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.

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

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.

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.

Lea el comunicado en español.

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.