Employer name: The Greenbrier Sporting Club Inc.

Investigation site: One Sporting Club Drive, White Sulphur Springs, WV 24986

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer failed to include compulsory service charges - a mandatory 20 percent service charge to all members for food and beverage services - in their employees’ regular rate of pay. This resulted in the employees not being paid the proper overtime premium of time-and-one-half the regular rate for all hours worked over 40 in a workweek. The division also found the employer failed to identify accurate rates of pay on payroll records. These actions violated the Fair Labor Standards Act.

The affected employees primarily worked in the club’s two restaurant facilities, in occupations that included servers, server assistant, bartender, beverage cart worker, assistant managers, events manager, events set-up, porter and food runner workers.

Back wages/liquidated damages recovered: $11,871 and an equal amount in liquidated damages.

Workers affected: 34

Quote: “Country clubs provide their members with a relaxing and entertaining experience made possible by hard-working employees who have the right to be paid all of the wages they’ve earned,” said Wage and Hour Division District Director John DuMont in Pittsburgh, Pennsylvania. “The Wage and Hour Division offers many resources to ensure employees are aware of their rights and to help employers comply with the law. We encourage all employers to make use of the many tools we offer to be sure that they understand their responsibilities.”

Background: The Greenbrier Sporting Club is the private equity club organized for the purpose of offering memberships to those that purchase real estate at The Greenbrier. It offers private amenities that include two lodges and pools, a members-only golf course, two restaurants, a spa, a fitness center and an equestrian center.

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.

Employer:                              Shaun Sej Inc., operating as:

                                                    Buford Express, 4433 Pageland Highway, Lancaster, SC 29720

                                                    Catawba, 5955 Highway 5, Catawba, SC 29704

                                                    Knights, 1356 Flat Creek Road, Lancaster, SC 29720

                                                    R&K Indian Land, 8341 Charlotte Highway, Fort Mill, SC 29707

                                                    R&K Mint Hill, 9100 Lawyers Road, Charlotte, NC 28227

                                                    R&K Pence Road, 8712 Pence Road, Charlotte, NC 28215

                                                    Spot Food Store, 103 Pinckney St., Chester, SC 29706

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer – operator of seven North and South Carolina gas stations and convenience stores – illegally deducted cash drawer shortages from employees’ wages. By doing so, the employer paid workers less than the federal minimum wage in some workweeks, a violation of the Fair Labor Standards Act.

In addition, the division found Shaun Sej paid some employees by check for 40 hours, then paid cash at straight-time rates for hours over 40 in a workweek. The employer also failed to include additional incentive pay, $1 per hour paid to workers during the pandemic, in some employees’ regular rate when calculating overtime rates. Both practices led to the employer paying overtime rates at less than required by law.

The division identified similar violations by Sej in a 2001 and 2017 investigation that determined the employer paid a fixed salary for non-exempt employees and failed to pay employees for all hours worked over 40 hours in workweek.

Back wages and liquidated damages recovered for workers: $50,720 including liquidated damages for 80 employees.

Civil money penalties assessed: $16,832 to address the repeat nature of the violations.                                             

Quote: “There is no wiggle room regarding federal wage laws. Employers must pay workers every penny they have earned,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “Employers who intentionally defy the law harm their employees and cheat their competitors. The Wage and Hour Division will continue to hold those who break the law accountable.”

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 numerous online resources for employers, such as a fact sheet on overtime pay requirements of the FLSA. 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. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

TITUSVILLE, PA – A U.S. Department of Labor investigation into how a 17-year-old worker suffered a minor injury at a Titusville plastic pipe manufacturer found the employer allowed the youth to illegally operate a forklift, a hazardous occupation under federal child labor law.

The department’s Wage and Hour Division assessed a $6,399 civil money penalty against WL Plastics Manufacturing LLC as a result of the child labor violation, which the employer paid. Federal law prohibits workers under age 18 from operating hazardous equipment such as a forklift.

