ORLANDO, FL – The U.S. Department of Labor has recovered $224,113 in lost wages and benefits for 37 Florida workers after finding two employers failed to pay fringe benefits and prevailing and overtime wages to employees working on a new Veterans Affairs multi-specialty outpatient clinic in Daytona Beach.

The recovery follows investigations by the department’s Wage and Hour Division that found violations of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act for work being performed on a federally funded project. 

Specifically, investigators found M.C.A. Communications Inc. failed to pay electricians their fringe benefits and the full prevailing wage for all hours worked. The Houston-based employer also used a rate lower than the prevailing wage rate to compute overtime, allowing them to pay overtime rates lower than required by law. M.C.A. Communications also failed to track accrued, paid sick leave. The division’s investigation recovered $42,729 for eight workers. 

A second employer, EBP Electric Services Corp. in Plant City did not pay electricians fringe benefits and prevailing wages for all hours worked and failed to track and pay sick leave hours. The division recovered $181,384 from EBP for 29 workers to resolve the employer’s violations. 

“Government contractors must ensure their workers are paid the required wages and fringe benefits they have earned on federally funded construction projects,” explained Wage and Hour Division Deputy Regional Administrator Wildalí De Jesús in Orlando, Florida. “Employers and workers can contact our office to learn about their obligations and rights under the law or attend any of our upcoming online compliance seminars. These violations are avoidable.”

The U.S. Department of Labor offers online compliance seminars for contracting agencies, contractors,  workers and other stakeholders to provide information on recent updates to regulations governing employment practices for federally funded contracts. 

Founded in 1983, M.C.A. Communications Inc. is a telecommunications contractor servicing commercial construction projects. The Plant City-based EBP Electric Services Corp. was incorporated in 2021.

The Wage and Hour Division offers numerous resources for employers and workers alike, including information about the DBRA, 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 where they are from, and the department 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 new, free Timesheet App for Android and iOS devices, available in English and Spanish, to help track work hours and pay.

PHOENIX – A federal court has ordered a Phoenix industrial laundry and dry-cleaning company to pay a total of $281,870 after the U.S. Department of Labor found the employer engaged in a kickback scheme after the department recovered more than $94,135 in overtime wages for 70 workers in 2020. 

The court’s action follows an investigation by the department’s Wage and Hour Division that found Fox Real Estate Group Inc. — operating as Sparklean Laundry and Piper — and owner Benjamin Piper denied its employees overtime for hours over 40 in a workweek. After the investigation, the employers agreed to pay the overtime back wages. Shortly thereafter, they began demanding kickbacks from its employees, submitted false receipts showing that it paid the recovered wages and threatened workers for exercising their labor rights.

In response, the department sought and obtained a consent judgment and order on Oct. 11, 2023, in the U.S. District Court for the District of Arizona, requiring the employers to pay the remaining $87,735 in back wages. The court also ordered the company to pay the workers $94,135 in liquidated damages and an additional $100,000 in punitive damages. 

“Workplace retaliation is intolerable and illegal, and demanding that employees return their hard-earned wages to their employer is among the most egregious types of retaliation we regrettably see,” said Regional Solicitor of Labor Marc Pilotin in San Francisco. “The Department of Labor will use all of its tools to combat retaliation, including through requiring employers who retaliate to compensate workers above and beyond the wages their workers are owed.” 

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 times 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.

“This was a clear case where punitive damages were appropriate against the employer, which both violated federal law and broke its promises to the department,” Pilotin added.

Employers and workers can call division staff confidentially with questions, regardless of where they are from, and 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, free Timesheet App for Android and iOS devices, available in English and Spanish, to help track work hours and pay.

This news release is also available in Spanish. 

Julie A. Su, Acting Secretary of Labor, U.S. Department of Labor vs. Fox Real Estate Group Inc., dba Sparklean Laundry, an Illinois corporation; Benjamin Piper, an individual 

Case 2:23-cv-02034-ROS

Employer:      Macarios Inc., Los Primos Inc., Dos Oros Inc., operating as Mayan Mexican Restaurant

                        4520 Pacific Ave. SE

                         Lacey, WA 98503                                                                                                     

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found the restaurant employer failed to pay workers their full earnings in violation of overtime requirements under the Fair Labor Standards Act.

