Ohio nursery owner debarred from foreign labor visa program after US Department of Labor investigation finds repeated violations

News Release

Ohio nursery owner debarred from foreign labor visa program after US Department of Labor investigation finds repeated violations

Department assesses $76K in penalties, recovers $62K in back wages for workers

PERRY, OH – An Ohio nursery owner’s history of violations, coupled with allegations that they intimidated and threatened workers, and denied them their full wages, has led the U.S. Department of Labor to assess $76,278, in penalties and to debar the Perry employer from participating in the federal agricultural visa program for three years.

Known as H-2A, the program allows employers to recruit and transport agricultural workers from outside the U.S. on a temporary basis, often for seasonal work or when sufficient numbers of U.S. workers are not available.

Investigators with the department’s Wage and Hour Division found Secor Nursery in Perry – owned by Lawrence J. Secor – violated the H-2A program as follows:

  • Discriminated against, intimidated and threatened workers. 
  • Made illegal deductions from wages.
  • Required employees to repay costs associated with inbound and outbound transportation.
  • Shifted the cost of H-2A participation to the workers.
  • Failed to record the terms and conditions of the job offered accurately.

“Unscrupulous actions like intimating workers and denying them wages will not be tolerated from Secor Nursery or any other employer. The hard work performed by people employed in the agricultural industry is essential to our nation’s food supply and yet, too often these temporary guest workers are exploited by employers that fail to live up to the terms of their own contracts,” said Wage and Hour Division District Director Matthew Utley in Columbus, Ohio.

“The H-2A visa program is designed to help industry employers meet their labor needs while treating guest and U.S. workers fairly. Employers who fail to fulfill their obligations as H-2A participants and who ignore the program’s worker protections violate the law and gain an unfair advantage over their law-abiding competitors,” Utley added.

Investigators also determined Secor Nursery violated overtime regulations during certain workweeks when employees handled crops grown from other farms. Although agricultural workers are not required to receive overtime, they must be paid additional half-time for hours worked over 40 in a workweek when they handle crops grown on other farms.

The division assessed Secor with the civil money penalties for the H-2A violations and debarred the employer from H-2A participation until May 2025. Investigations previously found program violations by the nursery in 2009, 2011 and 2018. The most recent investigation also recovered $62,330 in back wages for 19 workers.

Secor Nursery is a family owned and operated nursery and farm market, growing fruits, vegetables and nursery stock from March through October.

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.

Agency
Wage and Hour Division
Date
August 15, 2022
Release Number
22-1564-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Una investigación recupera $54,000 en salarios atrasados para 62 trabajadores de la salud paliativa en dos centros de Puerto Rico, a quienes les pagaron incorrectamente como voluntarios

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Una investigación recupera $54,000 en salarios atrasados para 62 trabajadores de la salud paliativa en dos centros de Puerto Rico, a quienes les pagaron incorrectamente como voluntarios

Los trabajadores de los centros de Manatí y Mayagüez cobran solo $3.75 por hora

GUAYNABO, PR – Mientras 62 empleados en dos centros de cuidados paliativos de Puerto Rico brindaban servicios esenciales para que los pacientes terminales y sus familias se sintieran cómodos, el Departamento de Trabajo de los Estados Unidos realizó una investigación y descubrió que las prácticas salariales de sus empleadores perjudicaban la capacidad de los empleados de cuidar de sí mismos y de sus familias.

Los investigadores de la División de Horas y Salarios del Departamento, descubrieron que Hospicio en el Hogar Fe, en Manatí, y Esperanza de P.R., en Mayagüez, (ambos del mismo dueño y que funcionan con el nombre Hospicio la Fe) clasificaban de forma incorrecta a los empleados como personal voluntario y les pagaban un estipendio de $3.75 o $5.00 por hora en concepto de gastos, como el combustible. Así, al pagar menos del salario mínimo federal ($7.25 por hora), el empleador incurrió en violaciones del salario mínimo.

