LITTLE ROCK, AR – A federal investigation has recovered $39,436 in back wages for 23 H-2A workers employed by a Marvell cotton gin, whose operator failed to comply with worker protections in the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division found Service Cooperative Gin Co. Inc. violated federal overtime provisions that provide a partial exemption from overtime pay during the active ginning season. The division also determined that the employer failed to maintain required records of workers’ earnings and pay statements as required by the H-2A program. In addition to the back wages recovered, the department assessed $2,277 in penalties for the violations.                                        

“The Wage and Hour Division can, and will, enforce worker protections for all workers in the U.S.,” explained Wage and Hour District Director Hanz Grünauer in Little Rock, Arkansas. “Employers who utilize H-2A workers must comply with applicable laws and regulations including the FLSA. This case shows that employers who fail to comply may face costly consequences including back wages and penalties.”

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages. Workers can call the division confidentially with questions and the department can speak with callers in more than 200 languages.

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

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MADISON, WI – Five years after leaving their Guatemalan and Mexican homes for jobs promised by owners of two Wisconsin forestry companies and discovering they would not receive the wages, benefits and types of jobs described in their contracts, 263 workers will finally receive $1.1 million in unpaid wages after extensive federal investigations. 

The lengthy resolution began with a U.S. Department of Labor review of H-2B Visa program certification contracts from 2016 to 2018 held by Northwoods Forestry Inc. and A&C Forestry Services LLC, both located in Eleva. The department’s Wage and Hour Division identified several violations of H-2B Visa program requirements, including improper job classification and employment outside the area of intended employment.

While the employers sought and contracted the H-2B forestry workers for jobs in Maine, Minnesota, New Hampshire and Wisconsin, investigators learned they illegally placed the workers in non-forestry occupations in the Eau Claire and Abbotsford areas. The occupations included meat processing, concrete finishing, painting, roofing and landscaping. Northwoods and A&C also failed to pay the prevailing wage rates and overtime disclosed on the job order and made illegal deductions for transportation and safety expenses.

The employers paid most workers straight time for all hours worked at rates between $12 and $14 per hour, well below the required prevailing wage rate, in violation of their H-2B agreement.

Following its investigation, the department determined Northwoods and its married owners – Alfredo and Patricia Aguilar – owed the affected workers $1,144,693 in back wages and assessed $210,696 in civil money penalties. They must also provide the division with contact information for the workers to help workers recover their back wages. 

The findings led the division to make a criminal referral to the U.S. Attorney for the Western District of Wisconsin in Madison. On Jan. 13, 2023, a plea agreement was entered in the U.S. District Court in Madison in which Aguilar pleaded guilty to one count of fraud and agreed to make restitution for the back wages owed. Chief U.S. District Judge James D. Peterson scheduled sentencing for April 19, 2023.

In addition, the couple have signed an enhanced compliance agreement which forbids Northwoods Forestry and A&C Forestry from participation in H-2B for five years. If they, as individuals, participate in any activities related to the H-2B worker program, they must submit to monitoring by a neutral third party.

“This case’s resolution shows the U.S. Department of Labor will pursue those who commit fraud involving foreign labor certification programs vigorously, and work hard to make sure the rights of those promised work in the U.S. to receive the wages and benefits are legally protected,” explained Wage and Hour Regional Administrator Michael Lazzeri in Chicago. “The H-2B labor certification program exists to help employers fill positions to operate their businesses, and requires them to abide by very detailed terms. Those who wrongly believe they can ignore the law are deeply mistaken and will be held accountable.”

The division found Northwoods Forestry previously violated provisions of the H-2B visa program for four contracts in 2009, 2011 and 2013 in Michigan, Minnesota, Pennsylvania and Wisconsin. In total, the company paid $18,344 in back wages and $23,174 in civil money penalties.

“Employers in foreign labor certification programs must recruit workers for specific jobs and show that U.S. workers are not available to meet their needs. Employers of H-2B workers cannot act like temporary employment agencies, placing workers in various occupations outside of the terms of the H-2B contract,” Lazzeri added.

The Wage and Hour Division worked with the department’s Office of the Inspector General and State Department Diplomatic Security and the Wisconsin Department of Justice-Division Criminal Investigation on the case.

The H-2B nonimmigrant visa program permits employers to temporarily hire nonimmigrants to perform nonagricultural labor or services in the U.S. The employment must be of a temporary nature for a limited period such as a one-time occurrence, seasonal need, peak load need or intermittent need. In 2023, about 130,000 visa are available for employers to participate in the program.

