WASHINGTON – The U.S. Department of Labor today announced a notice of proposed rulemaking that would restore and extend overtime protections to 3.6 million salaried workers. The proposed rule would guarantee overtime pay for most salaried workers earning less than $1,059 per week, about $55,000 per year.

“For over 80 years, a cornerstone of workers’ rights in this country is the right to a 40-hour workweek, the promise that you get to go home after 40 hours or you get higher pay for each extra hour that you spend laboring away from your loved ones,” said Acting Secretary Julie Su. “I’ve heard from workers again and again about working long hours, for no extra pay, all while earning low salaries that don’t come anywhere close to compensating them for their sacrifices. Today, the Biden-Harris administration is proposing a rule that would help restore workers’ economic security by giving millions more salaried workers the right to overtime protections if they earn less than $55,000 a year. Workers deserve to continue to share in the economic prosperity of Bidenomics.” 

Today’s announcement follows months of extensive outreach to employers, workers, unions and other stakeholders, which included the department holding 27 listening sessions with more than 2,000 participants to inform the proposed rule.

“We are committed to ensuring that all workers are paid fairly for their hard work,” said Principal Deputy Wage and Hour Division Administrator Jessica Looman. “For too long, many low-paid salaried workers have been denied overtime pay, even though they often work long hours and perform much of the same work as their hourly counterparts. This proposed rule would ensure that more workers receive extra pay when they work long hours. Public input is essential as we consider the needs of today’s workforce and industry demands, and we encourage continued stakeholder input during the public comment period.”

The proposed rule would do the following:

• Restore and extend overtime protections to low-paid salaried workers. Many low-paid salaried employees work side-by-side with hourly employees, doing the same tasks and often working over 40 hours a week. But because of outdated and out-of-sync rules, these low-paid salaried workers aren’t getting paid time-and-a-half for hours worked over 40 in a week. The department’s proposed salary level would help ensure that more of these low-paid salaried workers receive overtime protections traditionally provided by the department’s rules.
• Give workers who are not exempt executive, administrative or professional employees valuable time back. By better identifying which employees are executive, administrative or professional employees who should be overtime exempt, the proposed rule will better ensure that those who are not exempt will gain more time with their families or receive additional compensation when working more than 40 hours a week.
• Prevent a future erosion of overtime protections and ensure greater predictability. The rule proposes automatically updating the salary threshold every three years to reflect current earnings data.
• Restore overtime protections for U.S. territories. From 2004 until 2019, the department’s regulations ensured that for U.S. territories where the federal minimum wage was applicable, so too was the overtime salary threshold. The department’s proposed rule would return to that practice and ensure that workers in the U.S. territories subject to the federal minimum wage have the same overtime protections as other U.S. workers.

Upon publication in the Federal Register, the notice of proposed rulemaking will be open for public comment for 60 days. The department will consider all comments received before publishing a final rule. Learn more about the proposed rule and instructions for submitting comments.

ALBANY, NY – A federal investigation has found that a Cortland facility operated by an Illinois global packager and distributor of personal care products violated laws protecting domestic and temporary nonimmigrant workers and recovered more than $277,000 for 50 underpaid workers.

The investigation by the U.S. Department of Labor’s Wage and Hour Division determined Vee Pak LLC, doing business as Voyant Beauty, violated provisions of the federal H-2B worker program involving workers at its former Cortland location.

The federal H-2B program requires employers to meet certain requirements, including recruitment and displacement standards, to protect similarly employed U.S. workers. This includes a requirement to recruit U.S. workers and hire qualified U.S. workers who apply, as well as solicit former U.S. workers to return, before employing H-2B workers. Employment of H-2B workers must be for a limited specific period, such as a one-time occurrence, seasonal, peak load or intermittent need.

Division investigators found that the employer violated the H-2B program’s requirements between November 2021 and July 2022 when it did the following:

• Fired 17 U.S. workers employed as packers so H-2B workers could take their place.
• Did not advertise the availability of housing to U.S. workers, potentially discouraging them from applying for the jobs.
• Failed to pay 33 H-2B workers for meals and lodging expenses incurred during their travel to the U.S.

To resolve its violations, Vee Pak has paid $276,012 to the 17 displaced U.S. workers and $1,303 to 33 undercompensated H-2B workers, for a total of $277,315, and also paid a total of $20,003 in civil money penalties to the U.S. Department of Labor. Vee Pak has also been debarred from the H-2B program for three years as a result of its violations.

