Court orders Salinas labor contractor to pay $460K in damages, penalties to 542 farmworkers after Department of Labor investigation, litigation

News Release

Court orders Salinas labor contractor to pay $460K in damages, penalties to 542 farmworkers after Department of Labor investigation, litigation

A. Oseguera Company Inc. faces potential debarment for future labor violations

SAN FRANCISCO The U.S. Department of Labor has obtained a consent judgment that orders a Salinas labor contractor – who withheld final paychecks and transportation expenses – to hundreds of farmworkers to pay more than $460,000 in damages and penalties, following the department’s investigation and litigation.

The action by the U.S. District Court for the Northern District of California requires A. Oseguera Company Inc. and owners Antonio Oseguera and Hilda Oseguera Garibay to pay $410,606 in liquidated damages and $41,351 in travel and subsistence costs to 542 affected workers. Payment must be made within 150 days.

The court also affirmed the department’s assessment of $8,541 in civil money penalties for their violations. 

This consent judgment follows the recovery of $977,590 in wages by the department’s Wage and Hour Division from the company and its owners in December 2021. The affected workers are U.S. workers and workers hired under the H-2A temporary agricultural program.

Division investigators determined the employers’ missed payroll led to violations of the minimum wage provisions of the Fair Labor Standards Act, and violations of the Migrant and Seasonal Agricultural Worker Protection Act and the  H-2A temporary agricultural program under the Immigration and Nationality Act. The A. Oseguera Company and its owners violated federal law by failing to:

  • Pay workers at their required rate of pay.
  • Pay outbound transportation and subsistence costs as the H-2A program requires.
  • Keep accurate pay records.
  • Satisfy the requirements of the job order.

Agricultural workers do the hard work needed to feed our nation and those who employ them must meet federal wage and other requirements or face the consequences,” said Wage and Hour Regional Administrator Ruben Rosalez in San Francisco. “The U.S. Department of Labor’s investigation and litigation sends a signal to industry employers that we will not tolerate their failure to respect the dignity of workers and meet their legal responsibilities.”

In addition to the damages and penalties required, the consent judgment will hold A. Oseguera Company in contempt for any future violations of FLSA, MSPA or the H-2A regulations under the INA and automatically bar it and its owners from participating in the H-2A program for three years should they commit any other H-2A violations cited in the consent judgment. The judgment also requires A. Oseguera to hire a full-time monitor to oversee their H-2A and MSPA operations, significantly increase the sizes of their surety bonds and requires supervisors, foremen and payroll personnel to attend four trainings on the FLSA, MSPA and INA in the next two years

“For years, Antonio Oseguera and his company have ignored their obligations under the H-2A temporary agricultural worker program,” said Regional Solicitor Marc Pilotin in San Francisco. “The Solicitor’s Office will take every legal step necessary to protect the safety, well-being and wages of temporary guest workers. These steps may include seeking to use the power of a federal court to make employers to comply with the law and prevent them from hiring H-2A program workers.” 

A. Oseguera Company Inc. is an H-2A farm labor contractor that employs workers to harvest crops seasonally in and around Monterey, Santa Clara, Santa Cruz and San Benito counties in California. The company also operates and has a satellite office in Yuma, Arizona. 

The division offers farmworker rights information,  compliance assistance resources for employers, an agriculture compliance assistance toolkit to ensure compliance with the law.

Employees and employers can also contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Workers can call the Wage and Hour Division confidentially with questions – regardless of where they are from – and the department can speak with callers in more than 200 languages. 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 and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App – now available in Spanish – for free.

Agency
Wage and Hour Division
Date
February 22, 2023
Release Number
23-296-SAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor recovers $3.1M in wages, benefits for 3,100 workers employed by a federal subcontractor servicing BENEFEDS program

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US Department of Labor recovers $3.1M in wages, benefits for 3,100 workers employed by a federal subcontractor servicing BENEFEDS program

Long Term Care Partners, Alorica under contract to Office of Personnel Management

MANCHESTER, NH – The U.S. Department of Labor has recovered more than $3.1 million in back wages and fringe benefits for more than 3,100 workers at a California subcontractor that provided enrollment and dental and vision benefits support to federal employees, retirees and their dependents.