Investigators determined that Jose Sanchez, owner of three Mayan Mexican Restaurants operating under different corporate names in Lacey, Washington, denied 20 workers their overtime pay for hours worked beyond 40 in a workweek. Instead, the employer paid overtime hours at regular rates and failed to combine all hours worked at different locations for purposes of overtime pay calculation. The division also found a minor-aged employee had worked more hours than permitted on school days and beyond the allowable times, in violation of FLSA’s child labor regulations.

Back Wages Recovered:       $52,923 in unpaid overtime wages for 20 employees

                                                 $52,923 in damages for 20  employees                                             

                                                 $6,440 in civil money penalties

Quote: “Restaurant employees work hard to make ends meet for themselves and their families. This restaurant willfully violated federal overtime and child labor regulations by underpaying employees and having a minor work beyond the allowable hours,” said Wage and Hour Division District Director Thomas Silva in Seattle. “We urge employers in this industry to review their employment practices and avoid costly consequences for violating the law.”

Context: The YouthRules! initiative promotes positive and safe work experiences for teens by providing information about protections for young workers to youth, parents, employers and educators. Through this initiative, the U.S. Department of Labor and its partners promote developmental work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law.

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.

Lea en Español

Employers:    Great Lakes Care Companions Inc., Juan G. Salazar, owner

Actions:          Fair Labor Standards Act consent order and judgment

Courts:           U.S. District Court for the Eastern District of Michigan 

Investigation findings: On Oct. 13, 2023, Judge Mark A. Goldsmith entered an agreed consent order and judgment requiring Great Lakes Care Companions Inc., and its owner, Juan G. Salazar to pay a total of  $95,074 in back wages, liquidated damages, and interest to 34 workers. Prior to the execution of the consent order and judgment, the company paid $31,791 of the back wages owed. The company and Salazar agreed to pay the remaining amount including $1,225 in interest by Sept. 20, 2024.

An investigation by the department’s Wage and Hour Division alleged the Filion, Michigan home health care services provider failed to pay care workers overtime at time and one-half their regular rate of pay for hours over 40 in a workweek from at least Aug. 1, 2019 to July 31, 2021, a violation of the Fair Labor Standards Act. 

The company and Salazar are also required to distribute informational materials to employees concerning their rights under the FLSA and were ordered not to violate the act in the future.

The department’s office of the solicitor filed a complaint on Nov. 30, 2022.

Quote: “Healthcare companions provide valuable services that allow their clients to remain in their homes and maintain their dignity. This is historically an industry that has low-paid workers and for these employees each dollar earned is significant to them and their family’s economic survival,” said Wage and Hour Deputy Regional Administrator – Midwest Region Timolin Mitchell. “Every worker deserves to be paid for hours they work and the overtime they have earned. Employers must know the wage laws that apply to their employees and pay them accordingly.”

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. 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.

United States Department of Labor v. Great Lakes Care Inc., Juan Salazar

Case number 1:22-cv-12903-MAG-PTM

Employer name:       LOOPX LLC 

Investigation site:   146 Industry Road Independence, LA 70443

 Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found LOOPX LLC, a residential contractor specializing in pool construction denied 25 workers overtime wages by paying them straight-time rates for all hours worked, including hours over 40 in a workweek. The division also learned the employer misclassified three of those employees as independent contractors, denying them of overtime eligibility and other federal benefits and protections. 

Back wages recovered: $56,862 in back wages to 25 workers 

Quote: “Construction workers often work long hours in tough conditions, and they deserve to be paid all of the wages they have earned. This includes overtime premiums for hours over 40 per workweek,” explained Wage Hour District Director Troy Mouton in New Orleans. “We encourage all employers to review their pay practices and to reach out to the Wage and Hour Division if they have questions about their obligations.”

Employer:      JRKT Enterprises LLC, operating as Subway

                        12835 Bel-Red Road, Suite 100

Bellevue, WA 98005                                                                                                     

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found the employer failed to pay workers the full amount of their earnings due to violations of the minimum wage, overtime and tip pool requirements under the Fair Labor Standards Act.

