US Department of Labor recovers $186K in back wages for 52 workers denied overtime pay by Bismarck security services provider

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US Department of Labor recovers $186K in back wages for 52 workers denied overtime pay by Bismarck security services provider

Employer:        10-Code, LLC

                          201 Slate Drive Suite #6

                          Bismarck, ND

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators recovered $186,167 in back wages for 52 workers at 10-Code LLC, a security services provider. Investigators determined the employer violated the Fair Labor Standards Act overtime provisions by paying salary for all hours worked and straight time for overtime.

Back Wages Recovered: $186,167 in back wages for 52 workers                                               

Quote: “Business operators cannot casually decide to pay workers as salaried without examining whether or not they meet the salary exemption requirements,” explained Wage and Hour Division District Director Chad Frasier in Denver. “By doing so, 10-Code LLC clearly violated federal laws by denying workers all their hard-earned pay. Violations can be costly, and employers are encouraged to reach out to Wage and Hour if they have any questions.  

Background: Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
May 17, 2023
Release Number
23-1011-DAK
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor finds San Jose assisted living provider intentionally denied 16 workers overtime pay, recovers $211K in back wages, damages

News Release

US Department of Labor finds San Jose assisted living provider intentionally denied 16 workers overtime pay, recovers $211K in back wages, damages

Fines Pruneridge Residential Care Home $12K for repeated violations

SAN JOSE, CA – A federal investigation has recovered $211,064 in back wages and liquidated damages for 16 people employed by the owners and operators of three Bay Area assisted living facilities that deliberately failed to pay the required overtime rate when employees worked over 40 hours a week serving the needs of older adults in Santa Clara and San Jose.

Investigators from the U.S. Department of Labor’s Wage and Hour Division found Pruneridge Enterprise Inc. and its owners, Leilani F. Cortes and Geoffrey L. Cortes, did not pay overtime to the affected workers at three locations the employers operate as Pruneridge Residential Care Home in Santa Clara at 3030 Pruneridge Ave. and 312 Nowell Drive, and in San Jose at 2575 Forest Ave. On average, the affected workers at these facilities worked as many as 50 hours per week.

The division also learned the employers paid six caregivers below minimum wage and did not keep accurate payroll records. These actions violated the overtime, minimum wage and recordkeeping provisions of the Fair Labor Standards Act.

In addition to the recovery of $105,532 in unpaid wages — and an equal amount in liquidated damages — the division assessed Pruneridge Enterprise Inc. and its owners with $12,336 in civil money penalties for the repeated and willful nature of the employers’ violations. In 2011, three investigations found similar wage violations at facilities operated by the employers.

“Care industry workers are among our nation’s lowest paid workers, and our investigations too often find unscrupulous employers taking advantage of them and depriving them of their hard-earned wages,” said Wage and Hour Division District Director Susana Blanco in San Jose, California. “The U.S. Department of Labor is determined to protect workers’ rights to be paid all of their legally earned wages and will hold accountable those who mistakenly think they can violate these rights.”

In fiscal year 2022, the division recovered $14.9 million in back wages for more than 22,000 healthcare industry workers nationwide. As the U.S. population ages and demand for healthcare services increases, employment in a variety of healthcare sectors is projected to grow 13 percent from 2021 to 2031 – faster than the average for all occupations – adding about 2 million new jobs. 

The division enforces the law regardless of a worker’s immigration status and can speak confidentially with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the division, 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.

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

Agency
Wage and Hour Division
Date
May 11, 2023
Release Number
23-932-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers $96K for 10 workers on Kauai after finding cleaning company denied pay for overtime, work travel

News Release

US Department of Labor recovers $96K for 10 workers on Kauai after finding cleaning company denied pay for overtime, work travel

All Kauai Cleaning in Lihue also assessed $1,540 in penalties for repeated violations

HONOLULU – U.S. Department of Labor investigators have found that a Lihue cleaning service failed to pay employees overtime wages when required and did not pay employees for time spent traveling between job sites, which has led to the recovery of $96,936 in unpaid wages and damages for 10 workers.

