US Department of Labor recovers $107K in back wages for 27 restaurant workers denied overtime pay

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US Department of Labor recovers $107K in back wages for 27 restaurant workers denied overtime pay

Kaimook Inc. short-changed workers, kept a portion of employee tips

DENVER – The U.S. Department of Labor recovered $107,300 in back wages from an Aurora-based Thai restaurant that denied 27 employees overtime pay and kept some of their tips, in violation of federal law. 

Investigators with the department’s Wage and Hour Division determined that owners of Kaimook Inc. – doing business as Pearl of Siam – violated the overtime provisions of the Fair Labor Standards Act when they improperly determined overtime on a pay-period basis and failed to pay workers overtime premiums based on each standalone 40-hour workweek. Division investigators also found the employer kept some of the workers’ tips.

The FLSA requires most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime at a rate of no less than time-and-one-half their regular rate of pay for all hours worked over 40 in a workweek. It also prohibits the retention of tips even when the employer does not rely on the tip credit to meet the minimum wage.

“No employee should be denied overtime pay or have employers take portions of their hard-earned tips,” said Wage and Hour Division District Director David Skinner in Denver. “The Fair Labor Standards Act mandates premium pay for overtime hours worked by non-exempt employees, and prohibits employers, managers, and supervisors from keeping any portion of other employees’ tips for themselves for any purpose.” 

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 can call the division’s toll-free helpline for compliance assistance at 866-4US-WAGE (487-9243). 

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate. 

Agency
Wage and Hour Division
Date
September 3, 2025
Release Number
25-1042-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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Federal court orders major agricultural employer to pay $427K in wages, penalties for H-2A violations uncovered by Labor Department investigation

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Federal court orders major agricultural employer to pay $427K in wages, penalties for H-2A violations uncovered by Labor Department investigation

Grimmway Enterprises Inc. underpaid workers, subjected them to unsafe conditions

PASCO, WA – A federal court has ordered California-based Grimmway Enterprises Inc. to pay $427,456 in back wages and penalties after a U.S. Department of Labor investigation in south Washington found some workers were underpaid and others were subjected to unsafe housing conditions and transportation, in violation of federal law.

The court action follows an investigation by the department’s Wage and Hour Division that determined Grimmway Enterprises Inc. violated H-2A agricultural program requirements when the employer failed to pay the correct adverse effect wage rate to H-2A temporary workers and corresponding U.S. workers.

Investigators also found safety and health violations involving the housing and transportation of workers. Additionally, Grimmway did not tell employees the hours they were required to work, their job duties, or their eligibility for overtime pay.

The consent judgment, entered on June 30, 2025, in the U.S. District Court for the Eastern District of Washington, ordered Grimmway to pay $207,456 in back wages to workers as well as $220,000 in civil money penalties, and enjoins the employer from further H-2A program violations. Additionally, the employer was ordered to:

  • Pay the correct adverse effect wage rate to all workers hired under the H-2A program.
  • Provide employees with transportation and housing that meets all safety and health requirements and only allow authorized drivers to operate vehicles transporting workers.
  • Provide a copy of the H-2A contract to all workers that includes detailed job descriptions and duties.
  • Train managers, human resources personnel, payroll personnel, and supervisors who are directly responsible for administration and management of the H-2A program. 

“Agricultural workers are a vital part of maintaining the U.S.’s food supply and often work under physically grueling conditions. As one of the largest producers of carrots in the country, Grimmway Enterprises has a responsibility to ensure that all of their employees have a safe, sanitary working environment and are paid their rightfully earned wages,” said Wage and Hour Division District Director Thomas Silva in Seattle. “We urge employers in this industry to review their employment practices and ensure they are in full compliance with the laws. The Wage and Hour Division is committed to protecting farm workers, holding employers who violate wage laws accountable, and maintaining a level playing field for employers who follow the law.” 

