Employer name:                    Maw’s CPS SA LLC

                                                         (Operating as Charley’s Philly Steaks)

Investigation site:                  4001 Sunset Blvd.

                                                          San Angelo, TX 76904

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found Maw’s CPS SA LLC – operating as Charley’s Philly Steaks in San Angelo, Texas – did not pay overtime to three employees, in violation of the Fair Labor Standards Act. The employer instructed the workers to clock out after the regular closing time, but made them stay to continue working. Charley’s Philly Steaks also violated child labor standards by allowing five minors to work more than the number of hours, and past specific times federal law allows. Investigators also found the employer in violation of child labor prohibited occupations when it regularly allowed one minor to use a deep fryer.

Back wages recovered:         $3,184 in overtime back wages

                                                           $3,184 in liquidated damages

                                                           $3,786 in assessed civil money penalties                                                                                             

Quote: “This young workforce is providing high demand services to all of us. The federal child labor laws were enacted to ensure that when young people work, the work is safe and does not jeopardize their health, well-being or educational opportunities,” said Wage and Hour District Director Nicole Sellers in Austin. “Violating a worker’s right to get paid what they earned and putting minors in danger is not only illegal, it leaves a negative impression of the workforce on our youth in our community. This is most critical in a period when employers struggle to find a much-needed workforce.”

Editor’s note: The earlier release identified the employer’s business in Austin when, in fact, it is located in San Angelo. In addition, the word “young” was removed from the headline as the underpaid workers were adults.

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

Not limited to federally funded construction projects, the survey includes active building construction projects in all metropolitan counties in Maine between March 1, 2021 and April 30, 2022.

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 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. To be included, please postmark all data submissions by Oct. 14, 2022. 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.

The division will host briefings 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. They are currently scheduled for July 12 and July 14, 2022. Register to attend an upcoming briefing. 

MANCHESTER, NH – The U.S. Department of Labor’s Wage and Hour Division has recovered $123,750 in back wages and liquidated damages for 40 workers of a Hampton Beach clothing retailer after finding the employer paid some employees cash off the books and paid straight time for overtime for hours over 40 in a workweek.

Investigators found that the employer, The Shirt Factory of Hampton Beach LLC – which operates as The Shirt Factory – also failed to pay one worker wages for nearly a month.

The division determined the employer also did not keep accurate payroll and time records for employees paid in cash. The violations of the overtime, minimum wage and recordkeeping requirements of the Fair Labor Standards Act affected low-wage retail workers at five Hampton Beach locations.

The investigation into The Shirt Factory’s illegal pay practices recovered $59,247 in overtime back wages and $2,628 in minimum wage back wages, plus equal amounts in liquidated damages. The division assessed a $18,510 civil money penalty due to the violations’ willful nature.

“All too often, the U.S. Department of Labor finds overtime violations like these in resort areas. These violations affect hard-working, seasonal and low wage workers. These workers can least afford the loss,” said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. “As summer begins, we encourage seasonal business establishments, such as retail clothing sellers, restaurants and hotels to contact the Wage and Hour Division to ensure they understand their obligations under the Fair Labor Standards Act.”

The Shirt Factory operates as one enterprise out of five addresses at Hampton Beach under two LLCs. The investigation includes the following businesses: The Shirt Factory of Hampton Beach LLC; doing business as The Shirt Factory, Impressions Beachwear, Extreme Beachwear; and Mohab’s Decalomania LLC, doing business as Maggie’s Beachwear and Fashion City.

Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

For more information about the FLSA or 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 and a search tool to use if you think you may be owed back wages collected by the division.

MORTON, MS – Work in a poultry processing plant is hard: the hours are often long and the jobs expose workers to serious safety and health hazards. In return for subjecting themselves to high noise levels, dangerous equipment, slippery floors, hazardous chemicals and biological dangers, and the common risks of musculoskeletal disorders, a Mississippi worker’s mean annual wage is less than $30,000.

Employers at two Morton processing plants made the jobs of 313 workers that much harder by denying them minimum wage and overtime pay, a U.S. Department of Labor investigation has found.

Investigators with the department’s Wage and Hour Division have determined that A & B Foods and PH Food failed to comply with the Fair Labor Standards Act when the employers:

• Made illegal deductions that reduced employees’ average hourly pay below the federal minimum wage.
• Failed to pay the correct overtime rate to some workers for hours over 40 in workweek. The employer calculated the overtime rate based on an incorrect average hourly rate because of illegal deductions.
• Paid some workers a straight-time rate for overtime hours worked.
• Did not include bonuses into the rate of pay when calculating overtime rates.
• Instructed some workers to refrain from clocking in, leading to unpaid hours.
• Failed to maintain records of workers’ hours worked.

