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. 

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.

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.

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. 

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.”

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.”

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.

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.