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 android devices to ensure hours and pay are accurate.

Employer:                                          Pho Saigon restaurant

Investigation sites:                            826 N. Ventura Road, Port Hueneme, CA 93041

Investigation findings:                      U.S. Department of Labor Wage and Hour Division investigators found restaurant owners Cindy Le and Oanh Le allowed their daughter Karen Walden – working as the restaurant manager – to fully participate in the tip pool while they only engaged in tip eligible duties 30 percent of the time, a violation of the Fair Labor Standards Act.

Back Wages/Damages Recovered:  $24,877 in back wages for 20 employees

                                                             $24,877 in liquidated damages for 20 employees

Penalties:                                            $2,100 in civil money penalties for willful disregard of the FLSA.

Quote: “Food service industry employers must know that tips are the property of tipped employees who earn them,” said Wage and Hour Division District Director Kimchi Bui in Los Angeles. “Any attempt by restaurant employers to misuse a portion of workers’ tips violates tipped workers’ federal wage rights.”

Background:  Learn more about the Wage and Hour Division, and its search tool if you think you may be owed back wages collected by the division. Download the agency’s new Timesheet App, now available for Android and iOS devices, to ensure hours and pay are accurate. 

PHOENIX – A national auto parts distributor and an Arizona logistics firm that misclassified 1,398 drivers as independent contractors will pay them a total of $5.6 million in back wages and liquidated damages after the U.S. Department of Labor obtained a consent judgment in federal court.

The U.S. District Court for the District of Arizona has ordered joint employers Parts Authority Arizona LLC and Arizona Logistics Inc. – operating as Diligent Delivery Systems – to pay $2.8 million in back wages and an equal amount in liquidated damages to affected employees. The consent judgment also orders Parts Authority and Diligent Delivery Systems and its owner Larry Browne, to pay $150,000 in civil money penalties.

The Nov. 17, 2022, judgment obtained by the department’s Office of the Solicitor in San Francisco also required Parts Authority to treat their delivery drivers as employees.  

The action comes after the department’s Wage and Hour Division found that by misclassifying employees, the company failed to meet minimum wage requirements, paid straight-time rates for all hours worked, failed to pay at time and a half for hours over 40 in a workweek, and failed to keep required timekeeping records. The company also required employees to use their personal vehicles for deliveries without compensation. By doing so, the employers denied their drivers’ rights under the Fair Labor Standards Act.

“Employers cannot avoid their obligations to pay the minimum wage and overtime through contracting with another entity to obtain employees,” said Solicitor of Labor Seema Nanda. “The U.S. Department of Labor will combat misclassification schemes and wage theft through pursuing all the employers that are responsible for depriving employees of their rights under the Fair Labor Standards Act.”

The investigation and subsequent litigation covered the periods of April 20, 2012 to March 31, 2020. The division’s Phoenix District Office investigated the case and department’s Office of the Solicitor in San Francisco litigated.

“Parts Authority, Diligent Delivery Systems and Larry Browne misclassified nearly 1,400 delivery drivers as independent contractors, denying them of their rights to minimum wage, overtime pay and other benefits and protections,” explained Principal Deputy Wage and Hour Administrator Jessica Looman. “We will continue to identify and address misclassification that not only hurts the workers who are deprived of their wages, but also puts responsible employers at a competitive disadvantage.”

Founded in 1973, Parts Authority is a leading national distributor of automotive replacement parts, tools, equipment and transmissions. Headquartered in Lake Success, New York, the company has more than 200 U.S. locations.

Diligent Delivery Systems has a national headquarters in Houston with 46 locations nationwide. The company serves the automotive, healthcare, retail and e-commerce, oil and gas, agriculture and other industries.

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 you 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 Timesheet App for Android and iOS for free.

WASHINGTON – The U.S. Department of Labor today announced that the Spanish-language version of the department’s Timesheet App for iOS or Android devices – that tracks work hours, break time, overtime worked and calculates wages due – is now available for free download.

The update expands worker and employer access to the department’s Wage and Division Timesheet App to record hours accurately and help ensure that employers pay their workers their legally earned wages and avoid costly violations of federal labor laws.

“Too often, vulnerable workers may not know their rights, may not understand English and may fear losing their job or hurting their immigration status if they ask questions about their employers’ pay practices,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “Making our Timesheet App more accessible to more workers will help us reach and inform them, help them track their hours and earnings, and show them we are here to help when they need us.”