The department’s Wage and Hour Division determined All Kauai Cleaning Inc.’s owner Robert Bartolo denied some employees overtime pay for hours over 40 in a workweek, and failed to track employees’ travel time and to include that time when calculating wages owed. These actions, and the employer’s failure to keep complete and accurate payroll records, are all violations of the Fair Labor Standards Act.

“Federal law protects the rights of every worker to get paid all of their legally earned wages which, in this case, means the required overtime rate and payment for time traveling between work locations,” explained Wage and Hour Division District Director Terence Trotter in Honolulu. “Our investigators determined that All Kauai Cleaning repeatedly violated its workers’ rights, and the U.S. Department of Labor has held the company accountable.”

In addition to recovering wages and damages, the division assessed All Kauai Cleaning $1,540 in civil money penalties for its repeated violations. In a 2014 investigation, the division discovered the employer failed to pay overtime when required and recovered $33,612 in unpaid wages and damages for affected workers.

Established in 1988, All Kauai Cleaning Inc. provides interior and exterior cleaning services for residential and commercial customers on the island.

The Wage and Hour Division 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 in English and Spanish for Android and iOS devices, to ensure hours and pay are accurate. 

Agency
Wage and Hour Division
Date
May 11, 2023
Release Number
23-920-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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READOUT: US Department of Labor report finds impact of caregiving on mother’s wages reduces lifetime earnings by 15 percent

News Release

READOUT: US Department of Labor report finds impact of caregiving on mother’s wages reduces lifetime earnings by 15 percent

WASHINGTON – U.S. Department of Labor and elected federal officials held a media briefing today to discuss the release of a report by the department’s Women’s Bureau on how caring for family has long-term impacts on a mother’s lifetime earnings.

Women’s Bureau Director Wendy Chun-Hoon and U.S. Representatives Gwen Moore, Susan Wild and Shontel Brown shared findings from the “Lifetime Employment-Related Costs to Women of Providing Family Care” report. Women’s Bureau Senior Advisor Sarah Jane Glynn also took part in the briefing.

The report finds the amount of time women spend providing essential care to children and adults has a substantial personal economic cost that continues long after the caregiving ends. The estimated employment-related costs for mothers providing unpaid care averages $295,000 over a lifetime, based on the 2021 U.S. dollar value, adjusted for inflation. Unpaid family caregiving reduces a mother’s lifetime earnings by 15 percent, which also creates a reduction in retirement income.

“Families often think first of immediate demands out of necessity. Children, aging loved ones and people with disabilities need care right now, and when that care is needed during working hours – or is too expensive or inaccessible — it is the mothers who usually scale back on paid work to provide care,” explained Women’s Bureau Director Wendy Chun-Hoon. “This report shows that lacking the necessary care infrastructure and safety net affects more than those immediate moments. They continue throughout a woman’s life.”

“Unpaid caregiving is work and should be recognized as such. This report is another reminder of the long-term cost women incur by providing unpaid care, and it cannot go ignored,” said Congresswoman Gwen Moore. “I am working to ensure our federal policies support those providing unpaid care to loved ones, uplifting women and their families, so we can build an equitable, modern economy.”

“Women spend invaluable time providing compassionate, dedicated care for their children and family members – and their reduced lifetime earnings because of it illustrate just how important solving the childcare crisis is,” said Congresswoman Susan Wild. “Lack of accessible, affordable childcare in Pennsylvania impacts our economy to the tune of more than $6 billion per year, harming working moms’ and working families’ ability to earn more and get ahead. I’m proud to be leading the ‘Child Care for Working Families Act’ to expand care options for all moms and families and unlock our full economic potential.” 

