Employer:                              Pest Eliminators Inc.

Investigation site:                  3314 Harbor Blvd., Unit B

Port Charlotte, FL 33952

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the employer failed to pay an overtime rate to non-exempt workers for hours over 40 in a workweek, a violation of the Fair Labor Standards Act. The division also found Pest Eliminators deducted time from workers’ hours for lunch breaks, even though some employees did not take the break. In addition, the employer failed to include commissions in the regular rate when factoring an overtime rate, resulting in Pest Eliminators paying overtime at rates lower than required by law.

Back Wages Recovered and Liquidated Damages: $175,587 in back wages and liquidated damages for 59 workers.                                          

Quote: “Many employers are under the misconception that salaried employees are not entitled to overtime pay. When companies like Pest Eliminators get it wrong, the outcome could become costly,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “Employers who fail to comply and continue to pay workers less than 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. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Learn more about Wage and Hour Division.

WASHINGTON – The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on July 15, 2022, to implement the requirements of Executive Order 14055, “Nondisplacement of Qualified Workers Under Service Contracts.” The proposal would benefit workers who perform work on service contracts by generally requiring that they receive an offer of employment from a successor contractor to a position for which they are qualified.

EO 14055 requires that contractors and subcontractors performing work on covered federal service contracts (i.e., most SCA-covered contracts over $250,000), must, in good faith, offer service employees employed under the predecessor contract a right of first refusal of employment on the successor contract. By doing so, the order seeks to prevent displacement of skilled workers in the federal services workforce. The proposed rule would establish standards and procedures for implementing and enforcing the nondisplacement protections under the order.

The department anticipates the proposed rule would if finalized provide economic benefits and enhanced efficiency in covered contracts by promoting the retention of experienced workers, thereby reducing the disruption in the delivery of services during the transfer of covered federal service contracts, maintaining physical and information security, and providing the federal government with an experienced and well-trained work force familiar with government personnel, facilities and requirements.

Specifically, the NPRM proposes to do the following:

• Establish standards and procedures for implementing and enforcing Executive Order 14055.
• Specify contracting agency and contractor obligations, respectively, under the Executive Order.
• Establish an investigation process that protects workers from displacement and is familiar to federal contractors.
• Identify sanctions and remedies that may be imposed by the department under the Executive Order.

“Executive Order 14055 and these proposed implementing regulations ensure efficient and effective continuity of services and enhanced security of personnel, facilities and information on federal service contracts,” said Acting Wage and Hour Division Administrator Jessica Looman. “The order also safeguards the rights and benefits afforded to workers employed under these federal service contracts and provides peace of mind and a measure of economic security to these workers and their families.”

Executive Order 14055 builds upon Executive Order 13495, originally signed by President Obama in 2009 but rescinded in 2019, which previously established a nondisplacement requirement for federal service contractors. The proposed rule implementing this Executive Order 14055 would establish a right of first refusal for service workers on an estimated 119,700 federal contracts, increasing job security and improving overall well-being for these workers.

Learn more about the NPRM announced today.

The Wage and Hour Division solicits comments on the proposed rule from interested parties and encourages all stakeholders to participate in the process. The comment period is July 15, 2022, through Aug. 15, 2022,  and comments may be submitted online or commenters may address written submissions to: Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210.

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 division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

LOS ANGELES – A recent federal investigation found the owner of seven Los Angeles residential care homes intentionally denied 22 workers more than $56,000 in overtime wages and then attempted to hide their actions by altering timekeeping records. The scheme proved to be a costly mistake.

U.S. Department of Labor Wage and Hour Division investigators found Home II U LLC – operated as Home 2 U and owned by Keith Cole – paid the affected workers straight-time rates for hours over 40 in a workweek, a violation of the Fair Labor Standards Act’s overtime rules. Investigators determined the employer was fully aware of federal overtime laws when they withheld overtime wages and illegally altered timekeeping records to cover up their actions.

“Healthcare workers routinely put themselves at risk to care for people who depend on them for life supporting care and assistance. These workers deserve to be paid all the wages they’ve earned,” said District Director Kimchi Bui in Los Angeles. “Home II U LLC made a conscious decision to deny these essential workers the overtime they earned and then attempted to cover-up their misdeeds. The outcome in this case should serve as an example of the costly consequences employers face when they shortchange their employees.”