“Employers must understand and abide by federal laws that prevent employers from displacing U.S. workers and ensure all workers, including temporary workers, are paid properly. Employers who willfully disregard their responsibilities face costly penalties and debarment,” said Wage and Hour Division District Director Jay I. Rosenblum in Albany, New York. “The U.S. Department of Labor offers employers extensive assistance to ensure that they understand their responsibilities.”

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.

CHICAGO – A federal court has ordered the operators of a Huntley restaurant to pay eight employees more than $105,000 in back wages and damages, despite the employers’ attempt to interfere with a U.S. Department of Labor investigation that found they illegally denied the workers their earned overtime wages.

The action comes after the court issued a preliminary injunction in June 2022 to Papa G’s restaurant and its owners Steve and Rick Tsakalios to cease their attempts to obstruct an investigation by the department’s Wage and Hour Division. In the course of its review, the division learned the employers told workers they did not have to speak with investigators, questioned those who did and hindered workers’ cooperation. They also provided falsified payroll records to investigators.

Division investigators audited the employers’ payroll practices from Feb. 5, 2019 to Feb. 4, 2022, and determined they did not pay workers overtime for hours over 40 in a week; instead, they either paid the affected employees straight-time rates or “banked” the hours to cover employees’ time off requests for when they did not work 40 hours in a week.

After the employers provided falsified payroll records to the division that showed employees rarely worked overtime, investigators obtained a second set of records showing employees worked far more than 40 hours per week and that Papa G’s paid employees straight-time rates in cash for overtime hours. A warrant served on the employers’ accountant recovered additional records that confirmed this practice.

On Aug. 3, 2023, the department obtained a consent judgment in the U.S. District Court for the Northern District of Illinois requiring Papa G’s and its owners to do the following:

• Pay $52,904 in back wages and an equal amount of liquidated damages to the affected employees.
• Be forbidden permanently from preventing workers’ cooperation with a federal investigation.
• Pay $5,992 in civil money penalties for their willful violations of the Fair Labor Standards Act.
• Hire an independent accountant to audit payroll records for three years to ensure compliance.
• Provide all employees with information about federal wage laws and their rights.

“A federal court has upheld the findings of our investigation that Papa G’s denied eight workers the overtime wages they earned legally and then obstructed a federal investigation,” said Wage and Hour Division District Director Tom Gauza in Chicago. “The court’s action will also lead to the recovery of more than $105,000 in back wages and damages for eight restaurant employees who worked long hours to put food on their own tables.”

The Huntley-based Papa G’s has offered breakfast, lunch and dinner to area customers for 25 years.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline confidentially at 866-4US-WAGE (487-9243). Calls can be addressed in over 200 languages, regardless of where a caller is from.

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 Timesheet App for free on iOS and Android devices in English or Spanish to ensure hours and pay are accurate.

Julie A. Su v. T.S.T.A., Inc., d/b/a Papa G’s, Rick Tsakalios, and Steve Tsakalios

Civil Action No. 3:22-cv-50141

MANCHESTER, NH – A U.S. Department of Labor investigation into the pay practices and use of child labor at a southern Maine bar and grill has found the employers failed to properly pay 36 workers their wages, falsified timecards to avoid paying overtime, and allowed minors to work long hours in excess of the legal limits. The investigation found that one of these underaged employees cleaned a hazardous meat slicer.

The department has also resolved retaliation-related litigation with Antonia’s Inc. in Freeport based on allegations that they attempted to dissuade employees from providing the department with truthful information requested by investigators with the department’s Wage and Hour Division.

The division determined that Antonia’s Inc., doing business as Antonia’s Pizzeria, did not pay certain workers for all their hours worked or pay proper overtime for hours over 40 in a workweek. They also learned the employers edited and deleted timecard entries, allegedly to conceal overtime hours worked by employees.

Investigators also learned the business operators permitted five 15-year-old employees to work more hours than federal law allows. In addition, they allowed a 16-year-old to clean a power-driven meat slicer, a hazardous occupation under federal regulations.

Following its investigation, the division recovered $184,940, representing $92,470 in unpaid wages and an equal amount in liquidated damages, for the affected workers. The department assessed Antonia’s with $29,052 in civil money penalties for its willful violations of the Fair Labor Standards Act’s minimum wage and overtime provisions, and with $6,088 in penalties for the child labor violations.