La división también determinó que los centros de cuidados paliativos no pagaban a sus empleados las horas extras correspondientes, en caso de que trabajaran más de 40 horas en una semana de trabajo. Además, Hospicio la Fe no elaboró ni mantuvo registros precisos y completos de los salarios y horas de sus empleados. Estas acciones violaron la Ley de Normas Justas de Trabajo.

La investigación recuperó $54,673 en salarios atrasados para los 62 empleados.

"Con la pandemia, se demostró que los servicios que presta el personal de salud son esenciales para nuestras familias, nuestras comunidades y la economía. Los trabajadores se ponen en riego a sí mismos cuando prestan estos servicios", explicó el director distrital de la División de Horas y Salarios, José R. Vazquez-Fernandez, en Guaynabo, Puerto Rico. "Con una población estadounidense que envejece con rapidez y una demanda de personal de salud que crece al mismo ritmo, los empleadores que maltratan a los trabajadores o les niegan los derechos y beneficios que la ley les otorga no tendrán suficientes trabajadores para satisfacer la demanda".

En el año fiscal 2021, la división recuperó casi $14 millones para más de 17,000 trabajadores del sector sanitario en más de 1,100 investigaciones. La Oficina de Estadísticas de Trabajo prevé que en junio de 2022 había más de 1.9 millones de ofertas de empleo para trabajadores de la salud y asistencia social, ya que cerca de 728,000 trabajadores de este ámbito dejaron sus puestos, todo lo cual muestra un mercado laboral muy competitivo en estas áreas.

"Es posible que, en comparación con los que cumplen con ley, los empleadores que no respeten los derechos de los trabajadores tengan dificultades para retener y contratar a las personas que necesitan para su correcto funcionamiento", agregó Vazquez-Fernandez.

Hospicio la Fe brinda cuidados especiales a personas con enfermedades terminales en sus propios hogares y está certificado y pagado por Medicare para ofrecer servicios de cuidados paliativos.

Para recibir información sobre las leyes aplicadas por la División, comuníquese con la línea de ayuda gratuita de la agencia al 866-4US-WAGE (487-9243). Los trabajadores pueden llamar a la División de Horas y Salarios de forma anónima para hacer preguntas. El Departamento puede hablar con las personas que llaman en más de 200 idiomas.

Obtenga más información sobre la División de Horas y Salarios, incluida una herramienta de búsqueda que puede utilizar si cree que la División le debe salarios atrasados. Descargue la nueva Aplicación Timesheet de la agencia para dispositivos Android a fin de garantizar que las horas trabajadas y la remuneración sean exactas.

Read the release in English.

 

Agency
Wage and Hour Division
Date
August 15, 2022
Release Number
22-1565-NEW
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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US Department of Labor offers prevailing wage compliance seminars for federal contractors, contracting agencies, unions, workers

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US Department of Labor offers prevailing wage compliance seminars for federal contractors, contracting agencies, unions, workers

WASHINGTON The U.S. Department of Labor is offering online compliance seminars for contracting agencies, contractors, unions, workers and other stakeholders on the requirements governing payment of prevailing wages on federally funded construction and service contracts.

Presented by the department’s Wage and Hour Division, the seminars are part of the division’s ongoing effort to increase awareness and improve compliance with federal prevailing wage requirements.

The seminars will include video training on many Davis-Bacon and Related Acts and McNamara-O’Hara Service Contract Act topics that participants can view on demand. In addition to recorded videos, the division will offers live, online question and answer sessions on DBA and SCA compliance from 1:30 to 3:30 p.m. EDT.

The live Davis-Bacon Act compliance session is scheduled for Sept. 13 and the live session on Service Contract Act compliance is scheduled for Sept. 14.

“With the Biden-Harris administration’s unprecedented investments in the nation’s infrastructure, the Wage and Hour Division wants to ensure that employers understand the importance of compliance with the Davis-Bacon and Service Contract acts and other laws we enforce,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “Our efforts are intended to help create good jobs and support responsible employers by providing useful opportunities for contractors, workers and contracting agencies to understand the laws that govern wages and benefits on federal contracts better.” 

