US Department of Labor recovers $114K for 92 workers after investigation finds Houston car wash chain denied overtime wages

News Brief

US Department of Labor recovers $114K for 92 workers after investigation finds Houston car wash chain denied overtime wages

Employer locations:   Westheimer Car Wash LLC, 12810 Westheimer Road, Houston (Headquarters)

                                      Hobby Car Wash LLC, 7991 Bellfort Ave., Houston

                                      Cypress Car Wash LLC, 12702 Jones Road, Houston                    

                                      Cy Fair Car Wash LLC, 2030 S. Texas 6, Houston

                                      Spring Car Wash LLC, 6880 Louetta Road, Spring                   

                                      Richmond Car Wash LLC, 1620 FM 359 Road, Richmond

                                      All operating as Dr. Car Wash Plus locations

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found the employer paid straight time for hours worked without any overtime premium for hours over 40 in a workweek and did not include sales commissions in the regular rate for overtime purposes, both violations of the Fair Labor Standards Act. Investigators also determined the employer failed to keep complete and accurate records of the number of hours worked by employees and categorized the pay for hours worked over 40 as commission payment.

Back Wages Recovered: $114,221 for 92 workers.                                              

Quote: “When workers in low-wage industries are illegally denied overtime pay, it is difficult for them to make ends meet and care for their families,” said Wage and Hour Division District Director Robin Mallett in Houston. “Federal law requires that employers pay workers all their hard-earned wages, including overtime pay for hours worked over 40 in a workweek. Dr. Car Wash Plus denied workers overtime pay by categorizing the pay as commission. We encourage employers to contact us with any questions regarding their obligations under 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 FLSA’s overtime pay requirements . Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division representative in their state by accessing the list of offices and an interactive online map on the agency’s website. Workers and employers alike can help ensure hours worked and pay are accurate by https://www.dol.gov/agencies/whd/timesheet-app

Learn more about the Wage and Hour Division.

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Agency
Wage and Hour Division
Date
April 6, 2023
Release Number
22-490-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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US Department of Labor recovers $62K in minimum wage, overtime back wages, damages for 20 workers of Grand Rapids’ restaurant

News Release

US Department of Labor recovers $62K in minimum wage, overtime back wages, damages for 20 workers of Grand Rapids’ restaurant

Investigation finds Tacos el Cuñado Alpine LLC failed to pay overtime

GRAND RAPIDS, MI – The U.S. Department of Labor has recovered $62,412 in back wages and damages for 20 workers after a federal court in Michigan supported the department’s findings that a Grand Rapids restaurant denied overtime wages to the workers and failed to pay minimum wage to one server.

Under terms of a consent order and judgment entered by the U.S. District Court for the Western District of Michigan on April 4, Tacos el Cuñado Alpine LLC and owner Jessica Lopez will make immediate restitution to the employees denied their full wages.

Judge Robert J. Jonker’s order resolves the department’s March 15, 2023, lawsuit prompted by an investigation by the department’s Wage and Hour Division that identified the violations of the Fair Labor Standards Act and ordered Lopez to pay $31,206 in back wages and an equal amount in liquidated damages to the restaurant’s affected current and former employees.

Specifically, division investigators learned the employer failed to keep accurate pay records and to pay tipped and non-tipped workers time-and-one-half their average rate of pay for hours over 40 in a workweek. The FLSA requires the payment of minimum wage and overtime.

