US Department of Labor obtains judgment ordering Indiana home care agency to pay $188K in back wages, damages to 83 workers denied overtime

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US Department of Labor obtains judgment ordering Indiana home care agency to pay $188K in back wages, damages to 83 workers denied overtime

Court finds UniqueHab Solutions LLC failed to pay overtime, keep accurate records

FORT WAYNE, IN – The U.S. Department of Labor has obtained a consent judgment in federal court as part of its recovery of $188,915 in  overtime back wages and liquidated damages for 83 employees denied overtime pay by a Fort Wayne home care provider.

On July 27, 2023, U.S. District Court Judge Holly A. Brady in the Northern District of Indiana in Fort Wayne ordered UniqueHab Solutions LLC and its operators, John Musili and Tony Aduro, to pay the wages and damages owed to the affected employees. The workers provide supported living services to individuals with physical and developmental disabilities at the company’s branch offices in Fishers and Clear Vista.

The company will also pay $70,000 in civil money penalties after investigators found allegations the employer asked employees to sign a waiver of rights to overtime, a violation of the Fair Labor Standards Act. UniqueHab Solutions must pay 5.33 percent post-judgment interest on the back wages and liquidated damages.

“Home care employees work long hours assisting clients with daily living tasks that let them keep their dignity and live at home, yet too often we find industry employers violating overtime rules and denying these care workers their rightful wages,” explained Wage and Hour Division District Director Aaron Loomis in Indianapolis. “The Department of Labor will fight for justice for workers denied their hard-earned wages.”

In addition to requiring payment of wages and damages, the judgment forbids the employers from future FLSA violations, such as those found by the department’s Wage and Hour Division. These included UniqueHab’s failure to pay employees overtime for hours over 40 in a workweek and to keep accurate records of employees’ work schedules. The division reviewed the company’s employment practices from May 2019 to May 2021.

The court’s action comes after UniqueHab Solutions LLC refused to resolve the matter administratively, which led the department to file its complaint in federal court in June of 2022.

Founded in 2013, UniqueHab Solutions provides non-medical home care services for individuals with physical and developmental disabilities. These services include residential habilitation support services, respite services to relieve caregivers, healthcare coordination including management of medications, side effects, doctor visits and adaptive equipment, and transportation to appointments, social activities and gatherings.

In May 2023, the Bureau of Labor Statistics reported that 801,000 healthcare and social assistance workers left their positions and the field had more than 1.7 million openings. As the aging U.S. population grows and demand for home healthcare services increases, employment in a variety of healthcare occupations is projected to grow 13 percent from 2021 to 2031 – faster than the average for all occupations – adding about 2 million new jobs.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Workers and employers can call the division confidentially with questions, regardless of where they are from. 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 Timesheet App for Android and iOS devices – free and available in English and Spanish – to ensure hours and pay are accurate.

Walsh v. Uniquehab Solutions LLC, John Musili, Tony Aduro

U.S. District Court, District of Indiana, Fort Wayne Division

Civil Action No: 1:22-cv-00189-HAB-SLC

Agency
Wage and Hour Division
Date
August 3, 2023
Release Number
23-1245-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Department of Labor recovers $350K in back wages, damages after finding Spokane-based supermarket chain denied 602 workers overtime pay

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Department of Labor recovers $350K in back wages, damages after finding Spokane-based supermarket chain denied 602 workers overtime pay

Rosauers Supermarkets assessed $72K in penalties for willful, repeated child labor violations

SPOKANE, WA– An extensive U.S. Department of Labor investigation into the pay and employment practices at 23 stores operated by a Spokane-based supermarket chain has recovered more than $350,000 in back wages and damages for 602 employees and assessed penalties of $72,862 for the employer’s willful violations.

The department’s Wage and Hour Division discovered Spokane’s Rosauers Supermarkets Inc. did not pay employees for meal breaks less than 20 minutes long, as required, and failed to include evening premium pay, hazard pay and non-discretionary bonuses in regular pay rates when calculating overtime wages. Investigators found these violations at 16 stores in Washington, four in Montana, two in Idaho and one in Oregon.