As a result of the investigations, the division has recovered $285,848 in back wages for 313 workers.

“Families across the country depend on food industry workers to put meals on their tables, and these workers deserve to be paid all of their rightful wages,” said Wage and Hour Division District Office Director Audrey Hall in Jackson, Mississippi. “Unfortunately, the people affected by the violations in this case work in an industry where wages are low and violations are all too common. The U.S. Department of Labor is committed to protecting their rights and ensuring that they receive all of the hard-earned wages they rely on to make ends meet.”

On May 9, 2022, following the investigations, division representatives met with workers from the two poultry processing plants to present them with their back wages owed. A majority of the affected workers have been notified, but the division is still trying to find more than 40 workers who the division has found are owed wages. Workers can use a search tool if they think they may be owed back wages collected by the division, or call the division confidentially at 866-4US-WAGE (487-9243).

In addition, the U.S. Department of Labor maintains the “Employment, Education and Outreach” hotline to aid Spanish-speaking employees and employers regarding workplace rights and responsibilities. The EMPLEO alliance is a collaboration of community and nongovernmental organizations, including state, local, and federal agencies and Hispanic consulates. Workers and employers can reach EMPLEO by calling (877) 522-9832 or (877) 55-AYUDA.

Learn more about Wage and Hour Division.

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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 $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

HONOLULU – A federal investigation has recovered $117,710 in back wages and liquidated damages for 70 workers of a restaurant group in Hawaii that required servers to share their tips with managers, after the employer reduced managers’ salaries by at least 25 percent. The restaurant operators attempted to make up for the reduction in managers’ salaries by drawing from tipped workers’ wages, in violation of the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division found that D.K. Restaurant Group – operator of  Sansei Seafood Restaurants and Sushi Bars in Kapalua, Kihei and Waikoloa; and D.K. Steak House in Honolulu – reduced the managers’ salaries when it reopened the restaurants after a temporary closure forced by the pandemic.

In addition to $58,855 in back wages plus an equal amount in damages, the department assessed D.K. Restaurant Group $8,580 in penalties for the willful nature of its violations.

“Customers tips to restaurant staff for good service are the private property of those workers in the tip pool, such as servers, bartenders and other front-line workers. Any attempt by management to misuse a portion of these tips violates tipped workers’ wage rights,” explained Wage and Hour Division District Director Terence Trotter in Honolulu. “The U.S. Department of Labor is determined to protect workers’ right to keep all their earnings and prevent employers from gaining a competitive advantage by reducing their labor costs.”

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 Bureau of Labor Statistics projects there were more than 1.3 million job openings in the accommodations and food service industry in April 2022, and reports that overall employment of food and beverage serving, and related workers is projected to grow 17 percent from 2020 to 2030, much faster than the average for all occupations.

“As restaurant operators struggle to find sufficient staff to do the work needed to operate their businesses, employers who deny workers their full wages and other legal rights are likely to have difficulty retaining and recruiting workers,” Trotter added.

Employers and workers can call the division confidentially with questions regardless of their immigration status. Download the agency’s new Timesheet App for Android devices to ensure hours and pay are accurate. 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.

BIRMINGHAM, AL – The U.S. Department of Labor recovered $62,568 in back wages and liquidated damages for 22 current and former cashiers of two Alabama gas stations whose operator denied them their full wages by paying them overtime at rates lower than the law requires.

Investigators with the department’s Wage and Hour Division found that Kwik Shop Stores Inc. failed to compute correct overtime rates and pay full overtime wages due at its locations in Wetumpka and Montgomery. The employer did not include bonuses paid in the calculation of the overtime rates of pay. By doing so, the Kwik Stop Stores underpaid employees. The employer also failed to accurately record employee’s hours of work. These practices resulted in violations of the Fair Labor Standards Act.

In addition to the recovery of back wages and damages, the division assessed Kwik Stop $8,228 in civil money penalties for the nature of the violations.

“Business owners who deny their workers their full wages make it harder for these workers and their families to make ends meet,” said Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama. “With job openings remaining at near record levels across the nation, employers are working harder to retain and recruit workers they need to help their businesses succeed. Those who fulfill their obligation and honor workers’ rights to full wages and benefits will have an advantage over employers who fail to do so.”

In fiscal year 2021, the Bureau of Labor Statistics estimates that the median hourly wage for cashiers in the gasoline industry – one that usually requires employees to work weekends, holidays and overnight shifts – was only $11.24 an hour.  

BLS also projects more than 1.1 million job openings in the retail trade industry, creating an even more competitive labor market.

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.