“The failure to pay overtime wages is far too common in the restaurant industry, particularly among vulnerable employees who may not understand their rights to overtime,” said Wage and Hour District Director Mary O’Rourke in Grand Rapids, Michigan. “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 Aug. 13, 2020 to Aug. 12, 2022. The department filed its complaint after Tacos el Cuñado Alpine LLC and Lopez failed to resolve the wage violations administratively. The department’s Regional Office of the Solicitor in Chicago litigated 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. Tacos el Cuñado Alpine LLC, Jessica Lopez

U.S. District Court for Western Division of Michigan

Case: 2:23-cv-272

Agency
Wage and Hour Division
Date
April 5, 2023
Release Number
23-566-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor recovers $108K from Alabama-based contractor for 21 workers in Jacksonville illegally denied overtime wages

News Brief

US Department of Labor recovers $108K from Alabama-based contractor for 21 workers in Jacksonville illegally denied overtime wages

Employer:                                          Timberline Construction Group LLC

                                                            9000 Philips Highway

                                                            Jacksonville, FL 32256

 

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer wrongly classified workers as exempt from overtime. By doing so, they failed to pay employees the time-and-a-half overtime premium due for hours over 40 in a workweek, a violation of the Fair Labor Standards Act. 

Back wages recovered for workers:   $108,127 for 21 employees.                                               

Quote: “Employees who are classified as non-exempt and work more than 40 hours in a workweek, must be paid additional compensation. The employer reviewed its pay practices and agreed to future compliance. The division encourages all employers to use this example to ensure compliance with the law,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “The Wage and Hour Division provides resources to employers and employees to help understand their responsibilities and rights under the law.”

Background: Headquartered in Birmingham, Alabama, Timberline Construction Group LLC is a commercial construction company that provides site development, directional drilling, manufactured housing, as well as disaster response and community housing services. The company employs more than 200 people in Alabama, Florida, Louisiana, Missouri, North Carolina, Texas and West Virginia.

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. Additional guidance on recovery work associated with natural disasters can be found on this compliance assistance toolkit.

Agency
Wage and Hour Division
Date
April 5, 2023
Release Number
23-562-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers $289K in back wages, damages, penalties after investigation found Maryland employers denied workers overtime wages

News Brief

US Department of Labor recovers $289K in back wages, damages, penalties after investigation found Maryland employers denied workers overtime wages

Employer names:     

Stark Truss Baltimore LLC, 1200 E. Patapsco Ave., Baltimore, MD 21225

Jordi Construction LLC, 6706 Coolridge Road, Temple Hills, MD 20748

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division determined the two companies entered into an “employee lease agreement,” for which Jordi Construction provided leased workers to augment Stark Truss Baltimore’s workforce. Division investigators found that once “leased” employees worked 40 hours in a workweek for Jordi Construction at Stark Truss Baltimore’s worksite, they were directed to work additional hours under Stark Truss Baltimore. This arrangement led to the joint employers willfully paying affected employees straight time instead of the required overtime premium for hours worked over 40 in a workweek, a violation of the Fair Labor Standards Act.

Under the FLSA, an employee may have –in addition to their employer – one or more joint employers. Joint employment applies when an employee is employed by two or more employers such that the employers are responsible, both individually and jointly, for compliance with federal labor laws.

Back wages/liquidated damages recovered:  $135,124 in back wages and an equal amount in liquidated damages.

Civil money penalty: $19,522

Workers affected: 42

Quote: “These employers illegally used their employee lease agreement to intentionally avoid paying overtime wages,” said Wage and Hour Division Assistant District Director Linamarie Martinez in Hyattsville. “The division will hold companies accountable when they don’t meet their obligations under the law.”

Background: Stark Truss is a manufacturer and supplier of components for the construction industry and is headquartered in Canton, Ohio. Jordi Construction is a residential construction contractor specializing in framing.

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
April 4, 2023
Release Number
23-624-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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US Department of Labor alleges Palm Beach medical transportation company misclassified employees as independent contractors, denied them overtime pay

News Brief

US Department of Labor alleges Palm Beach medical transportation company misclassified employees as independent contractors, denied them overtime pay

Date of action:                       March 31, 2023

Type of action:                      Complaint

Names of defendant:         Medi-Wheels of the Palm Beaches Inc.

