US Department of Labor, Travis County DA’s office renew  partnership to expand, improve protection of workers’ wages

News Release

US Department of Labor, Travis County DA’s office renew  partnership to expand, improve protection of workers’ wages

5-year agreement enhances protections of federal, local labor laws

Participant:   Travis County District Attorney’s Office

Address:         416 West 11th St.

Austin, TX 78701

Description: The U.S. Department of Labor’s Wage and Hour Division renewed a memorandum of understanding with the Travis County District Attorney’s Office to expand and improve the protection of the county’s workforce, enforcement of wage laws and level the playing field for responsible employers. 

Background: The partnership represents an effort by the agencies to collaborate more effectively on areas of common interest, including sharing training materials, conducting joint investigations and enforcement actions, and exchanging information as appropriate for their respective responsibilities.

The division enforces the federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. The Travis County District Attorney’s Office is responsible for enforcing labor laws and regulations related to employment security and workers’ compensation.

Duration: Initially signed November 2021, the renewed MOU has a five -year term.

Quote: “By renewing our agreement with the Travis County District Attorney’s Office we are re-committed in our efforts to protect workers from exploitation,” said Wage and Hour Division Deputy Regional Administrator Nathan Barrow in Dallas. “This MOU allows our agencies to address serious challenges and to work together to educate employers and better serve the public.” 

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 complaintFor 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. 

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Agency
Wage and Hour Division
Date
November 12, 2024
Release Number
24-2298-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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Federal court orders Pennsylvania home healthcare agency to pay $810K in back wages, damages to 196 workers denied minimum wage, overtime

News Release

Federal court orders Pennsylvania home healthcare agency to pay $810K in back wages, damages to 196 workers denied minimum wage, overtime

Wyncote Wellness LLC also must pay civil money penalties for willful violations

WYNCOTE, PA – The U.S. Department of Labor has obtained a consent judgment requiring a Wyncote home healthcare agency and its owner, Dominique Conner, to pay 196 direct care employees a total of $810,320 in back wages and liquidated damages for routinely not paying workers overtime rates and willfully violating federal law.

The consent judgment, filed in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia, follows an investigation by the department’s Wage and Hour Division that found Wyncote Wellness LLC routinely violated the minimum wage and overtime provisions of the Fair Labor Standards Act.

The investigation revealed that Wyncote Wellness regularly failed to pay employees the required overtime rate and instead paid employees, who had multiple clients, with separate checks for each client they worked with each week. Instead of combining hours worked in a week to calculate overtime rates, Wyncote Wellness paid overtime after employees worked for more than 40 hours with each client. Additionally, the department found that employees frequently recorded more hours than they were paid by the employer and were not compensated for travel time between clients. The employer also failed to preserve records of hours worked, including travel time between clients when employees worked with multiple clients in a day. 

“Home healthcare workers provide vital services to the most vulnerable members of our communities, and their work deserves respect and fair compensation,” said Wage and Hour Division District Director James Cain in Philadelphia. “This enforcement action will help to ensure workers are paid their total earnings and remind other employers of their obligations under the law.”

In addition to back wages and liquidated damages, the consent judgment requires Wyncote Wellness to pay a civil money penalty the department assessed for the willfulness of the violations.

“Our efforts resulted in securing the consent judgment and recovering hard-earned wages for the home health workers. This case demonstrates the U.S. Department of Labor’s commitment to pursuing litigation when employers fail to comply with the law,” said Regional Solicitor Samantha Thomas, in Philadelphia.

The division’s Philadelphia District Office conducted the investigation and the department’s Office of the Solicitor in Philadelphia filed the complaint and consent judgment.

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek. 