An investigation by the department’s Wage and Hour Division determined that Alorica Inc. in Irvine incorrectly paid workers prevailing wage rates and fringe benefit amounts less than those required by the McNamara-O’Hara Service Contract Act. The wage shortages occurred between January 2017 and March 2022. 

“The Wage and Hour Division is committed to ensuring workers are paid the full wages and benefits they are rightfully due and that federal contractors are aware of their obligations under the Service Contact Act and comply with the law,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “The vigorous enforcement of prevailing wage laws promotes efficiency and productivity in government by allowing agencies to recruit and retain talented federal contract workers.”

Long Term Care Partners LLC, now operating as Fed Point, contracted with the U.S. Office of Personnel Management to provide benefits enrollment and other customer services for federal employees. The Portsmouth, New Hampshire, company – which engaged Alorica as a subcontractor – paid $3,193,839 in back wages and fringe benefits to 3,174 employees to resolve the violations. Alorica agreed to audit its pay practices and computed the resulting prevailing wage and fringe benefit deficiencies owed its workers. 

Throughout the course of the investigation, LTCP cooperated and ultimately paid all back wages and benefits owed to its subcontractor’s employees.

“Violations under the Service Contract Act can be costly, as this case illustrates, but they are preventable with knowledge and due diligence,” explained Wage and Hour Division Regional Administrator Mark Watson in Philadelphia. “We strongly encourage federal contracting agencies and their service contractors to consult our extensive online resource materials and contact the division to answer any questions they may have about the Service Contract Act’s requirements.”

Current and former Alorica employees who worked on this contract and believe they may have been impacted can contact the Wage and Hour Division and are encouraged to use the Workers Owed Wages search tool to learn if they are owed back wages recovered by the division. Employees with any questions about this case may send them to: whdvm.manchnhalorica@dol.gov

A wholly owned subsidiary of John Hancock Life & Health Insurance Company, Long Term Care Partners was rebranded as FedPoint in 2020. The company administers the federal Long Term Care Insurance Program and BENEFEDS under contract with OPM.

Based in Irvine, California, Alorica has about 100,000 employees in 16 countries who serve business needs of global brands and other organizations for process improvement, customer engagement and market expansion.

For more information about workers’ rights and other employee rights enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers and workers can call the division confidentially with questions 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, also available in Spanish.

Agency
Wage and Hour Division
Date
February 22, 2023
Release Number
23-171-NAT
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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US Labor Department secures $10K in overtime back wages, damages for 9 employees of Wytheville window installation company

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US Labor Department secures $10K in overtime back wages, damages for 9 employees of Wytheville window installation company

Employer: Window World of Southwest Virginia Inc.

Investigation site: 565 East Main St., Wythevillle, VA 24328                                                                                                           

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division determined that the employer paid window installers overtime wages at straight-time rates, and denied workers the required rate of time-and-one-half for hours over 40 in a workweek. The employer also kept inaccurate records of total daily and weekly hours worked. These actions violated the Fair Labor Standards Act.

Back wages/damages recovered: $5,081 in back wages, $5,081 in liquidated damages

Workers Affected: Nine

Quote: “Construction industry employers covered under the Fair Labor Standards Act are legally responsible to comply with overtime and recordkeeping requirements. We encourage these employers to contact the Wage and Hour Division to avoid compliance issues,” said Wage and Hour Division District Director John DuMont in Pittsburgh.

Background: Window World of Southwest Virginia installs windows, doors, siding and more for homeowners throughout southwest Virginia.