As a result of the investigation, the division recovered $112,508 for the affected workers – $56,254 in back wages and an equal amount in liquidated damages – and assessed the employer $7,405 in civil money penalties for the willful nature of the violations.

The investigation includes the following Home 2 U locations in Los Angeles at 8724 LaSalle (its headquarters location), 8940 S. St. Andrews Place, 9140 S. Hobart Blvd., 10200 Manhattan Place, 1616 W. 110th Place, 7300 LaSalle Ave., and at 1645 W. 108th St.

In fiscal year 2021, the division recovered $13.8 million in back wages for more than 17,000 workers in the healthcare industry, known for both low wages and high rates of violations. As the U.S. population ages and demand for home healthcare services increases, employment in a variety of healthcare sectors is projected to grow 16 percent from 2020 to 2030 – faster than the average for all occupations – adding about 2.6 million new jobs.  

“As employers struggle to find the people they need to operate their businesses, those who ignore workers’ rights to full wages and benefits are likely to struggle to retain and recruit workers,” Bui explained. “Employers who abide by the law will certainly have the competitive advantage over those who do not.”

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.

WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division is asking the heavy construction industry in New Hampshire to participate in a survey to help the agency establish prevailing wage rates, as required under the Davis-Bacon and Related Acts.

The DBRA directs the department to set prevailing wage rates that reflect the actual wages and fringe benefits paid to construction workers in the county where the work takes place.

The survey includes heavy construction projects in all New Hampshire counties where construction occurred between Feb. 1, 2021, and March 31, 2022 and is not limited to federally funded construction projects. The data collection period will begin on July 8, 2022 and will conclude on Oct. 7, 2022. The department encourages all stakeholders to participate in the survey.

Full participation by contractors and interested parties is key to the establishment of accurate prevailing wages and the development of complete wage determinations. Accurate wages and complete determinations also reduce the need for contractors to request additional labor classifications.

The division will send notification letters and WD-10 data collection forms to interested parties and contractors known to the agency. Contractors and other interested parties do not need to receive a letter to participate in the survey. The survey can also be completed online. Learn more about the surveys. If you would like to participate, or have questions regarding the survey process and forms, please contact LaDonna Vick at vick.ladonna@dol.gov. To be included in the survey, please postmark all data submissions by Oct. 7, 2022.

The division will host briefing webinars to provide information on the survey process as well as instructions for completing WD-10 data collection forms. These events will be held online and there is no cost to attend. The webinars are currently scheduled for Aug. 2, 2022 and Aug. 4, 2022. Register to attend an upcoming briefing webinar. 

DENVER – To target one of the construction industry’s most dangerous hazards – falls from elevation – the U.S. Department of Labor’s Occupational Safety and Health Administration has launched a new initiative to conduct safety investigations on weekends in select counties in Colorado’s Front Range, Montana, and South Dakota.

Since 2017, OSHA has investigated 10 fatalities and numerous serious construction-related fall injuries in these areas. In 2021, the Bureau of Labor Statistics reported that falls from elevation led to 351 of the 1,008 deaths among construction worker.

Through the fall of 2022, OSHA area offices in Denver and Englewood; Billings, Montana; and Sioux Falls, South Dakota, will undertake the “Weekend Work” initiative to open workplace safety and health inspections on weekends in Arapahoe, Douglas, Jefferson, El Paso, Adams, Boulder, Broomfield, Denver, Larimer and Weld counties in Colorado; Yellowstone, Carbon and Stillwater counties in Montana; and Minnehaha, Lincoln, Brookings, Pennington and Union counties in South Dakota.

“OSHA’s Weekend Work initiative will identify and address construction-related fall hazards on weekends, when many employers typically do not monitor their job sites well,” said OSHA Regional Administrator Jennifer Rous in Denver. “Our proactive approach will identify hazardous worksites, ensure that workers are protected from needless injuries or worse, and help ensure employers provide a safe and healthful workplace.”

OSHA’s stop falls website offers safety information and video presentations in English and Spanish to teach workers about hazards and proper safety procedures. Learn how to protect workers from fall hazards in construction.

Learn more about OSHA.

HOUSTON – A federal investigation has recovered $166,435 in back wages for 106 workers of a Houston company that misclassified them as independent contractors, which deprived the workers of their full benefits and wages, including overtime.