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 offers confidential assistance to anyone with questions about how to comply with the law by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The division can speak with callers in more than 200 languages, regardless of their immigration status. Download the agency’s Timesheet App for iOS and Android devices – free and available in English and Spanish – to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
November 7, 2024
Release Number
24-1891-PHI
Media Contact: Leni Fortson
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US Department of Labor recovers $877K in wages, benefits for 36 employees underpaid by contractors on federally funded projects in New York City

News Release

US Department of Labor recovers $877K in wages, benefits for 36 employees underpaid by contractors on federally funded projects in New York City

Investigations find Long Island employers shortchanged workers

NEW YORK  The U.S. Department of Labor recovered a total of $877,834 in back wages and fringe benefits from three Long Island contractors for 36 employees who were underpaid for their work on two New York projects funded by the U.S. Department of Housing and Urban Development. 

The New York City Department of Housing Preservation and Development conducted initial investigations of Discover Electric Inc., EMG Industrial Chimney Inc. and QNCC Electrical Contracting Corp., finding each violated the Davis-Bacon and Related Acts. The three subcontractors subsequently appealed the city’s findings.

After HUD concurred with the original findings, the contractors still refused to pay and HUD referred the findings to the department’s Wage and Hour Division. The division’s independent investigations confirmed the contractors’ DBRA violations as follows:

  • Discover Electric Inc., a Rockville Centre electrical contractor, categorized 11 employees improperly as jobbers, maintenance and repair workers rather than as electricians, paying them less than the required prevailing wages and benefits for electricians. The division determined the employer owed the affected employees $43,984 in wages and $550,321 in fringe benefits. 
  • EMG Industrial Chimney Inc., a West Babylon construction contractor, failed to pay $69,252 in required prevailing wages and fringe benefits to 21 employees categorized improperly as service fitters rather than for their work as insulators and sheet metal workers. 
  • QNCC Electrical Contracting Corp., a Port Washington contractor, failed to pay full fringe benefits to four apprentices, an explicit DBRA requirement when, as here, an applicable apprenticeship program does not specify fringe benefits. The division recovered $214,277 in fringe benefits owed to the affected employees.

“The Wage and Hour Division works closely with agencies such as the Department of Housing and Urban Development and the New York City Department of Housing Preservation and Development to enforce the Davis-Bacon and Related Acts and ensure that workers are paid full wages and benefits,” explained Wage and Hour Division District Director Jorge Alvarez in New York. “These cases demonstrate that employers cannot circumvent their legal obligations or avoid paying the wages and benefits rightfully due to their employees on federally funded construction projects.”

All three contractors agreed to comply with the Davis-Bacon Act and Davis-Bacon and Related Acts in all future contracts that are subject to the acts. 

“Workers deserve fair compensation for their labor,” said U.S. Department of Housing and Urban Development Regional Administrator Alicka Ampry-Samuel in New York. “HUD works closely with federal, state, and local agencies to ensure that companies receiving federal funds comply with Davis-Bacon wage requirements. Everyone deserves to be paid fairly. At a time when we face a housing shortage, it’s crucial to support workers who are helping to expand the supply of affordable housing.” 

The investigations identified violations by Discover Electric and EMG Industrial Chimney at a 463 West St. worksite and at a QNCC Electrical Contracting Corp. worksite at 10 Monroe St., both in New York City. The division’s New York City District Office conducted the investigations. Learn more about the requirements for federal contractors.

The Wage and Hour Division has scheduled a series of online seminars in 2024 and 2025 on prevailing wage compliance. Attendance is free but registration is required. To participate, use one of the following links:

Register for the Nov. 13-14, 2024 seminar

Register for the June 25-26, 2025, seminar.

Register for the March 18-19, 2025, seminar.

Register for the Sept. 24-25, 2025, seminar. 

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 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. The division can speak with callers in more than 200 languages. 

Download the agency’s Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
November 4, 2024
Release Number
24-2004-NEW
Media Contact: James C. Lally
Phone Number
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US Department of Labor finds Temple City home care company ignoring overtime requirements for 3rd time, recovers $145K in unpaid wages, damages

News Brief

US Department of Labor finds Temple City home care company ignoring overtime requirements for 3rd time, recovers $145K in unpaid wages, damages

Temple Garden Homes withheld overtime to 70 employees at 4 locations

Employer:      T.G.H. Management Group Inc., operating as Temple Garden Homes

                        5120 Baldwin Ave.

                        Temple City, CA 91780

 Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found the home care employer, operator of four Temple Garden Homes locations for people with developmental disabilities, again failing to pay required overtime pay rates to 70 employees for all hours over 40 in a workweek in violation of the Fair Labor Standards Act. The division also learned the employer did not keep accurate records as required.