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
February 22, 2023
Release Number
23-361-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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US Department of Labor recovers $185K in overtime back wages owed to 181 workers of North Carolina rack system installation company

News Brief

US Department of Labor recovers $185K in overtime back wages owed to 181 workers of North Carolina rack system installation company

Employer:                                   IPD Company Inc., operating as IPD

Investigation site:                  7808 Pineville Matthews Road, Suite 12

                                                          Charlotte, NC 28226

Investigation findings: Investigators with the department’s Wage and Hour Division found a North Carolina commercial and industrial rack installation company misclassified its employees working as installers as independent contractors. By doing so, IPD failed to pay employees the time-and-a-half overtime rate for hours over 40 in a workweek, a Fair Labor Standards Act violation.

Back Wages Recovered: $185,963 for 181 workers.                                        

Quote: “Employers who improperly misclassify employees as independent contractors strip these workers of their overtime and minimum wage and unpaid leave protections, shortchanges their Social Security benefits and prevents collection of payroll taxes owed to local, state and federal levels,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Misclassification is a serious concern and remains a Wage and Hour Division priority. Employers must understand their obligations and make sure their pay practices comply with federal law or risk costly consequences.”

Background: Headquartered in Charlotte, IPD Company Inc. installs commercial and industrial rack systems in the U.S. and Canada.

Learn more about misclassification of employees as independent contractors. Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements.

Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division expert in their state through a list and interactive online map on the agency’s website. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s timesheet app for free, in Spanish and English.  Learn more about Wage and Hour Division.

Agency
Wage and Hour Division
Date
February 22, 2023
Release Number
23-319-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Forced to live on tips: Department of Labor recovers $253K in back wages for 93 workers after Florida restaurants denied them minimum wage, overtime

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Forced to live on tips: Department of Labor recovers $253K in back wages for 93 workers after Florida restaurants denied them minimum wage, overtime

Restaurants paid servers no wages, failed to pay others required overtime

ORLANDO, FL – The U.S. Department of Labor has recovered $253,044 in back wages for 93 workers of four Florida restaurants after an investigation found the enterprise did not pay servers any wages and failed to pay other workers overtime rates.

The recovery follows a federal consent order entered by the U.S. District Court for the Middle District of Florida in Orlando on Nov. 18, 2022, that mandates the four restaurants and owner Juan Zarinana to pay the back wages to the affected employees, and forbid them from future violations of the Fair Labor Standards Act.

An investigation by the department’s Wage and Hour Division determined the four restaurants failed to pay tipped employees a cash wage for any of the hours they worked, requiring them to rely only on customers’ tips for income.

By law, an employer of a tipped employee must pay at least a $2.13 per hour cash wage if that amount – combined with the tips received – equals at least the federal minimum wage. If the workers’ tips and the employer’s direct wages do not equal the federal minimum hourly wage, the employer is required to make up the difference. In Florida, however, the higher direct wage amount for tipped employees is $7.98 per hour.

Investigators also found the employer paid workers straight time for all hours regardless of how many they worked and denied them the additional half-time rate for hours over 40 in a workweek. By doing so, the employer’s pay practices led to FLSA violations at the following locations:

Establishment

Operating as

Address

City

La Catrina Mexican Restaurant Inc.

La Catrina

315 W Cocoa Beach Causeway

Cocoa Beach

El Molcajete Cocina Mexicana Inc.

El Molcajete    

2976 S Ridgewood Ave. 

Edgewater

La Cantina Cocina Mexicana Inc.

La Cantina 

4085 S Ridgewood Ave.

Port Orange

El Tequila's Authentic Mexican Restaurant Inc.

El Tequila's

1784 S Ridgewood Ave.

South Daytona

“Federal and state laws prohibit employers from forcing tipped workers to depend on customers’ generosity to make a living,” explained Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “In fact, an employer of a tipped worker must pay certain wages and ensure that amount – combined with tips – equals at least the federal minimum wage. The employer must make up the difference if not.”

“Employers who do not follow the law and shortchange tipped workers often find the consequences to be quite costly,” she added.

Any employee working in an occupation in which he or she regularly receives more than $30 a month in tips is considered a tipped employee. Workers and employers alike can get information about minimum wages for tipped workers on the department’s website.