“This report is a call to action. All families should have access to affordable childcare if we want to have an inclusive economy,” said Congresswoman Shontel Brown. “Families across the nation and from all demographics are struggling with high childcare costs. This financial burden is especially high in historically marginalized communities, including Black mothers, as they are the least likely to scale back employment after having children due to challenging economic conditions. A lack of affordable care puts so much pressure on families, Black women deserve the ability to build wealth and build a family. Our children, mothers and families in Northeast Ohio deserve better.”

Although its findings relies on sophisticated modeling to focus on the costs associated with caregiving activities for mothers, the report – prepared for the Women’s Bureau by the Urban Institute – acknowledges that the costs are likely conservative estimates that do not include the total economic costs borne by all caregivers.

Review the “Lifetime Employment-Related Costs to Women of Providing Family Care.”

Agency
Women's Bureau
Date
May 11, 2023
Release Number
23-1008-NAT
Media Contact: Monica Vereen
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US Department of Labor offers webinar for hotel industry employers, workers, other stakeholders during National Tourism and Travel Week

News Brief

US Department of Labor offers webinar for hotel industry employers, workers, other stakeholders during National Tourism and Travel Week

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

What:             Fair Labor Standards Act webinar for hotel industry employers, workers

When:            May 11, 2023, 11:30 a.m. to 12:30 p.m. EDT  

Where:           Online webinar, registration is required.

Background: The U.S. Department of Labor’s Wage and Hour Division will mark the 40th anniversary of National Travel and Tourism Week by offering a webinar on federal regulations governing workers’ wages and benefits and employers’ responsibilities for those in hotels, motels and hospitality staffing agencies in the Southeast. The event will provide information on the Fair Labor Standards Act’s minimum wage, overtime and recordkeeping provisions.

In fiscal year 2022, the division resolved more than 500 cases related to hotel and motel operators in the U.S. and recovered more than $4.6 million in back wages for more than 3,000 workers.

Quote: “Traditionally, people in the hospitality industry work long hours doing hard jobs and they must be paid fully for all the hours they work,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “They provide critical labor that allows industry employers to be profitable and enable guests to enjoy their accommodations. We’ve designed this webinar to meet the tourism industry’s unique needs in the hope that we can educate industry leaders and employers — including staffing agencies — on their legal responsibilities, and also help workers understand how we safeguard their wages and benefits.”

Agency
Wage and Hour Division
Date
May 9, 2023
Release Number
23-892-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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US Department of Labor recovers more than $114K in back wages, damages for 100 employees denied overtime by Orlando-based hotel staffing agency

News Brief

US Department of Labor recovers more than $114K in back wages, damages for 100 employees denied overtime by Orlando-based hotel staffing agency

APDC Cleaning Services Inc. failed to pay workers employed across 4 states

Employer:   APDC Cleaning Services Inc.

                     5824 Precision Drive, Orlando, FL 32819

Investigation findings: Investigators with the department’s Wage and Hour Division found that a Florida hotel staffing company failed to combine hours worked by 100 employees at several locations paying them straight-time rates for all hours worked, including overtime hours. By doing so, the employer failed to pay the required time-and-a-half overtime premium for hours over 40 hours in a workweek, a Fair Labor Standards Act violation.

Back Wages and Liquidated Damages:        

$57,177 in back overtime wages

$57,177 in liquidated damages                                               

Quote: “The hard work done by hospitality industry workers allows guests to enjoy their accommodations. Often, they work long hours and deserve to be paid all their legally earned wages, including overtime,” explained Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “When employees work at more than one location, their employers must combine hours worked at all locations to calculate overtime wages properly. The Wage Hour Division is committed to safeguarding workers’ rights to get paid their rightfully earned wages.”

Background: Operating at 19 hotels in Florida, Georgia, Missouri and South Carolina, APDC Cleaning Services Inc. provides workers for various jobs, including cleaning and maintenance positions at hotels and other hospitality worksites.

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.