Headquartered in Bakersfield, California, Grimmway Enterprises Inc. grows, packs, and ships various fruits and vegetables in California, Washington, and several southeastern states. 

The Wage and Hour Division offers multiple compliance assistance resources, including an agriculture compliance assistance toolkit, to provide employers the information they need to comply with the law. 

Employers and workers can contact the division at its toll-free number, 1-866-4-US-WAGE (487-9243).

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 free Timesheet App for Android and iOS devices to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
August 22, 2025
Release Number
25-1224-SAN
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers $155K in wages, benefits for 19 employees underpaid by Colorado contractor on federally funded project

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US Department of Labor recovers $155K in wages, benefits for 19 employees underpaid by Colorado contractor on federally funded project

Investigation finds AAA Fire Protection Inc. short-changed workers 

DENVER  The U.S. Department of Labor recovered a total of $155,066 in back wages and fringe benefits for 19 employees who were underpaid for their work on a project funded by the U.S. Department of Housing and Urban Development. 

The department’s Wage and Hour Division found that AAA Fire Protection Inc. was contracted to install sprinklers at a newly constructed mixed-use apartment and retail complex in Denver. The company incorrectly classified 16 employees as apprentices and failed to provide fringe benefits and proper prevailing wages in violation of the Davis-Bacon and Related Acts. AAA Fire Protection also neglected to pay overtime premiums to employees working more than 40 hours in a workweek and failed to keep proper records, both violations of the Fair Labor Standards Act.

“An employer cannot simply classify workers as apprentices and pay them a lower rate. Any workers classified as apprentices must be part of a registered apprenticeship program,” explained Wage and Hour Division District Director David Skinner in Denver. “Contractors can contact us for compliance assistance to learn how to properly classify workers to meet their legal obligation to pay them the wages and benefits they are rightfully due.”

Located in Commerce City, AAA Fire Protection Inc. is a specialty contractor focusing on fire suppression. In addition to the $155,066 in back wages and fringe benefits, the employer agreed to comply with the Davis-Bacon Act and Davis-Bacon and Related Acts in all future contracts that are subject to the acts. 

The Wage and Hour Division offers free virtual prevailing wage seminars to provide training and outreach on topics such as the Davis-Bacon Act, the Service Contract Act, Executive Orders 13658 and 13706, wage determinations and conformances, and compliance assistance and enforcement processes.

Learn more about the Wage and Hour Division and the Davis-Bacon and Related Acts, 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 compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). 

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate. 

 

Agency
Wage and Hour Division
Date
July 24, 2025
Release Number
25-462-DEN
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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Idaho grocer to pay $250K in penalties for employing 6 minors to clean meat slicers, grinders, other hazardous duties

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Idaho grocer to pay $250K in penalties for employing 6 minors to clean meat slicers, grinders, other hazardous duties

Swensen’s Magic Markets LLC will also pay over$5K to address overtime violations

TWIN FALLS, ID – The U.S. Department of Labor has reached an agreement with a south-central Idaho grocery store requiring the employer to pay $250,833 in civil money penalties, $5,078 in back wages and damages, and take steps to ensure future compliance with federal child labor laws after investigators found child labor and wage violations at numerous locations. 

The settlement follows an investigation by the department’s Wage and Hour Division that determined Swensen’s Magic Markets LLC violated federal child labor laws by allowing six minor-aged workers to work in hazardous duties, such as cleaning meat slicers, meat tenderizers and grinders, loading trash compactors, and operating a rotisserie. Swensen’s Magic Markets also required youth to work outside of legally allowed hours and employed a 13-year-old child, which is under the legal age of employment in non-agricultural jobs.    

“Early work experience should not come at the expense of a child’s well-being and educational opportunities,” said Wage and Hour Division District Director Katherine Walum in Portland, Oregon. “Federal law protects young workers from the dangers involved in the operation and maintenance of commercial-grade equipment, and ensures they are not working late hours on school nights. Employers who are unclear about child labor laws should contact the U.S. Department of Labor to get their questions answered.”