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 their regular rate of pay for all hours worked over 40 in a workweek. The Florida state minimum wage is scheduled to increase to $12 on Sept. 30, 2023.

Workers can call the Wage and Hour Division confidentially with questions and the department can speak with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243).

You can also learn more about the Wage and Hour Division online, 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 – available in English and Spanish – for android devices to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
February 22, 2023
Release Number
23-289-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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Labor Department fines pizza restaurants $30K for child labor violations, recovers $12K for two managers illegally denied overtime wages

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Labor Department fines pizza restaurants $30K for child labor violations, recovers $12K for two managers illegally denied overtime wages

Mio’s Pizza in Cincinnati, Milford allows minors to operate dangerous equipment

Labor Department fines pizza restaurants $30K for child labor violations, recovers $12K for two managers illegally denied overtime wages

Mio’s Pizza in Cincinnati, Milford allows minors to operate dangerous equipment

CINCINNATI – A federal investigation of the employment practices of the operators of two Cincinnati-area pizza restaurants has identified numerous violations of child labor, overtime and recordkeeping regulations.

In May 2022, the U.S. Department of Labor’s Wage and Hour Division investigated Mio’s Pizza locations in Cincinnati and Milford, and found owners Dan and Leslie Igo violated several provisions of the Fair Labor Standards Act.

At the Cincinnati location – operated by Stuff It LCC – division investigators found the following:

  • 12 minors, under the age of 16, illegally allowed to use manual fryers, operate gas ovens with an open flame, move pizza in and out of a broiler/conveyor oven, and use a mechanical dough puller and sheeter. These activities violate federal hazardous orders that forbid young workers from performing cooking and baking operations.
  • 16 minors assigned to work in violation of hours worked standards.
  • One manager denied required overtime wages because the employer paid them a weekly salary of $584 and improperly claimed they were a salaried manager and exempt from overtime. By law, employers may only claim an exemption from overtime for managers when they meet several duties tests and are paid weekly salaries of more than $684 a week.

At the Milford location – then operated by Black Cat Pizzeria Inc. – investigators identified the following:

  • Nine minors, under age 16, also performing the same hazardous cooking and baking operations.
  • 20 minors working in violation of federal limits for work hours.
  • One manager owed back wages because the employer claimed the same incorrect overtime exemption for managers.

The violations occurred before the Igos sold the Milford location in late 2022 to new owners.

After its investigations, the division recovered $11,950 in back overtime wages and damages. The department also assessed $30,000 in civil money penalties due to the nature of the employers’ violations. The violations also included the failure to keep accurate records.

In 2022, the Bureau of Labor Statistics reported that workers aged 16-19 years old comprised nearly 11 per cent of the nation’s workforce. From fiscal year 2017-2021, the department identified child labor violations in more than 4,000 cases, finding more than 13,000 minor-aged workers employed in violation.

“Since 2018, our investigators have seen an increase of child labor violations,” explained Wage and Hour District Director Matthew Utley in Columbus, Ohio. “These violations include permitting minors to work with equipment and to perform tasks that can jeopardize their safety and employing them for more hours than federal law allows.”

“Businesses that employ minors must abide by federal child labor laws. Young workers should not be risking preventable workplace injuries or having their education hindered by their employers’ needs,” Utley added. “Mio’s Pizza has a responsibility to understand the federal overtime exemption for managers and ensure that employees receive the wages they have earned.”

Federal law sets specific limits on when and how long workers under the age of 16 may work. It also forbids workers under age 18 from working in hazardous occupations. To assist employers in avoiding violations, and inform young workers and their parents, the division has published its “Seven Child Labor Best Practices for Employers.”

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

Agency
Wage and Hour Division
Date
February 22, 2023
Release Number
23-321-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Court orders Illinois home healthcare provider to pay $1.1M in back wages, damages to 69 employees, after US Department of Labor investigation

News Release

Court orders Illinois home healthcare provider to pay $1.1M in back wages, damages to 69 employees, after US Department of Labor investigation

Judgment affirms that healthcare provider is subject to wage laws despite claims

URBANA, IL – The U.S. Department of Labor has obtained a federal court order requiring an Illinois home healthcare provider to pay 69 workers $1.1 million in back wages and damages for its failure to pay these workers for all hours worked.

