Employer name:                    Universal HomeCare Service LLC                                             

Investigation site:                  213 Washington Ave.

                                                           Mansfield, LA 71052

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found Universal HomeCare Service failed to pay 34 direct services workers overtime rates for hours over 40 in a workweek. The employer paid straight time when overtime pay was owed, a violation of the Fair Labor Standards Act.

Back wages recovered:         $20,318 in overtime back wages

                                                $20,318 in liquidated damages

Quote: “Home healthcare workers who provide care and companionship services often work long hours. They deserve to be paid every cent the law requires,“ said Wage and Hour District Director Troy Mouton in New Orleans. “Employers with questions about their obligations should contact us for free guidance that could help them avoid investigation and paying a significant amount of back wage and potential damages.”

Learn more about Wage and Hour Division.

Employer name:                    Oak Texas Bar & Grill LLC

                                                        Oak Texas Bar LLC

Investigation site:                 7001 N. 10th St., Suite C, McAllen, Texas 78504

                                                         113 S 17th St., McAllen, TX 78501

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer violated federal minimum wage obligations by not paying servers and bartenders a cash wage of at least $2.13 per hour. The restaurant allowed employees to work for tips only, which failed to meet the federal minimum wage requirements. Investigators also found that the employer failed to pay overtime pay to wait staff. In addition, the investigation determined the employer paid cooks straight time for all hours worked.

Back wages recovered:         $250,599 in owed back wages and liquidated damages

Workers affected:                     36

Quote: “By law, employers who claim a tip credit must make sure their employees earn at least the federal minimum wage, and that all hours – including hours worked at a different location – be counted when calculating overtime pay,” explained Wage and Hour District Director Cindy Cantu Flores in McAllen, Texas. “Low wage workers depend on every dollar they earn to make ends meet, and employers must pay them full wages or face the costly consequences of violations.”

Employer:                                          Justar Fashion Inc.

Investigation sites:                            2660 Chico Ave.

South El Monte, CA 91733

Investigation findings:                      U.S. Department of Labor Wage and Hour Division investigators found Justar Fashion – a garment contractor that produces apparel for retailers such as Stitch Fix, Indigo and Evereve – failed to pay minimum wage and overtime as required by paying workers on a piece-rate basis and at straight-time rates regardless of the overtime hours they worked. The employer also failed to keep records of hours worked. Their actions violated minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act.

Back Wages/Damages Recovered:  $145,290 in back wages for 32 employees

Quote: “The U.S. Department of Labor is committed to making sure garment industry workers receive all of the wages they have earned, including overtime,” said Wage and Hour Division Assistant District Director Rafael Valles in West Covina, California. “Federal law protects all workers in the U.S. – regardless of where they come from – and we urge them to contact the Wage and Hour Division with any questions related to their wages and hours worked.”

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.

Employer:                           CHU Contracting Inc.                                                                                                                                                                                                                              14020 Thunderbolt Place, Suite 300                                                                                                                                                                                                Chantilly, Virginia 20151

Investigation site:          Potomac Yard Metro Station                                                                                                                                                                                                               2601 Main Line Blvd.                                                                                                                                                                                                                               Alexandria, Virginia 22301

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found that the commercial roofing contractor classified employees as laborers and roofers incorrectly while they performed sheet metal work on a federally funded project. By doing so, the employer failed to pay the proper prevailing wage, holiday and overtime pay rates, which are violations of the Davis-Bacon and Related Acts. 

Back wages recovered:         $288,341 in back wages for eight workers.

Quote: “Employers cannot improperly classify employees and deny them required pay and fringe benefits,” said Wage and Hour Division District Director Nicholas Fiorello in Baltimore. “Contractors should take time to review worker classifications and wage determinations due to the variances in hourly rates on federal projects. We encourage employers to ask questions if they are uncertain to avoid costly violations.”

Background:  Learn more about the DBRA, the CWHSSA and other laws enforced by the division including a search tool if you think you may be owed back wages collected by the division. The department can speak with callers confidentially in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App, now available for android devices, to ensure hours and pay are accurate.

Learn more about Wage and Hour Division.

SEATTLE – While 77 care workers employed by Seattle-area adult family home providers worked long hours to ensure the well-being and daily needs of older adults and people with disabilities, a federal investigation has found their employers were shortchanging them $530,418 in wages.

Part of an ongoing compliance initiative by the U.S. Department of Labor’s Wage and Hour Division, the investigations determined that Elena’s Home Care, Nashville Adult Family Home, Kirsten Adult Family Home, Woodhaven Adult Family Home, Goldenville Adult Family Home and AssureCare Adult Home LLC paid workers daily flat rates regardless of the number of hours they worked. By doing so, the employers paid some employees less than the federal minimum wage and denied overtime wages to those who worked more than 40 hours in a workweek. Their failures violate the Fair Labor Standards Act.

In total, the division’s investigations recovered $1,060,836 in back wages and liquidated damages for the affected workers and assessed $30,038 in civil money penalties.

