PHILADELPHIA – A federal court has ordered a Philadelphia home care agency and its owner to pay more than $7 million in back wages and liquidated damages to 1,230 current and former employees after two years of litigation affirmed the U.S. Department of Labor’s finding that the employers willfully failed to pay overtime wages, in most cases by not including employees’ time for work-related travel when calculating wages.

On May 12, 2023, Judge Chad F. Kenney in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia found that Nursing Home Care Management Inc., operating as Prestige Home Care Agency, and its owner Alexander Dorfman owed $3,538,360 in back wages and an equal amount in liquidated damages to the affected employees.

The department’s Office of the Solicitor in Philadelphia litigated the case, brought after the department’s Wage and Hour Division determined the employers had violated the overtime and recordkeeping provisions of the Fair Labor Standards Act.

The court found that Prestige Home Care Agency willfully did the following:

• Failed to pay the required overtime rate for hours over 40 in a workweek by not paying home health aides for time spent traveling between clients’ homes in the same workday and between Prestige’s administrative office and clients’ homes in the same workday.
• Paid certain employees straight-time hourly rates for all hours worked, including for hours over 40 in a workweek.
• Segregated types of work performed by certain employees during a workweek rather than combining all hours worked when computing overtime wages due.
• Failed to keep accurate time and payroll records as required by law.

“Unfortunately, our investigators found yet another Philadelphia-area home health agency willfully shortchanging employees and skirting the law,” said Wage and Hour Division District Director James Cain in Philadelphia. “In this case, Prestige Home Care Agency denied 1,230 current and former employees more than $3.5 million in wages they earned for putting in long hours to help vulnerable people in our community.”

In June 2021, the department’s Office of the Solicitor in Philadelphia filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against the employers to recover the back wages and liquidated damages owed. In response, Judge Chad F. Kenney ruled that the employers willfully violated the FLSA, granted the department’s motion for summary judgment and forbade the employers from violating the FLSA in the future.

“The court’s judgment affirms the Department of Labor’s position that home care employers must pay employees for travel time, which is an essential part of their job duties,” explained Deputy Regional Solicitor Samantha Thomas. “The outcome in this case serves as a stark reminder to other homecare employers that the consequences for shortchanging employees can be costly both to the company’s bottom line and to its industry reputation.”

Established in 1995, Prestige Home Care Agency provides medical and non-medical home care services to clients throughout Southeastern Pennsylvania. These services include skilled and home healthcare, veterans assistance, adult home and personal care and intellectual disability services.

The Wage and Hour Division’s Philadelphia District Office conducted the investigation. Trial Attorneys Brian Krier and Sharon McKenna with the department’s Philadelphia Regional Solicitor’s Office litigated the case.

For more information about the FLSA and other laws the division enforces, as well as information about regulations in the home care industry, 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, available in English and Spanish.

Employer:                              Tipsy Holding II LLC, operating as Tipsy Taco

Investigation sites:               215 Pelham Road, Greenville, SC 29615 – Headquarters

                                                15 Conostee Ave., Greenville, SC 29605

                                                728 Wade Hampton Blvd., Greenville, SC 29609

                                                102 Southern Center Way, Easley, SC 29642

                                                14180 E. Wade Hampton Blvd., Greer, SC 29651

                                                702 Fairview Road, Simpsonville, SC 29680

Investigation findings: Investigators with the department’s Wage and Hour Division found that Tipsy Holding II LLC failed to pay the half-time premium to cooks, servers and bar employees for hours over 40 in a workweek, an overtime violation of the Fair Labor Standards Act. The employer also failed to keep accurate records for workers.

Back Wages and Liquidated Damages Recovered: $567,079 for 215 workers.                                               

Quote: “As food service industry employers struggle to find people to fill the jobs needed to remain competitive, they should remember that keeping and finding workers is harder for employers who don’t respect workers’ rights and shortchange them of their full wages,” said Wage and Hour District Director Jamie Benefiel in Columbia, South Carolina. “Overtime violations are common in the restaurant industry, but they shouldn’t be. There are more than enough resources available to employers to help them understand their obligations to employees under the law.”

