Employer:                               Crystal Services LLC, operating as Baymont by Wyndham

                                                Golden Services LLC, operating as Roseburg Value Inn

Investigation sites:                610 W Madrone St., Roseburg, OR 97470

                                                511 SE Stephen St., Roseburg OR 97470

Investigation findings:          U.S. Department of Labor Wage and Hour Division investigators found the pay practices of Amrik Rai, owner and operator of two Roseburg hotels, violated federal law. Specifically, Rai’s Crystal Services LLC, operator of Baymont by Wyndham, paid one employee a salary that did not meet minimum wage. The employer also failed to pay the worker time and one-half for hours over 40 in a workweek. At the Roseburg Value Inn, Rai’s Golden Services LLC failed to pay one employee all hours worked, another violation of the Fair Labor Standards Act.

The division investigated this employer in 2013 and twice in 2017. Those three prior investigations recovered $45,633 in back wages and liquidated damages for employees. 

Back Wages Recovered:                   $37,423 in back wages for two employees

                                                            $37,423 in liquidated damages for two employees

Civil Money Penalties Assessed:      $1,542 in penalties                

Quote: “The U.S. Department of Labor will hold accountable employers that take advantage of vulnerable workers,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “WHD is persistent, follows up after settlements, and will keep working hard to ensure employers come into compliance. Wage theft committed by repeat violators like Amrik Rai will be found and we will make their victims whole.”

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. Help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Employer name:                      V & R Health Care Services LLC

Investigation site:                  121 E. Magnolia, Suite 103

                                                          Friendswood, TX 77546

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division investigation found V&R Health Care Services LLC – a home healthcare provider – paid 55 workers straight time for overtime hours worked and failed to record time worked for employees accurately. V&R Health Care Services provides in-home companionship, caregiving and medical services.

Back wages recovered:         $56,028 in overtime back wages

                                                           $56,028 in liquidated damages

Quote: “The U.S. Department of Labor is committed to ensuring that every employee receives the wages they have rightfully earned. Most workers are required to receive additional half-time pay for hours over 40 in a workweek,” said Wage and Hour Division District Director Robin Mallett in Houston, Texas.  “The Wage and Hour Division is available to help workers and employers understand their rights and responsibilities regarding the law. We encourage all employers to review their pay practices and take advantage of the many tools we offer to assist them in understanding the law and avoiding costly penalties and damages for labor violations.”

Employer name:                   Advantage Communications Systems Inc.

Investigation site:                 4219 Montgomery Blvd. NE

                                                         Albuquerque, NM 87109

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found Advantage Communications Systems Inc. paid some workers a flat rate for live-in shifts, and a salary to others. In some cases, the employer allowed workers’ wages to fall below the federal minimum wage of $7.25. Investigators also learned Advantage failed to include bonuses and differential pay when calculating the regular pay rate for overtime purposes. By doing so, the home healthcare company denied overtime premiums to 64 workers. These pay practices violated the Fair Labor Standards Act.

Back wages recovered:         $65,286 in back wages

                                                           $65,286 in liquidated damages

Quote: “Home healthcare workers provide essential care for people in need and often work very long hours as live-in shift workers.  Advantage Communication Systems Inc. paid some workers less than the minimum wage and denied others proper overtime payment as required under the Fair Labor Standards Act,” said Wage and Hour District Director Evelyn Ortiz in Albuquerque, New Mexico. “Many employers are struggling to retain and recruit the employees needed to operate their businesses, while workers are seeing an increase in job openings, and many are choosing new occupations. Ensuring that their workers are paid properly is a fundamental necessity for every employer.”

CHICAGO – After more than two years, a Chicago restaurant owner has finally complied with an administrative subpoena to provide documentation for a U.S. Department of Labor’s Wage and Hour Division investigation. The compliance comes after a federal judge held Wilson Torres, owner of La Bomba Food Restaurant Inc., in contempt and confined him to one night in jail and ordered him to pay $40,500 in fines.

