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

WHAT:          Construction and Government Contracting Forum

WHEN:         May 17 and 18, 2022

                     9 a.m. to 4:30 p.m. CDT

WHERE:      Online event

Attendance is free, but registration is required. An event link will be provided after registration.

Background: Organized by the Wage and Hour Division in Dallas, the forum will include a panel discussion on compliance with federal laws governing wages and other workplace issues. The discussion will include representatives of the department’s Office of Federal Contract Compliance Programs, OSHA, Employee Benefits and Security Administration, Office of Labor-Management Standards, Veterans’ Employment and Training Service, Bureau of Labor Statistics and Women’s Bureau. Also attending will be representatives of the Equal Employment Opportunity Commission, National Labor Relations Board, Small Business Administration and the IRS.

Following the discussion, agency representatives will make presentations, ranging from 30 to 90 minutes.

Quote: “The U.S. Department of Labor is determined to offer educational tools and training to construction industry employers and federal contractors and their employees through virtual outreach events,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas. “We encourage all employers to review federal labor laws, use the tools the department offers and contact us for more information.”

LAS VEGAS – A federal investigation has recovered $94,112 in back wages and liquidated damages for 33 workers of a Las Vegas construction company that denied them overtime wages by misclassifying the workers as independent contractors. The investigation also found that the employer denied a worker sick leave in violation of the Family First Coronavirus Response Act.

The U.S. Department of Labor’s Wage and Hour Division determined that Design Works Custom Painting Inc. paid the misclassified workers at straight-time rates when they worked hours over 40 hours in a work week, including some who worked as many as 70 hours in a week. Investigators also found the employer provided inaccurate records of hours worked by employees. These actions violated the Fair Labor Standards Act.

“The Wage and Hour Division takes wage theft very seriously. Design Works Custom Painting Inc. attempted to shortchange workers by misclassifying them as independent contractors,” said Wage and Hour District Director Gene Ramos in Las Vegas. “This errant practice is a priority for our investigators, and as the outcome of this case shows, non-compliance has costly consequences.”

The Wage and Hour Division provides multiple tools to help employers understand their responsibilities and offer confidential compliance assistance to anyone with questions about how to comply with the law. Workers can call the division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

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.

Employer name:                    Arrow Pest Control of Baton Rouge Inc.,

                                                      doing business as Arrow Termite and Pest Control Co.

Investigation site:                  Baton Rouge, Louisiana

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found  Fair Labor Standards Act overtime violations when Arrow Pest Control of Baton Rouge Inc. – doing business as Arrow Termite and Pest Control – paid employees a fixed salary for all hours worked instead of the required time and one-half their hourly rate of pay for hours over 40 in a workweek.

Division investigators also found that the employer failed to maintain records of daily or weekly hours worked, in violation of the FLSA’s recordkeeping provisions. 

Pest control technicians performed work at private homes and businesses in Mississippi, Louisiana and Texas. 

Back wages recovered: $87,404 in owed overtime to 103 workers

Quote: “One common workplace myth is that all salaried employees are exempt from overtime pay,’ said Wage and Hour Division Director Troy Mouton in New Orleans.  “Many employees who receive salaries are entitled to overtime pay for hours over 40 in a work week, and the criteria for an overtime exemption are very specific.”

“Employers unsure if employees qualify for overtime pay in addition to their paid salary should contact their local Wage and Hour Division office for technical assistance,” he added. “That’s the best way to ensure they pay employees all of their rightful wages and avoid costly compliance issues.”

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

WASHINGTON – Hard-working people in the construction industry in the U.S. build our homes, erect our roads and bridges, and raise our buildings skyward. They also strive to expand and strengthen the nation’s information infrastructure to better connect us and make the country more resilient at times of crisis.

With many projects supported by the Bipartisan Infrastructure Law gaining speed across the nation as temperatures rise and the ground softens, the U.S. Department of Labor’s Wage and Hour Division is showing its commitment to ensuring the safety of workers’ wages during the annual celebration of National Construction Safety Week, May 2-6, by announcing new compliance assistance materials, including a toolkit in both English and Spanish languages, specifically to help construction workers understand their rights and inform employers about their legal obligations.

