ATLANTA – The U.S. Department of Labor is asking Florida highway construction industry employers to participate in a survey to help the department’s Wage and Hour Division establish prevailing wage rates, as required by federal law.

The Davis-Bacon and Related Acts direct 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 takes place.

The department encourages all stakeholders to participate in the survey which includes active highway construction projects in all counties in Florida where construction occurred between June 1, 2021, and May 31, 2022 and is not limited to federally funded construction projects. The data collection period will begin Sept. 30, 2022, and will end Dec. 30, 2022.

Full participation by contractors and interested parties helps to set accurate prevailing wages and develop complete wage determinations. Accurate wages and complete determinations also reduce the need for contractors to request additional labor classifications.

The best way to participate in the survey is online. The division will send notification letters and WD-10 data collection forms to interested parties and contractors known to the agency. To be included, please postmark all data submissions by Dec. 30, 2022. Contractors and other interested parties do not need to have a letter to participate in the survey. The survey can be completed online. Learn more about the surveys.

If you would like to participate, or have questions regarding the survey process and forms, contact Barbara Allen at (770) 738-6451 or Allen.barbara@dol.gov.

Date of action:                     Sept. 20, 2022

Type of action:                    Judgement

Names of defendants:     Reza's Tower Inc., also known as Reza Oak Brook Inc.

                                                     Reza and Ryan Toulabi

Court:                                       U.S. District Court Northern District of Illinois

Docket Number:                 21 CV 1300   

Resolution:  Reza’s Tower Inc., also known as Reza Oak Brook Inc., made final payment on contempt fines of $15,750, and a compensatory fine of $1,662, in attorney's fees for failing to comply with a June 2020 subpoena to provide documents for a U.S. Department of Labor Wage and Hour Division investigation. Payment follows a January 18, 2022 court order enforcing attorney’s fees and daily coercive fines.

Background: District Court Judge Sara L. Ellis granted the motion for attorney’s fees and to enforce coercive fines after the department filed a March 2021 petition for subpoena enforcement. The court also extended its civil contempt finding to owners, Reza and Ryan Toulabi. In October 2021, Reza’s Tower complied with the subpoena. The division’s subsequent investigation found no violations.

Quotes: “Reza’s Tower Inc. and its owners paid a total of $17,412 in fines for failing to comply with a subpoena for its payroll records. After the court order, the employer complied and, following compliance audit of its payroll records, the division did not substantiate violations. They could have avoided contempt fines and other penalties by simply complying with our investigation,” said Wage and Hour District Director Thomas Gauza in Chicago.

“The courts upheld the Department of Labor’s broad investigative authority under the Fair Labor Standards Act, and that employers must comply with the department’s request for records’ audits and on-site inspections that ensure compliance with wage and hour laws,” said Regional Solicitor of Labor Christine Heri in Chicago.

TULSA, OK – A federal investigation into the pay practices of a Tulsa security company has recovered $103,979, in back wages for 55 current and former employees denied their rights to overtime pay for hours over 40 in a workweek.

The U.S. Department of Labor’s Wage and Hour Division determined that PHD Security Services LLLP employed security guards up to 45 hours per workweek without paying time and one-half the required rate of pay when the law requires. The division learned that the employer misunderstood its obligation and operated under an inaccurate belief about an industry standard and without regard to the Fair Labor Standards Act.

“Employers must understand who is, and who isn’t an employee to avoid misclassifying employees as independent contractors. When a perceived industry standard is contrary to the law, employers must follow the law and correctly pay workers minimum wage and overtime,” explained Wage and Hour District Director Michael Speer in Oklahoma City. “The Wage and Hour Division routinely provides assistance and training to help employers understand and comply with federal labor laws and avoid the costly consequences of violations.”

In fiscal year 2021, the division identified more than $6 million in back wages owed to more than 5,300 guard services 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.

The Bureau of Labor Statistics projects employment in protective service occupations is projected to grow 2 percent from 2021 to 2031, slower than the average for all occupations; though slow, the increase is expected to result in about 72,600 new jobs over the decade. The median annual wage for this group was $46,590 in May 2021, which was slightly higher than the median annual wage for all occupations of $45,760.

“As employers continue to struggle to find the people they need to operate their businesses, those who fail to respect workers’ rights, including their right to receive their full wages, will find it more difficult to retain and recruit workers than those employers who do,” Speer said.