Background: In fiscal year 2022, the Wage and Hour Division recovered more than $27.1 million for more than 22,000 workers in the food service industry. 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 track hours worked and pay by downloading the department’s Timesheet App for Android or Apple devices for free.

Learn more about Wage and Hour Division.

Employer name:       Petroline Inc., operator of Putnam Truck Stop                                                                                                                                                                           565 Tonnele Ave., Jersey City, New Jersey 07307

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division determined that the employer failed to pay an overtime premium to gas station attendants for hours worked over 40 in a work week, as required by the Fair Labor Standards Act.

Back wages recovered: $100,811

Workers affected: 15 employees

Quote: “Employers must understand that paying workers a fixed salary does not automatically excuse them from paying overtime. Unless a specific exemption applies, even workers paid on a salary basis must be paid overtime when they work more than 40 hours in a week,” said Wage and Hour Division District Director Paula Ruffin in Mountainside, New Jersey. “The Wage and Hour Division offers numerous tools to help employers learn about their responsibilities and how to comply with the law. We encourage employers to reach out to us for assistance.”

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, available in English and Spanish.

SAN FRANCISCO – The U.S. Department of Labor has obtained a preliminary federal court injunction forbidding the operator of 14 San Francisco Bay Area Subway locations from violating child labor laws, threatening and retaliating against workers and obstructing a federal investigation.

The action by the U.S. District Court for the Northern District of California comes amid allegations made by investigators with the department’s Wage and Hour Division that John Michael Meza, owner and operator of the Subway franchises, directed employees as young as 14 and 15 to operate dangerous equipment, allowed children to work longer and at times not permitted by law, issued hundreds of bad checks to employees, failed to pay their wages regularly and kept tips left by customers.

The division also alleges that Meza interfered with its investigation by coercing employees not to cooperate with investigators and threatening children who raised concerns or tried to exercise their legal rights.

During their review, investigators determined several Subway workers had suffered burns and other injuries.

“Federal regulations protect young workers, ensure employees are paid all their hard-earned wages, and allow workers to freely cooperate with a federal investigation without fear of retaliation by their employer,” said Assistant District Director Alberto Raymond with the Wage and Hour Division in San Francisco. “While learning new skills in the workforce is an important part of growing up, federal law dictates that children’s jobs must be safe and that their work doesn’t interfere with their education or well-being.”

The division cited the employer for numerous violations of Fair Labor Standards Act provisions related to the payment of wages, child labor, recordkeeping, retaliation against employees and obstruction of a federal investigation.

“Our investigators learned this Subway franchisee directed young teenagers to operate ovens, toasters, cardboard balers and other equipment, all of which are considered dangerous jobs,” added Raymond. “The court has ordered the employer to stop jeopardizing the safety and well-being of minor-aged workers, to pay workers as the law requires and to ensure that workers can participate in our investigation without fear.”

Specifically, the court’s injunction forbids Meza, his Brentwood-based companies — MZS Enterprises LLC and Crave Brands LLC — his wife Jessica Leyva Meza and associate Hamza Ayesh from violating child labor regulations and from harassing and threatening labor investigators or employees, and from taking retaliatory actions such as termination, reduction of work hours, or threatening to report employees to law enforcement agencies, including immigration authorities.

The court also ordered the Subway franchisee and its owners to stop issuing employees checks drawn on account without sufficient funds and not to pay wages to employees using non-payroll accounts. They must also provide the department with an accounting of all bounced checks from Aug. 1, 2019 to May 19, 2023 to allow the division to calculate the funds owed to affected employees.

In addition, the employers must cease withholding $265,294 in unpaid wages in bounced employee checks and reimburse employees for bad check fees charged to employees by their financial institutions.

“The preliminary injunction we obtained is one tool we will use to prevent further exploitation and intimidation of young, vulnerable workers,” explained Regional Solicitor of Labor Marc Pilotin in San Francisco. “The department will take expeditious legal action when workers’ safety is threatened and when their employers intimidate them or otherwise attempt to obstruct an investigation.”