Workers can call the Wage and Hour Division confidentially with questions or concerns – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

CENTER, TX – A federal investigation recovered $247,334 in back wages and liquidated damages for 15 workers of a Texas oil pipeline construction company whose pay practices denied them their full wages, including overtime. The workers were employed at the company’s Louisiana, Oklahoma and Texas job sites.

The U.S. Department of Labor’s Wage and Hour Division found J&J Raymond Construction LLC paid employees a set day rate and did not pay overtime for hours over 40 in a workweek. Investigators also determined the employer failed to include non-discretionary bonuses when computing the regular rate of pay  and did not maintain accurate records as the Fair Labor Standards Act requires.

The division’s findings led to the recovery of $123,667 in back wages and an equal amount in liquidated damages to the affected workers.

“Paying an employee a day rate does not mean the employer is no longer legally obligated to pay overtime wages,” explained Wage and Hour Division District Director Robin Mallett in Houston. “Regardless of whether workers are paid by the hour, the piece, the day or on a salary basis, overtime rules still apply. Violations like those found in this case are avoidable. Employers and workers are encouraged to contact the Wage and Hour Division to understand legal rights and responsibilities.”

In fiscal year 2021, the division identified more than $36 million in back wages owed to about 21,000 construction industry 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.

With the Bureau of Labor Statistics projecting construction industry employment to grow at a rate of 6 percent by 2030, with a gain of approximately 400,000 jobs, employers who ensure their workers are paid their rightful wages and benefits will be better positioned to retain and recruit skilled workers.

Based in Center, J&J Raymond Construction LLC specializes in oil pipeline construction and has job sites in Louisiana, Oklahoma and Texas.

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 department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243).

Lea en Español.

PITTSBURGH – A Pittsburgh restaurant and distillery used its tip pool improperly – requiring servers to share tips with managers and supervisors– in violation of the Fair Labor Standards Act, a federal investigation has found.

The U.S. Department of Labor’s Wage and Hour Division determined that Pittsburgh Distilling Co., doing business as Wigle Whiskey, violated FLSA rules that prevent managers from retaining tips received by tipped workers. The employer also shortchanged tipped employees of the overtime wages they were legally due. Investigators found Wigle Whiskey calculated the tipped employee overtime rate based on their cash wage of $4 per hour instead of the federal minimum wage of $7.25 per hour, as federal law requires. The employer also underpaid managers for overtime hours when they failed to include wages received by managers from the improper tip pool in overtime calculations. These practices violated the FLSA’s overtime regulations.

The investigation led to the division’s recovery of $38,951 for 41 workers.

“Food service workers rely on their hard-earned tips to make ends meet. Restaurant employers must understand that keeping workers’ tips or diverting a portion of these tips to managers or supervisors in a tip pool is illegal,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “As restaurants struggle to fill the positions they need to keep their doors open, those who deny workers their rightful wages are likely to find it more difficult to retain and recruit workers than those employers who abide by the law.”

The FLSA allows employers to pay tipped workers as little as $2.13 per hour in direct wages, while taking a credit against the tips earned by the employee to make up remainder of the federal minimum wage of $7.25 per hour. The employer must notify tipped employees of any required tip pool contribution amount, and the FLSA prohibits employers, managers and supervisors from participating in the tip pool and keeping any portion of workers’ tips. An employer may only take a tip credit for the amount of tips actually received by each tipped employee.

In fiscal year 2021, the Wage and Hour Division conducted more than 4,200 investigations of food services establishments, recovering more than $34 million in back wages for more than 29,000 workers nationwide. The division offers a compliance assistance toolkit for restaurant employers.

The Bureau of Labor Statistics projects that there were more than 1.3 million job openings in the accommodation and food services industry and that 740,000 industry workers quit their jobs in April 2022.

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

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. 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).

Employer name:                    Valley Veterinary Associates, 647 State Highway 7, Unadilla, New York 13849

Investigation findings:          The U.S. Department of Labor’s Wage and Hour Division found the employer “banked” hours worked over 40 in a workweek by employees instead of paying them at time-and-a-half their regular pay rate, then paid them for these hours at straight time in non-overtime workweeks. The company also failed to keep accurate records of hours worked and rates of compensation for overtime work weeks, all of which violated the Fair Labor Standards Act’s overtime and recordkeeping requirements.

Back Wages Paid:                 $90,869.96: $45,434.98 in back wages plus an equal amount in liquidated damages to 39 employees.

Quote:                                     “Employers are responsible for paying all employees correctly for all the hours they work; failure to do so deprives workers of their hard-earned wages. The U.S. Department of Labor provides numerous tools to help employers comply with the law, and we encourage employers and employees alike to contact us for assistance,” said Wage and Hour Division Assistant District Director John Steves in Syracuse, New York.

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.

Learn more about Wage and Hour Division.