Wages, Damages Recovered:   $72,837 in back wages for 70 workers 

                                                   $72,837 in liquidated damages for 70 workers

                                                   $21,840 in civil money penalties for willful and repeat violations

Quote: “For the third time, Temple Garden Homes willfully violated the labor rights and trust of employees caring for our communities’ most vulnerable people,” said Wage and Hour Division Assistant District Director Skarleth Kozlo in West Covina, California. “The U.S. Department of Labor will protect workers against repeat offenders and bad employers such as this one.”

Background: Two prior Wage and Hour investigations found the employer committed similar overtime pay violations. These investigations led the division to recover a combined $102,694 in unpaid wages for 50 employees and the assessment of $9,500 in penalties against Temple Garden Homes.

Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for assistance at its toll-free number, 1-866-4-US-WAGE. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish

This news brief is also availabe in Tagalog. 

Agency
Wage and Hour Division
Date
October 31, 2024
Release Number
24-2205-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers $109K in back wages, benefits from Maryland contractor that underpaid 55 workers at Eglin AFB

News Brief

US Department of Labor recovers $109K in back wages, benefits from Maryland contractor that underpaid 55 workers at Eglin AFB

Employer:   Crystal Enterprises Inc.

Employer address:    10837 Lanham Severn Road, Glenn Dale, MD 20769

Investigation findings: A U.S. Department of Labor Wage and Hour Division investigation determined that Crystal Enterprises Inc. failed to pay the required prevailing wage and health and welfare benefits to employees working at a U.S. Air Force training center dining facility on Eglin Air Force Base in Florida, a violation of the McNamara-O’Hara Service Contract Act. By doing so, the employer also paid workers lower rates of pay for holidays and sick leave and vacation time used. 

Recoveries: $109,127 in back wages for 55 employees.

Quote: “Government contracts come with stipulations to ensure workers are paid correctly, and employers must adhere to those requirements when bidding on and obtaining those contracts. This includes ensuring the proper job classifications and rates of pay are followed,” said Wage and Hour Division District Director Vilma Bell in Orlando, Florida. “These workers provided the critical labor needed to feed service men and women on this military base. They deserve to take home every dollar they earn.”

“Employers with questions about the standards required of them when they enter into federally funded contracts can contact us for help or find government contract compliance assistance information on our website,” Bell added. 

Background: The U.S. Air Force subcontracted Crystal Enterprises Inc. to perform full food services at the training center dining facility on Eglin Air Force Base, Florida. 

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 confidentially with questions or concerns – regardless of where they are from – and the division 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 in English or Spanish. 

The Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay their workers employed under the contract no less than the local prevailing wages and fringe benefits for corresponding work on similar projects in the area.

Agency
Wage and Hour Division
Date
October 31, 2024
Release Number
24-2215-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers $53K in back wages, damages from cleaning service that misclassified 59 workers as independent contractors

News Brief

US Department of Labor recovers $53K in back wages, damages from cleaning service that misclassified 59 workers as independent contractors

Employer:                              Finichel LLC, operating as Finichel Cleaning Services 

Investigation site:                  801 Mohawk Drive

West Columbia, SC 29169

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found a South Carolina cleaning services provider misclassified 59 workers as independent contractors, resulting in the company paying employees straight-time rates for all hours worked over 40 instead of the time-and-a-half premium for overtime hours as required by the Fair Labor Standards Act. The employer also failed to keep records of the amount of time worked by employees as required by law.

Back wages and liquidated damages recovered: $53,044 for 59 workers.                          

Quote: “Misclassifying employees as independent contractors undermines workers’ rights,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “If workers are misclassified as independent contractors, they don’t get paid overtime or have access to employer-provided health and retirement benefits. They also don’t have access to family and medical leave.”