The investigation and litigation currently include the following 14 Subway franchise locations operated by Meza and his companies:

The division provides many resources to help employers comply with child labor laws Its 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 positive and safe 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.

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, now available in English and Spanish for Android and Apple devices, to ensure hours and pay are accurate.

Julie A. Su, acting Secretary of Labor, U.S. Department of Labor vs. John Michael Meza, Jessica Leyva Meza, Hamza Ayesh, MZS Enterprises LLC, Crave Brands LLC

Civil Action No. 3:23-cv-01714

Nombre de empleador:              Whataburger Restaurant LLC                                        

Sitio de investigación:                7201 Quaker Ave.

                                                                Lubbock, TX 79424        

Resultados de la investigación: La División de Horas y Salarios del Departamento de Trabajo de EE.UU. encontró que una sucursal de Whataburger Restaurant LLC no proporcionó un tiempo de descanso razonable para que una empleada se extrajera leche materna, como lo requiere la Ley de Normas Justas de Trabajo (FLSA, por sus siglas en inglés). Los investigadores también determinaron que el empleador despidió a la trabajadora después de que esta saliera de las instalaciones para poderse extraerse leche. Para resolver las violaciones encontradas, el franquiciador con sede en San Antonio firmó un estricto acuerdo de cumplimiento que establece que proporcionará capacitación sobre la FLSA a todos los gerentes.

Salarios recuperados:              $900 en salarios atrasados y $900 en compensación por daños.

Cita: “Es ilegal privar a una madre lactante de su derecho a extraerse leche materna con suficiente tiempo de descanso para hacerlo y luego despedirla”, dijo la directora distrital de Horas y Salarios, Evelyn Ortiz, en Albuquerque, Nuevo México. “Los empleadores deben cumplir con todas las disposiciones de la FLSA, incluido el derecho de las madres lactantes a solicitar el tiempo y espacio que necesitan para extraerse la leche sin temor a represalias”.

En virtud de la Ley PUMP para Madres Lactantes, la mayoría de las empleadas que son madres lactantes tienen derecho a un tiempo de descanso razonable y a un lugar, que no sea un baño, protegido de la vista para expresar la leche materna mientras están en el trabajo. Este derecho está disponible hasta un año después del nacimiento del niño.

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Employer name:                    Whataburger Restaurant LLC                                        

Investigation site:                 7201 Quaker Ave.

                                                Lubbock, TX 79424                                      

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found a corporate-owned location of Whataburger Restaurant LLC failed to provide reasonable break time for an employee to express breast milk as required by the Fair Labor Standards Act. Investigators also determined that, when the employee left the premises to express milk, the employer terminated the employee. To resolve the violations, the San Antonio-based franchisor signed an Enhanced Compliance Agreement stating it will provide FLSA training to all managers in the future.

Back wages recovered:         $900 in back wages and $900 in liquidated damages.                                                                                   

Quote: “Depriving a nursing mother of her right to express breast milk with enough break time to do it, and then firing her is against the law,” said Wage and Hour District Director Evelyn Ortiz in Albuquerque, New Mexico. “Employers must comply with all of the FLSA provisions, including the right of nursing mothers to request the time and space they need to express milk without fear of retaliation.”

Under the PUMP for Nursing Mothers Act, most nursing employees have the right to reasonable break time and a place, other than a bathroom, that is shielded from view to express breast milk while at work. This right is available for up to one year after the child’s birth. 

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WASHINGTON – As the nation marks Older Americans Month, the U.S. Department of Labor welcomed U.S. Representatives Debbie Dingell, Lois Frankel, Gwen Moore and Jan Schakowsky for a roundtable discussion on older women in today’s workforce and the findings of two reports by the department’s Women’s Bureau on the unique challenges they face.

Moderated by the bureau’s Director Wendy Chun-Hoon, the panel shared findings in the reports, “The Rise of Older Women Workers” and “Living on Less: Persistent Gender Disparities in Income Levels, Sources for Older Adults.”