The U.S. Department of Labor Wage and Hour Division investigators found Majestic Dealership Services Inc. –whose workers detail, valet and wash cars at area dealerships – misclassified their workers as independent contractors, and paid them straight time for all hours worked. By doing so, the employer failed to pay overtime for hours over 40 in a workweek. Investigators also determined the employer did not maintain accurate records as the Fair Labor Standards Act requires.

“Misclassification of workers as independent contractors is an all-too-common violation among employers in Houston and around the nation,” said Wage and Hour District Director Robin Mallett in Houston. “Employers who misclassify workers deny them their full wages, benefits and legal rights; avoid payments of payroll taxes which cheats all taxpayers; and gain an unfair and illegal competitive advantage over employers whose pay practices abide by the law.”

The Wage and Hour Division’s Acting Administrator Jessica Looman recently penned a blog on serious problems that worker misclassification creates for workers, employers and the nation’s economy.

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.

Lea este comunicado en español.

Employer:                                          Zapopan Mexican Food

Investigation site:                              14207 Palm Drive Suite 102

Desert Hot Springs, CA 92240

Investigation findings:                      U.S. Department of Labor Wage and Hour Division investigators found Zapopan Restaurants Inc. – operating as Zapopan Mexican Food – paid employees regular hourly rates instead of the overtime premium for hours over 40 in a workweek, as required. The employer also failed to keep accurate records, also a violation of the Fair Labor Standards Act.

Back Wages Recovered:                   $41,239 in overtime back wages for 11 employees

                                                            $41,239 in liquidated damages for 11 employees

Quote: “The U.S. Department of Labor is determined to protect workers’ rights to receive all their earnings as required by law, including overtime pay, and prevent employers from shortchanging their employees,” said Wage and Hour Division Assistant District Director Skarleth Kozlo in West Covina. “We encourage workers to download the Timesheet App, now also available for Android devices, to ensure hours and pay are accurate.”

Background: In fiscal year 2021, the Wage and Hour Division recovered more than $31.7 million in back wages for workers in the food service industry. The division also offers numerous online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements.

Employers and workers can call the division confidentially with questions regardless of their immigration status. The department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). 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.

Read this news brief in Spanish.

FORT WAYNE, IN – A U.S. Department of Labor investigation has found an Indiana provider of home healthcare services violated federal law when it failed to pay workers for time spent driving between clients’ homes, leading to the department’s recovery of $126,162 in back wages for 95 workers.

Investigators with the department’s Wage and Hour Division determined that the failure of SHAS Inc. – which operates as Sunshine Home Health Care – to record and pay for travel time resulted in minimum wage, overtime and recordkeeping violations of the Fair Labor Standards Act.

“All too often, we find healthcare industry employers with systemic violations ­­– like failing to pay for employee’s time traveling between jobs accurately ­– that deprive workers of all their hard-earned wages and benefits,” said Wage and Hour Division District Director Patricia Lewis in Indianapolis. “Healthcare workers provide skilled nursing and assistance with essential daily living tasks and enable thousands of Americans to remain in the comfort of their own homes.”

Investigators determined the Fort Wayne employer violated the FLSA by doing the following:

• Failing to pay workers for travel time between client’s home which led some workers to be paid less than minimum wage per hour worked.
• Applying overtime rules for salaried employees incorrectly, and denying workers overtime wages due.
• Not maintaining an accurate record of hours worked.

In April 2022, the Bureau of Labor Statistics reported that the 673,000 healthcare and social services workers left their positions and the field had more than 2 million openings. As the aging U.S. population grows and demand for home healthcare services increases, employment in a variety of healthcare sectors is projected to grow 16 percent from 2020 to 2030 – faster than the average for all occupations – adding about 2.6 million new jobs.

“As industry employers struggle to find people to fill the jobs needed to remain competitive, they must take into account that retaining and recruiting workers is more difficult when employers fail to respect workers’ rights and pay them their full wages,” Lewis added.

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.

NORFOLK, VA – The U.S. District Court for the Eastern District of Virginia has issued a preliminary injunction against a Chesapeake home healthcare provider to prevent the employer from obstructing a U.S. Department of Labor investigation, retaliating against employees who cooperate with investigators and  demanding kickbacks of back wages assessed by the department’s Wage and Hour Division.

The court’s action also requires Heavenly Hands Home Healthcare LLC to provide the department with payroll records – including time and attendance records from July 10, 2018 through the present – and provide notice to all employees regarding their rights under the Fair Labor Standards Act, including their right to speak to investigators without repercussion. In addition, the employer may not ask current or former employees whether they spoke to the department’s representatives.