While seminar attendance is free, registration is required. Register to attend the Prevailing Wage seminar.

Additional information – including links to video trainings and dates for upcoming Q&A sessions, will be provided to registrants soon.

Learn more about the Wage and Hour Division.

Agency
Wage and Hour Division
Date
August 15, 2022
Release Number
22-1657-NAT
Media Contact: Edwin Nieves
Phone Number
Media Contact: Grant Vaught
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US Department of Labor recovers $113K in back wages, damages for 169 Florida heating, ventilation, air conditioning workers denied overtime

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US Department of Labor recovers $113K in back wages, damages for 169 Florida heating, ventilation, air conditioning workers denied overtime

Wage and Hour Division investigation finds wage violations at 11 HVAC businesses

ORLANDO, FL – Investigations by the U.S. Department of Labor of 11 central Florida heating, ventilation and air conditioning contractors have recovered more than $113,000 in back wages and liquidated damages for 169 workers whose employers’ illegal pay practices denied them their full wages.

The department’s Wage and Hour Division investigators identified a wide variety of violations of the Fair Labor Standards Act by the contractors that undercut their employees’ wages. Some failed to include bonuses and commissions in workers’ rates of pay when calculating overtime and, as a result, paid overtime at rates lower than those permitted by law for hours over 40 in a workweek.

Investigators found that other contractors failed to combine hours of work when employees performed different jobs for the same employer. For example, an employer paid workers by the hour for work on new construction and on a piece-rate basis for direct service to customers but did not combine the hours worked each week for the purpose of determining and paying overtime due. In another violation of overtime regulations, an employer awarded employees compensatory time off on an hour-for-hour basis for hours over 40 in a workweek, when the law requires these workers be paid a time-and-one-half rate.

In all of the investigations, the division cited employers for failing to keep accurate payroll records.

The 11 investigations included six entities owned by David Cox, Ryan Cox and Richard Allard, and operated as either One Hour Heating & Air Conditioning or Ben Franklin Plumbing. Other entities investigated include Air Source America Inc., owned by Jason M. Buehler and operated as Buehler Air Conditioning; Barineau Heating & Air Conditioning Inc., owned by Patrick Barineau and operated as Barineau Heating & Air Conditioning; Sun Kool Air Conditioning Supply LLC, owned by Frank Nicholson III and operated as Sun Kool Heating and Air; Swamp Heating and Air LLC, owned by Maria V. Radziminski and operated as Gator Heating and Air Conditioning; and Weather Engineering, owned by James Daniel Griffin and operated as A+ Air Conditioning & Refrigeration.

Entity

Location

Workers

Total Recovery

Air Source America Inc.

Jacksonville Beach

21

$31,509

Barineau Heating & Air Conditioning Inc.

Tallahassee

18

$27,212

ATM 241 LLC

Bradenton

29

$15,114

Sun Kool Air Conditioning Supply LLC

Ocala

44

$12,502

ATM 175 LLC

Daytona Beach

16

$9,399

Swamp Heating and Air LLC

Gainesville

10

$6,546

ATM P362 LLC

South Daytona Beach

13

$5,927

ATM 167 LLC

Atlantic Beach

5

$3,214

ATM 6 LLC

Melbourne

5

$1,241

ATM P214 LLC

Bradenton

5

$442

Weather Engineering

Gainesville

3

$433

“Employers who fail to pay their workers all of their rightfully earned wages make it more difficult for employees and their families to make ends meet,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “The violations found in these investigations of HVAC companies in central Florida could have been avoided. We encourage employers and employees with questions about compliance with federal wage laws to contact us for more information.”

Employment of heating, air conditioning and refrigeration mechanics and installers is projected to grow 5 percent by 2030, adding more than 38,000 HVAC jobs each year. 

