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

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.

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.” 

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.

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 

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.

Employer:      Family Food Co. Inc.

                        1043 Opakapaka St.

                        Kapolei, HI 96707

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found Family Food Co. failed to pay 11 warehouse workers at least time and one-half for hours over 40 in a workweek, in violation of the Fair Labor Standards Act. Investigators determined the employer illegally gave workers the option to either clock in overtime hours worked or to accept cash payments to avoid paying taxes on those earnings. The employer also violated FLSA recordkeeping requirements by keeping inaccurate time and payroll records.

Back Wages Recovered:       $36,685 in unpaid overtime wages for 11 employees

                                                $36,685 in damages for 11 employees

                                                $8,877 in penalties for the reckless disregard of the law

Quote: “Employers cannot reduce their labor costs by entering into illegal agreements with workers that undermine federally mandated wage standards,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Overtime worked should be overtime paid.”

Background: Family Food Co. wholesales imported bulk goods and repackages them for sale to food retailers across Hawaii.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – 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, also available in Spanish.

Employer:     
Jimmy Carter’s Mexican Café LLC
3172 Fifth Ave.
San Diego, CA 92103 

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found Jimmy Carter’s Mexican Café and owner James Brennan Carter failed to pay employees, including waiters and cooks, the required overtime pay rates for hours over 40 in a workweek, a Fair Labor Standards Act violation. Investigators learned some of the employees worked up to 67 hours per week.

Back Wages Recovered:       $63,674 in unpaid wages and an equal amount in damages for 18 employees

                                                $7,263 in penalties for the reckless disregard of the law

Quote: “Restaurant employers such as Jimmy Carter’s Mexican Café cheat workers and commit wage theft when they refuse to pay employees’ earned overtime wages,” said Wage and Hour District Director Min Park-Chung in San Diego. “Cooks and servers often work long hours and, like all workers, must be paid in compliance with federal labor laws. Employers who undercut their workers’ wages will be held accountable.”

Background: Investigators learned about this employer’s illegal practices through the Employment Education and Outreach alliance, known as EMPLEO, that operates a multistate toll-free hotline to assist Spanish-speaking workers with workplace issues: 1-877-552-9832.

 Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – 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, also available in Spanish.

HARTFORD, CT – A federal court has entered a consent judgment and order requiring six Connecticut restaurants and their owners to pay a total of $858,191 in back wages and liquidated damages to 105 employees after an investigation and litigation by the U.S. Department of Labor.

The restaurants are located in Darien, Fairfield, Greenwich, New Canaan, New Haven and Westport.

In November 2022, the U.S. District Court for the District of Connecticut granted the U.S. Secretary of Labor’s motion for partial summary judgment in its entirety, concluding that the employers violated the Fair Labor Standards Act’s overtime and recordkeeping provisions. The court awarded a total of $251,129 in back wages for overtime violations and held the employers liable for liquidated damages and forbid them from violating the FLSA’s overtime and recordkeeping provisions. 

After obtaining a favorable order on partial summary judgment, the department and the employers entered into a consent judgment. The judgment — entered by the court in February 2023 — requires the employers to pay additional back wages, withheld tips and liquidated damages owed for all remaining claims, including those for minimum wage, tip pool and other overtime violations. It also forbids the employers from violating the FLSA and provides for a consent writ of execution should the employers fail to comply with the consent judgment’s monetary terms. The judgment also incorporates the court’s summary judgment decision and requires the restaurants and their owners to pay a total of $858,191 in back wages, withheld tips and liquidated damages.

“These employers’ pay practices deprived workers of the full, hard-earned wages and tips on which they depend to help them support themselves and their families,” said Wage and Hour Division District Director Donald Epifano in Hartford, Connecticut. “While these types of violations are common in the restaurant industry unfortunately, they can be prevented with knowledge and compliance with the law.”

