MIAMI – A Miami electrical and engineer contractor shortchanged eight workers by denying them a portion of their wages and benefits while they worked on a federally funded project at the Everglades National Park Flamingo Visitor Center in Homestead, a U.S. Department of Labor investigation found.

Following a review of company pay records, investigators with the department’s Wage and Hour Division found WDR Technology Corp. paid most of their employees as ironworkers, a practice that denied workers a higher rate of pay per hour, and health and welfare benefits required for electrical work. The subcontractor’s failures violated the Davis-Bacon and Related Acts, which governs pay practices of construction contractors and subcontractors working on federally funded or assisted contracts.

Division investigators also found that WDR’s certified payrolls showed wages issued on a weekly basis. In reality, investigators determined the employer paid workers bi-weekly, in violation of the DBRA. WDR also failed to maintain a record of the regular hourly rate of pay for any workweek, a Fair Labor Standards Act violations.

The division recovered $37,411 in back wages for eight workers.

“The Davis-Bacon and Related Acts govern wages on contracts paid with taxpayer dollars,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Federal contractors and subcontractors must pay workers employed on federally funded worksites wages and fringe benefits they legally earned for the work performed.”

Lunacon Engineering Group Corp. subcontracted WDR Technology Corp. to perform electrical work.

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. The division also offers numerous online resources for employers, such as a fact sheet on the Davis-Bacon and Related Acts.  Employers and workers can get their questions answered by contacting the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. 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.

PHOENIX – A federal investigation has recovered $348,380 in back wages and liquidated damages for 144 underpaid workers of an Arizona construction employer who failed to pay their overtime wages.

The U.S. Department of Labor’s Wage and Hour Division determined that VW Dig LLC – operating as VW Connect – automatically deducted 30-minute meal break periods every day even when employees worked through these periods, a violation of the Fair Labor Standards Act. The employer also failed to pay all hours worked due to improper recordkeeping that resulted in work hours often missing from payroll.

The investigation found the employer owed workers $174,190 in overtime wages earned for hours worked over 40 in a workweek. In addition to back wages and an equal amount of damages, the department assessed VW Connect with $47,926 in penalties for the willful nature of the violations.

“Manipulating timesheets to avoid paying a worker’s full earnings illegally denies them the wages on which they depend to care for themselves and their families. It also deprives them the dignity they are due,” said Wage and Hour Division District Director Eric Murray in Phoenix. “The outcome of this investigation shows that employers who violate the law can face costly consequences in the form of damages and penalties.”

In fiscal year 2021, the Wage and Hour Division recovered more than $36 million in wages owed to more than 21,000 construction industry workers. The Bureau of Labor Statistics projects more than 220,000 industry workers quit their jobs in April 2022 – the third highest number since 2012 – and 449,000 job openings in the industry, all of which makes for a job market in which employers must compete for workers.

“Employer who don’t pay workers all of the wages they’ve earned are likely to find it increasingly difficult to retain and recruit the people they need,” Murray explained. “Companies that comply with the law by paying full wages and benefits – and treating workers with the dignity and respect they deserve – will have a competitive advantage over those who cheat workers.”

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.

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BIRMINGHAM, AL – The U.S. Department of Labor recovered $31,757 for 93 workers of two Alabama senior residential facilities after its investigations found the employers denied the workers overtime wages.

At Alabaster Operating Group LLC – operating as Ahava Healthcare of Alabaster – investigators with the department’s Wage and Hour Division determined that the employer paid bonuses to some workers, reported them as wages, and did not include the bonuses in the workers’ rate of pay rate when calculating overtime pay. By doing so, Ahava miscalculated the required overtime rate and failed to pay the full overtime due to employees for hours over 40 hours in a workweek, in violation of the Fair Labor Standards Act.

In Anniston, investigators found McClellan Senior Living incorrectly assumed an activities director, who was paid on a salary basis, was not entitled to overtime pay. As a result, the employer failed to pay overtime due when the employee worked over 40 hours in a workweek. Investigators also determined the employer asked the activities director to alter pay record hours to substitute hours worked for early dismissal, a recordkeeping violation.

“Employers who fail to pay workers their rightful wages make it more difficult for their workers to provide for themselves and their families,” said Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama. “Employers have been reminded that the U.S. Department of Labor will hold them accountable for failures to comply with federal laws which can have costly consequences.”

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.

CANTON, GA – A Canton tire retailer and auto shop shortchanged 19 workers by withholding first paychecks and paying overtime at rates lower than required, a U.S. Department of Labor investigation has determined.