A joint effort of the division and the department’s Office of the Chief Information Officer, the app allows workers to ensure all their hours of work are recorded, including those hours when they telework, travel, perform pre- or post-shift work, or log-in while on call. The app provides instruction and guidance to ensure more workers can maintain a record of work hours and verify that pay records are correct.

For employers, the app provides easily accessible and current timekeeping information on their mobile device. Employers and employees can use the app to enter all data and calculate wages due, regardless of whether employees are paid by the hour, on a salary basis or by the piece. The app provides detailed earnings calculations and offers pay frequency options depending on that day’s work. Extended commenting capabilities to improve communication between field employees and their employers are also available.

In fiscal year 2022, Wage and Hour Division investigations recovered more than $213 million for nearly 153,000 workers. Notably, the division recovered more than $114 million for workers in low-wage industries including food services, agriculture, healthcare, construction and retail.

Download the division’s Android or IOS timesheet apps.

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 – regardless of where they are from – and the department can speak with callers in more than 200 languages.

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SACRAMENTO – An ongoing compliance initiative by the U.S. Department of Labor found that four Sacramento-area home care providers failed to pay employees overtime as required despite some working 24-hour shifts caring for those in need.

Investigators from the department’s Wage and Hour Division determined the home care employers shortchanged their employees and deprived them of their rightfully earned wages, in violation of the Fair Labor Standards Act.

In total, the division recovered $500,854 in back wages and liquidated damages for 48 workers and assessed $26,469 in penalties.

Specifically, investigators found the following:

• Nwabeke Care Home, with three locations in Sacramento, and owners James and Theresa Nwabeke, Okwuchi Uzoma, Chukwuebuka Chikezie and Christopher Uzoma failed to pay required overtime rates for hours over 40 in a workweek. Instead, the employer paid straight time for all hours worked. The employer also incurred recordkeeping violations by not providing the required time records. The division recovered $33,556 in back wages and an equal amount in liquidated damages for 10 employees and assessed $7,490 in penalties.
• Peer Home Inc. failed to combine the hours employees worked at three Elk Grove locations. By doing so, the employer did not pay overtime rates for hours over 40 in a workweek. The employer also failed to provide time records, as required. The division recovered $229,271 in back wages for 25 employees and assessed $14,043 in penalties.
• L&S Gentle Care Inc. and owners Samuel and Imelda Padama failed to pay employees for all hours worked at one location in Vacaville and a second in Fairfield, resulting in one worker getting wages as low as $3.98 per hour. The employer also failed to pay overtime rates and maintain records of hours worked. The division recovered $108,396 in back wages for eight care givers and assessed $4,936 in penalties.
• Badette’s Place Inc. and owners Bles Carillo, Maria Vivar and Joe Carillo failed to record and pay all hours worked despite some employees working shifts of more than 24 hours at its Roseville location. In addition, the employer deducted hours worked while clients were absent, despite employees preparing meals, cleaning and arranging the home for the clients’ return. The division recovered $96,075 in back wages for five employees.

“The majority of care workers are women and low-wage earners who provide essential services for those most in need in our communities,” said Wage and Hour Division District Director Cesar Avila in Sacramento, California. “The U.S. Department of Labor is committed to holding care service employers accountable and ensuring their workers are paid in full and as required by federal law.”

In fiscal year 2021, the division recovered $13.8 million in back wages for more than 17,000 workers across the nation in the healthcare industry, known for both low wages and high rates of violations. As the U.S. population ages and demand for home healthcare services increases, employment in a variety of healthcare sectors is projected to grow 16 percent from 2020 to 2030 – faster than the average for all occupations – adding about 2.6 million new jobs. 

The division enforces the law regardless of where a worker is from and can speak confidentially with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the division, 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.

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

LAS VEGAS – The U.S. Department of Labor recovered $179,860 in back wages and liquidated damages from the owners of 10 Korean BBQ, sushi and hot pot restaurants in Las Vegas who failed to combine the hours of 121 employees when they worked at more than one location and did not pay workers overtime wages for the hours over 40 in a workweek.

The department’s Wage and Hour Division found the owners, Sun K. Ma and Seung Na violated the Fair Labor Standards Act when they failed to pay overtime when required. Investigators determined they paid overtime to employees who worked over 40 hours at individual locations but incurred violations by not combining hours when employees also worked at one of their other restaurants.

“Restaurant employers who operate more than one location and hire workers to work at multiple sites must count the total weekly hours worked at all locations they own when calculating overtime pay,” explained Wage and Hour Division District Director Higinio Ramos in Las Vegas. “People working for same employer at different locations should be aware that their wages due are based on the total weekly hours worked at all locations combined, and they are owed overtime for hours over 40 in a workweek.”