“Our investigation found that Antonia’s denied dozens of workers their full wages, falsified timecards, and violated federal laws that protect young workers’ well-being and safety,” explained Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. “This investigation’s outcome shows that employers may face costly consequences when they fail to comply with worker protection laws.” 

In a related action, the department’s Regional Solicitor’s Office in Boston litigated allegations revealed during the investigation. Specifically, investigators heard claims that the employers pressured workers not to speak with investigators, coached workers on their statements and offered money to workers to make statements that would make investigators believe Antonia’s had complied with the law.

As a result, the department obtained a consent preliminary injunction in federal court to halt the retaliation and ultimately resolved the retaliation complaint in a consent judgment. The judgment required Antonia’s to pay employees $16,000 in punitive damages and forbids the employers from doing the following:

• Telling any employee or former employee to provide false information to the department or otherwise influencing any employee with respect to their participation in any FLSA investigation or litigation the department brings.
• Demanding, accepting or keeping any amount paid or payable to any current or former employee, or attempting to recover any amounts paid to any current or former employee in connection with the consent judgment or any other legal proceeding brought by the department to enforce the FLSA.
• Taking any other adverse action against any employee or former employee or telling any employee or former employee that they will suffer any adverse action because the employee or former employee has engaged in or is about to engage in activity protected by the FLSA.

The consent judgment also requires Antonia’s Inc. to provide training to all managers on the FLSA’s provisions concerning tips, minimum wages, overtime compensation, recordkeeping, child labor, and retaliation.

“The department will take swift legal action to halt retaliation against workers and will not tolerate wage theft,” said Regional Solicitor of Labor Maia Fisher in Boston. “This case serves as a message to employers in New England that they should not take any action that would dissuade employees from engaging in FLSA protected activity, including instructing employees not to cooperate with or provide false information to the department.”

View the consent judgment.

“We urge employers to review the Wage and Hour Division’s extensive online compliance assistance toolkits and to contact the Northern New England District Office at 603-666-7716 with any questions about the Fair Labor Standards Act’s wage and child labor protections. Workers can call our office confidentially with questions regardless of where they are from,” McKinney added.

The Fair Labor Standards Act allows for developmental experiences but restricts the employment of youth in certain jobs and provides for penalties when employers do not follow the law. The YouthRules! initiative promotes valuable work experiences for youth by providing information about protections for young workers. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law.

For more information about workers’ rights enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). The department can speak with callers in more than 200 languages.  

Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App in English or Spanish for free.

RALEIGH, NC – Two federal investigations have recovered $540,221 in wages for 268 H-2A workers from a father and son, then operating as North Carolina farm labor contractors, and whose violations of federal laws included failing to pay some workers their full wages, to provide safe and adequate housing and to reimburse workers’ transportation costs.

The federal Fair Labor Standards Act and the H-2A program, which enables agricultural employers to employ temporary non-immigrant workers, protect all people working in the U.S., including American citizens and others, regardless of immigration status.

Investigators with the U.S. Department of Labor’s Wage and Hour Division determined Becerra Enterprises Inc., owner Luis A. Becerra and his son, Luis A. Becerra Jr., who are based out of Arcadia, Florida, recruited, hired, housed and transported H-2A workers to harvest sweet potatoes, cucumbers and tobacco at Blake Edwards Roberson Farms and Taylor Grimes Farms in Robersonville and Anderson Farms in Tarboro, North Carolina.

Specifically, investigators found the employers violated H-2A regulations by failing to do the following:

• Provide employees with copies of their work contracts.
• Satisfy job orders’ requirements by including the actual terms and conditions of employment.
• Provide employees with meals or access to kitchen facilities.
• Pay the required adverse effect wage rate to two H-2A workers performing as cooks in non-agricultural duties not listed in the contract.
• Provide pay stubs to H-2A employees working as cooks; instead, the employer paid them in cash, in violation of earning records requirements.
• Disclose daily meal deductions in the H-2A contract.

The division found Becerra Jr. failed to reimburse H-2A workers for their inbound transportation expenses by the contract’s halfway point. His father failed to meet housing safety and health requirements by failing to furnish workers’ housing with first aid kits, smoke alarms and flushing toilets, exposing the workers to potential harm. 