“Employers who do not respect their workers’ rights will likely struggle to retain and recruit the people they need to remain competitive, as workers look for opportunities with employers that do,” De Jesús added.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour Division confidentially with questions and the department can speak with callers in more than 200 languages.

For information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Agency
Wage and Hour Division
Date
August 15, 2022
Release Number
22-1615-ATL
Media Contact: Eric R. Lucero
Phone Number
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Wing Stop franchisee illegally deducts uniform, training, background check costs; US Labor Department recovers $51K for 244 workers

News Release

Wing Stop franchisee illegally deducts uniform, training, background check costs; US Labor Department recovers $51K for 244 workers

Boss Wings Enterprises LLC also assessed $62K in civil money penalties

SOUTHAVEN, MS – The operator of five Wing Stop franchise locations in Mississippi who made employees pay for their uniforms, safety training, background checks and cash register shortages – and violated child labor regulations – has been held  accountable by the U.S. Department of Labor, and paid $114,427 in back wages, liquidated damages and civil penalties.

The department’s Wage and Hour Division investigation into the pay practices of Boss Wings Enterprises LLC in Southaven discovered several violations of the Fair Labor Standards Act, including the following:

  • Minimum wage violations when paycheck deductions for uniforms and cash register shortages caused some employees’ average hourly rates to fall below the $7.25 federal minimum wage.
  • Overtime violations when the employer’s deductions for safety training and background checks illegally decreased the rate-of-pay in weeks when workers earned overtime, and led Boss Wings to pay overtime at rates lower than federal law requires.
  • Recordkeeping violations for failing to maintain a record of employee hours worked and wage deductions.

The investigation led to the recovery of $51,674 in back wages and liquidated damages for 244 workers, and an assessment of $62,753 in civil money penalties.

“Restaurant industry employees work hard, often for low wages, and many depend on every dollar earned to make ends meet,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “The law prevents Boss Wing Enterprises LLC from shifting operating costs to workers by deducting the costs of uniforms, cash register shortages or training expenses, or to allow a worker’s pay to fall below the minimum wage rate.”

In addition to the wage violations, division investigators learned that Boss Wings allowed a 15-year-old employee to work past 10 p.m. several times in June 2021, a violation of FLSA child labor work hours standards. Standards prohibit 14- and 15-year-olds from working before 7 a.m., or after 7 p.m. from June 1, through Labor Day.

The investigation included the following Wing Stop locations operated by Boss Wings Enterprises LLC: 

  • Boss Wings XXX LLC, operating as Wing Stop #1590 in Clarksdale.
  • Boss Wings XXV LLC, operating as Wing Stop #753 in Tupelo.
  • Boss Wings XXVI LLC, operating as Wing Stop #777 in Starkville.
  • Boss Wings XII LLC, operating as Wing Stop in Olive Branch.
  • Boss Wings XXVII LLC, operating as Wing Stop #832 in Oxford.

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

“Employers who do not respect their workers’ rights will likely struggle to retain and recruit the people they need to remain competitive, as workers look for opportunities with employers that do,” Hall added.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour Division confidentially with questions and the department can speak with callers in more than 200 languages.

For information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Agency
Wage and Hour Division
Date
August 11, 2022
Release Number
22-1561-ATL
Media Contact: Eric R. Lucero
Phone Number
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Court requires Pittsburgh home care agency to pay $1.4M in back wages, damages, to 218 workers after federal investigation finds overtime violations

News Release

Court requires Pittsburgh home care agency to pay $1.4M in back wages, damages, to 218 workers after federal investigation finds overtime violations

Everest Home Care, owner attempted to hide wage theft; assessed $85K in penalties

PITTSBURGH – In return for providing essential homecare for people in need, 218 workers employed by a Pittsburgh-based home care agency expected their employer to pay them all their hard-earned wages. Instead, they found their employer denied them overtime wages, and manipulated records to hide the wage theft.     