During its review, the division also determined that WL Plastics Manufacturing LLC failed to pay proper overtime wages to 60 employees by not including safety bonuses in their wage calculations. The employer’s action led to a violation of the Fair Labor Standards Act. The division recovered a total of $10,361 in back wages and liquidated damages for the affected workers.

“Minors should never be employed to do unsafe work. It is the employer’s responsibility to not only protect young people from being hurt in the workplace, but to also ensure all employees are paid fairly,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “The Wage and Hour Division will hold employers accountable when they fail to comply with federal law.”

Founded in 2000, WL Plastics Manufacturing LLC is one of North America’s largest manufacturers of solid wall polyethylene pipe products with nine industrial locations in Georgia, Kentucky, Pennsylvania, South Dakota, Texas, Utah and Wyoming. The company is based in Fort Worth, Texas.

Learn more about the Wage and Hour Division, including about its protections for young workers on the department’s YouthRules! Website. The division also maintains a search tool to learn if you are owed back wages collected by the division. 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.

SALT LAKE CITY – The operators of a growing chain of specialty beverage and dessert shops founded in Utah employed 19 young teens for more hours and times than federal law permits, a U.S. Department of Labor investigation has found.

The investigation came as part of a heightened education and enforcement effort by the department’s Wage and Hour Division as the agency reported more than 3,800 minors employed in violation of child labor laws in fiscal year 2022, an annual increase of 37 percent. The rise follows the addition of more young workers to the workforce during and after the pandemic.

The division determined that Sodalicious allowed 14- and 15-year-old employees to work past 7 p.m. when school was in session, after 9 p.m. during summer months, and more than 3 hours on a school day at four of its Utah locations in Midvale, Orem, Provo and South Jordan. By doing so, the employer violated the Fair Labor Standards Act’s provisions for employing youth in restaurants and quick-service establishments.

“Our investigators continue to see an increase in child labor violations, especially in the food service industry,” explained Wage and Hour Southwest Regional Administrator Betty Campbell. “Employers like Sodalicious are legally responsible for knowing and complying with federal child labor laws and making sure their employment practices do not jeopardize the safety of young workers or interfere with their education.”

The division assessed the employer with $13,946 in penalties to resolve the infractions.

Founded in 2013 by Annie and Kevin Auernig, Sodalicious owns and operates 25 locations offering custom-mixed sodas and desserts primarily in Utah, with five locations each in Arizona and Idaho.

Federal labor law prohibits the employment of workers under the age of 14 in non-agricultural settings. 14- and 15-year-olds must work outside of the hours of school and cannot work:

• More than 3 hours on a school day, including Friday.
• More than 18 hours per week when school is in session.
• More than 8 hours per day when school is not in session.
• More than 40 hours per week when school is not in session.
• Before 7 a.m. or after 7 p.m. on any day, except from June 1 through Labor Day, when nighttime work hours are extended to 9 p.m.

In March 2022, the division’s Southwest Region issued a press release to remind Salt Lake City-area employers of the importance of complying with federal child labor laws, and its stepped up enforcement efforts. The news release highlighted two investigations with violations similar to those cited in the Sodalicious case.  

“We hope that employers in the region view this case as a reminder of the importance of abiding by child labor laws and the costly consequences related to violating the law,” Campbell added.

Learn more about the Wage and Hour Division.

SALT LAKE CITY – A federal investigation has found a Salt Lake City restaurant supply company allowed 22 employees – ages 14 and 15 – to work as many as 46 hours per workweek, and to begin work after midnight – both illegal practices under child labor laws. 

Investigators with the U.S. Department of Labor’s Wage and Hour Division found Specialty Consulting Services LLC – operating as Standard Restaurant Supply – violated child labor work hours standards of the Fair Labor Standards Act. The employer also failed to keep accurate time records including the date of birth for one minor-aged employee, in violation of the FLSA’s recordkeeping  provision.

The division assessed $16,595 in penalties to resolve the child labor violations.

The investigation follows a March 2022 announcement by the division’s Southwest Region reminding Salt Lake City-area employers of the importance of complying with federal child labor laws, and its stepped up enforcement efforts. 