On Feb. 7, 2023, U.S. District Court Judge Colin Bruce for the Central District of Illinois in Urbana issued an order finding Lee A. McDevitt – owner and operator of Midwest Home Care in Mattoon – liable for back wages and damages. The court dismissed McDevitt’s claim that they were not subject to the Fair Labor Standards Act because they operated solely within Illinois. The court also found the department could protect the identities of employees who cooperated with the investigator and litigation.

The court’s action follows an investigation by the department’s Wage and Hour Division that found McDevitt paid a daily rate to workers employed as caregivers, the majority of whom worked 24-hour shifts, regardless of the number of hours they worked, resulting in minimum wage and overtime violations. The caregivers provided in-home healthcare and assisted living services to clients across Mattoon, Champaign and Tuscola.

The investigation determined that the employer owed the affected workers $562,389 in back wages and assessed an equal amount of liquidated damages.

The court also ruled McDevitt violated the FLSA’s recordkeeping requirements by failing to track an employee’s hours worked, including sleep time interruptions, accurately. By failing to do so, Midwest Home Care’s sleep credit was invalid. The court also forbid McDevitt from future FLSA’s minimum wage, overtime and recordkeeping violations.

“Home healthcare workers who provide around-the-clock care provide people unable to care for themselves with the dignity they deserve and offer family members some peace of mind,” explained Principal Deputy Administrator of the Wage and Hour Division Jessica Looman. “The Wage and Hour Division often finds workers in this industry – among our nation’s lowest paid – victimized by employers’ wage violations.”

“This judgment is an important step toward making sure 69 caregivers are paid fully for their hard work and raise awareness of how common these wage violations are,” Looman added.

Following the department’s investigation, McDevitt and Home Health Care changed their payroll practices effective Jan. 4, 2021, and began paying workers on an hourly basis and computing overtime for hours over 40 in a workweek.

“The court’s favorable rulings on a number of issues related to what evidence can be used, including accepting confidential employee statements as evidence upholds the Department of Labor’s use of the informer’s privilege to protect employees during discovery,” said Solicitor of Labor Seema Nanda. “The resolution of this matter shows that the U.S. Department of Labor will take all necessary actions, including litigation, to hold employers accountable when they fail to respect worker rights and protections.”

The Bureau of Labor Statistics reports that in 2021, the average home healthcare aide earned $29,430 per year, about $14.15 an hour. As of November 2022, healthcare and social assistance industry had more than 1.9 million open jobs nationwide.

The Wage and Hour Division offers resources on wages rules for healthcare workers.

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 to ensure hours and pay are accurate.

Walsh v. Lee A. McDevitt d/b/a Midwest Health Care

U.S. District Court for the Central District of Illinois, Urbana Division

Case: 21-cv-2225

 

Agency
Wage and Hour Division
Date
February 21, 2023
Release Number
23-267-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Investigation recovers $215K in back wages after finding Jacksonville restaurant chain kept workers’ tips, failed to pay minimum wage, overtime

News Brief

Investigation recovers $215K in back wages after finding Jacksonville restaurant chain kept workers’ tips, failed to pay minimum wage, overtime

Employer:                       Kazu Sushi Burrito

Investigation sites:              Kazu Sushi Burrito LLC, 6025 Butler Point Road, Jacksonville, FL 32256

                                              Kazu Sushi Burrito III LLC, 4600 Tropea Way, Jacksonville, FL 32246

                                              Kazu Sushi Burrito 4 LLC, 693 3rd St., Jacksonville, FL 32250

                                              Kazu Sushi Burrito 5 LLC, 1000 S. Ponce De Leon Blvd., Jacksonville, FL 32084

                                              Kazu Sushi Burrito 6 LLC, 935 Durbin Pavilion Drive, St. Johns, FL 32259

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the operator of a chain of Jacksonville-area fast-food restaurants illegally kept a portion of employees’ tips, in violation of the Fair Labor Standards Act. Kazu Sushi also paid some employees a flat salary without regard to the number of hours worked. By doing so, the employer violated minimum wage restrictions when the employees’ average hourly rate fell below the federal minimum wage. Kazu Sushi also failed to pay those same salaried non-exempt workers the overtime premium due for hours over 40 in a workweek. In addition, the employer did not maintain complete and accurate time and pay records.