In addition to the child labor violations, the division found that Swensen’s Magic Markets failed to combine all work hours from various locations, resulting in overtime violations for three workers who did not receive additional half-time pay for hours worked over 40 in a workweek. The division recovered $2,539 in back wages and an equal amount in damages for those workers. 

“Employers must abide by child labor laws and regulations,” added Walum. “Employers, parents, and school personnel should visit our YouthRules.gov website to learn how to protect young workers.” 

Swensen’s Magic Markets LLC has about 80 workers across its locations in Hagerman, Paul, and Twin Falls. 

The Department of Labor’s YouthRules site is a free, online guide that offers information about protections for young workers to youth, parents, employers and educators. Through the YouthRules initiative, the department and its partners promote developmental work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law.

Learn more about the Wage and Hour Division and the Fair Labor Standards Act’s child labor provisions. Employers and workers can call the division with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s free Timesheet App for iPhone and Android devices to track hours and pay. 

Agency
Wage and Hour Division
Date
June 16, 2025
Release Number
25-893-SAN
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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US Department of Labor recovers over $824K in back wages, damages from Las Vegas drywall subcontractor for wage violations

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US Department of Labor recovers over $824K in back wages, damages from Las Vegas drywall subcontractor for wage violations

Spectrum Construction LLC failed to pay overtime to 680 employees

LAS VEGAS – The U.S. Department of Labor has recovered $824,276 in back wages and damages for 680 employees of a Las Vegas drywall contractor that denied overtime pay to piece-rate and hourly workers, in violation of federal law.

The recovery follows the department’s Wage and Hour Division investigation of Spectrum Construction LLC that found the employer failed to pay piece-rate and hourly workers – including painters, drywall hangers, and tapers – time-and-one-half their regular rate of pay for hours worked over 40 in a workweek as required by the Fair Labor Standards Act. The division found that Spectrum Construction paid piece rates to workers without any overtime premium for hours worked over 40 and “banked” the overtime hours of hourly painters, later compensating them with days off paid at straight time or not compensating them at all.

“This case highlights the Wage and Hour Division’s commitment to protecting construction workers’ rights to be paid overtime wages,” said Wage and Hour Division District Director Gene Ramos in Las Vegas. “By uncovering and addressing widespread overtime violations at Spectrum Construction, we are ensuring that hundreds of workers receive the wages they rightfully earned. Our enforcement efforts ensure fair competition in the construction industry and send a clear message that employers must comply with federal labor laws.”

The FLSA requires that an overtime premium be paid to all non-exempt employees for hours worked over 40, even if the employee is not paid on an hourly basis. Additionally, only public employers, such as state and local governments, are allowed to bank overtime hours, and are subject to additional rules.

The department also assessed Spectrum Construction $10,060 in civil money penalties for the willful nature of the violations.

Since 2011, Spectrum Construction LLC has operated as a contractor focusing on drywall, metal stud framing, acoustical installation, and painting for residential and commercial buildings in Nevada.

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 with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s free Timesheet App for iPhone and Android devices to track hours and pay.

Agency
Wage and Hour Division
Date
June 10, 2025
Release Number
25-846-SAN
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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Department of Labor recovers $101K in wages, damages for 31 employees of Houston plumbing contractor owed overtime

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Department of Labor recovers $101K in wages, damages for 31 employees of Houston plumbing contractor owed overtime

Amailey Plumbing wrongly categorized employees as overtime exempt

HOUSTON – The U.S. Department of Labor has recovered $101,690 in back wages and damages owed to 31 employees of a Houston plumbing contractor who paid them a salary but failed to pay an overtime premium for hours over 40 in a workweek.

Investigators with the department’s Wage and Hour Division determined Amailey Plumbing LLC categorized service technicians and apprentice helpers as salaried employees and did not pay them the correct overtime rate as required by the Fair Labor Standards Act. The division calculated that the contractor owed $50,845 in back overtime wages and an equal amount in damages.