The bureau’s Acting Deputy Director Tiffany Boiman; Justice in Aging’s Directing Attorney for Economic Security Tracey Gronniger; Christina Bradshaw-Smith, a member of the American Federation of Teachers; and Antonia Surco, a member of the National Domestic Workers Alliance also participated in the roundtable.

The “Rise of Older Women Workers” reports that while women aged 55 and older make up 10.8 percent of the U.S. labor force – nearly double their 5.8 percent share of the workforce in 1980 – their incomes continue to be lower and they are more likely to live in poverty than men of the same age.

“The inequalities that women experience throughout their working lives – things like unequal pay, the lack of affordable childcare, or gender and racial discrimination and harassment – accumulate and grow over time,” explained Women’s Bureau Director Wendy Chun-Hoon. “While some workers may choose to keep working, too many older women simply cannot afford to retire due to a lifetime of low wages, family caregiving responsibilities and systemic inequalities.”

The reports show that, on average, older women’s personal incomes are only 63 percent of men’s, for those aged 65 and older. Long-term solutions require addressing a lifetime of gender-based inequities: eliminating pay disparities, increasing access to worker protections, creating pathways to better paying careers and improving job quality where women are the most likely to work today.

“Older women workers are an important and growing part of our workforce, yet they consistently earn less due to an intersection of multiple factors, including ageism and sexism. The Democratic Women’s Caucus looks forward to working with the Biden administration and other partners to address the disparities and challenges older women face so they can age independently and with financial stability,” said Rep. Lois Frankel.

“These reports make it plainly clear that we must do more to support older women in the workforce and make equity-centered policy interventions to tackle gender disparities. I am so pleased to convene at this roundtable to highlight important insights from these reports,” said Rep. Gwen Moore.

“Older women are an important and growing segment of the U.S. labor force, but they have lower incomes and are more likely to live in poverty than older men. All seniors deserve to age and live independently and with dignity. As a co-chair of the Task Force on Aging and Families, and someone who spends a lot of time working on how we improve quality of life and resources for aging Americans, this issue hits home for me. We must continue to work to understand and address the discrepancies and challenges faced by older women in the workforce,” said Rep. Jan Schakowsky.

Bradshaw-Smith, a high school physical education teacher with more than 30 years in the classroom, shared her experiences, as did Surco, an older domestic worker. Throughout the discussion, participants emphasized the need for stronger worker protections and policies to support working women today to avoid hardship for women as they age in the workforce and into retirement.

Review “The Rise of Older Women Workers” report.

Learn more about the “Living on Less” report.

SUMMERVILLE, OR – A federal contractor in Oregon misclassified dozens of workers – who battled some of the nation’s worst wildfires an average of 70 hours a week in 2020 and 2021 – as independent contractors and denied them their full wages and benefits as a result, the U.S. Department of Labor has found.

Investigators with the department’s Wage and Hour Division determined KL Farms/Fire LLC of Summerville paid a flat daily rate of between $200 and $250 to 57 firefighters and truck drivers, regardless of their total hours worked. From June 2019 through October 2021, the U.S. Forest Service contracted the company to provide fire engines, firefighters, trucks and driver services for fire suppression and firefighting in Arizona, California, Oregon and Washington.

In 2020, the wage standard for firefighters – established by provisions of the McNamara-O’Hara Service Contract and Contract Work Hours and Safety Standards acts – was set at a minimum of $9.38 an hour plus an additional $4.22 in fringe benefits, and the minimum for truck drivers was $18.20 an hour and an additional $4.22 in fringe benefits. The acts’ provisions establish wage rates and benefits for work funded by federal contracts.

By paying a flat daily rate, KL Farms/Fire LLC also incurred overtime violations of the Fair Labor Standards Act. Investigators also identified violations of the FLSA’s recordkeeping requirements.

As a result of its investigation, the division recovered $152,003 in overtime wages and fringe benefits, as well as an additional $12,577 in liquidated damages for the affected workers. Back wages recovered ranged from $101 to $14,783 per worker. In addition, the company paid $16,981 in civil money penalties assessed by the department for the employer’s violations.