Investigators determined that JRKT Enterprises LLC and owner Taran Singh, operator of four Subway restaurants under different corporate names in Burien, Renton, SeaTac and Tukwila failed to pay two employees for time spent in required job training and failed to combine hours between four establishments for overtime pay calculation purposes. By doing so, the employer failed to pay workers overtime hours for hours over 40 in a workweek. The employer also allowed managers to take part in a tip pool, a practice the law forbids.

Back Wages Recovered:       $37,476 in unpaid wages and tips for 59 employees

$37,476 in liquidated damages for 59 employees

                                                $5,924 in civil money penalties

Quote: “Food service workers are common victims of labor violations by unscrupulous employers that disrespect the law and their workers, while jeopardizing their reputations, franchise agreements and, in this case, the Subway brand,” said Wage and Hour Division District Director Thomas Silva in Seattle. “We encourage employers in this industry to review their pay practices and avoid costly consequences.”

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.

WEST COVINA, CA – A federal court has entered default judgments that require the operators of La Puente poultry processing plant to pay more than $1 million after the U.S. Department of Labor found the employers deliberately denied overtime wages earned by 113 workers and tried to hide the wage theft.

In addition to withholding overtime, the employers told some workers to forge timesheets and threatened them if they cooperated with federal investigators. They also created shell companies, hoping to hide overtime violations over a five-year period from 2015 to 2020. 

The Aug. 30, 2023, action by the U.S. District Court for the Central District of California ends the department’s long-running litigation against TL Foods Inc. and its owner Lily ‘Mei’ Tseng, Express Poultry Services Inc. and its owner Jimmy Huynh, and joint employers Aiwa Tang-Ton, Kevin Truong and KP Poultry Inc. for violations of the Fair Labor Standards Act. 

The judgments require Tseng and TL Foods Inc. to pay more than $1 million in back wages and damages and Huynh and Express Poultry Services Inc. to pay $210,438 in back wages and damages to the affected workers. The court also forbids the employers from future FLSA violations.

 Co-defendants and joint employers Tang-Ton, Truong and KP Poultry Inc. entered into consent judgments with the department previously and agreed to pay $531,518 in back wages, liquidated damages and interest to affected workers, and $20,000 in civil money penalties.

“For years, the employers in this case attempted to hide their wage violations. The Solicitor’s Office is grateful for the courage and integrity of the workers who came forward despite the retaliation and intimidation they faced,” said Regional Solicitor Marc Pilotin in San Francisco. “We will continue to use every legal tool available and necessary to protect the rights of vulnerable workers under federal law.”

In total, the department obtained four judgments to recover more than $1.2 million in back wages, damages and interest to the affected workers. 

“Poultry processing workers often spend long hours doing physically demanding work that helps to feed our communities and yet they are among the most vulnerable to exploitation and retaliation,” said Wage and Hour Division District Director Daniel Pasquil in West Covina, California. “The Wage and Hour Division has always focused on helping vulnerable workers, and this case sends a signal to industry employers that we will not tolerate their failure to respect the dignity of workers and meet their legal responsibilities.”

The division’s West Covina District Office conducted the investigation and the department’s Office of the Solicitor in San Francisco filed the complaint and secured the consent judgments.

The department is seeking any current or former employees of TL Foods, Express Poultry Services or KP Poultry who believe they may be owed back wages by these employers. Contact the West Covina District Office at (626) 966-0478 or visit the division’s Workers Owed Wages website to search a database of workers for whom the division has money waiting to be claimed.

Learn more about the Wage and Hour 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.

This news release is also available in Spanish. 

ORLANDO, FL – A U.S. Department of Labor investigation has recovered $120,695 in back wages for 24 employees after an Orlando franchisee of a Chicago-based pizza franchise denied the workers overtime wages and paid servers only in tips. 

The department’s Wage and Hour Division found Sand Lake Pizzeria LLC, operator of a Giordano’s Pizza franchise location, did not pay servers a time-and-one-half rate for all hours over 40 in a workweek and made servers work for only tips with no cash wage, both violations of the Fair Labor Standards Act. The employer also failed to keep complete time and payroll records, another FLSA violation. 