“The U.S. Department of Labor is committed to making sure every worker receives their rightfully earned wages,” said Wage and Hour Division District Director Chad Frasier in Houston. “The outcome in this case should remind other employers to evaluate their pay practices in order to avoid sometimes costly compliance issues. Employers are encouraged to contact the Wage and Hour Division if they have any questions about compliance.”

Founded in 2008, Amailey Plumbing LLC offers plumbing services in the Houston area for new home construction, routine system cleaning, maintenance, repair, and response for plumbing emergencies. 

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 can call the division’s toll-free helpline for assistance at 866-4US-WAGE (487-9243). 

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate. 

Agency
Wage and Hour Division
Date
June 10, 2025
Release Number
25-799-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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US Department of Labor recovers $594K in back wages, damages for 419 workers denied overtime by Florida construction contractor

News Release

US Department of Labor recovers $594K in back wages, damages for 419 workers denied overtime by Florida construction contractor

Amtex-NMS Inc. failed to pay for all hours worked, improperly rounded time

LEESBURG, FL – The U.S. Department of Labor has recovered $594,313 in back wages and damages for 419 workers after a federal investigation found a Leesburg-based employer failed to pay workers all of their required overtime wages.

An investigation by the department’s Wage and Hour Division determined Amtex-NMS Inc., operating as Southeast Modular Manufacturing, violated the Fair Labor Standards Act’s overtime provision by not paying workers time-and-a-half their regular rate for all hours over 40 in a workweek. Specifically, its rounding methods improperly reduced hours that resulted in unpaid overtime for hours worked over 40 per workweek.

Investigators also discovered the employer violated federal recordkeeping requirements by failing to maintain complete and accurate records of workers’ wages and hours.

Some employers use a pay method referred to as rounding to produce even and balanced calculations of hours worked. While it can be a useful tool, it is the responsibility of all employers to ensure the use of rounding in their time systems is balanced and does not always round in the employer’s favor,” said Wage and Hour Division District Director Vilma Bell in Orlando, Florida. “We encourage all workers and employers to contact their nearest Wage and Hour Division office with any questions regarding their rights and obligations under the law.”

Learn more about the Wage and Hour Division and workers’ rights, including a search tool to use if you think you may be owed back wages collected by the division. 

Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s free Android and iPhone Timesheet App. Employers and workers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE (487-9243). 

Agency
Wage and Hour Division
Date
May 27, 2025
Release Number
25-844-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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US Department of Labor recovers $207K in back wages, damages for 157 workers after Michigan-based contractor failed to pay correct overtime wages

News Release

US Department of Labor recovers $207K in back wages, damages for 157 workers after Michigan-based contractor failed to pay correct overtime wages

Bonuses not included in overtime calculation at Arizona, Kentucky sites

LOUISVILLE, KY – The U.S. Department of Labor has recovered more than $207,470 in back wages and damages for 157 workers after finding a Michigan-based electrical services contractor failed to pay proper overtime rates to workers at job sites in Arizona and Kentucky.

Investigators with the department’s Wage and Hour Division found that M.J. Electric LLC did not include non-discretionary bonuses in employees’ regular rate of pay when calculating overtime pay, a violation of the Fair Labor Standards Act. The investigation initially revealed the overtime violation at the Tennessee Valley Authority’s Paradise Simple Cycle Project in Drakesboro, Kentucky. The investigation was expanded after similar violations were found at an M.J. Electric project in Ehrenberg, Arizona.

In addition to collecting $207,470 in back wages and damages, the division assessed the company a $19,782 civil money penalty for a repeat FLSA violation. In 2018, the department investigated M.J. Electric and found the company violated federal law by not properly paying overtime on non-discretionary bonuses. 