In addition, the division has launched a webpage to help construction employees and employers understand Davis-Bacon Act worker protections for projects created by the Bipartisan Infrastructure Law.

“We are depending on construction industry workers to help us realize the promise and benefits of the Bipartisan Infrastructure Law. Many work long hours in difficult conditions; and we owe it to them to ensure that their jobs are good jobs and that employers pay them fair wages and benefits,” explained Acting Wage and Hour Division Administrator Jessica Looman. “During National Construction Safety Week, we recognize that the safety and health of workers includes ensuring economic security for them and their families.”   

In fiscal year 2021, the division identified more than $36 million in back wages owed to about 21,000 construction industry workers. In the same period, violations of the Davis-Bacon and Related Acts – wage laws governing federally funded projects – recovered more than $12 million in back wages for more than 4,000 workers.

In the industry, division investigators commonly find violations related to the misclassification of workers as independent contractors, failing to pay employees work-related travel time and pre- and post-shift work, and not paying overtime as required for hours over 40 in a workweek. On federally funded projects, failing to pay the correct prevailing wage rate, improper calculations of required fringe benefits and not paying for all hours of work and making illegal deductions from wages are common violations. 

The Bureau of Labor Statistics projects construction industry employment to grow at a rate of 6 percent from 2020 to 2030, and gain approximately 400,000 jobs. Employers who comply with labor laws will be better positioned to recruit and retain skilled workers.

“As the number of jobs grows in the coming decade, employers who deny workers their full wages and benefits either intentionally or not, may find it more difficult to attract and keep the people they need to make their businesses successful,” Looman added. “The Wage and Hour Division is committed to working with state and local agencies, employers and other industry stakeholders to promote compliance and help employers avoid the often-costly consequences of violations.”

Learn more about the Wage and Hour Division.

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WHITE PLAINS, NY – Following an investigation by the U.S. Department of Labor’s Wage and Hour Division, two commonly owned and located White Plains fencing installation contractors paid a total of $206,904 – $103,452 in back wages and an equal amount in liquidated damages – to 18 employees to resolve violations of the overtime and recordkeeping requirements of the Fair Labor Standards Act.

Division investigators found that Colony Fence Inc. and Nico Fence CO LLC:

• Paid employees straight-time for overtime, in cash off the books, for hours over 40 in a workweek.
• Paid some workers only in cash, and others by check, and paid overtime hours separately in cash at straight-time rates.
• Failed to combine total work hours for employees who worked for both businesses in the same workweek.
• Misclassified one employee as an independent contractor and failed to pay the employee overtime.
• Falsified records of payment and hours worked by employees.
• Failed to keep records of employees’ work hours, addresses and pay rates.
• Kept no pay records for employees paid solely in cash.

Colony Fence Inc. and Nico Fence have also paid $14,520 in civil money penalties due to the willful and repeated nature of their violations. The Wage and Hour Division identified similar violations by the companies during a 2019 investigation.

“Employers who fail to pay overtime deny employees their legal rights and violate federal labor laws. Such employers attempt to gain an unfair competitive advantage over their law-abiding competitors,” said Wage and Hour Division Assistant District Director Denise Fernandez in White Plains. “The Wage and Hour Division will hold violators accountable for their behavior and ensure that there is no benefit to be gained from non-compliance with federal labor laws. We encourage all employers to avoid the costly consequences faced by Nico Fence and Colony Fence by reviewing their pay practices and contacting the Wage and Hour Division with any questions or concerns.”

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).

Read the release En Español.

ATLANTA ─ The U.S. Department of Labor announced today a series of listening sessions with workers, employers and workplace stakeholders on potential revisions to regulations used to enforce the Fair Labor Standards Act’s minimum wage and overtime exemptions for executive, administrative and professional employees.

Since 1938, federal overtime regulations have been a cornerstone of the laws the department’s Wage and Hour Division enforces. These regulations protect workers and benefit workers and their families, their employers and the community at-large. The FLSA requires employers to pay most U.S. employees at least the federal minimum wage for all hours worked, and overtime pay at not less than time and one-half the regular rate of pay for hours worked over 40 in a workweek. 

