Employers must pay workers who cook and prepare food for customers overtime rates for hours worked over 40 in a workweek.” 

“We strongly encourage restaurant industry employers to use the free resources we offer, including our compliance assistance toolkits to avoid costly violations like those found in this case,” Trotter added.

Owned by Suntory Holdings, Restaurant Suntory opened in Waikiki in 1980 and is the sole remaining Restaurant Suntory in the U.S. Founded in 1899, Suntory Holdings is a global provider of premium spirits, beer and wine, brewed teas, bottled water, carbonated soft drinks, ready‐to‐drink coffee and energy drinks, and health and wellness products. Its product line includes American spirits Jim Beam and Maker’s Mark as well as Sauza Tequila and the popular non‐alcoholic beverage, Orangina. The company operates in the Americas, Europe, Africa, Asia and Oceania, and had a reported annual revenue of $20.4 billion in 2020.

Workers can use the Wage and Hour 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 division confidentially for help 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 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

Agency
Wage and Hour Division
Date
March 19, 2024
Release Number
24-533-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
Share This

US Department of Labor obtains judgment ordering a Sacramento Fastrip convenience store operator to pay $132K in owed wages, damages

News Brief

US Department of Labor obtains judgment ordering a Sacramento Fastrip convenience store operator to pay $132K in owed wages, damages

Employer:                              Fastrip Sacramento Inc., operating as Fastrip Food Store

                                                8061 Florin Road

Sacramento, CA 95828           

Type of action:                      Consent judgment and order

Name of defendants:             Fastrip Sacramento Inc., Amrik Singh

Background: Aninvestigation by the U.S. Department of Labor’s Wage and Hour Division found the operators of a Fastrip gas station and convenience store failed to pay federal minimum wage and overtime rates to seven employees for hours over 40 in a workweek, in violation of the Fair Labor Standards Act. After learning of the investigation, the employer attempted to interfere by instructing employees not to speak with investigators, including offering bribes; requiring employees to sign blank timecards that the employer later backdated and falsified; and by trying to retaliate and intimidate employees by threatening to report their immigration status and by visiting or calling family or friends.

Resolution: The consent judgment orders Fastrip and Amrik Singh to pay $57,340 minimum wage and overtime, an equal amount in liquidated damages and $17,500 in compensatory damages to seven workers. The court also ordered Fastrip to pay $4,655 in civil penalties assessed by the division.  

Court: U.S. District Court for the Eastern District of California

Docket Number: 2:24-cv-00761-DJC-DB

Quote: “One of the U.S. Department of Labor’s priorities is to protect workers against the types of atrocious and illegal acts these employers took to retaliate against employees and interfere with our investigation,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “Their despicable actions to mask their deliberate efforts to deny vulnerable employees their hard-earned wages proved pointless and costly.” 

Background: Jaco Oil Co. owns more than 54 convenience stores branded as Fastrip Food Stores in Arizona and California; most are which are leased to independent operators.

The division’s Sacramento District Office conducted the investigation. The San Francisco Regional Office of the Solicitor reached the consent judgment at the 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.

Agency
Wage and Hour Division
Date
March 19, 2024
Release Number
24-492-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
Share This

US Department of Labor extends compliance, awareness campaign in Southeast agricultural industry to protect vulnerable farmworkers

News Release

US Department of Labor extends compliance, awareness campaign in Southeast agricultural industry to protect vulnerable farmworkers

2023 investigations recovered more than $2M in wages, assessed $3.8M in penalties

Lea esto en español.

ATLANTA – After recovering more than $2 million in back wages for nearly 3,000 workers in the Southeast agricultural industry in 2023 and assessing employers with more than $3.8 million in civil money penalties, the U.S. Department of Labor and its Wage and Hour Division is continuing its multi-year initiative to educate industry employers about compliance and workers about their legal protections under federal law. The division’s enforcement and outreach efforts in the Southeast are part of a national initiative to improve compliance in the agricultural industry.

In 2023, investigators with the division’s Southeast Region identified violations in 90 percent of the approximately 240 completed investigations of agricultural employers. This was an increase from 2022, when the division’s Southeast investigators found violations in 85 percent of nearly 220 investigations. 

In addition, the division also debarred 8 Southeast growers and farm labor contractors in 2023 from participation in the H-2A agricultural guest worker program.

“The U.S. Department of Labor is committed to protecting dedicated farm workers who put food on America’s tables,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “When employers attempt to unlawfully increase their profits at the expense of the dignity, respect and, in some cases, freedom of workers, we will use every tool at our disposal to hold them accountable.”

The division will host a free virtual Agricultural Seminar on March 28 from 10:30 a.m. to 6 p.m. EST to provide guidance on federal requirements governing agricultural employment for growers, farmers, shippers, contractors, farm labor contractors, buyers and agricultural workers nationwide. Registration is required.

The division will continue to partner with industry stakeholders to instill greater industry awareness and provide tools to improve compliance, with the goal of lowering the overall number and rate of violations that occur. As the growing season approaches, the division will conduct vigorous investigations, inform workers and employers of their rights and responsibilities, and act to prevent violations of federal programs used by employers to find temporary, seasonal and migrant workers to meet labor demands. 

“Our enforcement and educational efforts go hand-in-hand. When workers are aware of their rights and understand they have a channel to discuss their wage concerns with us without fear of retaliation, it makes it harder for wage theft to go unpunished,” Coria added. 

Federal law empowers the division to suspend, revoke or withhold renewal of farm labor certificates for contractors who commit violations under the Migrant and Seasonal Agricultural Worker Protection Act. Employers are encouraged to review the MSPA registered farm labor contractor list and H-2A debarment list prior to contracting for labor. The division offers compliance assistance resources, including an agriculture compliance assistance toolkit, where employers can access the information they need to comply with the law.

For information about MSPA, H-2A and other laws enforced by the division, contact the toll-free helpline confidentially at 866-4US-WAGE (487-9243). The division can speak with callers in more than 200 languages, regardless of where a caller is from.

Agency
Wage and Hour Division
Date
March 19, 2024
Release Number
24-283-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
Share This
Subscribe to Wages