Investigators with the department’s Wage and Hour Division found that Cherokee Tire Service LLC kept some workers’ first weekly paychecks as a uniform deposit, which led to violations of the Fair Labor Standards Act. The employer also failed to pay some non-exempt salaried workers time-and-one-half of their regular rate for overtime when they worked more than 40 hours in the workweek.

Cherokee Tire also did not add certain bonuses into workers’ hourly rates as required when calculating overtime rates. By doing so, the employer paid overtime at rates lower than the law requires. In addition, the division also found the employer failed to keep accurate records of work hours and overtime premiums paid.

The division recovered $161,983 in back wages and liquidated damages for the affected workers. The division conducted the investigation as part of the Southeast region’s auto care initiative. Earlier this year, another tire company with locations in Georgia and South Carolina paid more than $79,000 to 72 workers as a result of overtime violations found by agency investigators.

“When business owners fail to pay full wages for the work their employees do, these workers and their families must work harder to make ends meet,” said Wage and Hour Division District Director Steven Salazar in Atlanta. “Employers who fail to meet their obligations to workers may find it difficult to retain and recruit the employees they need to make their businesses successful.”

In fiscal year 2021, the division recovered more than $4.3 million for more than 3,500 U.S. auto repair industry workers. Notably, the Bureau of Labor Statistics estimates that more than 1.9 million workers in the South quit their current jobs in March 2022, the highest of its four regions. A compliance assistance toolkit is available for the Auto Repair and Maintenance industry.

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 or concerns – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

Read this news release En Español. 

DETROIT – A federal judge has found Independent Home Care of Michigan LLC and its owners Mary Clark and Kathryn Flick liable to pay 23 home healthcare workers a total of $93,331 – representing $46,665 in back wages and an equal amount in liquidated damages– after the company failed to pay companion workers overtime wages.

Judge Victoria A. Roberts of the U.S. District Court for the Eastern District, Southern Division of Michigan issued her findings against the employers on May 17, 2022, following a two-day bench trial on May 9 and 10.

Independent Home Care of Michigan challenged the findings of a U.S. Department of Labor Wage and Hour Division investigation that found the company in violation of the Home Health Care Final Rule of 2013 that requires staffing agencies to pay overtime to companion services workers when they work in excess of 40 hours in a work-week. The Home Health Care Final Rule went into effect on Jan. 1, 2015. The employers failed to pay overtime wages from Jan. 23, 2018 through June 1, 2019. Investigators also found the Fenton, Michigan, company failed to keep accurate records of hours worked and rates of pay for work performed – violations of the Fair Labor Standards Act.

Independent Home Health Care argued against liquidated damages claiming ignorance of the change in the law and reliance on advice given by the department on the old law in 1999 and on a community agency who contracted the services of Independent Home Care. To avoid paying liquidated damages, the court stated that the employers had to make “ongoing and continuing efforts” to keep informed of “ever-changing laws.”  The company failed to meet its substantial burden of establishing it took active and affirmative steps to comply with the law.  

“The Home Health Care Final Rule made significant changes that recognize the critical tasks and long hours performed by home healthcare providers and required employers to begin compensating workers for overtime in January 2015,” said Wage and Hour Regional Administrator Michael Lazzeri in Chicago. “Complying with changes in this highly publicized law is the responsibility of employers in the healthcare industry.”

Clark, a nurse, founded the company in July 2000 and her daughter, Flick, became the company’s co-owner, a year later. Independent Home Care of Michigan provides companionship services to individuals with mental, intellectual and developmental disabilities. The company contracts for community living support and respite services with Genesee Health System of Genesee County – known as GHS. GHS receives more than 93 percent of its funding through Medicare and the balance through state resources and private donations.

“The U.S. Department of Labor is determined to ensure employers comply with the law and will take all necessary actions to hold them responsible,” added Regional Solicitor of Labor Christine Heri in Chicago. “The department is often the only advocate for workers denied their rightful wages and we are committed to being their voice.”

From 2019 to 2021, Wage and Hour Division investigations recovered more than $747,926 for Michigan healthcare workers as a result of violations of worker protections under the Fair Labor Standards Act.

In March 2022, the Bureau of Labor Statistics reported that the 682,000 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.

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.

Walsh. vs. Independent Home Care of Michigan LLC, Mary Clark, Kathryn Flick

Case No. 2:20-cv-10170-VAR-EAS

OKLAHOMA CITY – A recent U.S. Department of Labor investigation found a Shawnee, Oklahoma, gas station and convenience store made illegal deductions from workers’ pay for uniforms and cash register shortages that brought wages below the federally required minimum wage.

