PHOENIX – The U.S. Department of Labor is seeking current and former employees of a Tempe construction contractor who may be owed a share of more than $2.6 million in overtime wages and damages recovered after a federal court approved a consent judgment in response to litigation and a long-standing investigation by the department.

On Nov. 17, 2022, the U.S. District Court for the District of Arizona entered a consent judgment to resolve a complaint filed by the department against Valley Wide Plastering Construction Inc. and owners Jesse Guerrero, Rose Guerrero and J.R. Guerrero. In its action, the department alleged egregious violations of federal overtime, recordkeeping and anti-retaliation provisions. The employers have accepted the judgment and agreed to pay $1,312,360 in back wages and an equal amount in liquidated damages to affected employees.

 “Our immediate priority is ensuring that workers denied overtime pay receive the wages and damages they are owed,” said Jessica Looman, Principal Deputy Administrator of the Wage and Hour Division. “The Wage and Hour Division and the U.S. Department of Labor’s Office of the Solicitor worked tirelessly to hold Valley Wide Plastering and the Guerreros accountable. Our work, however, is not complete until workers receive their wages.”

Current and former workers who believe they were denied overtime wages should contact the department’s Wage and Hour Division in Phoenix immediately. The judgment specifies that Valley Wide Plastering may be subject to additional court actions and penalties if they fail to pay the amounts due, or demand or accept any of the funds from employees.

In May 2022, the court granted the department’s motion for civil contempt sanctions against Valley Wide Plastering, its owners and its vice president for violating a preliminary injunction and continuing to falsify time records, failing to maintain a reliable timekeeping system and listing false regular rates of pay on payroll records.

The department’s Wage and Hour Division Phoenix District Office conducted the investigation, and the department’s Regional Solicitor’s Office in San Francisco litigated the case.

“The U.S. Department of Labor will hold accountable employers that continue to break the law – even during litigation – despite knowing what they are doing is illegal,” said Solicitor of Labor Seema Nanda. “We will use every tool available to us, including injunctions and contempt actions, to enforce the law and stop wage theft.”

Current and former Valley Wide Plastering employees should call the division directly at 602-407-5323 to find out if they are owed back wages recovered as part of this judgment. The department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243).

Visit the agency’s website to learn more about the Wage and Hour Division. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.

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PANAMA CITY BEACH, FL – The U.S. Department of Labor has recovered $503,053 in back wages and liquidated damages for 227 workers of a Panama City Beach hotel staffing agency that denied them full wages and benefits when the employer misclassified them as independent contractors.

The department’s Wage and Hour Division found that the misclassification by Touch of Grace Services LLC – which provides hotel workers to several Panama City Beach hotels – led the agency to pay the workers straight-time rates for all hours worked, including hours over 40 in a workweek. In doing so, the staffing agency did not pay the additional half-time rate for overtime as the Fair Labor Standards Act requires.

Investigators also determined that Touch of Grace failed to keep accurate records of the hours worked and correct wages paid to some employees.

“Federal labor law includes strict criteria for classifying workers as independent contractors. Misclassified workers are illegally denied their full pay, benefits and legal protections,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “We encourage employers to use the resources the Wage and Hour Division offers to understand proper pay practices and avoid the costly consequences of violations.”

Touch of Grace Services LLC provides hotel workers to the Hampton Inn, Springhill Suites, Sheraton Panama City Beach Golf & Spa Resort, and Beachside Resort in Panama City Beach.

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). Learn more about the Wage and Hour Division, including misclassification of independent contractors and 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 for free.

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Employers:                Fa Fa 318 LLC and Sanxi Inc., operators of Japan House restaurants

Investigation sites:   

1989 E. Main St., Suite A, Spartanburg, SC 29307

1703 John B. White Sr. Blvd., Suite C, Spartanburg, SC 29301

2252 Boiling Springs Road, Boiling Springs, SC 29316

11010 Asheville Highway, Inman, SC 29349

2795 Memorial Highway, Lake Lure, NC 28746

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the employers illegally kept cash and credit card tips received by cashiers, and paid cooks a fixed salary for all hours worked, including for those over 40 in a workweek. By doing so, the employers violated federal laws governing tipped wages and overtime in the Fair Labor Standards Act. Japan House also failed to record the number of hours worked by some non-exempt employees, a recordkeeping violation.  

Back Wages Recovered: $80,212 in back wages for 52 workers

Quote: “Today’s workers have the ability to choose employers who pay full wages and respect workers’ rights. Food service industry employers who comply with labor laws and appreciate the dignity of work will have the greatest appeal to workers, whether they’re joining the workforce or looking for new job opportunities,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “We encourage employers and employees to contact the Wage and Hour Division with any questions or concerns regarding pay practices.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers numerous online resources for employers, such as a fact sheet on 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 representative 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 Android Timesheet App for free.