The division also learned the employer violated federal child labor regulations by employing five minors, ages 16- and 17-years old, to operate a powered scrap paper baler and paper box compactor at its Ridgefield, Washington store.

“Too often, our investigators find grocery industry employers taking advantage of these essential workers by failing to pay them correctly,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “In addition to denying hundreds of employees pay for short meal breaks, Rosauers Supermarkets jeopardized the safety of children by employing them to illegally operate dangerous machines.”

The company operates stores as Rosauers Supermarkets, Super1Foods and Huckleberry’s Natural Market.

Specifically, the division identified violations of the Fair Labor Standards Act’s overtime and recordkeeping requirements at stores in Hood River, Oregon; in Lewiston and Moscow, Idaho; in Bozeman, Kalispell, Libby and Missoula, Montana; and in Colfax, Colville, Ellensburg, Pullman, Ridgefield, Spokane, Walla Walla and Yakima, Washington. Investigators found the child labor violations at the Ridgefield location.

“The U.S. Department of Labor is determined to enforce laws that protect workers’ rights to be paid fully and to prevent young employees from being employed in dangerous jobs. The Fair Labor Standards Act allows for developmental experiences but restricts the employment of young workers in certain jobs and provides for penalties when employers do not follow the law,” Aguilar added.

In addition to recovering $175,363 in unpaid overtime wages and an equal amount in liquidated damages, the penalties assessed by the department included $17,820 for repeated child labor violations. The division cited the employer for similar child labor infractions at 10 stores in 1993.

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 publisheSeven Child Labor Best Practices for Employers to help employers comply with the law.

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.

Agency
Wage and Hour Division
Date
August 3, 2023
Release Number
23-1666-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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Investigation recovers $45K in back wages from fruit company that denied dozens of agricultural workers full wages, transportation and housing

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Investigation recovers $45K in back wages from fruit company that denied dozens of agricultural workers full wages, transportation and housing

Employer name:       Mt. Clifton Fruit Company LLC

Investigation site:     17581 Mechanicsville Road, Timberville, VA 22853

Investigative findings: The U.S. Department of Labor’s Wage and Hour Division found the employer violated multiple requirements of the H-2A agricultural worker program by failing to do the following:

Back wages recovered:        $45,384

Civil money penalties:          $8,998

Workers affected:                  55, which includes 50 H-2A program workers and five other workers

Quote: “Our investigation found the Mt. Clifton Fruit Company denied dozens of agricultural workers, many of whom traveled to the U.S. at the company’s request, safe housing and transportation, and their legally earned wages,” said Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia. “In addition to recovering back wages, we assessed penalties for these deliberate violations.”

BackgroundMt. Clifton Fruit Company LLC is an agricultural fixed-site employer who specializes in growing and harvesting a variety of apples which are sold retail, direct to consumers and to processors in the U.S.

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.

Lea en Español

Agency
Wage and Hour Division
Date
August 2, 2023
Release Number
23-1659-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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Department of Labor recovers $114K in back wages, damages from operators of Yuma sports bar who intentionally denied overtime pay to 86 workers

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Department of Labor recovers $114K in back wages, damages from operators of Yuma sports bar who intentionally denied overtime pay to 86 workers

Wheezy’s Sports Bar & Grill assessed $14K in penalties for willful violations

YUMA, AZ – A federal investigation into the pay practices of a Yuma sports bar and grill has recovered $114,996 in back wages and damages for 86 workers employed by three owners who learned that denying employees overtime wages — deliberately and knowingly — is a bad and costly wager.

Investigators with the U.S. Department of Labor’s Wage and Hour Division found Wheezy’s Sports Bar & Grill, operated by Tres Sisters LLC and its owners Maria Stefanakos, Yianoula Stefanakos and Elene Stefanakos, paid the affected workers at straight-time rates and in cash for overtime hours worked in violation of the Fair Labor Standards Act.

The division also learned the employer failed to keep time or pay records of employees who worked over 40 hours in a workweek, or records of any cash payments made for overtime. 