To help employers in the hospitality industry avoid FLSA violations, the department’s division will hold a webinar during National Tourism Week on May 11 from 11:30 a.m. to 12:30 p.m. EDT. The webinar is free, but registration is required

Employers and workers can call the division confidentially with questions regardless of their immigration status. 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 android devices, available in English and Spanish, to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
May 8, 2023
Release Number
23-837-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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Department of Labor recovers $910K in back wages, damages for 289 Lyndhurst staffing agency employees denied overtime

News Release

Department of Labor recovers $910K in back wages, damages for 289 Lyndhurst staffing agency employees denied overtime

Advantix Logistics Corp., owner held liable for violations of federal wage laws

LYNDHURST, NJ – The U.S. Department of Labor has obtained a consent judgment in a federal court in New Jersey to recover $910,000 in back wages and liquidated damages for 289 employees of a Lyndhurst staffing agency whose pay practices deprived them of hard-earned overtime wages.

The court action follows an investigation by the department’s Wage and Hour Division that determined Advantix Logistics Corp. and owner Michael Mortorano paid warehouse employees a combination of hourly and piece rates but did not include an overtime premium for hours over 40 in a workweek. The work of the employees the agency provided included loading and unloading freight from containers and pallets for upwards of 70 hours per week at warehouses. The employer also failed to keep accurate records of employees’ hours worked. These actions violated the Fair Labor Standards Act.

“Our investigation found that Advantix Logistics Corp.’s pay practices shortchanged nearly 300 people employed by the staffing agency,” explained Wage and Hour District Director Paula Ruffin in Mountainside, New Jersey. “Employers must pay employees all of their rightfully earned wages or face costly consequences when they don’t. We encourage employers to contact us with questions or concerns about their pay practices.”

The consent judgment and order entered in the U.S. District Court for the District of New Jersey requires the company and its owner to pay $455,000 in back wages and an equal amount in liquidated damages.

“This consent judgment makes clear to all staffing agency employers that, like Advantix Logistics Corp., they will be held accountable if they fail to pay employees their legally earned wages,” said Solicitor of Labor Jeffrey Rogoff in New York. “The U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from violating workers’ rights.”

In November 2022, the department secured a separate consent judgment that required Advantix Logistics to pay $65,000 in damages to a former employee. An investigation by the division determined that the staffing agency fired the worker after they complained about not getting paid for all of their hours worked.

The division’s Northern New Jersey District Office conducted the investigation. Trial Attorney Amanda Wilmsen of the Office of the Solicitor in New York litigated the case and negotiated the settlement.

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.

Agency
Wage and Hour Division
Date
May 8, 2023
Release Number
23-507-NEW
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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US Department of Labor recovers $45K in back wages, damages for Oklahoma healthcare workers denied overtime wages

News Brief

US Department of Labor recovers $45K in back wages, damages for Oklahoma healthcare workers denied overtime wages

The Heart and Medical Center denied overtime by not paying all hours worked

Employer:                       The Heart and Medical Center                                     

Investigation sites:    2701 W. University Blvd.

                                              Durant, OK 74701                                  

Investigation findings: Investigator with the U.S. Department of Labor’s Wage and Hour Division found the employer paid only the first 40 hours worked per week, and did not accurately record the hours worked over 40 to avoid paying its healthcare workers time and a half for overtime hours. The employer also failed to pay for missed lunch breaks that were automatically deducted from workers’ time. By doing so, the employer violated recordkeeping and overtime provisions of the Fair Labor Standards Act.

Back Wages and Damages: $22,728 in back wages and equal amount in liquidated damages for 25 workers                                               

Quote: “Unfortunately, the violations in this case are common in the healthcare industry. The Heart and Medical Center failed to pay employees for missed lunch breaks and denied them pay for overtime hours. When employers deprive workers of their full wages, they make it harder for them to care for themselves and their families,” said Wage and Hour District Director Michael Speer in Oklahoma City. “The U.S. Department of Labor is working with the healthcare industry nationally to educate employers to get workers paid properly and to help employers avoid the costly consequences of violating the law.”