“Workers must feel empowered to step forward to complain whenever employers deny them wages they have earned – the law prohibits retaliation or intimidation for speaking up,” said Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia.

The injunction is the latest move by the department following the Wage and Hour Division’s determination that Heavenly Hands Home Healthcare denied its workers overtime payments and failed to maintain appropriate records of hours worked from at least July 10, 2019, through July 7, 2021. In response, the employer agreed to pay $413,382 back wages and liquidated damages to at least 37 employees and comply with the FLSA.

Heavenly Hands then submitted timely proof of payment of back wages and liquidated damages owed, which the employees purportedly signed. Further investigation found the employer had falsified employees’ signatures on official forms attesting to receipt of payment, failed to pay their employees back wages and liquidated damages, and forged payroll records to show proofs of payment. Investigators also learned the employer threatened employees and engaged in a campaign to dissuade them from speaking with the department’s representatives.

On June 1, 2022, the department initiated an enforcement action in federal court against Heavenly Hands and Lauren Wilson, its sole owner and operator. In its filing, the department asked the court to enforce the workers’ rights under the FLSA and to recover wages owed as a result of the employer’s failure to pay the wages owed to the workers properly. A motion for a temporary restraining order and preliminary injunction was also filed to prohibit retaliation against current and former employees.

View the complaint and temporary restraining order.

“This enforcement action should serve as a reminder to employers who disregard the law by shirking their obligations to pay employees their proper wages. Retaliation and intimidation against workers are wrong and they are unlawful,” said Regional Solicitor Oscar L. Hampton III in Philadelphia. “An employer cannot terminate or discriminate against an employee because they exercised their right to file a complaint, institute a proceeding under the Fair Labor Standards Act, or testify or agree to testify in any such proceeding against their employer. We will prosecute these cases to the full extent of the law.”

If you have any information regarding Heavenly Hands Home Healthcare LLC or are a former or current employee of the company, please contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243) or the Wage and Hour Division’s Richmond District Office at 804-771-2995. 

Learn more about the Wage and Hour Division here, 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 for android devices to ensure hours and pay are accurate.      

# # #

Walsh v. Heavenly Hands Home Healthcare, LLC, and Lauren Wilson

Civil Action No. 2:22-cv-00237-AWA-LRLVAED

INDIANAPOLIS – Overtime wages owed to 215 security professionals who patrol Indianapolis International Airport’s grounds, guard local businesses, and provide round-the-clock traffic control in the area were paid following an investigation and litigation by the U.S. Department of Labor.

As required by a June 7, 2022 consent judgment entered in the U.S. District Court for the Southern District of Indiana,  Protection Plus Inc. and employer Raymond Stanley paid $185,459 in wages and an equal amount in liquidated damages to the Department of Labor for distribution to the workers. The employer  also paid a civil money penalty of $69,540 for knowingly violating federal wage laws. Similar violations by the Indianapolis company were found in 2018.

The court’s action follows the department’s complaint filed on May 11, 2022.

An investigation by the department’s Wage and Hour Division found that Protection Plus did not pay any overtime premium to some employees for hours over 40 in a workweek. When the firm did pay overtime, they failed to accurately compute overtime due when employees received two or more rates of pay for different jobs performed in the same work week. Protection Plus also failed to maintain accurate payroll records. Their actions violated the Fair Labor Standards Act.

In 2018, the company paid 158 workers $98,949 in overtime back wages and liquidated damages to 158 employees. They also paid $25,000 in civil money penalty for the willful nature of their violations.

“The company did not change their pay practices after our 2018 investigation and did not pay employees the wages they were due,” explained Wage and Hour District Director Patricia Lewis in Indianapolis. “Employers must understand these failures hurt workers and their families by denying them the wages they count on to meet their needs. These illegal practices may damage their ability to retain and recruit the workers required for their operations.”

In fiscal year 2021, the division recovered more than $6 million in back wages for more than 5,300 workers in the guard services industry, ranked among the division’s top 15 low-wage, high violation industries.

“The Wage and Hour Division will continue to hold employers accountable and take appropriate action, including litigation, on behalf of workers when their employer denies them the wages they have rightfully earned,” Lewis added.

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. Protection Plus Inc. and Raymond Stanley,

Case 1:22-cv-00919-JMS-MJD

United States District Court Southern District of Indiana, Indianapolis Division