In addition to wages recovered, the division assessed $12,526 in civil money penalties to Luis A. Becerra Jr. and $21,257 in civil money penalties to Becerra Enterprises for their violations. All penalties have been fully paid. Becerra Enterprises was also debarred from participating in the H-2A program for three years.

“Farm laborers are among our nation’s most essential workers and are often vulnerable to illegal and unsafe labor practices,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “U.S. law guarantees workers’ rights regardless of the place they call home. The Wage and Hour Division will hold employers who jeopardize agricultural workers’ safety and health and deny them their full wages accountable.”

During fiscal years 2022 to 2023, the division identified violations in over 92 percent of the 14 investigations completed in the North Carolina sweet potato agriculture industry. These investigations recovered more than $545,000 in back wages for nearly 300 workers and assessed employers over $70,000 in penalties for violations.

“The H-2A temporary agricultural program provides farmers with the additional workers they may need to put food on America’s tables,” Blaylock added. “However, this must not come at the expense of the safety and well-being of those workers. We urge growers to take proactive steps to ensure the labor contractors they hire comply fully with all regulations.”

The Wage and Hour Division offers multiple compliance assistance resources, including an agriculture compliance assistance toolkit, to provide employers the information they need to comply with the law. Employers and workers can call the division confidentially with questions using the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The division can communicate with callers in more than 200 languages, regardless of where they are from.

The Wage and Hour Division makes every effort to locate and notify all employees due back wages. If they are unable to find an employee, those wages are held in a continued effort to locate them. If anyone believes they may be owed back wages collected by the division, they can search the division’s online database – available in English and Spanish – of workers who have been previously unlocated and may have money waiting to be claimed. Download the agency’s new Timesheet App for iOS and Android devices – free and available in English and Spanish – to ensure hours and pay are accurate.

Read this news release En Español.

Employer:                              Patel Shippers LLC

                                                19925 SW 270th St.

                                                Homestead, FL 33031

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found Patel Shippers LLC, which provides fruits and vegetables from India and Asia to grocery stores in 10 states, including Florida, denied 25 workers overtime wages by paying them straight-time rates for all hours worked, including for hours over 40 in a workweek. The employer also failed to pay three workers at least the federal minimum wage by not keeping an accurate record of hours worked. Their actions violated the Fair Labor Standards Act.

Back wages and liquidated damages recovered: $71,047 in back wages and liquidated damages for 25 workers.                                    

Quote: “Employers have a legal obligation to pay workers for all the hours that they work. When they fail to do so they may owe back wages and liquidated damages,” said Wage and Hour Division Acting District Director Anthony Delgado in Miami. “We remain committed to ensuring essential protections for workers, and to providing clear and confidential compliance assistance to any worker or employer with questions.”

Background: Patel Shippers LLC delivers fruit and vegetables to grocery stores in Miami, Sunrise and West Palm Beach. The company also supplies grocers in Arizona, California, Georgia, Maryland, New Jersey, New York, North Carolina, South Carolina and Texas.

Agency investigators learned of the employer’s practices through the Employment Education and Outreach alliance. The alliance is a collaboration of community and nongovernmental organizations, including state, local, and federal agencies and Hispanic consulates that provides information and assistance to Spanish-speaking employees and employers regarding workplace rights and responsibilities. Workers and employers can reach EMPLEO by calling (877) 522-9832 or (877) 55-AYUDA.

Employers and workers alike can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE with any questions they have concerning wages and the FLSA. Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division. Workers and can also track hours worked and pay by downloading the department’s Android and IOS Timesheet App for free in English or Spanish.

Read this news release En Español.

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

                 Workplace Justice Project

What:      Memorandum of Understanding

When:     August 23, 2023

                 11 a.m. CDT

Where:   F. Edward Hebert Federal Building

                600 South Maestri Place

4th Floor Training Room

                New Orleans, LA 70130

Background: The Wage and Hour Division’s New Orleans District Office and the Workplace Justice Project, a  non-profit worker advocacy organization, signed a memorandum of understanding to improve both organizations’ effectiveness in providing critical services to low-wage workers. The memorandum establishes a partnership that will cross-train staff on how to identify labor violations and increase information sharing between the agencies to help prevent and respond to potential federal violations better. The initiative will also improve both agencies’ ability to educate workers on their labor rights and protections.