Back wages recovered: The division recovered $215,190 in back wages for 100 workers.                     

Quote: “Too often, restaurant industry workers are victims of wage theft by their employers,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “These workers depend on every dollar they earn to provide for themselves and their families. There is no excuse for employers to intentionally deny these hard-working people their lawfully earned wages.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 866-4-US-WAGE. Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division and an overview about the FLSA protections for restaurant workers. 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
February 21, 2023
Release Number
23-299-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers $20K for employee illegally terminated by Bank of Dudley’s violations of medical leave protections

News Release

US Department of Labor recovers $20K for employee illegally terminated by Bank of Dudley’s violations of medical leave protections

Georgia bank pays worker to resolve Family, Medical Leave Act violations

DUBLIN, GA – The U.S. Department of Labor has recovered $20,107 in back wages for a Georgia bank employee who suffered wrongful retaliation and termination after the financial institution violated their rights under the federal Family and Medical Leave Act.

Investigators with the department’s Wage and Hour Division found Bank of Dudley illegally fired a loan operations assistant at its Dublin location after they exercised their right to request and use FMLA-protected leave for a qualifying health condition. Division investigators determined the employer failed to:

  • Designate leave as FMLA-qualifying.
  • Engage with the employee regarding their request for FMLA-qualifying leave.
  • Safeguard federally protected medical information beyond that required by the certification form.
  • Request a second medical opinion at the employer’s cost when uncertain of the physician’s approval.
  • Maintain the employee’s medical coverage as required.

“The Family and Medical Leave Act prevents workers from being forced to make the difficult choice between keeping their jobs and caring for their themselves or their families,” explained Wage and Hour Division District Director Steven Salazar in Atlanta. “While employers may request a second opinion if they doubt the validity of the doctor’s assessment, the law does not allow employers to request confidential medical information or to evade regulations under the guise of other laws.” 

In fiscal year 2022, the Wage and Hour Division investigated 780 FMLA complaints and recovered more than $870,000 in back wages for violations ranked most significant.

“The Wage and Hour Division urges employers unsure of their legal obligations under Family and Medical Leave Act or other laws governing their pay practices to contact us,” Salazar added.

The Bank of Dudley employs about 65 workers at six Georgia branches in Dublin, Dudley, East Dublin and Jeffersonville.

Learn more about the FMLA and other laws enforced by the Wage and Hour Division, including an FMLA Compliance Assistance Toolkit, or contact the division’s toll-free helpline at 866-4US-WAGE (487-9243).

Workers can call the Wage and Hour Division confidentially with questions, regardless of immigration status, and the department can speak with callers in more than 200 languages. 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.

 Read more about how the Wage and Hour Division answered the call to protect another worker’s FMLA rights.

Agency
Wage and Hour Division
Date
February 21, 2023
Release Number
23-298-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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QUEENS-BASED NURSING HOME CHAIN TO PAY OVER $2M IN BACK WAGES AND DAMAGES TO 844 UNDERPAID EMPLOYEES IN EASTERN NEW YORK

News Release

QUEENS-BASED NURSING HOME CHAIN TO PAY OVER $2M IN BACK WAGES AND DAMAGES TO 844 UNDERPAID EMPLOYEES IN EASTERN NEW YORK

The Grand Healthcare System will also pay $133K in civil money penalties

NEW YORK – A Queens-based operator of residential nursing homes and adult care facilities will pay a total of $2,006,796 in back wages and liquidated damages to 844 underpaid employees at five locations in eastern New York following a federal investigation of alleged violations of the Fair Labor Standards Act.