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 Timesheet App for Android devices to ensure hours and pay are accurate.

Employer:                                   Heart2Heart Homecare Service Inc.

Investigation site:                  483 John R. Junkin Drive

                                                          Natchez, MS 39120

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the employer – a third-party entity that provides workers to private homes needing assistance – failed to pay workers overtime at time-and-one-half their regular rate of pay for hours over 40 in a workweek, as the law requires. By law, a third-party provider cannot claim an overtime exemption. In addition to failing to pay overtime, Heart2Heart failed to maintain a record of the employees’ total overtime hours and the correct hourly rate for hours over 40 each workweek, both Fair Labor Standards Act violations.

Back Wages Recovered: The division recovered $173,506 in back wages for 26 workers.

Civil money penalties assessed: The division assessed a civil money penalty of $11,466 to address repeat violations. Investigators previously found overtime violations during a review of the employer’s records from Feb. 21, 2015, to Feb. 17, 2017, resulting in $79,237 in back wages recovered for 83 employees.                                             

Quote: “Overtime violations in the healthcare industry are a common occurrence. Employers who fail to pay these essential workers the wages they have earned make it harder for workers and their families to make ends meet,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “Employees or employers unsure of their legal rights and responsibilities should contact the Wage Hour Division for guidance.”

Background: Heart2Heart Homecare Service Inc. provides workers to offer companionship services to individuals requiring home healthcare. In addition to its Natchez location, the company has locations in Flowood and Gulfport, and employs approximately 160 workers enterprise-wide.

The Wage and Hour Division provides multiple tools to help employers understand their responsibilities and offers confidential compliance assistance to anyone with questions about how to comply with the law. Workers can call the division confidentially with questions – regardless of their immigration status – 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 Timesheet App for free.

Learn more about the Wage and Hour Division.

Participant:   Louisiana Workforce Commission

Address:           Baton Rouge, Louisiana

Description: The U.S. Department of Labor’s Wage and Hour Division renewed a Memorandum of Understanding with the Louisiana Workforce Commission. The memorandum provides opportunities for federal and state staff cross-training as well as sharing investigation and audit information to increase the identification of labor violations in the state.

Background: The agreement serves as an understanding between the division and the commission to provide joint outreach, training and enforcement. The voluntary agreement outlines procedures for both agencies working together to address employment violations, particularly misclassification.

The division enforces the federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. The Louisiana Workforce Commission is responsible for enforcing labor laws and regulations related to employment security and workers’ compensation.

Duration: Initially approved February 2012, this MOU will last three years.

“By renewing this agreement, the department and Louisiana Workforce Commission will continue to work together on important issues such as the misclassification of employees as independent contractors. Our partnership improves our ability to enforce wage violations at both the state and federal level,” said Wage and Hour District Director Troy Mouton in New Orleans.

Employer:                                   Tucker Brewing Co. LLC

Investigation site:                  2003 S. Bibb Drive

                                                          Tucker, GA 30084

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer retaliated illegally against two employees after each of them emailed the Tucker Brewing Co.’s owner and asked about their earnings and the employer’s tip-sharing requirements. The employer responded by terminating both workers’ employment despite neither having a history of disciplinary action. The written inquiry to company ownership about pay practices is a protected activity under the Fair Labor Standards Act.

Back Wages and Liquidated Damages Recovered: The division recovered $8,149, in back wages and liquidated damages for the two workers after determining the termination violated federal law.                                   

Quote: “The U.S. Department of Labor enforces federal laws that protect workers’ rights. In this case, two workers were well within their rights to ask about how they were being paid, especially when they believed the employer’s pay practices were unfair or incorrect,” said Wage and Hour Division District Director Steven Salazar in Atlanta. “Employers should review their pay and other employment practices to avoid legal and financial headaches. Listening to employees concerns about workplace compliance can be good for the business and all the company’s workers.”

Background: Tucker Brewing Co. LLC operates a brewery, restaurant and tasting room and has approximately 40 employees.  

The Wage and Hour Division provides multiple tools to help employers understand their responsibilities and offers confidential compliance assistance to anyone with questions about how to comply with the law. Workers can call the division confidentially with questions – regardless of their immigration status – 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 Timesheet App for free.

Learn more about the Wage and Hour Division.