The case includes the following restaurants:

1077 LLC, operating as Scena Wine Bar and Restaurant, Darien

SL Restaurant Group LLC, operating as 55 Wine Bar, Fairfield

Greenwich Avenue Restaurant LLC, operating as Sundown, Greenwich

Siguenza LLC, operating as Cava Wine Bar and Restaurant, New Canaan

1104 Chapel Street LLC, operating as Harvest Wine Bar and Restaurant, New Haven

36 Railroad Place LLC, operating as Harvest Wine Bar and Restaurant Westport, Westport

“This case reflects the U.S. Department of Labor’s commitment to litigate aggressively, and secure back wages, tips and liquidated damages owed to workers,” said Regional Solicitor Maia Fisher in Boston.

“We encourage employers with questions and concerns about their responsibilities, and employees with questions about their rights under federal wage laws, to contact the Wage and Hour Division,” added Epifano.

The Fair Labor Standards Act establishes minimum wage, overtime pay, recordkeeping and youth employment standards affecting employees in the private sector and in federal, state and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required for hours over 40 in a workweek. Learn about specific FLSA rules for the restaurant industry and tipped employees.

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 immigration status. 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 to ensure hours and pay are accurate, available in English and Spanish.

Secretary of Labor v. Siguenza LLC d/b/a Cava Wine Bar and Restaurant; 1077 LLC d/b/a Scena Wine Bar and Restaurant; 1104 Chapel Street LLC d/b/a Harvest Wine Bar and Restaurant; Greenwich Avenue Restaurant LLC d/b/a Sundown; 36 Railroad Place LLC d/b/a Harvest Wine Bar and Restaurant Westport; SL Restaurant Group LLC d/b/a 55 Wine Bar; Vicente Siguenza; Wilson Siguenza; Nube Siguenza; and Kleber Siguenza.

Civil Action No. 3:20-cv-01762-VLB

Employer name: Morris-Pace Assisted Living Inc., operating as Morris-Pace Personal Care Home, and located at 416 Reading Ave., Reading, Pennsylvania 19611

Court action: Consent judgment obtained on July 3, 2023, in the U.S. District Court for the Eastern District of Pennsylvania by the Department of Labor.

Investigation findings: The department’s Wage and Hour Division found the operator of a senior assisted living facility paid a semi-monthly salary to five workers employed as personal care assistants.

The affected employees received a lower salary due to the employer’s invalid reduction for monthly rent while residing in apartments connected to the facility. The employer failed to maintain records of the reasonable cost for furnishing the employees with lodging. By doing so, the facility violated federal law by allowing employees’ hourly wage to fall below the federal $7.25 per hour minimum wage. The division determined Morris-Pace owed these workers $21,931 in back wages.

Investigators also learned the employer paid 20 workers straight-time for all hours worked, including hours over 40 in a workweek, in violation of federal overtime requirements, and determined Morris-Pace owed these employees $59,194 in back wages.

Back wages and liquidated damages: $81,125 in back wages and $81,125 in liquidated damages

Workers affected: 20  

Civil money penalties: The department assessed $16,140 in penalties for the willful nature of the employer’s Fair Labor Standards Act violations, which Morris-Pace Assisted Living Inc. has paid.

Quotes:  “Morris-Pace Assisted Living’s failure to pay some workers minimum wage and their denial to pay others overtime pay for their hard work, made it more difficult for those care workers to care for their needs and those of their families,” said Wage and Hour Division District Director Alfonso Gristina in Wilkes-Barre, Pennsylvania. “The outcome of this investigation shows that employers who violate workers’ rights to be paid fully, often face costly consequences.”

“Employers who disregard Fair Labor Standards Act provisions deliberately will discover that the U.S. Department of Labor does not tolerate wage theft and will use legal actions needed to uphold the law,” explained Deputy Regional Solicitor Samantha Thomas in Philadelphia.

Background: Started as a family business in 1968, Morris-Pace Personal Care Home provides room and board along with medical and personal care and daily living support.

For more information about the FLSA and other laws the division enforces, contact its toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour 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.