“Wheezy’s Sports Bar & Grill in Yuma violated their employees’ fundamental rights to earn overtime wages for hours over 40 in a workweek,” said Wage and Hour Division District Director Eric Murray in Phoenix, Arizona. “The U.S. Department of Labor’s efforts to protect workers’ rights can have costly consequences for employers who violate the law, especially when they do so deliberately.”

In addition to recovering $57,498 in back wages and an equal amount in liquidated damages, the department assessed Tres Sisters LLC with $14,231 in civil money penalties for the willful nature of the violations.

In fiscal year 2022, the division recovered more than $27 million in back wages for over 22,500 people employed in the food service industry.

“Too often, our investigations in the restaurant industry find workers deprived of their fully earned wages, some by employers who misunderstand their legal obligations and in other cases, by unscrupulous employers who intentionally ignore the law,” Murray added.

Learn more about federal regulations governing the restaurant industry.

The FLSA requires that most employees in the U.S. be paid overtime at time and one-half their regular rate of pay for hours over 40 in a workweek. 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.

Agency
Wage and Hour Division
Date
August 1, 2023
Release Number
23-1653-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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Court requires Kaneohe assisted living facilities, owners who willfully denied 23 employees overtime to pay $287K in back wages, damages

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Court requires Kaneohe assisted living facilities, owners who willfully denied 23 employees overtime to pay $287K in back wages, damages

Hokulaki Senior Living, Olalani Senior Care assessed $13K in penalties for violations

HONOLULU – A federal court has required the owners and operators of two residential care facilities in Kaneohe to pay $287,279 in wages and liquidated damages to 23 caregivers after a U.S. Department of Labor investigation found the employers intentionally denied them overtime wages.

The court’s action follows a consent judgment the department obtained in the U.S. District Court for the District of Hawaii after its Wage and Hour Division investigation determined Hokulaki Senior Living LLC and Olalani Senior Care LLC and owners Myriam and Robert Tabaniag violated the Fair Labor Standards Act willfully by paying straight-time rates for all hours worked, including hours over 40 in a workweek.

In addition to paying $143,639 in overtime back wages and an equal amount in liquidated damages owed to the affected employees who provide care services for older adults and people with disabilities at two Oahu facilities, the operators must pay the department $13,299 in civil money penalties for their willful violations.

“Just as people employed in the healthcare industry must meet standards for providing care, employers are obligated to comply with labor standards, including the requirement to pay overtime for hours over 40 in a workweek,” explained Wage and Hour Division District Director Terence Trotter in Honolulu. “Employers who fail to meet these responsibilities may suffer costly consequences, particularly when violations are intentional.”

The division’s Honolulu District Office conducted the investigation. Trial Attorney Kathryn A. Panaccione and Wage and Hour Counsel Andrew Schultz in the department’s Regional Office of the Solicitor litigated the case and secured the judgment.

“The U.S. Department of Labor will not tolerate labor abuses or wage theft in the residential care industry,” said Regional Solicitor Marc Pilotin in San Francisco. “This judgment should make clear that we will hold employers in this essential sector accountable for their illegal workplace exploitation and pay practices.”

Learn more about worker protections for care workers and the responsibility of employers to comply with federal minimum wage and overtime law.

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.

Case 1:23-cv-00162-DKW-RT

Agency
Wage and Hour Division
Date
July 27, 2023
Release Number
23-1652-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers $58K in back wages for plumbers working on federal project in New Orleans area

News Brief

US Department of Labor recovers $58K in back wages for plumbers working on federal project in New Orleans area

AHG Services LLC denied proper wages, fringe benefits to 5 workers

 

Employer name:                   AHG Services LLC 

Investigation site:                2225 Piedmont St.

                                                       Kenner, LA 70062                                               

Investigation findings: The investigation by the U.S. Department of Labor’s Wage and Hour Division has recovered $57,590 in back wages for five employees after its review of contracts on a federally funded construction project determined AHG Services failed to pay the correct prevailing wage. -The employer also did not provide bona fide fringe benefits sufficient to satisfy its health and welfare obligations.  AHG’s failures violated the Contract Work Hours and Safety Standards Act and the Davis Bacon and Related Acts.