On May 4, 2020, the department’s Office of the Solicitor filed a request with the U.S. District Court for the Northern District of Illinois, Eastern Division, seeking to enforce the administrative subpoena the department issued as part of its wage and hour investigation of La Bomba Restaurant. During the next two years, La Bomba and Torres failed to comply with the subpoena repeatedly. Torres paid the department $2,975 in attorney’s fees in March 2022 after the department filed a contempt motion to enforce the subpoena. The owner’s lack of action prompted U.S. District Court Judge Martha Pacold to impose fines for contempt of court and the brief imprisonment on June 15, 2022.

In a status hearing on Aug. 23, 2022, the department reported that La Bomba and Torres had complied with producing most of the necessary documents. On Aug. 31, 2022, the department and La Bomba filed a joint stipulation of dismissal with the judge, after the Wage and Hour Division received the necessary documents to conduct its investigation.

“By enforcing the Department of Labor’s subpoena and holding a non-compliant owner in contempt, the federal courts have upheld that the Department of Labor has broad investigative authority under the Fair Labor Standards Act for record audits and on-site inspections to ensure compliance with wage and hour laws,” said Regional Solicitor of Labor Christine Heri in Chicago.

The Wage and Hour Division will now complete its investigation of La Bomba with the records received.

“We make no assumptions that we will find violations in La Bomba’s payroll records, but La Bomba and its owner Wilson Torres are required to comply with the law and allow such an investigation to be completed,” said Wage and Hour District Director Thomas Gauza in Chicago. “The Wage and Hour Division is committed to ensuring all employees receive their rightfully earned wages.”

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s 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 Android devices to ensure hours and pay are accurate.

Walsh v. La Bomba Food Restaurant Inc.

U.S. District Court District for the Northern District of Illinois, Eastern Division

Civil Action No.: 22-cv-02678

Employer:                                          Done-Rite Tree Company Inc.

Investigation sites:                            8184 Stewart Road, Meridian, ID 83642

Investigation findings:                      U.S. Department of Labor Wage and Hour Division investigators found Done-Rite Tree Co. denied overtime wages to 39 workers by not paying time and one-half for hours over 40 in a workweek, as required by the Fair Labor Standards Act. The company also allowed two 17-year-old workers to regularly load and operate a power-driven woodchipper, a hazardous occupation for minors under the FLSA and an activity that has claimed the lives of several young workers in recent years, including a 17-year-old in Pennsylvania, who recently suffered a tragic death while operating a woodchipper.  

Back Wages/Damages Recovered:  $39,711 in back wages for 39 employees

                                                            $39,711 in liquidated damages for 39 employees

Civil Money Penalties Assessed:      $10,747 in penalties              

Quote: “The U.S. Department of Labor is committed to ensure employees receive all of the wages they have earned, including overtime,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “It is also critical to ensure the safety and well-being of young workers. The operation of the woodchipper by minors could have ended in tragedies had we not intervened. We urge employers to visit our Youthrules.gov website to learn how to protect young workers and promote positive and safe work experiences for teens.”

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. Help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Employer name:        Raymond’s Painting Co.

Investigation Site:     904 Hikina Lane

                                             Honolulu, HI 96817

Investigation findings: Investigators with the U.S. Department of Labor found Raymond’s Painting Company Inc. – doing business as Raymond’s Painting Co. – didn’t treat pre-shift activities by its employees as on-the-clock work, resulting in violations of the overtime provisions of the Fair Labor Standards Act. The employer incurred a record keeping violation of the act when it didn’t properly document and maintain its employment records.

Penalties:       $42,060 in overtime back wages for 44 workers.

                             $42,060 in liquidated damages for 44 workers.

                             $10,000 in civil money penalties for willful and reckless disregard of the FLSA.

Quote: “Overtime earned should be overtime paid,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Not counting work performed before or after a scheduled shift misrepresents the workers total weekly hours worked and leads to the underpayment of wages, including lawfully entitled overtime pay.”

The agency encourages workers who think they may be owed back wages as a result of these or other federal investigations to use the Workers Owed Wages search tool or contact the Honolulu Regional Office at (808) 541-1361. Learn more about the Wage and Hour Division. Employers and workers can call the division confidentially with questions regardless of their immigration status. 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 for Android devices to ensure hours and pay are accurate.