“The operator of this Giordano’s franchise deprived employees of their rightful pay, making it much harder for them to support themselves,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “We can’t give them time back, but the $120,695 in wages the department recovered for these workers will go a long way toward making them whole.” 

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage of $7.25 for all hours worked – and in Florida the minimum cash wage for tipped workers is currently $7.98 – and overtime pay at not less than time and one-half the regular rate of pay for all hours over 40 in a workweek.

During the investigation, the employer told the division they contracted a third-party service provider to manage payroll functions and claimed the provider did not raise concerns about the employer’s pay practices.

“Often employers use payroll services for their businesses, but when that’s the case, employers are ultimately responsible for making certain workers are getting paid correctly,” De Jesús added. “The Wage and Hour Division encourages all employers to use the free, online tools we offer to help them comply with the law or to call us for assistance.” 

Founded in Chicago in 1974, Giordano’s is a franchise network of restaurants featuring pizza at 64 locations operating in nine states, including Florida.

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). Also, download the agency’s new Timesheet App for Apple and Android phones – free and now available in Spanish – to track hours and pay.

Read this news release En Español. 

Employers:    Reliance Staffing LLC; Fahim Uddin, owner

Actions:          Fair Labor Standards Act complaint filing

Courts:           U.S. District Court for the Eastern District of Michigan 

Investigation findings: On Sept. 22, 2023, the U.S. Department of Labor filed a complaint in federal court alleging Reliance Staffing LLC and its owner, Fahim Uddin, failed to pay healthcare professionals overtime earned while working at skilled nursing facilities. 

An investigation by the department’s Wage and Hour Division alleged that Uddin and Reliance Staffing misclassified their workers as independent contractors when, in fact, they were employees. By doing so, the employer failed to pay $90,765 in overtime wages to 70 registered nurses, licensed practical nurses and certified nursing assistants. The FLSA requires employees to be paid time and one-half their hourly rate of pay for hours over 40 in a pay period. The Bingham Farms, Michigan, company recruits and employs registered nurses, licensed practical nurses and certified nursing assistants. 

The complaint seeks a total of $181,531 for the workers representing the back wages owed and an equal amount in liquidated damages. The department also asked the court to issue an injunction forbidding Uddin and Reliance Staffing from future FLSA violations. 

The department’s Office of the Solicitor filed a complaint on Sept. 22, 2023. 

Quote: “Independent contractors control their own work and are not economically dependent on one company for their livelihood. In this case, Reliance Staffing clearly created schedules, assigned work tasks, set rules for the registered nurses, licensed practical nurses and certified nursing assistants, who performed work that was critical for their employer’s business. These factors, among others, make them employees,” explained Wage and Hour Midwest Deputy Regional Administrator Timolin Mitchell in Detroit. “Workers misclassified as independent contractors are denied their protections under the Fair Labor Standards Act and employers do not pay applicable employment taxes or workers’ compensation on their behalf. Employers must know the wage laws that apply to their employees and pay them accordingly.” 

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.

United States Department of Labor v. Reliance Staffing LLC, Fahim Uddin, owner

Case number 1:23-CV-12412

Employer name:       Sunrise Residential Care Services LLC

Employer address:    8801 Bricelyn St., Pittsburgh, PA 15221

Investigative Findings: The U.S. Department of Labor’s Wage and Hour Division found the employer misclassified two workers as independent contractors and failed to pay them an overtime premium for hours over 40 in a workweek. The employer also did not maintain daily and weekly hours worked records for the misclassified workers or identify accurate rates of pay on the payroll records.

Back wages recovered:         $49,310

Liquidated damages:            $49,310

Workers affected:                   Two

Quote: “Failing to properly classify workers as employees and not independent contractors denies them from receiving all of their hard-earned wages, benefits, and protections under federal law,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “We can assist employers and workers in determining if a worker should be classified as an independent contractor or as an employee.”

Background: Sunrise Residential Care Services LLC provides unskilled health care services for individuals with dementia and disabilities and operates 10 residences in the greater Pittsburgh area.

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 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 Timesheet App for i-OS and Android devices – also available in Spanish – to ensure hours and pay are accurate.