“Minors as young as 14- and 15-years-old not only worked beyond permitted hours, but more than half of them were employed in violation of the Fair Labor Standards Act by being allowed to work long shifts often exceeding eight hours,” explained Wage and Hour Division District Director Kevin Hunt in Salt Lake City. “Our investigators continue to see an increase in child labor violations in several industries. We will take vigorous action whenever we discover young workers’ safety and well-being are being jeopardized by employers who fail to follow the law.”

Federal labor law prohibits the employment of workers under the age of 14 in non-agricultural settings. 14- and 15-year-olds must work outside of the hours of school and cannot work:

• More than 3 hours on a school day, including Friday.
• More than 18 hours per week when school is in session.
• More than 8 hours per day when school is not in session.
• More than 40 hours per week when school is not in session.
• Before 7 a.m. or after 7 p.m. on any day, except from June 1 through Labor Day, when nighttime work hours are extended to 9 p.m.

“We urge employers in the region to gain a full understanding of child labor regulations and ensure they are abiding by the law, or they should be prepared to face costly consequences,” Hunt added.

Founded in 1980, Salt Lake City-based Specialty Consulting Services LLC has nine locations in Arizona, Colorado, Idaho, Nevada, New Mexico and Utah.

In 2022, the Wage and Hour Division found more than 3,800 minors employed in violation of child labor laws in the U.S., an increase of 37 percent over the previous year.

Learn more about the Fair Labor Standards Act’s child labor provisions.

For more information about young workers’ rights and other employee rights enforced by the division, contact the 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. The division protects workers regardless of where they are from and can communicate with workers in more than 200 languages. Download the agency’s Timesheet App, now available for Android devices, to ensure hours and pay are accurate.

CONCORD, NH – A federal court has entered a consent order requiring the Concord-based owner and operator of three restaurants in New Hampshire and Massachusetts to pay $911,568 in back wages and liquidated damages to 99 employees after a U.S. Department of Labor investigation into their pay practices.

The department’s Wage and Hour Division found El Rodeo Mexican Restaurant in Concord and two Casa Tequila restaurants in Seabrook, New Hampshire, and in Salem, Massachusetts; and owner Gilberto Reyes violated the Fair Labor Standards Act’s minimum wage, overtime and recordkeeping requirements.

In its judgment, entered on March 23, 2023, the U.S. District Court for the District of New Hampshire requires the employers to pay the affected employees $455,784 in back wages and an equal amount in liquidated damages. They must also comply with federal minimum wage, overtime and recordkeeping requirements, and cooperate with the department’s investigations. The court also forbid them from threatening or retaliating against employees who cooperate with investigations or otherwise exercise or assert their FLSA rights.

“El Rodeo and Casa Tequila deprived nearly 100 workers of their rightful pay, making it that much harder for these workers to support themselves and provide for their families,” said Wage and Hour District Director Steven McKinney in Manchester, New Hampshire. “The more than $900,000 in wages and damages recovered following this investigation will go a long way towards making these workers whole after the losses they suffered.” 

Specifically, division investigators found the employers failed to do the following:

• Pay certain employees for all hours worked and pay some employees at the federal minimum wage.
• Pay certain nonexempt employees such as cooks, dishwashers and bussers, overtime at one-and-one-half times their regular rates of pay for hours over 40 hours in a workweek.
• Combine employees’ hours for overtime purposes when they worked in more than one job category and/or in more than one of the restaurants in the same workweek.
• Properly calculate tipped employees’ overtime rates based on their regular rates of pay, as opposed to their cash wage rates.
• Maintain complete and accurate records of hours worked by and payments made to employees.

View the consent judgment and order and the complaint.

“The U.S. Department of Labor will use all available enforcement tools at its disposal to ensure workers like the ones in this case are afforded the protections required by the Fair Labor Standards Act,” said regional Solicitor of Labor Maia Fisher in Boston.

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.

“These types of wage violations – too often found in the restaurant industry – are preventable when employers access the available information and resources,” McKinney added. “We strongly encourage employers to reach out to the Wage and Hour Division to better understand their legal responsibilities. We also encourage workers who may have been victims of wage theft to contact our office to explore filing a complaint.”