An investigation by the U.S. Department of Labor’s Wage and Hour Division found that The Grand Healthcare System and its partial owner, Jeremy Strauss, failed to pay employees required overtime and for all hours worked at the company’s facilities in Chittenango, Guilderland, Pawling, Queens and Rome between 2013 and 2016. Specifically, the employer:

  • Misapplied the FLSA’s executive and administrative exemptions to non-exempt employees and consequently failed to pay them overtime.
  • Paid employees only for scheduled hours rather than the number of hours they actually worked.
  • Failed to pay employees when they worked through meal breaks.
  • Docked employees for short rest breaks.
  • Failed to include shift differentials in workers’ regular rates of pay when determining overtime rates.
  • Failed to maintain accurate time and payroll records.

Previous investigations by the division of the company’s Pawling and Rome locations conducted between 2005 and 2013 uncovered similar violations which resulted in the company paying nearly $130,000 in back wages to 146 employees and $20,460 in civil money penalties.

“There was no excuse for this company’s continued disregard for federal law and for the rights of its workforce,” said Mark Watson, administrator for the Wage and Hour Division’s Northeast region. “As the sizable penalty assessed in this case demonstrates, we will continue to use every enforcement tool at our disposal to incentivize employers to comply with the law. The sorts of violations we found in this case are all too common in this industry.”

In addition to the $2 million in back wages and damages, the company will also pay $133,470 in civil money penalties to the department and take enhanced corrective action to prevent future violations.

“The U.S. Department of Labor won’t hesitate to take appropriate legal action to ensure that employees are properly compensated for their hours of work. When they are underpaid, it is not just these vulnerable workers who are hurt. The underpayments also undercut those employers who obey the law and pay their workers correctly,” said Jeffrey S. Rogoff, the regional solicitor of labor in New York.

In addition to the payment of the back wages and liquidated damage, the consent judgment, filed with the U.S. District Court for the Eastern District of New York and approved on Dec. 5, 2016, by Judge William F. Kuntz, requires the defendants to:

  • Retain an FLSA knowledgeable third-party independent examiner to perform quarterly audits of the facilities’ FLSA compliance and prepare written compliance status reports and submit them to the Wage and Hour Division upon request.
  • Implement an automated timekeeping system and management controls to ensure that employees are paid for all hours worked.
  • Upon request, provide employees with a printed statement of the daily hours they worked during the preceding two-week period.
  • Provide current and new employees with information on their FLSA rights, including posting notice of the settlement of this lawsuit at each facility for the period of two years, as well as mailing the notice to former employees.
  • Train defendants’ administrators and department managers at each facility regarding compliance with the FLSA.

The breakdown of the back wages and damages by location:

  • The Grand at Chittenango, $39,766 to 102 employees.
  • The Grand at Queens, $1,387,706 to 110 employees.
  • The Grand at Pawling, $315,137 to 298 employees.
  • The Grand at Rome, $243,309 to 291 employees.
  • Guilderland Center Rehabilitation and Extended Care Facility, $20,876 to 43 employees.

The investigation was conducted by the division’s Albany District Office. Orly Shoham from the department’s Office of the Regional Solicitor in New York handled the case for the division.

For additional information about these and other laws enforced by the Wage and Hour Division, call its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.

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Perez v. The Center for Rehabilitation and Health Care at Dutchess, LLC d.b.a. The Grand at Pawling; Guilderland Center Rehabilitation and Extended Care Facility Operating Co. LLC d.b.a. Guilderland Center Rehabilitation and Extended Care Facility; Clearview Operating Co. LLC d.b.a. The Grand at Queens; Rome Center LLC d.b.a. The Grand at Rome; Chittenango Center LLC d.b.a. The Grand at Chittenango; and Jeremy Strauss, Individually.

Civil Action Number: 1:16-cv-06355

Agency
Wage and Hour Division
Date
December 8, 2016
Release Number
16-2207-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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