The investigation included the following 10 locations:

In fiscal year 2021, the Wage and Hour Division recovered more than $34.7 million for more than 29,000 workers in the food service industry. In 2022, the Bureau of Labor Statistics reports near record numbers of job openings and workers in the accommodations and food services industry quitting their jobs. 

The Wage and Hour Division encourages workers with questions about their employers’ pay practices to contact the agency. Calls can be answered confidentially and in more than 200 languages by the division’s professionals.

The Wage and Hour Division also protects workers against retaliation and has regulations that prohibit retaliation, harassment, intimidation, or adverse actions against employees who assert their worker rights. 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. Workers and employers with questions can contact the division’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

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

GARDEN GROVE, CA – Una corte federal ha aprobado una sentencia por consentimiento que ordena a un proveedor de cuidado de adultos del sur de California con antecedentes de infracciones laborales pagar $690,696 a 108 empleados después de que el Departamento de Trabajo de EE.UU. descubriera que el empleador con sede en Garden Grove nuevamente negó a los trabajadores todos sus salarios ganados.

La acción judicial del 14 de diciembre de 2022 por parte de la Corte Distrital de EE.UU. para el Distrito Central de California llega luego del descubrimiento por parte de la División de Horas y Salarios del departamento de que Neldy's R.C. Inc., que opera como Neldy’s Adult Residential Care Home, deliberadamente no combinó todas las horas trabajadas y pagó a los empleados afectados con múltiples cheques para ocultar sus prácticas ilegales. Los investigadores de la división también encontraron que Neldy deducía de los salarios los descansos para comer de los trabajadores aun cuando sus deberes requerían que trabajaran durante esos tiempos, y que no mantuvo los registros de tiempo y nómina como se requiere.

Específicamente, la corte ha ordenado a Neldy’s R.C. Inc. pagar $345,348 en salarios atrasados y una cantidad igual en compensación por daños a los trabajadores afectados, así como $25,000 en multas por sus violaciones deliberadas de la Ley de Normas Justas de Trabajo. La orden también prohíbe permanentemente que el proveedor de atención a adultos cometa futuras violaciones de la FLSA en cualquiera de sus 12 ubicaciones en los condados de Orange y Riverside.

“La orden de la corte y nuestra investigación envían un claro mensaje de que haremos responsables a los empleadores sin escrúpulos de la industria del cuidado por sus intentos de explotar a sus trabajadores y privarlos de los salarios que tanto les cuesta ganar”, dijo la directora distrital de la División de Horas y Salarios Min Park- Chung en San Diego. “El hecho de que el operador de Neldy’s Adult Residential Care Home haya continuado abusando de los derechos de sus trabajadores de manera tan descarada a pesar de sus violaciones anteriores es verdaderamente atroz”.

Investigaciones previas sobre las prácticas de pago de esta compañía entre 2013 y 2016 llevaron a que el departamento ya recuperara $1,069,730 para 58 trabajadores, luego de descubrir que Neldy’s R.C. Inc. violó las disposiciones sobre salario mínimo y horas extra de la FLSA.

La Oficina de Distrito de San Diego de la División de Horas y Salarios del departamento llevó a cabo la investigación, y los abogados de la Oficina del Procurador del departamento negociaron una resolución y los términos del fallo por consentimiento.

“El Departamento de Trabajo de EE.UU. ha vuelto a demostrar que perseguiremos todas las vías legales para proteger los derechos de los trabajadores cuando encontremos a empleadores sin vergüenza abusando de ellos”, dijo el procurador regional Marc Pilotin en San Francisco. “Hacer cumplir la ley y detener el robo de salarios es para nosotros una prioridad”.

En el año fiscal 2021, la división recuperó $13.8 millones en salarios atrasados para más de 17,000 trabajadores de la industria de cuidados de la salud, donde son comunes bajos salarios y altos índices de violaciones laborales. A medida que la población de EE. UU. envejece y aumenta la demanda de servicios de atención médica domiciliaria, se prevé que el empleo en una variedad de sectores de atención médica crezca un 16 por ciento del 2020 al 2030, un incremento más rápido que el promedio de todas las ocupaciones, llegando a sumar alrededor de 2,6 millones de nuevos puestos de trabajo.