                                                                     # # #

ATLANTA – When severe storms, dangerous weather and other natural calamities strike, the U.S. Department of Labor urges workers and employers who clear debris, repair homes or provide other kinds of disaster recovery to use resources provided by the department’s Wage and Hour Division to understand federal worker protections for wages, hours worked and pay practices.

Coinciding with national Disaster Preparedness Month in September, the division has launched its Natural Disaster Compliance Assistance Toolkit, which includes information on how to avoid violations of the Fair Labor Standards Act with a focus on provisions where compliance failures are most commonly found in investigations of employers engaged in the disaster recovery, clean-up and rebuilding efforts.

Among the concerns highlighted in the toolkits are minimum and overtime wages, misclassification of employees as independent contractors, recordkeeping requirements, prevailing wages, and the use of child labor. The complete toolkit can be downloaded, as can one or more of its 12 unique fact sheets. 

Even when disaster strikes, worker protections apply. Employers must ensure they can maintain accurate records and pay wages as due. Workers are particularly vulnerable during times of crisis, and the failure to comply with federal labor laws harms them and their families.

“Like communities stricken by the impacts of severe weather or disasters, workers are especially vulnerable after the fact and the U.S. Department of Labor responds quickly to protect workers at times of crisis and ensure they are paid all of their legally earned wages and benefits,” explained Wage and Hour Regional Administrator Juan Coria in Atlanta. “At the same time, we stand ready to provide employers with the information and guidance they need to avoid costly consequences sometimes associated with violations.”

From October 2017 to June 2022, the division conducted more than 900 investigations related to recovery from natural disasters, and recovered more than $62 million in wages for more than 45,000 workers. During the same period, the division held more than 1,200 outreach events attended by more than 75,000 disaster recovery employers, employees and stakeholders.

Following a series of devastating tornadoes in Kentucky in March 2022, the division’s Louisville District Office conducted 13 investigations under the McNamara-O’Hara Service Contract Act. Investigators recovered $54,508 in back wages for 175 employees doing cleanup work in the affected area. These investigations identified several common SCA violations, including failures to pay correct prevailing wages for the job performed, to pay required health and welfare benefits, to pay sick leave and holiday pay as required, to pay for all hours worked, and to pay overtime as the Contract Work Hours and Safety Standards Act required.

The division is committed to strong enforcement of workplace protections for disaster recovery workers nationwide, and is eager to collaborate with federal partners to offer presentations on Natural Disaster Preparedness Compliance in the Workplace. Please join us for a panel conversation with federal agencies and worker advocates about efforts and resources available to support workers affected by a disaster on September 8th at 1:00 p.m. ET. Capacity is limited, so register early. Additionally, stakeholders can access information and resources on the Wage and Hour Division website and on social media.

If you are a storm recovery worker who thinks you may be owed wages, you can search the Wage and Hour Division’s Workers Owed Wages website. Help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Employers and employees with questions or concerns are encouraged to call the agency’s toll-free helpline at 866-4US-WAGE (487-9243).  The department can speak with callers in more than 200 languages.

Learn more about the Wage and Hour Division.

BOSTON – With menacing weather and severe storms a danger in late summer and fall, the U.S. Department of Labor urges workers and employers who clear debris, repair homes or perform other types of disaster recovery to use its Wage and Hour Division’s online resources, including a new Natural Disaster Compliance Assistance Toolkit, to ensure they are familiar with federal laws governing wages, hours of work and pay practices.

Even when disaster strikes, worker protections apply. Employers must ensure they can maintain accurate records and pay wages as due. Workers are particularly vulnerable during times of crisis and the failure to comply with federal labor laws harms them and their families.

“The U.S. Department of Labor works tirelessly to ensure that workers who respond in times of crisis, to help communities recover from devastating storms, are paid all of their legally earned wages and benefits,” explained Wage and Hour Regional Administrator Mark Watson in Philadelphia. “Additionally, we stand ready to equip employers with the information and guidance they need to prevent violations, which are often costly.”