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 the Fair Labor Standards Act 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.

Agency
Wage and Hour Division
Date
May 4, 2023
Release Number
23-521-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Federal investigation recovers $672K for 172 firefighters, paramedics after Department of Labor finds City of Gary misapplied overtime rules

News Release

Federal investigation recovers $672K for 172 firefighters, paramedics after Department of Labor finds City of Gary misapplied overtime rules

Firefighters worked up to 120 hours per two-week pay period without being paid overtime

GARY, IN – Like all first responders, firefighters employed by the City of Gary must be ready to respond when and wherever needed. In general, they work a 106-hour schedule at fire stations every two weeks in shifts sometimes lasting 24 hours or longer. When duty forces them to exceed their typical schedules, federal law requires their employer to pay overtime wages at time-and-one-half their hourly rates.

A recent investigation by the U.S. Department of Labor’s Wage and Hour Division that found the city failed to compensate as many as 172 firefighters and paramedics fully has recovered a total of $672,502 in back overtime wages for these employees.

“When duty calls, first responders are expected to put the lives of others before theirs. Our investigation found the City of Gary failed to compensate these firefighters and paramedics as the law requires,” explained Acting Wage and Hour Division District Director Fernando Hernandez in Indianapolis. “Like all employers, states and local governments must understand the rules that apply to their employees and pay them properly.”

Division investigators reviewed payroll records from March 8, 2020 to March 7, 2022, and learned firefighters often worked up to 120 hours every two weeks but did not receive additional compensation for hours worked over 106. Investigators determined the city owed 154 firefighters a total of $319,237 in overtime wages.

The investigation also found the city owed 18 paramedics a total of $353,265 in overtime back wages. The division found the city believed incorrectly that paramedics, like firefighters, could work up to 106 hours per two-week period before overtime compensation was owed. In fact, since the paramedics did not perform fire suppression work, they were due overtime for hours over 40 in a workweek.

View the FLSA fact sheet on overtime regulations for firefighters.

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, free and also available in Spanish, to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
May 2, 2023
Release Number
23-740-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor recovers $101K for 10 sushi restaurant workers in Hawaii after employer denied overtime pay by misapplying exemption

News Release

US Department of Labor recovers $101K for 10 sushi restaurant workers in Hawaii after employer denied overtime pay by misapplying exemption

Imanas Tei in Honolulu also assessed $4K in penalties for deliberate actions

HONOLULU – The U.S. Department of Labor has recovered $101,694 in back wages and liquidated damages from the owners of a Honolulu restaurant who denied full wages to 10 chefs — many of whom worked as many as 20 hours of overtime each week — by illegally excluding them from overtime compensation.

The department’s Wage and Hour Division found Keiji Fukuda and Yuki Naka – owners of Imanas Tei restaurant – denied the restaurant’s salaried chefs overtime pay by characterizing their primary work inaccurately as management rather than as meal preparers. By doing so, Fukuda and Naka failed to pay lawfully entitled overtime wages to the chefs for hours over 40 in a workweek, Fair Labor Standards Act violation.

In addition, the division learned Fukuda and Naka failed to keep records of all hours worked, including overtime hours, which led to federal recordkeeping violations.

“Overtime earned must be overtime paid,” said Wage and Hour Division District Director Terrence Trotter in Honolulu. “Paying salaries to frontline kitchen staff does not allow an employer like Imanas Tei to evade its obligation to pay workers all of their legally earned wages.”

In addition to recovering back wages and damages, the division assessed $4,488 in civil money penalties for the willful nature of the violations. 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. 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 Android and iOS devices, to ensure hours and pay are accurate. 

Agency
Wage and Hour Division
Date
May 1, 2023
Release Number
23-776-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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