Allegations: The U.S. Department of Labor alleges that Medi-Wheels of the Palm Beaches Inc. – a company providing non-emergency and emergency medical transportation services to patients in South Florida and Florida’s West Coast – misclassified 46 of its drivers as independent contractors and violated minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The complaint seeks back wages resulting from these violations from June 2020 through Dec. 1, 2022, and for violations continuing after Dec. 1, 2022, through present, for current and former employees listed in the complaint, as well as liquidated damages and an injunction against future violations of the FLSA.

Quote: “Employers who willfully violate labor laws at the expense of employees and competitors must understand that we will do everything within our rights, including litigation, to bring them to justice,” said U.S. Department of Labor Regional Solicitor Tremelle Howard in Atlanta.

Court: U.S. District Court for the Southern District of Florida, Palm Beach Division

Docket Number: 9:23-cv-80505-RLR

Agency
Office of the Solicitor
Date
April 3, 2023
Release Number
23-642-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor to host online forum for employers, contractors, workers, other stakeholders on workplace compliance, other issues

News Brief

US Department of Labor to host online forum for employers, contractors, workers, other stakeholders on workplace compliance, other issues

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

WHAT:          2023 Department of Labor Forum–Partnering to Build Sustainable Compliance

WHEN:          May 2 and 3, 2023

                        9 a.m. to 4:30 p.m. CDT

WHERE:       Online event

Attendance is free, but registration is required. An event link will be provided after registration.

Background: Organized by the Wage and Hour Division in Dallas, the forum will include panel discussions on compliance with federal laws governing wages and other workplace issues. The forum will include representatives of the department’s Bureau of Labor Statistics, Employment Benefits Security Administration, Employment and Training Administration, Office of Federal Contract Compliance Programs, Office of Labor-Management Standards, Occupational Safety Health Administration, Veterans' Employment Training Service, Wage and Hour Division and the Women’s Bureau.

Also attending will be representatives of the Equal Employment Opportunity Commission, the Department of Housing and Urban Development, IRS, National Labor Relations Board and the Small Business Administration.

During the forum, agency representatives will make presentations, ranging from 30 to 90 minutes.

Quote: “The U.S. Department of Labor is determined to offer tools and training to employers, federal contractors, and their employees to help them understand regulations governing their workplaces,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas. “Online events like this one are designed to help employers improve compliance and inform workers about their rights under federal law.”

“We encourage all employers and employees to use the tools the department offers and contact us for more information,” Campbell added.

Agency
Wage and Hour Division
Date
April 3, 2023
Release Number
23-594-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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US Labor Department recovers $23K in back wages, damages for 34 employees denied overtime pay by private sporting club in Greenbrier County

News Brief

US Labor Department recovers $23K in back wages, damages for 34 employees denied overtime pay by private sporting club in Greenbrier County

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.

Agency
Wage and Hour Division
Date
April 3, 2023
Release Number
23-612-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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US Department of Labor recovers $50K for North, South Carolina gas station workers, assesses $16K penalty for repeated violations

News Brief

US Department of Labor recovers $50K for North, South Carolina gas station workers, assesses $16K penalty for repeated violations

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.

Agency
Wage and Hour Division
Date
March 30, 2023
Release Number
23-563-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor cites Titusville plastic pipe maker for child labor, overtime violations, recovers $10K in back wages, damages for 60 workers

News Release

US Department of Labor cites Titusville plastic pipe maker for child labor, overtime violations, recovers $10K in back wages, damages for 60 workers

WL Plastics Manufacturing LLC pays $6K penalty for allowing 17-year-old to operate forklift illegally

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.

Agency
Wage and Hour Division
Date
March 29, 2023
Release Number
23-595-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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Heightened US Department of Labor enforcement effort finds 4 Utah soda, dessert shops employed 19 minors in violation of federal child labor laws

News Release

Heightened US Department of Labor enforcement effort finds 4 Utah soda, dessert shops employed 19 minors in violation of federal child labor laws

Sodalicious illegally allowed young teens to work more hours and times than permitted

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.

Agency
Wage and Hour Division
Date
March 29, 2023
Release Number
23-600-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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