From October 2017 to June 2022, the department’s Wage and Hour Division conducted more than 900 investigations related to recovery from natural disasters. Those cases yielded more than $62 million in wages recovered for more than 45,000 workers. During that same time, the division hosted more than 1,200 outreach events for disaster recovery employers, employees and stakeholders, totaling more than 75,000 participants.

Following the devastation of Hurricanes Irma and Maria, the Wage and Hour Division’s Northeast Region conducted 230 investigations and recovered more than $50,000,000 in back wages for 32,000 employees engaged in recovery work in Puerto Rico and the U.S. Virgin Islands.

These investigations disclosed violations under several laws enforced by the Wage and Hour Division, including failures to pay minimum wage and overtime as required by the Fair Labor Standards Act, health and welfare fringe benefits as required by the McNamara-O’Hara Service Contract Act, prevailing wage rates as required by the Davis Bacon and Related Acts, and overtime compensation as required by the Contract Works Hours and Safety Standards Act.

The division is committed to strong enforcement of workplace protections for disaster recovery workers nationwide and is eager to collaborate with federal partners to offer presentations on Natural Disaster Preparedness Compliance in the Workplace. Please join us on Sept. 8, 2022, at 1 p.m. EDT for a panel conversation with federal agencies and worker advocates about efforts and resources available to support workers affected by disasters. Capacity is limited, so register early. Additionally, stakeholders may access information and resources on the Wage and Hour Division website and on social media.

If you are a storm recovery worker who thinks you may be owed wages, you can search the Wage and Hour Division’s Workers Owed Wages website.

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, and the department can speak with callers in more than 200 languages.

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

AKRON, OH – Federal wage investigators have recovered $67,294 in unpaid wages for 29 workers after their Akron employer, a tire equipment maker, allowed them to work for months without pay.

The U.S. Department of Labor’s Wage and Hour Division found McNeil and NRM Inc. failed to pay workers for two-and-one-half months in 2022. The Fair Labor Standards Act mandates that wages are due on the regular payday for the pay period covered.

“Workers cannot be expected to bear the burden of the employer’s financial issues which, in this case, left them wondering if or when they would be paid,” said Wage and Hour Division District Director Matthew Utley in Columbus, Ohio. “Workers have a right to be paid on their regularly scheduled pay day so that they can meet their financial obligations and care for themselves and their families. Any worker not getting paid should contact the Wage and Hour Division immediately.”

The Bureau of Labor Statistics projects that about 510,000 job openings among durable goods manufacturers existed in June 2022, and about 166,000 workers quit their jobs in the sector. In the current climate, employers face significant competition to fill their positions as workers have more choices about their employment.

“Employers who fail to respect workers’ rights are likely to find it more difficult to retain and recruit the people they need to operate their businesses,” Utley explained. “Employers who treat workers with dignity and who comply with federal protections for workers will have a competitive advantage.”

McNeil and NRM Inc.’s Akron facility designs tire production equipment for automobile and truck tires that the company manufactures at its plant in Bucharest, Romania.

Workers who have not received their check or believe that are not being paid correctly can reach out to the Wage and Hour Division to file an online complaint or contact the division’s 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 android devices to ensure hours and pay are accurate.

Employer:                                   Holiday Beach Rentals Inc.

Investigation site:                  17614 Ashley Drive

                                                          Panama City Beach, FL 32413

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that – while the Panama City Beach vacation rental provider paid its property managers at least the minimum weekly salary – the property managers did not supervise any employees and, as a result, the employer failed to meet the requirements to claim an overtime exemption under the Fair Labor Standards Act. Without a valid exemption, Holiday Beach Rentals was required to pay them overtime. Investigators also found the employer failed to include earned non-discretionary bonuses into the regular rate when factoring an overtime rate. In addition, Holiday Beach rentals failed to maintain complete and accurate time and pay records, an FLSA recordkeeping violation.

Back Wages Recovered:       $44,271 in back wages for 25 workers.                                       

Quote: “Employers must ensure they classify their workers properly when it comes to salary and exemptions. Failing to do so can result in a costly lesson,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Employers who fail to realize this and continue to pay workers less that they have earned can quickly find themselves struggling to maintain the workforce needed to stay in business.”

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. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.

Learn more about Wage and Hour Division.