Back wages recovered:         $57,590 in back wages to five workers                    

Quote: Employers on federally funded projects must pay people working on these projects as required by Davis Bacon prevailing wage standards, which means they must receive the wages and fringe benefits listed in the applicable wage determination,” said Wage Hour District Director Troy Mouton in New Orleans. “Employers are legally obligated to pay the proper wage for each classification of work performed on the contract, and that includes ensuring certain health and welfare credits claimed by the employer are legitimate.”

Background:  Learn more about the DBRA, the CWHSSA and other laws enforced by the division including a search tool 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, now available for android devices, to ensure hours and pay are accurate.

Learn more about Wage and Hour Division.

Agency
Wage and Hour Division
Date
July 27, 2023
Release Number
23-1641-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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Department of Labor recovers $160K in wages, damages for 69 winery, restaurant workers denied full tips, wages by employer’s illegal pay practices

News Brief

Department of Labor recovers $160K in wages, damages for 69 winery, restaurant workers denied full tips, wages by employer’s illegal pay practices

Sloan & Williams Winery LLC shared workers’ tips with ineligible employees, managers

Employer name:              Sloan & Williams Winery LLC

Investigation site:           401 S. Main St.

                                                  Grapevine, TX 76051

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer violated federal law by retaining and paying tips out to ineligible employees as quarterly bonuses. By doing so, the employer invalidated their tip credit which led to minimum wage violations. Sloan & Williams Winery also misclassified salaried employees as exempt and did not include bonuses, commissions and tips paid to ineligible employees and managers in their regular rate of pay when calculating overtime.

The division also learned the employer allowed two minors, 14- and 15-years-old, to work illegally at times not permitted and for more hours in a work week than the law allows. The winery also failed to maintain accurate records of hours worked, payroll records and required information on all its employees. The division assessed $1,582 in penalties for child labor violations.

Back wages recovered:  $79,263 in owed wages and $79,263 in liquidated damages to 69 workers                                        

Quote: By including ineligible employees who do not customarily and regularly receive tips, the tip pool was invalidated. In addition, Sloan & Williams Winery LLC failed to pay tipped employees, hourly employees and salary non-exempt employees their proper overtime wages,” explained Wage and Hour District Director Jesus A. Valdez in Dallas. “The department will pursue corrective action vigorously to ensure accountability, deter future violations, and prevent violators from gaining a competitive advantage.” 

Agency
Wage and Hour Division
Date
July 27, 2023
Release Number
23-1503-DAL
Media Contact: Juan Rodriguez
Media Contact: Juan Rodriguez
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Investigation recovers $178K for 8 employees from New York gas station, convenience store, Subway franchise operator

News Release

Investigation recovers $178K for 8 employees from New York gas station, convenience store, Subway franchise operator

Department of Labor assesses $5K in penalties for willful violations

ALBANY, NY – A federal investigation has recovered $178,372 in back wages and damages for eight workers employed by the owner and operator of a gas station, convenience store and Subway franchise in New York who denied them their legally earned minimum and overtime wages.

The U.S. Department of Labor’s Wage and Hour Division found Shreeji 121 Inc., doing business as Down Town Mini Mart and Subway, and owners Dipakkumar Kapadia and Archanaben Kapadia, failed to pay seven employees their regular rates of pay for hours over 40 in a workweek. The employers also failed to keep records of hours worked and employee pay.

Shreeji 121 Inc. also operates Archdeep 2 LLC doing business as Subway in Newburgh, One Flight Up Lounge Inc. doing business as Deep International in Beacon and A&A Bensenville Mart LLC doing business as Bensenville Gulf in Bensenville, Illinois.

The division also learned the employer failed to pay minimum wage and overtime to one employee in Illinois.

The division recovered $89,186 in back wages and an equal amount in liquidated damages for the affected workers to resolve the employer’s violations of the Fair Labor Standards Act’s minimum wage and overtime provisions. The department assessed $5,320 in civil money penalties for the willful nature of the violations.