The department’s Wage and Hour Division found Modern Oil Co. – operating as Sparky’s Kwick Stop Stores – which required workers to pay for smocks, uniforms and cash register shortages – made deductions from employees’ pay for these items that reduced employee’s hourly rate of pay below $7.25 per hour, leading to Fair Labor Standards Act violations. The department recovered $166,073 for 732 workers.

“While the law permits employers to make certain deductions from pay, such as for uniforms, shortages or breakage, these deductions from pay must not reduce an employee’s wage rate to below the federally mandated minimum wage of $7.25 per hour,” said Wage and Hour District Director Michael Speer in Oklahoma City. Low wage workers depend on every cent earned to make ends meet, and the law requires that they receive at least the federal minimum wage for every hour of work.”

Sparky’s Kwick Stop Stores signed an enhanced compliance agreement committing the employer to provide training, maintaining accurate records and ensuring only permissible deductions are made.

By law, if an employer requires the worker to bear the cost of uniforms, their rate of pay must not fall below the minimum wage or impact overtime compensation owed. 

In fiscal year 2021, the division identified more than $13.4 million in back wages owed to 14,734 retail industry workers. In its investigations, the division commonly finds violations related to the failure to pay minimum wage and overtime when required, illegal deductions, and failure to pay for time spent on work-related travel, or pre- and post-shift work. Investigations in fiscal year 2021 found, on average, nearly $1,212 for each employee due back wages. For retail cashiers, that is more than three times their earnings in a typical workweek. Learn more about back wages found for low-wage workers

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.

MANCHESTER, NH – Un tribunal federal emitió una orden de consentimiento contra la empresa de jardinería y paisajismo en Salem que opera en el sur de New Hampshire y noreste de Massachusetts. La orden requiere que el empleador page un total de $283,020 - $141,510, en sueldos atrasados y una cantidad igual en daños y perjuicios – a 19 trabajadores para resolver las violaciones de los requisitos del sobretiempo de La Ley de Normas Justas de Trabajo (FLSA-siglas en inglés)

Los investigadores de la División de Horas y Salarios del Departamento de Trabajo de los EE.UU. descubrieron que Belko Landscaping LLC, no pagó el sobretiempo por las horas trabajadas después de 40 en una semana laboral a algunos empleados. En cambio, el empleador pago a los trabajadores tarifas de tiempo regulares por las horas trabajadas de sobretiempo. Belko tampoco registró con precisión las horas de trabajo de algunos trabajadores.  

Belko Landscaping LLC y su presidente, John Belko, también pagaron $14,231 en multas monetarias civiles debido a la naturaleza deliberada de las violaciones.

“Pagar tarifas regulares por el sobretiempo trabajado es quitarles a los trabajadores los salarios que tanto les costó ganar y que necesitan para pagar sus obligaciones mensuales; además de que están violando La Ley de Normas Justas de Trabajo” dijo el Director del Distrito de la División de Horas y Salarios Steven McKinney en Manchester, New Hampshire. “Desafortunadamente, este tipo de violaciones son comunes en la industria de servicios de paisajismo y jardinería.  Animamos a los empleadores a que se comuniquen con la División de Horas y Salarios para preguntar acerca de sus responsabilidades, y a los trabajadores a que se comuniquen con la agencia si tienen preguntas sobre sus derechos.”

“Como demuestra este caso, el costo de violar la ley puede ser alto para los empleadores que deliberadamente niegan a los trabajadores los sueldos que han ganado. En casos como este, el departamento buscará responsabilizar a los empleadores para que paguen a sus trabajadores los salarios que le deben y también una cantidad igual por indemnización en daños y perjuicios, porque los empleados no han hecho uso de sus salarios duramente ganados por un período de tiempo,” dijo la Procuradora Regional del Trabajo, Maia Fisher en Boston.

En su sentencia por consentimiento, el tribunal de Distrito de los Estados Unidos para el Distrito de New Hampshire exige el pago de los salarios y daños, y prohíbe a la empresa y a su propietario futuras violaciones de los requisitos sobre el salario mínimo, el pago de sobretiempo, mantenimiento de registros y leyes contra represalias de la FLSA.  También les exige que proporcione a los empleados actuales y futuros información sobre los requisitos de sobretiempo de la FLSA en Inglés y en Español.  

Vea la denuncia y sentencia de consentimiento.