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Employers:                  

Point Pleasant Associates Inc., Owner Bidiawatie Singh and company officer Surjeet Singh                 

355 McKinley Ave. Edison, New Jersey 08050

Investigation sites:      

Spirit Gas Station, 14 South NY Ave., Absecon, New Jersey 08205                                      

Sun Petro Gas, 101 Absecon Blvd., Absecon, New Jersey 08201                             

Delta Gas, 734 W. White Horse Pike, Egg Harbor Township, New Jersey 08215

Investigation findings: The U.S. District Court for the District of New Jersey entered a consent judgment on Oct. 5, 2022, ordering the employers to pay back wages as well as liquidated and punitive damages to six workers, in response to a complaint filed by the U.S. Department of Labor. The department’s action follows an investigation by its Wage and Hour Division that found the operators of three full-service gas stations in New Jersey – who sometimes required attendants to work 12-hour days, seven days a week – failed to pay the federal minimum wage of $7.25 per hour and overtime rates for hours over 40 in a workweek. Division investigators also determined the employers directed employees to sign false statements submitted to the division in an attempt to disguise their unlawful pay practices. These actions violated the Fair Labor Standards Act.

Back wages/damages recovered:    

$107,149 in back wages

$107,149 in liquidated damages

$12,000 in punitive damages

Workers Affected:                            Six

Penalties paid:                                   $3,702 in civil money penalties

Quote: “Our investigations show that the pay practices of New Jersey’s gas station industry employers all too commonly shortchange workers and violate federal law,” said Wage and Hour Division District Director Charlene Rachor in Lawrenceville, New Jersey. “This judgment secures hard-earned wages for gas station workers who labor long hours mostly outdoors trying to support themselves and their families.”  

Background:  Operating in one of the few states that prohibit motorists from pumping gas, the New Jersey’s gas station industry depends on workers employed as full-service attendants to operate pumps and provide other services. 

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.

INDIANOLA, MS – In an ongoing series of investigations into allegations of wage theft and illegal displacement of U.S. workers by Mississippi Delta agricultural employers in the H-2A temporary guest worker program, the U.S. Department of Labor identified several violations by 11 employers.

In 11 reviews completed by the department’s Wage and Hour Division, investigators found that employers failed to pay the required rate of pay for U.S. workers in corresponding employment; did not disclose all conditions of employment and did not provide accurate anticipated hours of work and bonus opportunities; made illegal pay deductions and failed to reimburse travel-related expenses as required; and did not comply with federal recordkeeping requirements, all violations of the H-2A program requirements.

The division recovered $134,532 in wages for 45 workers and assessed $122,610 in civil money penalties. These investigations are part of a larger effort and are a department priority.

“The allegations made by Mississippi Delta farmworkers are alarming,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “The outcome of these investigations confirms that employers denied many farmworkers their lawful wages and, in some cases, violated the rights of U.S. workers by giving temporary guest workers preferential treatment.”

The employers included in these 11 investigations are Clark & Co. in Shelby, Egremont Baconia Farms in Cary, White Farms AJV in Marks, Van Buren Farms II in Belzoni, Bulldog Farms LLC in Tutwiler, Custom Ag Services LLC in Isola, Bruton Farms Partnership in Anguilla, Durst Farms and Carter Plantation LTD, both in Rolling Fork, Harris Russel Farm in Moorhead, and Murrell Farms in Avon.

The division found prior violations in the Delta’s agricultural industry. In 2021, the division found H-2A violations at six fish farms in the Mississippi Delta  and recovered more than $102,000 for more than 120 workers. Since 2020, H-2A investigations recovered more than $700,000 in wages for more than 500 Mississippi workers and led to assessments of $200,000 in penalties for employers.

In June 2022, U.S. Secretary of Labor Marty Walsh visited the region and heard from a group of Black Delta farmworkers who alleged their employers violated federal law by doing the following:

• Paid them less than  South African workers employed under the H-2A program.
• Tasked U.S. workers with training the H-2A workers who, in some cases, later replaced them.
• Denied Black farmworkers access to employer-provided indoor toilets – leaving them to relieve themselves outdoors – while allowing South African H-2A workers to use the indoor toilets.

“The Wage and Hour Division is determined to protect the rights of workers of color and others who have been historically underserved, marginalized and faced with persistent poverty and inequality,” said Regional Administrator Juan Coria in Atlanta. “For the first time in 25 years, we have a permanent presence in the Delta with investigators stationed in Greenwood and Clarksdale focused on helping protect workers’ rights and holding employers who violate federal law accountable.”

Across the U.S., violations of H-2A regulations and recovery of back wages have increased significantly in the past five years. Southeast employers currently host the largest number of H-2A workers in the nation.