Following an investigation by the U.S. Department of Labor’s Wage and Hour Division in Pittsburgh, and litigation by the Regional Solicitor’s Office in Philadelphia, the department has obtained a consent judgment requiring that Everest Home Care LLC and owner Bhuwan Acharya pay more than $1.4 million in back wages and liquidated damages to the affected employees.

Investigators with the department’s Wage and Hour Division determined the employer paid workers a straight-time hourly rate instead of one-and-one-half their required rate for hours over 40 in a workweek. They also found the agency attempted to mask the wage theft by representing straight-time pay as overtime when overtime wages were required. Everest Home Care also failed to include recruitment commissions and hourly coronavirus hazard pay in employees’ required rates of pay when calculating overtime. All of these actions violate the Fair Labor Standards Act.

“Home healthcare workers provide vital services to people in need and their families,” said Principal Deputy Wage and Hour Division Administrator Jessica Looman. “The U.S. Department of Labor is committed to enforcing worker protections and holding accountable employers who defy the law and deny workers the hard-earned wages on which they depend to care for themselves and their families.”

Entered in the U.S. District Court for the Western District of Pennsylvania on Aug. 5, 2022, the consent judgement requires Everest Home Care and Acharya to pay $719,962 in back wages and an equal amount in liquidated damages.

“Wage theft is an all-too-common concern in the healthcare industry, and we are determined to use our resources to hold employers who violate federal labor laws accountable to the fullest extent,” said Solicitor of Labor Seema Nanda. “By recovering wages and liquidated damages, when appropriate, for workers we send a clear message to employers in all industries that consequences can be costly for employers who flout the law.”  

In addition to back wages and damages, the division assessed $85,075 in civil money penalties given the willful nature of the employers’ FLSA violations.

In fiscal year 2021, the division recovered more than $13.8 million for more than 17,000 healthcare industry workers. The Bureau of Labor Statistics projects that there were more 1.9 million job openings in the healthcare and social assistance industry, and that more than 717,000 industry workers quit their jobs in May 2022 – all of which is forcing employers to compete hard to retain and recruit the people they need to operate.

“As the U.S. population ages rapidly, healthcare workers are in great demand and facing record burnout at the same time,” Looman added. “Healthcare industry employers who fail to respect workers’ rights are more likely to struggle than their competitors as they seek to attract and retain workers.”

Everest Home Care LLC provides personal assistance, home- and community-based services, and long-term living assistance. In addition to its Pittsburgh headquarters, the company operates a second location in Erie.

View the complaint and learn more about the consent judgment.

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 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, now available for android devices, to ensure hours and pay are accurate.

Agency
Wage and Hour Division
Date
August 9, 2022
Release Number
22-1569-NAT
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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US Department of Labor recovers $44K after investigation finds Idaho farms underpaid migrant farmworkers, provided substandard housing

News Brief

US Department of Labor recovers $44K after investigation finds Idaho farms underpaid migrant farmworkers, provided substandard housing

Employer:                                        Wooden Shoe Farms

 

Investigation site:                       673 North 825 West

                                                             Blackfoot, ID 83221

 

Investigation findings:                      U.S. Department of Labor Wage and Hour Division investigators found Wooden Shoe Farms underpaid migrant farm workers, and provided unsafe and unhealthy housing with insufficient smoke detectors, inadequate ventilation and a lack of first-aid kits. The employer also failed to pay workers for all inbound and outbound transportation costs from their home countries, did not keep records for 3 years and neglected to provide the work contract to all workers and pay the required rates of pay. These failures violated multiple requirements of the H-2A agricultural worker program. In addition, investigators learned that Wooden Shoe Farms allowed a 15-year-old to operate a tractor, a child labor violation.

 

Back Wages Recovered:                   $44,652 in back wages for 28 farmworkers

                                                           

Civil Money Penalties Assessed:      $19,895 in penalties

 

Quote: “Farmworkers provide essential labor that puts food on millions of American tables and the U.S. Department of Labor will protect their rights vigorously, regardless of their native homes,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “The denial of basic living conditions for these workers violates provisions of the H-2A agricultural worker program and we will hold employers like Wooden Shoe Farms accountable for violations like those found in this case.”