En el año fiscal 2021, más de 280 investigaciones de la División de Horas y Salarios recuperaron $1.2 millones para más de 1,000 trabajadores en la industria de servicios de jardinería y paisajismo.   

La Oficina del Distrito del Norte de New England de la División en Manchester llevó a cabo la investigación. La Oficina Regional del Procurador del Departamento en Boston presentó la denuncia y sentencia de consentimiento en el caso.

Para recibir más información sobre las leyes en vigor aplicadas por la División, póngase en contacto 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 manera confidencial si tienen preguntas - independientemente de su estado migratorio - y el departamento puede hablar con quién llame en más de 200 idiomas.

La División de Horas y Salarios tiene una serie de recursos en línea para trabajadores y empleadores, incluido un conjunto de herramientas de cumplimiento de la FLSA. Obtenga más información sobre la División de Horas y Salarios, incluida una herramienta de búsqueda que puede utilizar si cree que se le debe salarios atrasado que fueron colectados por la División.

 Read the news release in English.

Employer: El Guerrero Mexican Grill Inc.

Investigation site: 9727 66th St. N., Pinellas Park, FL 33781

Investigation findings:  U.S. Department of Labor Wage and Hour Division investigators found the employer paid two servers less than the cash wage required by law and made illegal deductions from tips, both violations of the Fair Labor Standards Act. The violations caused the employer to lose the tip credit which resulted in additional minimum wage violations. El Guerrero also failed to compensate the two servers for hours worked over 40 in a workweek. In addition, the employer paid some kitchen staff a salary for all hours worked, failing to pay the required overtime rates when they worked more than 40 hours in the workweek.

Back Wages Recovered: $38,755 in back wages for six workers.

Quote: “When employers take a tip credit toward the payment of wages for their employees, they must adhere to all requirements of the law. Failing to do so can result in a costly lesson,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “Employers who fail to realize this and continue to pay workers less that they have earned can quickly find themselves struggling to maintain the workforce needed to stay in business.” 

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers numerous online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements. Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division representative in their state through a list and interactive online map on the agency’s website.

Learn more about Wage and Hour Division.

YUMA, AZ – A federal investigation that found the franchise operator of seven Yuma McDonald’s locations denied full wages owed to 332 workers has recovered $128,796 in back wages and liquidated damages for them.

The U.S. Department of Labor’s Wage and Hour Division determined that Jose Leon – the Calexico, California-based franchise owner and operator – violated the Fair Labor Standards Act’s overtime requirements when he failed to pay time-and-one-half an employee’s required rate of pay for hours over 40 in a workweek. Following its investigation, the employer paid $62,238 in overtime back wages and $62,238 in liquidated damages to the affected workers.

The division also found Leon violated federal minimum wage requirements when he failed to pay some employees for all the hours they worked. The violation led to the recovery of an additional $2,160 in back wages and an equal amount in damages for eight workers.  

The department assessed Leon $20,263 in civil money penalties for the nature of the violations.

“The investigation shows the costly consequences faced by an employer whose pay practices failed to comply with federal overtime and minimum wage requirements,” said Wage and Hour Division District Director Eric Murray in Phoenix. “Employers should review their pay practices and contact the Wage and Hour Division with any questions or concerns to avoid similar circumstances.”

In more than 4,200 investigations in fiscal year 2021, the Wage and Hour Division recovered more than $34.7 million in back wages for nearly 30,000 food service workers. In March 2022, the Bureau of Labor Statistics estimates approximately 810,000 workers quit their jobs and more than 1.4 million job openings existed in the accommodations and food services industry.

“As restaurant industry employers continue to struggle to recruit employees, those who deny their workers their full wages will likely struggle to find and retain the workers they need to operate their businesses,” Murray added.

The division enforces the law regardless of a worker’s immigration status and can speak confidentially with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the division, contact its 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.

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Employer:                              Sewer Viewer Inc.

Investigation site:                 2190 Andrea Lane, Fort Myers, FL 33912

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the employer – a pipe cleaning and inspection contractor – failed to include non-discretionary production bonuses into the regular rate of pay when computing an overtime rate for employees who worked more than 40 hours in a workweek, a Fair Labor Standards Act violation. As a result, the employer paid overtime at rates lower than required by law.

Back Wages Recovered:       $25,170 in back wages for 12 workers.                                  

Quote: “Employers who supplement wages of employees with bonuses, commissions and piece-rate wages must still adhere to the required overtime requirements,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “Employers who fail to realize this and continue to pay workers less that they have earned can quickly find themselves struggling to maintain the workforce needed to stay in business.”

Background: Employers and workers alike 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.