“The U.S. Department of Labor is committed to holding employers accountable, especially when they deny employees their hard-earned wages,” said Wage and Hour Division Acting District Director Wildali De Jésus in Louisville, Kentucky. “We urge employers who are unsure of their obligations to contact us for assistance to avoid compliance issues.”

A subsidiary of Quanta Services, M.J. Electric LLC is headquartered in Iron Mountain, Michigan. The contractor provides electrical services such as power line work and power generation throughout the U.S.

For more information about compliance assistance and 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 that workers can use if they think they may be owed back wages collected by the division.

Download the agency’s free Timesheet App for Android and iPhone devices to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
May 22, 2025
Release Number
25-523-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers over $1.4M in wages for 2,620 workers after employer failed to pay overtime wages

News Release

US Department of Labor recovers over $1.4M in wages for 2,620 workers after employer failed to pay overtime wages

Cupertino Electric failed to include bonuses when calculating overtime

SAN JOSE, CA – The U.S. Department of Labor has recovered more than $1.4 million in back wages for more than 2,600 employees after finding a large, San Jose-based electrical engineering and construction company failed to pay them proper overtime rates, a violation of the Fair Labor Standards Act.

Investigators with the department’s Wage and Hour Division determined Cupertino Electric Inc. failed to include non-discretionary bonuses when determining the rate for purposes of calculating overtime pay, which led to the significant wage recovery. The company is one of California's largest electrical contractors.

“The U.S. Department of Labor is committed to making sure employees are paid properly, including the full amount of their legally required overtime rates,” said Wage and Hour Division Assistant District Director Lilita Hom in San Jose. 

A subsidiary of Quanta, Cupertino Electric has designed and built complex electrical systems for private and public sector clients in Arizona, California, Idaho, Indiana, Iowa, Michigan, New Mexico, Ohio, Oregon, Utah, and Washington.

For more information about 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.

Download the agency’s free Timesheet App for Android and iOS devices to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
May 6, 2025
Release Number
25-734-SAN
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor seeking janitorial workers owed overtime, damages after investigation, litigation recovers $3.8M from Hawaii employers

News Release

US Department of Labor seeking janitorial workers owed overtime, damages after investigation, litigation recovers $3.8M from Hawaii employers

Recovered funds for Alacrity Employment Services, Hawaii Care and Cleaning workers

HONOLULU – The U.S. Department of Labor is actively seeking hundreds of workers who are owed their share of more than $3.8 million in unpaid overtime withheld deliberately by a Kilauea staffing agency and Lihue cleaning contractor after a federal investigation and litigation that followed.  

The department’s Wage and Hour Division found that Alacrity Employment Services in Kilauea and Hawaii Care and Cleaning Inc. in Lihue deprived 1,133 employees of their rightful overtime wages between March 5, 2021, and Nov. 13, 2024. Investigators also determined the employers frequently falsified pay records to mask their violations.

“Overtime worked should be overtime paid,” said Wage and Hour Division Acting District Director Min Kirk in Honolulu. “An employer cannot evade their responsibility for overtime pay by using schemes such as excluding workers from payroll or underreporting their actual work hours.”

On Jan. 14, 2025, the department’s Office of the Solicitor obtained a consent judgment in the U.S. District Court for the District of Hawaii requiring Hawaii Care and Cleaning, Alacrity Employment Services, and their respective owners, William Allen and Amy Galtes, to pay $1.9 million in back wages and an equal amount in damages to the affected workers. The judgment also directs Hawaii Care and Cleaning and Alacrity Employment Services to pay $50,000 in civil money penalties given their willful violations of the Fair Labor Standards Act

If you or someone you know was employed by these companies between March 5, 2021, and Nov. 13, 2024, contact the division’s Honolulu District Office at (808) 541-1361 to find out if you are owed back wages and damages.

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 with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s free Timesheet App for iOS and Android devices to track hours and pay. 

Agency
Wage and Hour Division
Date
May 6, 2025
Release Number
25-732-SAN
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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