The law, however, provides an exemption from minimum wage and overtime pay for workers employed as “bona fide” executive, administrative or professional employees. To be exempt, employees must generally meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week.

“Our goal is to use these sessions to listen, engage workers and hear their perspectives on the possible impact of changes to the regulations,” explained Acting Wage and Hour Division Administrator Jessica Looman. “As we consider the needs of today’s workforce and industry demands, we need public input to ensure that revisions to the overtime regulations fulfill the original intent and promise of the law.”

In fiscal year 2021, the department’s Wage and Hour Division recovered more than $138 million in overtime back wages for more than 145,000 workers. In its FLSA investigations, the division found overtime back wages represented 80 percent of all back wages found due.

The division announced that it will hold a listening session for workers, employee stakeholders and union representatives as follows:

WHO:                         Employees, Employee advocates and union representatives

WHEN:                      Thursday, May 5, 2022

6-7 p.m. EDT

WHERE:                    Register for the Southeast Worker Overtime Listening Session Registration

Employer:                              Fernwood Land LLC – operating as Executive Inn

Investigation site:                  9424 Front Beach Road

Panama City Beach, Florida 32407

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found Fernwood Land LLC paid employees straight time for overtime work – hours over 40 in a workweek – and did so off-the-books and in cash, a violation of overtime provisions of the Fair Labor Standards Act.

Back Wages and Liquated Damages Recovered: $29,976 for 15 workers

Quote: “Employers who attempt to evade paying their workers proper wages by paying off-the-books will be held accountable by the U.S. Department of Labor,” said Wage and Hour Division District Director Wildali De Jesus in Orlando, Florida. “Fernwood Land LLC shortchanged 15 workers of the overtime wages they rightfully earned. In the end, the employer paid thousands more for disregarding the law. Other employers should review their pay practices to avoid similar violations and consequences.”

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.

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

WHAT:          Fiscal Year 2022 Care Industry Forum

WHEN:          May 25 and 26, 2022

                      9 a.m. to 3:45 p.m. CDT

WHERE:       Online event

Attendance is free, but registration is required. An event link will be provided after registration.

Background: Organized by the Wage and Hour Division in Dallas, the forum will include a panel discussion with representatives of the department’s OSHA, Employee Benefits and Security Administration, Office of Labor-Management Standards, Veterans’ Employment and Training Service and Women’s Bureau. Also attending are representatives of the Bureau of Labor Statistics, Equal Employment Opportunity Commission, Health & Human Services, Internal Revenue Service, and National Labor Relations Board.

After the discussion, each of these agencies will make presentations, ranging from 30 to 90 minutes.

Wage and Hour Division representatives will review topics such as the Fair Labor Standards Act, the Family and Medical Leave Act, workplace equity and common wage violations in the care industry.

Quote: “The U.S. Department of Labor hopes events like these equip employers with the information and understanding they need to avoid compliance issues and, in turn, help ensure they pay the people who do the essential work needed in the care industry all of their rightful wages,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas. “We encourage all employers to review federal labor laws, use the tools the department offers and contact us for more information.”

HOUSTON – Sanitation workers loading and driving waste trucks in rural Southeast Texas communities were paid a straight daily rate, even though they often worked more than 40 hours per week for a Jefferson City, Missouri-based company.

The U.S. Department of Labor’s Wage and Hour Division's recent corporate-wide investigation of Piney Woods Sanitation Inc. recovered $731,492 in back wages for 337 drivers and loaders employed in the Huntington, Texas-area for the waste hauler.

Investigators determined the employer violated the Fair Labor Standards Act’s overtime requirements by paying a day rate and failing to pay time-and-one-half an employee’s required rate of pay for all hours over 40 in a work week. They identified additional overtime violations because the employer failed to include attendance and safety bonuses when calculating overtime pay.