“The U.S. Department of Labor is committed to safeguarding the rights of workers and making sure they receive all of their rightfully earned wages,” said Wage and Hour Division District Director Jay Rosenblum in Albany, New York. “The Wage and Hour Division encourages workers and employers to contact us for help understanding their rights and responsibilities under 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 required rate of pay for all hours worked over 40 in a workweek.

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 in English or Spanish to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
July 26, 2023
Release Number
23-1538-NEW
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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Utah supermarket, wholesaler pays $525K in back wages, damages, penalties after US Department of Labor investigation, litigation

News Release

Utah supermarket, wholesaler pays $525K in back wages, damages, penalties after US Department of Labor investigation, litigation

Chinatown Supermarket LLC, Chinatown Wholesale LLC violated labor law

SALT LAKE CITY – The U.S. Department of Labor has recovered $502,609 in back wages and liquidated damages for 148 people employed by one of Utah’s largest Asian grocers after the agency filed suit to stop the employer from interfering with an investigation into employer’s compliance with the Fair Labor Standards Act.

The Wage and Hour Division obtained a preliminary injunction against Chinatown Supermarket LLC for actively interfering with the Wage and Hour Division investigation by attempting to prevent investigators from interviewing employees and instructing employees to tell investigators that they did not work more than 40 hours per week.

The department also issued a subpoena to the company and its related business, Chinatown Wholesale LLC, to obtain documents about the companies’ pay practices. The documents showed that the employer only reported up to 80 hours in a pay period and paid a weekly bonus equivalent to straight time for overtime hours worked. By law, employers must pay time and one-half the regular rate of pay for hours over 40 in a workweek.

In an April 21, 2023, consent judgment, the U.S. District Court for the District of Utah, Central Division, required Chinatown Supermarket LLC and Chinatown Wholesale LLC to pay back wages and liquidated damages, and to comply with the FLSA or face additional consequences.

“Supermarket industry workers are often paid flat daily or weekly rates of pay and are deprived of their earned overtime pay. These workers depend on every dollar they earn to care for themselves and their families,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas. “The Department of Labor will hold employers fully accountable to prevent future violations and make sure competitors are not undercut by illegal pay practices. Our work helps workers and employers who follow the law.”

The consent judgment required the employers to pay $251,305 in back wages and an equal amount in liquidated damages to the affected employees, and as well as $22,390 in civil money penalties for the overtime violations. The employer paid back wages in full in June 2023.

“The U.S. Department of Labor will work vigorously to protect workers when employers mistakenly think they can retaliate against them exercising their rights,” explained Regional Solicitor of Labor John Rainwater in Denver. “The department is dedicated to making sure workers are paid as required by federal law. No employee should fear their employer’s wrath for reporting pay concerns.”

Chinatown Supermarket LLC, a retail grocery store, and Chinatown Wholesale LLC, a wholesale grocery provider, are owned by the same individual. The enterprise sells grocery products imported from Asia.

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 immigration status and can communicate with workers in more than 200 languages.

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.

Civil Action No.: 2:22-cv-00221-BSJ

Lea en Español 

Agency
Wage and Hour Division
Date
July 25, 2023
Release Number
23-1318-DEN
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Department of Labor recovers $64K in back wages for 41 workers after finding Cedar Bluff pest control employer failed to pay overtime

News Brief

Department of Labor recovers $64K in back wages for 41 workers after finding Cedar Bluff pest control employer failed to pay overtime

Employer:                              Extermco LLC, operating as Extermco Pest Control

                                                8255 Alabama Highway 9 N.

                                                Cedar Bluff, AL 35959

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the Cedar Bluff pest control company failed to pay non-exempt salary counter sales people and delivery drivers overtime for hours over 40 in a workweek, in violation of the Fair Labor Standards Act. Extermco Pest Control paid some workers an hourly wage, or a combination of hourly and commission pay that did not meet certain retail exemption requirements.

Back wages recovered: The division recovered $64,385 in back wages for 41 workers.                               

Quote: “Employers must pay employees the wages they legally earned for all hours worked, including overtime,” said Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama. “To make sure employees are paid all of their rightful wages and to avoid costly compliance issues, employers should contact their local Wage and Hour Division office for assistance.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. 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 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
July 25, 2023
Release Number
23-1584-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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