“Fighting wildfires demands people work long hours and face real dangers as they try to save other people, homes, businesses and natural resources,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “The workers accepted these risks and deserve to be paid every dollar and fringe benefit they’ve earned, especially under very specific requirements that KL Farms/Fire agreed to meet.”

The division’s investigation of the company also determined the employer violated the Migrant and Seasonal Agricultural Worker Protection Act by failing to pay workers’ wages when due, provide wage statements and register as a farm labor contractor. KL Farms/Fire employees working as firefighters and engine bosses are covered by the MSPA as their duties constitute predominantly manual forestry work, and many of the employees travel from other parts of the U.S. to fight these fires.

“Our investigators are seeing a significant number of companies paying daily, instead of hourly, rates as hundreds of firefighters are hired to fight unpredictable wildfires for days and sometimes months,” Aguilar explained. “No employer – especially a federal contractor – should mistake the urgent need or uncertain length of employment as a reason to misclassify employees as independent contractors, and deny them full wages, benefits and other worker protections.”

For more information about federal contractor wage laws and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline confidentially 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. Download the agency’s new Timesheet App for Android and Apple devices, now available in English and Spanish, to ensure hours and pay are accurate.

SAN DIEGO – A federal investigation of a San Diego environmental remediation and demolition contractor’s pay practices has recovered $363,444 in back wages and liquidated damages for 125 employees denied their rightful overtime and minimum wages.

The U.S. Department of Labor’s Wage and Hour Division found Watkins Environmental Inc. did not pay hourly employees for pre-work time spent preparing for jobs and attending required training, which led to minimum wage and overtime violations. Investigators also determined the employer’s employee records were not accurate and complete, as required by the Fair Labor Standards Act.

Specifically, the division recouped $181,722 in back wages and an equal amount in liquidated damages for the affected employees. Watkins Environmental also paid the department $28,462 in civil money penalties for its reckless disregard of FLSA requirements.

“The violations found in this investigation are all-too-common in the construction industry, and the U.S. Department of Labor will hold employers accountable for not paying employees their legally earned wages,” explained Wage and Hour Division District Director Min Park-Chung in San Diego. “Employers who withhold workers’ wages make it harder for their employees to make ends meet. At the same time, these employers gain an unfair advantage over industry competitors who abide by the law.”

Incorporated in California in 2011, Watkins Environmental Inc. provides commercial and residential asbestos, paint and lead removal, mold remediation, and demolition services in San Diego and the surrounding areas.

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 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 iOS and Android devices – free and now available in Spanish – to ensure hours and pay are accurate.

HONOLULU – The U.S. Department of Labor has recovered $91,097 in unpaid wages and liquidated damages for workers employed by a Kapolei restaurant that allowed its managers to pocket some of the tips earned by its servers, cooks and kitchen helpers.

The department’s Wage and Hour Division found Lance Yamamoto, owner of Sushi Bay, deprived workers of their full amount of tips they earned for serving the restaurant’s customers, a violation of the Fair Labor Standards Act.

A restaurant employer cannot keep tips received by its employees for any purposes, including allowing managers and supervisors to keep any portion of those tips.

“Tips earned for service are the property of the people who earned them,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Employers who withhold or allow managers to pocket tips that rightfully belong to those who received them for their hard work are breaking the law and will be held accountable.”  

In addition to recovering $45,549 in wages and an equal amount in damages, the division assessed Sushi Bay $3,842 in civil money penalties.

In 2017, the division found Sushi Bay in violation of federal law for its failure to pay employees overtime and recovered $22,146 in that investigation. The restaurant, which serves sushi using a conveyor belt, opened in 2013.

In fiscal year 2022, the Wage and Hour Division recovered more than $27 million for more than 22,000 workers in the food service industry. In 2022, the Bureau of Labor Statistics reported near record numbers of job openings and workers in the accommodations and food services industry quitting their jobs. 

The Wage and Hour Division also protects workers against retaliation and has regulations that prohibit retaliation, harassment, intimidation or adverse actions against employees that assert their worker rights. 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. Workers and employers with questions can contact the division’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

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