 

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.

 

Agency
Wage and Hour Division
Date
August 8, 2022
Release Number
22-1606-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor finds e-commerce warehouse operator owes more than $1M in back wages to 995 workers in Kentucky, California

News Release

US Department of Labor finds e-commerce warehouse operator owes more than $1M in back wages to 995 workers in Kentucky, California

Investigation discovers systemic pay practice violations by WIN.IT America Inc.

HEBRON, KY The initial discovery of illegal pay practices at a Hebron, Kentucky, warehouse by the U.S. Department of Labor led to a broader investigation that found systemic overtime violations by a California-based warehouse operator and e-commerce distributor, and a determination that the employer owes $1,025,909 in back wages to 995 warehouse workers in Kentucky and California.

Investigators with the department’s Wage and Hour Division found that WIN.IT America Inc. – the U.S. branch of WINIT Information Technology Co. in Hong Kong, an e-commerce supply chain solution provider – failed to include merit-based bonuses in employees’ regular rates of pay when calculating overtime rates. By doing so, the City of Industry, California-based employer paid overtime at rates lower than required under the Fair Labor Standards Act.

In addition, WIN.IT paid some workers straight-time rates for all hours worked, failing to pay the additional half-time rate for hours over 40 in a workweek. The employer also misapplied the overtime rules for some salaried employees, which denied them overtime wages when required.

“What began as an investigation of pay practices at a Hebron, Kentucky, warehouse became a wide-ranging review of a prominent e-commerce solutions provider that found systemic failures to ensure their workers’ rights to be paid all of their hard-earned wages,” explained Deputy Principal Wage and Hour Division Administrator Jessica Looman. “As the demand for warehouse workers and the popularity of online shopping grows, e-commerce employers must ensure they comply fully with federal protections of workers’ wages and benefits.”

The investigation included WIN.IT warehouse locations in Hebron and Walton, Kentucky; and Walnut and City of Industry, California.

“Workers will naturally flock to businesses that show an ability to pay them their full wages on time,” Looman added. “Employers who fail to meet their legal obligation to workers and make it harder for them to make ends meet may find themselves struggling to hire the people they need to operate.”

The Bureau of Labor Statistics projects employment in transportation and warehousing, excluding the postal service, to grow about 327,300 new jobs over the next decade.

Established in October 2013, WIN.IT America Inc. is a subsidiary of WINIT Information Technology Co. in Hong Kong.

Workers can call the Wage and Hour Division confidentially with questions and the department can speak with callers in more than 200 languages.

For information about the FLSA and other laws the division enforces, contact the agency at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, and its search tool if you think you are owed back wages the division has collected.

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

Agency
Wage and Hour Division
Date
August 8, 2022
Release Number
22-1554-NAT
Media Contact: Eric R. Lucero
Phone Number
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US Department of Labor, Esri agree to resolve alleged pay discrimination at California headquarters; company to pay $2.3M to 176 female workers

News Release

US Department of Labor, Esri agree to resolve alleged pay discrimination at California headquarters; company to pay $2.3M to 176 female workers

Evaluation found company paid female engineers less than male counterparts in 2017

SAN FRANCISCO – The U.S. Department of Labor has entered into a conciliation agreement with Esri-based in Redlands, California, to resolve preliminary findings of a federal compliance evaluation that allege the company paid 176 female employees less than their male counterparts in 2017.

The department’s Office of Federal Contract Compliance Programs alleged that from Jan. 1 through Dec. 31, 2017, Esri – a digital mapping and analytics company – systemically discriminated against 143 female software development engineers and 33 female quality assurance engineers at its Redlands headquarters.

Esri entered into an Early Resolution Agreement voluntarily to resolve the allegations, and agreed to pay $2.3 million in back wages and interest to the affected employees. The company will also review and revise its overall compensation system, provide enhanced training to its managers to ensure future compliance, and conduct annual compensation analyses.   