In addition to the Wage and Hour Division, the expanded agriculture enforcement in the Delta region is a collaborative effort with federal experts from the department’s Occupational Safety and Health Administration, Employment and Training Administration and Office of the Solicitor; as well as with the Equal Employment Opportunity Commission, and regional stakeholders, such as the Mississippi Center for Justice and the NAACP.

For more information about workers’ rights enforced by the Wage and Hour Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Workers can call the division confidentially with questions and the division 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.

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Employer name:                     Heaven on Earth Network Inc.

Investigation site:                 3200 Second Ave.

                                                         Lake Charles, LA 70601

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found Heaven on Earth Network paid 87 workers straight time when overtime pay was owed. The employer paid the required time-and-a-half overtime on the first 10 hours worked over 80 in a pay period instead of over 40 per workweek as the law requires. Heaven on Earth blamed the error on its accounting software’s default settings, and told investigators they corrected the error to make sure they pay proper overtime in the future. Additionally, the agency assessed $26,030 in penalties, which the employer paid, because the violations cited in this investigation were repeat violations of the FLSA.

Back wages recovered:        $81,162 in overtime back wages

                                                            $81,162 in liquidated damages

Civil Money Penalties:           $26,030 in penalties

Quote: “Workers who perform home care services spend long hours away from home and deserve to be paid all of the wages they earn,” said Wage and Hour District Director Troy Mouton in New Orleans. “Companies that fail to pay workers what the law requires may owe back wages, liquidated damages and even civil money penalties. This case shows the costly and avoidable consequences of violating the law.”

LOUISVILLE, KY – Krispy Kreme Doughnut Corp. has agreed to pay $1,187,757 in back wages and liquidated damages to 516 workers to resolve overtime violations in multiple locations found as part of a U.S. Department of Labor investigation. On Nov. 7, 2022, the department filed a complaint listing the violations and a consent order defining the settlement in the U.S. District Court for the Western District of Kentucky.

The department’s Wage and Hour Division first opened an investigation at a Krispy Kreme location in Louisville, Kentucky, but soon determined violations found there were widespread and systemic. The division then expanded its probe to include all the Charlotte, North Carolina-based company’s 242 locations nationwide.

Investigators determined Krispy Kreme failed to include monthly bonuses in some employees’ regular rates of pay. By doing so, the employer paid overtime at lower rates than the Fair Labor Standards Act requires. As part of the court order, Krispy Kreme agreed to future compliance with the FLSA’s overtime provision.

“Overtime and minimum wage violations are common violations found in food service industry investigations,” explained Principal Deputy Wage and Hour Administrator Jessica Looman. “Employers who fail in their obligation to pay minimum wage and overtime wages as the law requires make it harder for workers and their families to make ends meet. The Wage and Hour Division works diligently to inform employers of their obligations and protect the workplace rights of food service workers.”

Established in 1937 and headquartered in Charlotte, North Carolina, Krispy Kreme Doughnut Corp. employs approximately 9,200 workers nationwide. The company’s network of retail doughnut shops, partnerships with third-party retailers, ecommerce and delivery services operates in more than 30 countries.

Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division. 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. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.

DALLAS – Home healthcare industry employers seek workers willing to work hard and long hours to meet the daily living and care needs of clients – some with limited mobility – in the comfort of their homes. Too often, the U.S. Department of Labor finds employers like four Texas and Louisiana providers who fail to hold up their part of the bargain by not paying nearly 600 employees all the wages they’ve earned.

A home care industry enforcement effort by the department’s Wage and Hour Division found the employers’ pay practices violated the Fair Labor Standards Act. Violations included the following:

• Ace Primary Homecare, Inc., in Pharr, Texas, adjusted the employees’ rate of pay to make it appear they paid the overtime premium for hours over 40 in a workweek when, in fact, the employer paid straight time for the overtime hours worked. The division calculated that 400 employees were owed $841,244 in overtime back wages.
• Guardian Angels Care Services, Inc., in Alexandria, Louisiana, misclassified workers as independent contractors and paid straight-time wages for all hours worked. The division calculated the employer owed 129 affected workers a total of $160,477 in overtime back wages.
• Fernandez Care Assistance LLC in San Juan, Texas, did not pay the additional overtime premium to 47 hourly employees for hours over 40 in a workweek, and owed them $122,944 in overtime back wages.
• Association for the Advancement of Mexican Americans in Laredo, Texas, paid employees for up to 40 hours a week and rarely paid overtime for hours over 40. Investigators found that, if employees stayed on the clock beyond 40 hours, the employer would adjust its records to indicate no more than 40 hours of work. In addition, employees would clock out and resume working because they were expected to complete the assigned work and knew their time would be adjusted because their employer would not approve overtime. The division determined the Laredo company owed 23 employees a total of $82,497 in overtime back wages.

In all, the division’s investigations recovered $1,207,162 in back wages for the affected workers.