Employer name:                   Primeforce Inc., operating as Elite Workforce Management

Investigation site:                9301 Frazier Pike

                                                        Little Rock, AR 72206

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer, Primeforce Inc. – a staffing agency operating as Elite Workforce Management – denied wages to workers by miscalculating attendance bonuses and failing to pay the correct overtime. By doing so, Primeforce paid less than time and one-half for overtime hours, in violation of the Fair Labor Standards Act.

Back wages recovered:         $74,642 in back wages for 628 employees                                              

Quote: “The Wage and Hour Division is here to make sure that all workers, including those who are placed through staffing agencies, receive the wages they have earned,” said Wage Hour District Director Hanz Grünauer in Little Rock. “We provide resources for employees to understand their rights and for employers to understand their requirements under the law. We encourage all who have questions or complaints to contact us.”

Participants:      U.S. Department of Labor’s Wage and Hour Division

                                  Consulate of Mexico in Little Rock

Agreement description: The Wage and Hour Division and the Consulate of Mexico have renewed an existing agreement to provide information, guidance and access to workers’ rights training to Spanish-speaking workers in Arkansas, Oklahoma and Tennessee.

Renewed on Sept. 2, 2022, during national Labor Rights Week, the three-year agreement seeks to reduce violations by locating and educating low-wage, at-risk workers about their rights and protections afforded by the Migrant and Seasonal Agricultural Worker Protection Act and the Fair Labor Standards Act, including the responsibilities of employers to pay legally required wages.

Background: The agreement is a cooperative relationship to provide training, education, outreach and to promote dialogue around laws and regulations the Wage and Hour Division enforces. Together, the agency and the consulate will coordinate opportunities to reach native Mexican workers in the three-state region with information on workplace rights and protections.

Quote: “Knowledge is an essential to a worker’s ability to understand their rights and seek assistance to ensure these rights are protected. By renewing our agreement with the Consulate of Mexico, we will continue to provide assistance to native Mexican workers and employers in the region,” said Wage and Hour Division District Director Hanz Grünauer in Little Rock, Arkansas. “The efforts outlined in this agreement demonstrate our commitment to migrant and Spanish-speaking workers.”

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Employer:                                   Stat Etc. Inc.

                                                         Operating as Queen City Home and Medical Staffing

Investigation site:                  530 E. Innes St.

                                                         Salisbury, NC 28144

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the employer paid straight-time rates for all hours worked. By doing so, Stat Etc. Inc. – a home healthcare provider – failed to pay employees the extra half-time rate due for hours over 40 in workweek, a Fair Labor Standards Act violation. The employer also failed to maintain a record of the total premium pay for overtime hours.

Back Wages Recovered:       The division recovered $77,936 in back wages for 25 workers.                 

Quote: “Overtime violations in the healthcare industry are all-too-common. Shortchanging workers who provide essential care that people and their families depend upon places unfair burdens on workers and their families who count on every dollar to make ends meet,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “The Wage and Hour Division is determined to hold these employers legally accountable and recover workers’ hard-earned wages. We encourage other employers to view the outcome in this investigation as an opportunity to review their pay practices to avoid similar violations.”

Background: Stat Etc. Inc. provides personal healthcare services and employs registered nurses, certified nurses’ assistants and personal care assistants.  

The Wage and Hour Division provides multiple tools to help employers understand their responsibilities and offers confidential compliance assistance to anyone with questions about how to comply with the law. Workers can call the division confidentially with questions – regardless of their immigration status – 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 Timesheet App for free.

Learn more about the Wage and Hour Division.

Employer name:                    Omega Drywall Company Inc.                                        

Investigation site:                  3010 Eula Morgan Road

                                                         Katy, TX 77493

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer, a  drywall business, misclassified employees as independent contractors and paid straight time, a day rate and a piece rate for all hours worked and failed to pay overtime for hours over 40 in a workweek, in violation of the Fair Labor Standards Act. The division also discovered the employer had limited records, was missing time records and failed to have a complete set of employee addresses, also FLSA violations.

Back wages recovered:         $55,039 in back wages to 55 workers                                            

Quote: “Omega Drywall exploited vulnerable workers – and harmed them and their families – for their own financial gain by misclassifying them as independent contractors and denying them overtime pay and other essential benefits,” said Wage Hour District Director Robin Mallett in Houston. “We will hold employers accountable to prevent them from taking advantage of workers and gaining an unfair competitive advantage over other employers.”

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