“If workers or employers need help understanding this, they should reach out to the U.S. Department of Labor or go to our website and get the information they need,” Benefiel added.

Background: Finichel Cleaning Services is a residential and commercial cleaning service that serves the Columbia area and employs approximately 40 workers. 

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek. Learn more about the Wage and Hour Divisionemployee misclassification and workers’ rights, including a search tool to use if you think you may be owed back wages collected by the division. Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division

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

Agency
Wage and Hour Division
Date
October 30, 2024
Release Number
24-2165-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Department of Labor seeks Kentucky highway construction industry’s input to set accurate prevailing wage, fringe benefits for workers

News Release

Department of Labor seeks Kentucky highway construction industry’s input to set accurate prevailing wage, fringe benefits for workers

LOUISVILLE, KY – The U.S. Department of Labor encourages employers and others in Kentucky’s highway construction industry to complete a statewide prevailing wage rates survey to help its Wage and Hour Division establish accurate pay and fringe benefits for workers on federally funded and assisted construction projects.

The Davis-Bacon and Related Acts require the department to set the prevailing wage rates that reflect the actual wages and fringe benefits paid to construction workers in the county where the work occurs. 

The survey asks participants to provide information on wages employers paid on highway projects in Kentucky where construction occurred from Nov. 4, 2023, to Feb. 4, 2025. Not limited to federally funded construction projects, survey findings help the division in publishing accurate prevailing wage and fringe benefit rates in areas surveyed. Correct determinations also save contractors time spent requesting additional labor classifications. The department encourages all industry employers and stakeholders to participate.

The division strongly encourages online survey completion by Feb. 4, 2025, and will send notification letters to interested parties and contractors known to the agency with directions on how to access and complete the survey. To request a survey by mail or receive more information, contact the division’s Davis-Bacon Survey Center at (866) 236-2773 or email Davisbaconinfo@dol.gov

Learn more about the surveys

The Wage and Hour Division will provide two online briefings at no cost to employers and stakeholders to learn more about the survey process and obtain instructions for survey completion on Nov. 6 and Nov. 7, 2024. Register to attend an upcoming briefing.

Agency
Wage and Hour Division
Date
October 28, 2024
Release Number
24-2070-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Department of Labor obtains judgment to recover $120K in wages, damages from Huddle House franchisee who withheld wages, made illegal deductions

News Release

Department of Labor obtains judgment to recover $120K in wages, damages from Huddle House franchisee who withheld wages, made illegal deductions

Gregg Hansen cited for similar violations in Oklahoma, other states

OKLAHOMA CITY  The U.S. Department of Labor has obtained a consent judgment and injunction to recover $120,000 in back wages and liquidated damages for 177 Oklahoma restaurant workers whose employer deducted time for lunch breaks not taken and failed to pay employees for all hours worked.

The Sept. 18, 2024, judgment in the U.S. District Court for the Western District of Oklahoma against Gregg Hansen - operator of Huddle House franchise locations in Ardmore, Edmond and Oklahoma City - follows an investigation by the department’s Wage and Hour Division that found the employer’s pay practices from October 2019 to February 2023 violated federal minimum wage and overtime provisions.

 “Gregg Hansen has deprived hundreds of low-wage workers at his Huddle House franchise locations of their full, hard-earned wages,” explained Wage and Hour Division District Director Michael Speer in Oklahoma City. “The Wage and Hour Division is determined to stop employers who repeatedly and willfully disregard federal labor regulations and hold them accountable for such blatant violations.”

The division previously cited the Chattanooga, Tennessee-based employer for similar violations at the same Oklahoma locations from 2016 to 2021, and at its locations in Missouri, Tennessee, and Texas. The willful and repeated nature of Hansen’s Fair Labor Standards Act violations prompted the department to pursue legal remedies. 