“The majority of the home healthcare industry’s workers are women of color and despite the critical work they do – and the tremendous compassion and commitment they show – their hourly wage rates remain among the lowest in the nation,” explained Southwest Regional Wage and Hour Administrator Betty Campbell. “While our nation honors their service during National Home Health Care Month in November, the U.S. Department of Labor is determined to make sure employers respect their rights as workers, including the right to be paid proper and full wages as dictated by federal law.”

In related news, the department today announced an ongoing Wage and Hour Division initiative focused on improving compliance by residential care, nursing facilities, home health services and other care-focused industry employers nationwide has made significant progress.

Read about how the department is honoring healthcare workers and protecting their rights.

In fiscal year 2021, the division identified nearly $14 million in back wages owed to more than 17,000 healthcare workers. In its investigations, the division commonly finds violations related to employers failing to pay overtime when required, misclassifying workers as independent contractors and not paying them for time spent on work-related travel, or pre- and post-shift work.

In September 2022, the Bureau of Labor Statistics reported that 664,000 healthcare and social services workers left their positions and the field had more than 2 million openings. As the aging U.S. population grows 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.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. The division protects workers regardless of immigration status and can communicate with workers in more than 200 languages.

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

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WASHINGTON – The U.S. Department of Labor today announced that an ongoing nationwide effort by its Wage and Hour Division focused on improving compliance by residential care, nursing facilities, home health services and other care-focused industry employers has made significant progress in protecting workers’ rights and protections.

Since its 2021 launch, the initiative has completed more than 1,600 investigations and identified violations in 80 percent of its reviews. These investigations recovered more than $28.6 million in back wages and damages for nearly 25,000 workers, and led to assessments of nearly $1.3 million in civil monetary penalties for employers who willfully violated federal law.

Its reviews of residential care facilities, nursing facilities and home health providers found the most common violations discovered by investigators related to failures to pay overtime or federal minimum wages or the misclassification of employees as independent contractors. The initiative found violations often hurt women of color – particularly in the Black, African American, Hispanic and Asian, including Filipina, communities – who are often employed as home care aides, certified nursing aides and licensed practical nurses.

Learn more about the care initiative and workers helped by the Wage and Hour Division.

“In the U.S., women make up more than 80 percent of the people employed as nursing assistants, home and personal care workers and a disproportionate number are women of color, notably Black women. These dedicated professionals work long hours to provide compassionate care to people in need,” said Wage and Hour Division Principal Deputy Administrator Jessica Looman. “Yet too many find themselves working for employers who deprive them of their full wages and benefits they’ve earned for their hard work. We are determined to make sure these workers’ rights are respected and protected.”

In addition to recovering back wages for the affected workers, the division’s effort includes outreach programs to educate workers and employers about their respective rights and responsibilities under federal law, and how to report and avoid violations of federal law. As part of the effort, the division is hosting a webinar on federal protections for care industry workers on Thursday, Nov. 17, from 11 a.m. to 12:30 p.m. EST. Attendance is free but registration is necessary.

For more information about care workers’ rights, how to file a complaint, the FLSA and other laws enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Calls can be answered confidentially in over 200 languages, regardless of immigration status. Learn more about the Wage and Hour Division and its searchable workers owed wages database.

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

PIKESVILLE, MD – The U.S. Department of Labor is trying to locate home healthcare workers employed from April 2020 through March 2022 by a Pikesville company who may be owed part of nearly $1.13 million in back wages and damages the department’s Wage and Hour Division recovered on their behalf.

On Sept. 15, 2022, the division reached a settlement with employers Salim Inc., operating as A Plus Personal Home Care, Timur Yusufov, Julie Rakhamimov and Ilona Yusufov, who paid $569,138 in back wages and an equal amount in liquidated damages to resolve violations the agency found during its investigation.

The division determined the employers denied a total of 193 home healthcare workers overtime wages for hours over 40 in a workweek when they misclassified the employees as independent contractors. Investigators learned the employer had given workers the option to be paid at a lower hourly rate as employees or as independent contractors at a higher hourly rate. These actions violated the Fair Labor Standards Act.

“Too often, home healthcare workers are denied all of their hard-earned wages in an industry where employers misclassifying employees as independent contractors is a common violation,” said Wage and Hour Division Assistant District Director Susana Rondon in Arlington, Virginia. “We are determined to locate A Plus Personal Home Care employees who were denied overtime illegally and see that they receive the wages they’re owed.”

Home healthcare workers who believe they may be owed back overtime wages should use the division’s online Workers Owed Wages search tool, or call the division’s Baltimore District Office at (410) 962-6211.

A Plus Personal Home Care serves central Maryland, and the metro-Baltimore and District of Columbia areas, with offices in Pikesville and Gaithersburg.

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). 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 division, including its search tool to learn if you are owed back wages collected by the division.

Learn more about the Wage and Hour Division.