“Federal contractors must ensure that their compensation policies and practices provide equal pay and do not lead to discrimination based on gender,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang. “Federal contractors must conduct annual pay equity audits and take proactive efforts to assess compensation systems and remedy unjustified pay gaps.”

Executive Order 11246 prohibits federal contractors and federally assisted construction contractors and subcontractors from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin.

OFCCP launched the Class Member Locator to identify applicants or workers who may be entitled to monetary relief and/or consideration for job placement as a result of OFCCP’s compliance evaluations and complaint investigations. If you think you may be eligible for back pay from this settlement, or may know someone who is, please visit the OFCCP Class Member Locator to learn more about this and other settlements.

Learn more about OFCCP.

Agency
Office of Federal Contract Compliance Programs
Date
August 3, 2022
Release Number
22-277-NAT
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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US Department of Labor recovers more than $374K in back wages, damages for 62 workers after Cleveland construction contractor denies overtime

News Release

US Department of Labor recovers more than $374K in back wages, damages for 62 workers after Cleveland construction contractor denies overtime

Concept Construction also allowed 11-year-old child to operate dangerous equipment

CLEVELAND, TN – The U.S. Department of Labor has recovered $374,493 wages and liquidated damages for 62 construction workers employed by a Cleveland contractor that denied them overtime wages when required by federal law, and jeopardized the safety of an 11-year-old by employing them as a groundskeeper allowed to operate dangerous equipment.

The department’s Wage and Hour Division investigators found the pay practices of Tom Willumson LLC – operating as Concept Construction – violated the Fair Labor Standards Act as follows:

  • Failing to provide one worker their final paycheck, resulting in a minimum wage violation.
  • Incorrectly classifying some workers as independent contractors and paying them straight-time for all hours worked. By doing so, the employer did not pay the additional half-time rate for hours over 40 in a workweek, an overtime violation.
  • Paying some workers the federal minimum wage of $7.25 per hour, then providing them bonuses to make up the difference between the minimum wage and a previously agreed-upon rate of pay. This practice led to the employer’s failure to pay the required overtime rate to workers.

In addition to the wage violations, investigators learned Concept Construction employed an 11-year-old as a groundskeeper, who was allowed to operate a farm-style tractor and weed-eating equipment, as well as work more than 8 hours in a day, all in violation of FLSA child labor provisions. As a result of their investigation, the division assessed a $14,944 civil money penalty to the employer for the child labor violations.

“Construction industry workers are among those who too often suffer wage theft because their employers either misunderstand their legal obligations or intentionally shortchange them and undercut their competitors at the same time,” said Wage and Hour Division District Director Lisa Kelly in Nashville, Tennessee. “The U.S. Department of Labor is committed to holding these employers accountable for their actions – in error or by design – to ensure workers are paid all of their hard-earned wages and receive the benefits the law provides.”

In fiscal year 2021, the division recovered more than $36 million for more than 21,000 construction industry workers in more than 3,000 investigations. The Bureau of Labor Statistics projects there were more than 434,000 job openings for construction workers, and that about 220,000 industry workers quit their jobs in May 2022, all of which makes for a highly competitive job market. 

“The current job market has empowered workers and given them the ability to make choices about the employer for whom they work,” Kelly explained. “Employers who fail to respect workers’ rights are likely to find it increasingly difficult to retain and recruit the people they need to operate their businesses, and they may lose out to those who recognize and reward workers for their contributions.”

The 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, including fact sheets with information about requirements for hiring young workers.

Concept Construction’s decision to allow an 11-year-old child to operate a farm-style tractor and weed-eating equipment is hard to understand,” Kelly said. “Laws to prevent such actions exist to prevent life-changing injuries or worse from occurring and this employer has learned there are costly consequences to bear.”

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.

For information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the agency’s website to 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. Help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Read this news release En Español.

Agency
Wage and Hour Division
Date
August 3, 2022
Release Number
22-1560-ATL
Media Contact: Eric R. Lucero
Phone Number
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