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 confidentially in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App for i-OS and Android devices to ensure hours and pay are accurate.

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Employers:    

Jadex Inc., 1303 S. Batesville Road, Greer, SC 29650

Alltrista Plastics LLC, 1303 S. Batesville Road, Greer, SC 29650     

 ArtaZn LLC, 2500 Old Stage Road, Tusculum, TN 37745

LifeMade Products LLC, 1303 S. Batesville Road, Greer, SC 29650

Shakespeare Co. LLC, 6111 Shakespeare Road, Columbia, SC 29223                                 

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found that Jadex Inc. and its four subsidiaries failed to include incentives, bonuses and premium pay into employees’ regular rates when calculating overtime rates for hours over 40 in a workweek.

Specifically, the employers did not include bonuses workers earned by reaching sales and safety goals per quarter, incentives awarded for working night shifts and for serving as trainers to other employees, additional hourly amounts for every hour worked during peak production seasons and bonuses for perfect attendance and personal safety performance during peak seasons. By omitting additional pay, the employers paid overtime at rates lower than required under the Fair Labor Standards Act.

Back wages recovered for workers:            $259,474 for 939 employees.                                   

Quote: “Employers must understand all applicable rules when it comes to paying workers overtime. This includes adding bonuses and incentive pay when factoring overtime pay. Anything less robs workers of their hard-earned wages,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “The Wage and Hour Division is able to provide resources to both employers and employees to help understand their responsibilities and rights under the law.”

Background: Jadex Inc. is a manufacturing holding company that employs approximately 1,800 employees at its headquarters and subsidiaries.  

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 numerous online resources for employers, such as a fact sheet on overtime pay requirements of the FLSA. 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. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

ST. THOMAS, VI – The U.S. Department of Labor has obtained a consent judgment that requires four U.S. Virgin Islands supermarkets, and their owner and former operations manager to pay 33 workers – including janitors, security guards and stock people – $240,000 in back wages and liquidated damages after an investigation by the department’s Wage and Hour Division found the employer denied them overtime wages.

Entered March 22, 2023, in the District Court of the Virgin Islands, the judgment orders World Fresh Market LLC – operating as Pueblo Supermarkets in St. Thomas and St. Croix – owner Ahmad Alkhatib and former operations manager Steven Bockino to pay the affected employees $120,000 in back wages and an equal amount in liquidated damages. The judgment also requires the employers to comply with federal minimum wage, overtime and recordkeeping requirements as well as not take any retaliatory action against any employee.

In 2010, the division found Pueblo Supermarkets’ pay practices violated the Fair Labor Standards Act. At the conclusion of the investigation, the employer agreed to correct its practices and abide by the law.

The division’s latest investigation identified violations of the FLSA’s overtime and recordkeeping requirements by Pueblo Supermarkets. Specifically, they found the employer:

• Improperly characterized employees as “managers,” exempt from FLSA coverage, and paid them flat rates, without the required premium for overtime hours worked.
• Failed to maintain required payroll records for multiple employees, including those improperly characterized as “managers.”
• Permitted at least one employee to work off the clock, causing overtime violations.
• Failed to keep accurate records of some employees’ work hours, hourly pay and overtime rates.

In addition to requiring payment of back wages and damages, the court enforced the department’s assessment of $10,000 in civil money penalties for the willful nature of Pueblo Supermarkets’ latest violations.

“When employers like Pueblo Supermarkets ignore the law, they deny workers the hard-earned wages they need to support their families. Employers who wrongly believe they can disregard the law ignore the reality that they will face significant consequences when their illegal actions are discovered,” said Wage and Hour Division District Director Jose Vazquez-Fernandez in Guaynabo, Puerto Rico. “Grocery industry workers are among the lowest paid in the Virgin Islands and across the U.S. The U.S. Department of Labor remains committed to making sure these valuable and vulnerable workers receive the wages they earn.”

View the consent judgment. View the complaint.