Quote: “In partnership with the Workplace Justice Project, the Wage and Hour Division can help expand our ability to protect the rights of low-wage workers,” explained Wage and Hour Division District Director Troy Mouton, in New Orleans. “Our agencies’ goals complement each other and create a unique opportunity to provide critical services to workers who need them most.”

Employer:                              CAH Inc., operating as Community Alternative Housing

Investigation site:                  2905 Breezewood Ave.

                                                Suite 104 

                                                Fayetteville, NC 28303

Investigation findings: Investigators with the department’s Wage and Hour Division found the North Carolina home health care service paid employees straight-time rates for all hours worked. By doing so, the employer failed to pay the employees a time-and-a-half premium for hours over 40 in a workweek, an overtime violation of the Fair Labor Standards Act.

Back Wages Recovered: $174,751 for 50 workers                                      

Quote: “All workers deserve the wages they legally earned, including those who provide essential care to people in our communities,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Employers with questions about their obligations should contact us for free guidance that could help them avoid paying a significant amount of back wages and – as in the case of this employer – work cooperatively to correct violations found as soon as they are discovered.”

Background: CAH Inc. is non-profit that provides day programs, residential services, community services and independent living services to children, adolescents and adults.

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek. 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.

CHICAGO – The U.S. Department of Labor has obtained a consent order from a federal judge that orders the owner and administrator of an Illinois home care and home healthcare provider to pay $324,049 in back wages and liquidated damages as part of the department’s effort to recover overtime denied to 159 healthcare workers.

Following a two-year review of pay practices of Destiny Healthcare Services Inc. by the department’s Wage and Hour Division, the action was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, on July 31, 2023. Shortly thereafter, the department’s Office of the Solicitor in Chicago was able to obtain a consent order resolving all issues, including payment of $324,049 in back wages and liquidated damages, and an injunction for future compliance.

From October 2020 through October 2022, investigators determined owner Mirza Baig and administrator Sonia Chalal did not keep accurate records of hours worked and paid the affected workers straight-time wages for all hours worked. By doing so, the Westchester-based employers failed to pay overtime as required by the Fair Labor Standards Act.

“Home caregivers deliver vital services and allow people to continue to live at home as they age or cope with medical ailments, yet these essential workers are among our nation’s lowest paid people,” said Wage and Hour Division District Director Tom Gauza in Chicago. “Just as their clients depend on them, these workers rely on being paid every dollar they earn to support themselves and their families. We are committed to protecting these workers’ rights and to holding employers accountable when they fail to meet their legal obligations.”

The Bureau of Labor Statistics reports that as of May 2022, the average nursing assistant in the home healthcare services industry earned $32,160 per year, about $15.46 an hour and that the healthcare and social assistance industry had more than 1.9 million open jobs nationwide.

“Employers must follow all applicable wage laws for their industry. The Wage and Hour Division encourages both employers and workers with questions on federal wage laws to contact us for clarification,” Gauza added.

Based in Westchester, Destiny Healthcare Services Inc. provides home care and home healthcare services, and also has offices in Aurora, Chicago, Evergreen Park and Joliet.

The Wage and Hour Division offers resources on wages rules for healthcare workers.

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. The department can speak with callers in more than 200 languages.

Download the agency’s new Timesheet App for free on iOS and Android devices in English or Spanish to ensure hours and pay are accurate.

Su v. Destiny Healthcare Services, Inc,. Mirza Baig, Sonia Chalal

U.S. District Court for the Northern District of Illinois, Eastern Division

Case: 1:23-cv-04982

Employer: S & W Renovation & Landscape Contractor Inc. operating as S&W Foundation Contractors

Investigation site:
2806 Singleton St.
Rowlett, TX 75088                                

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found the employer deducted lunch breaks automatically without first making sure workers did, in fact, take a lunch break. The automatic deduction caused overtime and recordkeeping violations of the Fair Labor Standards Act.

Back Wages and Damages Recovered:
$51,872 in back wages
$51,872 in liquidated damages

Quote: “Employers have a responsibility to make certain employees actually take lunch breaks when automatic deductions are made,” said Wage and Hour Division District Director Jesus A. Valdez in Dallas. “The law requires them to pay employees their full earned wages, including pay for time when lunch breaks are not used. The Wage and Hour Division has professionals ready to help employers understand regulations and avoid compliance issues.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers numerous online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements. Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division representative in their state through a list and interactive online map on the agency’s website. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Learn more about Wage and Hour Division.