Specifically, the division reached administrative settlements after finding the following:

• Elena’s Home Care, Nashville Adult Family Home, Kirsten Adult Family Home, Woodhaven Adult Family Home and Goldenville Adult Family Home failed to pay required overtime and did not keep required records. The division recovered $737,392 in back wages and liquidated damages for 43 employees and assessed $19,742 in penalties.  
• AssureCare Adult Home LLC, based in Lakewood, and owner Marcelina Macandog failed to pay the required overtime rate for hours over 40 in a workweek. They also incurred recordkeeping violations by failing to maintain a record of hours worked and by not calculating wages on a workweek basis. The division recovered $323,444 in back wages and liquidated damages for 34 employees at eight Washington locations and assessed $10,296 in civil penalties for the willful nature of the violations. In 2018, the division recovered $110,000 in back wages after a previous investigation of AssureCare.

“Care workers in these adult family homes provided a lifeline to their clients but their employers failed respect the dignity of their employees by paying them all of their hard-earned wages,” said Wage and Hour Division District Director Thomas Silva in Seattle. “AssureCare, Elena Home Care, Nashville Adult Family Home, Kirsten Adult Family Home, Woodhaven Adult Family Home, and Goldenville Adult Family Home ignored federal laws that protect workers’ wages and benefits, and deliberately made it more difficult for their employees to care for themselves and their families.”

“Since 2021, we’ve found violations in 80 percent of the more than 1,600 investigations we’ve completed in the care industry. These probes have recovered more than $28.6 million in back wages and damages for 25,000 workers, and led to nearly $1.3 million in penalties for employers,” Silva said. “The U.S. Department of Labor is determined to holding industry employers who cheat their workers legally accountable and committed to recovery these workers the wages they’re owed.”

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 a worker’s immigration status 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.

LOS ANGELES – The U.S. Department of Labor has recovered $370,194 in back wages and liquidated damages from the owners of two restaurants in Los Angeles and Pasadena who illegally denied overtime wages to 54 workers, and attempted to hide their misdeeds.

The department’s Wage and Hour Division found Rober Yousef Babish, wife Ivette, and sons Julian and Joseph – owners of the two Millie’s Cafe locations – failed to pay overtime pay to employees for hours over 40 in a workweek, a violation of the Fair Labor Standards Act. Investigators found that, in some cases, employees worked as many as 37 hours of overtime per week.

In an effort to mask their violations, the owners issued company checks and made cash payments. They also failed to keep records of all hours worked, including overtime hours, which led to recordkeeping violations.

“Wage theft is a serious violation, and restaurant industry workers are too often its victims,” explained Wage and Hour Assistant District Director Susan Bacon in Los Angeles. “These low-wage workers can least afford to have their pay shortchanged, especially by unscrupulous employers like the owners of these Millie’s Café restaurants. We are determined to recover all workers’ hard-earned wages and hold to account those who deny them their due.” 

In addition to recovering $185,097 in overtime back wages and an equal amount in damages, the division assessed $40,446 in civil money penalties for the willful nature of the employers’ violations.

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. 

“Today’s workers can choose to work for employers who value them, pay them full wages and respect their rights as workers,” Bacon added. “Employers who comply with labor law and appreciate the dignity of work will have a clear advantage when it comes to retaining and recruiting the people they need for their businesses to operate.”

In this case, investigators learned about the employer’s practices through the Employment Education and Outreach alliance (EMPLEO) which manages the multistate toll-free hotline 1-877-552-9832 to assist Spanish-speaking workers with workplace issues.

The Wage and Hour Division also protects workers against retaliation and has regulations that prohibit retaliation, harassment, intimidation or adverse actions against employees that 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, now available for Android and iOS devices, to ensure hours and pay are accurate.

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ST. PETERSBURG, FL – A U.S. Department of Labor investigation has found a St. Petersburg restaurant ran afoul of federal law, leading to the recovery of $28,162 in back wages for 36 employees, and changes to the employers’ pay practices. The employer illegally paid kitchen staff, dishwashers, and servers as independent contractors.

The department’s Wage and Hour Division determined that Mi Carreta Restaurant & Bakery Inc. violated several provisions of the Fair Labor Standards Act when it:

• Paid hourly tipped workers and kitchen employees straight-time pay for hours over 40 in a workweek.
• Misclassified cooks, bakers, dishwashers, kitchen supervisor, servers, and helpers as independent contractors.
• Failed to keep time records as the law requires. The division found the employer’s payroll report failed to show required information including the number of hours worked and the issue date on a series of checks was incorrect. These practices violated federal recordkeeping requirements.

“When employees work more than 40 hours in a workweek, employers must pay overtime pay unless an exemption applies,” explained Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “Mi Carreta Restaurant & Bakery misclassified some employees as independent contractors and, by doing so, deprived workers of their full wages, benefits and rights, including the employer’s contribution to workers’ Social Security savings and Medicare taxes.”

Opened in 2014, Mi Carreta Restaurant & Bakery Inc. is a family owned Florida business that offers Colombian cuisine to dine-in and delivery customers.

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.

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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.

Learn more about Wage and Hour Division.