“The U.S. Department of Labor will use all available enforcement tools at its disposal, including litigation, when employers wrongly characterize employees as “managers” and fail to pay them overtime as required by the Fair Labor Standards Act,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York. “The resolution of this case shows grocers and other employers that not complying with federal wage law can lead to legal action with costly consequences.”

The division’s Caribbean District Office in Guaynabo, Puerto Rico, conducted the investigation. Senior Trial attorney David J. Rutenberg of the department’s Office of the Solicitor in New York litigated the case.

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 confidentially in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App for i-OS and Android devices – also available in Spanish - to ensure hours and pay are accurate.

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Employer name:                   Hidalgo County

Investigation site:                Hidalgo County Head Start Program

                                                       1901 W. State Hwy 107

                                                        Edinburg, TX 78504

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found Hidalgo County failed to pay full incentive bonuses to workers in its Head Start program due to the workers taking leave protected under the Family and Medical Leave Act. Investigators learned the county paid the affected workers a prorated bonus amount despite being eligible and meeting criteria for full bonuses. At the same time, the county awarded other employees – who used other types of leave – full incentive bonuses. By law, employers must pay bonuses that are consistent for employees with FMLA and non-FMLA absences.

Back wages recovered:         $30,241 in back wages to 31 workers                                                                                                              

Quote: “Our investigation found Hidalgo County failed to meet the Family and Medical Leave Act requirements by denying full benefits to employees who used legally protected leave. Federal law protects workers from having to choose between losing their income and protecting their health or that of a family member,” said Wage Hour District Director Cynthia Cantu-Flores in McAllen, Texas.

KANSAS CITY, KS – The U.S. Department of Labor has filed suit against the owner of two Kansas restaurants who allegedly denied minimum and overtime wages to kitchen staff, servers, hosts and food runners after some worked as many as 66 hours per week.

Filed on March 15, 2023, in the U.S. District Court for the District of Kansas, the department’s complaint alleges El Toro Loco Legends LLC in Kansas City and El Toro Loco Lenexa LLC in Lenexa, and owner Alfonzo Herrera Hernandez, committed multiple violations of the federal minimum wage, overtime and recordkeeping requirements. The suit also names general manager Eugenio Yanez and location manager Yareli Perez.

The court filing comes after an investigation by the department’s Wage and Hour Division identified the violations of the Fair Labor Standards Act and ordered the employers to pay $771,794 ­– $385,897 in back wages and an equal amount in liquidated damages – to 75 employees of the restaurants to resolve its infractions.

Specifically, division investigators determined the employers paid servers a cash wage of $2.30 per hour and then either paid them for 80 hours a pay period regardless of the number of hours they worked or paid time and one-half their cash wage of $2.30 per hour for overtime. By law, employers must pay tipped workers time-and-one-half the minimum wage minus the tip credit.

The division also found the restaurants paid kitchen workers, hosts and food runners a fixed wage, regardless of how many hours they worked, and denied overtime to a manager who failed to meet exemption requirements.

“Overtime violations in the restaurant industry are far too common, particularly among vulnerable employees who don’t understand their rights to overtime compensation under federal law,” said Wage and Hour District Director Reed Trone in Kansas City, Missouri. “The Wage and Hour Division provides confidential advice, if needed, to workers and employers unsure of federal wage standards and compliance with the law.” ­

The investigation reviewed the employer’s payroll records from May 24, 2020, to May 22, 2022. The department filed its complaint after El Toro Loco Legends LLC, El Toro Loco Lenexa LLC and Hernandez refused to resolve the wage violations administratively. The department’s Regional Office of the Solicitor in Kansas City, Missouri is litigating the case.

The FLSA requires the payment of minimum wage and overtime at time and one-half a worker’s average hourly rate of pay, including bonuses. Learn about specific FLSA rules for the restaurant industry.

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.

Su v. El Toro Loco Legends LLC, El Toro Loco Lenexa LLC in Lenexa, Alfonzo Herrera Hernandez, Eugenio Yanez, Yareli Perez.

U.S. District Court for the Kansas

Case: 2:23-cv-2115