“Failing to pay overtime denies workers’ legally earned wages and gives their employer an unfair advantage over its competitors who follow the law,” said Wage and Hour District Director Robin D. Mallett in Houston. “Failing to include bonuses paid when calculating overtime rates is an all too frequent violation of labor laws that shorts thousands of workers of their earned wages each year. The Wage and Hour Division encourages all employers to examine their pay practices and make sure they are abiding by the law and to reach out to us for compliance assistance.”

Piney Woods Sanitation manages administrative matters at its corporate office in Jefferson City, Missouri. Its Huntington location manages the company’s field-work activities in Crockett, Huntington, Livingston, Orange, Silsbee and Tyler, Texas.

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

FULTON, MD – Despite serving the needs of the elderly at four Maryland assisted-living facilities with high-quality, compassionate care, 27 essential workers fell victim to employers who showed little concern for their well-being or for paying them all the wages they legally earned.

A U.S. Department of Labor Wage and Hour Division investigation in September 2017 found Fair Labor Standards Act violations by International Health Care Consultants Inc., company owner and President Lois Peters and Frank Dickerson, who managed four group homes owned and operated by IHCC in Fulton, Columbia and Mount Airy. The investigation included the following group homes:

• Astoria House at 11584 Scaggsville Road in Fulton.
• Astoria II at 6636 Cedar Lane in Columbia.
• Ashleigh’s Place at 4914 Canvasback Court in Columbia.
• Golden Years Assisted Living at 28928 Ridge Road in Mount Airy.

The division found the employers paid caregivers and technicians less than the federal minimum wage of $7.25 per hour, an FLSA violation. IHCC paid some workers a day rate of $65 per day for 12 hours of work, which equals less than $5.42 per hour. The employers paid other employees $80 a day for 12 hours of work, or less than $6.67 per hour. By doing so, the employers also incurred overtime violations when employees worked more than 40 hours in a workweek.    

Additionally, investigators determined that when some employees worked overnight 24-hour shifts, the employer paid only a day rate for 12 hours of work and treated the remaining 12 hours as unpaid sleep or leisure time. IHCC failed to provide adequate sleeping facilities to many employees, and required them to respond to residents’ needs during the sleep and frequently interrupted leisure time. IHCC’s failure to pay workers for any of that time led to additional FLSA minimum wage and overtime violations.

The division found IHCC was aware of its obligation to pay the required minimum wage and overtime premium but failed to do so. They also violated FLSA recordkeeping requirements by not maintaining adequate and accurate records of their employees.

Following the investigation, the department’s Office of the Solicitor in Philadelphia filed a lawsuit in October 2018 alleging the employers violated the FLSA minimum wage, overtime and recordkeeping provisions.

On April 21, a consent judgment entered by the U.S. District Court for the District of Maryland resolved nearly four years of extensive litigation. The court’s final order requires the employers to pay $466,642 and an equal amount in liquidated damages to the 27 current and former employees, as well as a $16,716 civil money penalty for the willful nature of the overtime violations. The court also enjoins the employers permanently from violating the FLSA.

“The significant amount of money due to just 27 employees indicates that these employees worked very long hours, often with little or no sleep at all during their shifts. Employers must not be allowed to profit by unfairly paying its workers, whose hard work and commitment make them successful,” said Wage and Hour Division District Director Nicholas Fiorello, in Baltimore. “We remain steadfast in ensuring essential protections for essential workers, and providing clear, confidential compliance assistance to any worker or employer with questions.”

“Our attorneys worked tirelessly for nearly four years of contentious litigation pursuing back wages, liquidated damages and injunctive relief, to ensure these essential workers were paid all of their hard-earned wages,” said Philadelphia Regional Solicitor Oscar L. Hampton III. “We held Peters, Dickerson and IHCC accountable for willfully violating the law. This case serves as an example to other assisted-living employers that shortchanging wages comes at a high cost.”

The division’s Baltimore District Office investigated this case, and the department’s Office of the Solicitor in Philadelphia litigated the case.

In December 2021, the Bureau of Labor Statistics reported that the 679,000 healthcare and social services workers left their positions. 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. These trends indicate that industry employers will find it more difficult to recruit and retain without being highly competitive and ensuring compliance with law governing workers’ rights.

Learn more about the Wage and Hour Division.

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