At one point owning nearly 20 locations in nine states, Gregg Hansen has been known as one of the largest Huddle House franchise operators in the nation. The Huddle House brand is owned by Ascent Hospitality Management in Sandy Springs, Georgia, a multi-brand restaurant company with nearly 600 Huddle House and Perkins Restaurant & Bakery locations in the U.S. and Canada. 

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 at 866-4US-WAGE (487-9243), regardless of where they are from. Calls are confidential and the division can speak with callers in more than 200 languages. 

Download the agency’s new Timesheet App for iOS and Android devices, now available in English and Spanish, to ensure hours and pay are accurate. 

Lea en Español 

Agency
Wage and Hour Division
Date
October 22, 2024
Release Number
24-2006-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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US Department of Labor recovers $317K in unpaid wages, damages from Southern California home care provider that denied overtime

News Release

US Department of Labor recovers $317K in unpaid wages, damages from Southern California home care provider that denied overtime

PALS LLC assessed $10K in penalties for its willful labor violations

WHITTIER, CA – The U.S. Department of Labor has recovered $158,868 in back wages and an equal amount in liquidated damages from a Southern California residential care provider that refused to pay overtime to 45 workers, some of whom worked up to 70 hours per week.

An investigation by the department’s Wage and Hour Division found PALS LLC – a residential care provider for individuals with special needs and developmental disabilities – purposely failed to pay caregivers overtime rates when they worked more than 40 hours in a workweek. Investigators discovered some employees worked between 50 and 70 hours per week. Investigators also found the employer, which has locations in Indio and Whittier, failed to keep records of hours worked and rates of pay for each employee.

In addition to the recovery of the unpaid wages and liquidated damages, the division assessed the employer $10,829 in civil money penalties because of the willful nature of the violations.

“We urge all employers in this industry to review their pay practices and respect workers’ right to be paid all of their hard-earned wages,” said Wage and Hour Division Assistant District Director Gayane Aleksanian in West Covina, California. “The U.S. Department of Labor is committed to protecting care workers and will use all available enforcement tools to hold employers accountable for compliance.” 

Established in 1998, PALS provides adults with developmental disabilities with assistance to live at home independently. Its locations in Indio and Whittier, PALS serves clients of the Regional Center who reside in Los Angeles County and Riverside County. 

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. The division can speak with callers in more than 200 languages.

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

Agency
Wage and Hour Division
Date
October 17, 2024
Release Number
24-2147-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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Department of Labor to hold online seminars for current, prospective federal contractors on prevailing wage requirements in fiscal year 2025

News Release

Department of Labor to hold online seminars for current, prospective federal contractors on prevailing wage requirements in fiscal year 2025

Training offered on standards for federally funded construction, service contracts

WASHINGTON – The U.S. Department of Labor announced today that its Wage and Hour Division will offer online seminars for contractors, contracting agencies, unions, workers and other stakeholders on prevailing wage requirements in fiscal year 2025 for federally funded construction and service contracts.

In the division’s ongoing effort to increase awareness and improve compliance, the division will host two-day seminars with sessions on the Davis-Bacon ActService Contract Act and other related topics. Participants can choose among the sessions offered either of the two days. 

Seminars are scheduled on Nov. 13-14, 2024, and from March 18-19, June 25-26 and Sept. 24-25 in 2025. Learn more about related federal wage regulations and check for updates on the seminars.

“Prevailing wage laws empower workers by ensuring federally funded construction and service jobs are good jobs with fair wages and benefits,” said Wage and Hour Administrator Jessica Looman. “The Biden-Harris administration’s historic investments in our nation’s infrastructure have significantly increased the number of federal and federally funded projects, and the Wage and Hour Division is committed to ensuring stakeholders understand the labor standards protections critical to these investments.” 

Seminar attendance is free, but registration is required. Additional information, including links to the sessions for each date, will be provided to participants after registration. 

For more information about the Davis-Bacon Act, the Service Contract Act and other federal wage laws, please call the division’s toll-free helpline at 1-866-4US-WAGE (487-9243).

Agency
Wage and Hour Division
Date
October 15, 2024
Release Number
24-1983-NAT
Media Contact: Grant Vaught
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