La División de Horas y Salarios también protege a los trabajadores contra la toma de represalias y tiene regulaciones que prohíben represalias, intimidación o cualquier acción adversa contra trabajadores por ejercer sus derechos laborales. Sepa más sobre la División de Horas y Salarios, incluida una herramienta de búsqueda para usar si piensa que a usted le deben salarios recuperados por la división, y sobre cómo someter una queja en línea. Trabajadores y empleadores con preguntas pueden contactar a la línea de ayuda gratuita de la división llamando al 866-4US-WAGE (487-9243), sin importar de donde sean.

Descargue la nueva aplicación Timesheet de la agencia para dispositivos Android y iOS para asegurarse que sus pagos y horas son correctos.

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GARDEN GROVE, CA – A federal court has approved a consent judgment ordering a Southern California adult care provider with a history of labor violations to pay $690,696 to 108 employees after the U.S. Department of Labor recently found the Garden Grove-based employer denied workers all their earned wages.

The Dec. 14, 2022, action by the U.S. District Court for the Central District of California follows the discovery by the department’s Wage and Hour Division that Neldy’s R.C. Inc., operating as Neldy’s Adult Residential Care Home, purposely did not combine all hours worked and paid the affected employees with multiple paychecks to hide their illegal practices. Division investigators also found Neldy’s deducted meal breaks from workers’ wages when their duties required them to work during their breaks, and failed to keep time and payroll records as required.

Specifically, the court ordered Neldy’s R.C. Inc. to pay $345,348 in back wages and an equal amount in liquidated damages to the affected workers, and $25,000 in civil money penalties for its willful violations of the Fair Labor Standards Act. The order also permanently prohibits the care provider from committing future FLSA violations at its 12 locations in Orange and Riverside counties.

“The court’s action and our investigation send a clear message to unscrupulous care industry employers that we will hold them accountable for their attempts to exploit their workers and deprive them of their hard-earned wages,” said Wage and Hour Division District Director Min Park-Chung in San Diego. “The fact that the operator of Neldy’s Adult Residential Care Home continues to abuse their workers’ rights so blatantly despite their prior violations is truly appalling.”

Prior investigations into the company’s pay practices from 2013 through 2016 led to the department’s recovery of $1,069,730 for 58 workers, following the discovery that Neldy’s R.C. Inc. violated minimum wage and overtime provisions in the FLSA.

The department’s Wage and Hour Division San Diego District Office conducted the investigation, and attorneys with the department’s Office of the Solicitor negotiated a resolution of the investigation and the terms of the consent judgment.

“The U.S. Department of Labor has shown again that we will follow all legal avenues to protect the rights of workers when we find shameless employers abusing them,” said Regional Solicitor Marc Pilotin in San Francisco. “Enforcing the law and stopping wage theft is a priority for us.”

In fiscal year 2021, the division recovered $13.8 million in back wages for more than 17,000 workers in the U.S. healthcare industry, one in which low wages and high rates of violations are common. As the U.S. population ages and demand for home healthcare services increases, employment in a variety of healthcare sectors is projected to grow 16 percent from 2020 to 2030 – faster than the average for all occupations – adding about 2.6 million new jobs. 

The division enforces the law regardless of where a worker is from and can speak confidentially with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the division, 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. Download the agency’s new Timesheet App for i-OS and Android devices to ensure hours and pay are accurate.

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ORLANDO, FL – The U.S. Department of Labor recovered $14,813 in back wages and an equal amount in liquidated damages after finding a Jacksonville Subway franchisee directed employees to handle work-related tasks off-the-clock at six restaurants.

The department’s Wage and Hour Division investigators found that owners Penny Carter and Matthew Carter failed to compensate workers for all hours worked at six locations when they required managers to make bank deposits and conduct store-to-store runs between the greater Jacksonville area locations. At one of their locations, investigators determined, the restaurants’ operators shaved hours worked from employees’ timecards. All of these actions violate the Fair Labor Standards Act.

The employer also failed to keep accurate records reflecting employees’ proper rates of pay, gross pay and hours worked.

“The U.S. Department of Labor continues to work diligently to ensure employers understand their obligations to accurately track all hours worked in order to pay their employees all the wages they legally earned,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “We encourage all employers to make use of the wide variety of information and tools we offer to help them understand which activities must be compensated, how to operate in compliance, and to avoid violations like those found in this investigation.”

Agency investigators found violations at the following six locations operating as Subway restaurants:

***Back wages and liquated damages. 

Subway Management Group of Jacksonville Inc. is a chain of Subway franchised fast-food restaurants operating in the greater Jacksonville area with about 54 employees.

Learn more about the Wage and Hour Division, including a compliance assistance toolkit for restaurants, and a search tool to learn if you are owed back wages collected by the division. 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 division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.