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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MANCHESTER, NH – Two full-service restaurants in Derry and Londonderry and a general manager have agreed to pay $890,169 – $445,085 in back wages and an equal amount in liquidated damages – to 63 employees to resolve numerous willful violations of the Fair Labor Standards Act following a U.S. Department of Labor investigation and litigation.

The department’s Wage and Hour Division investigation found La Carreta-Derry Inc. and La Carreta-Londonderry LLC – both doing business as La Carreta Mexican Restaurant – and Heriberto Leon, general manager of the Londonderry location, violated the FLSA’s minimum wage, overtime and recordkeeping requirements. The department then moved for summary judgment in litigation on those violations, which were:

• Paying four servers only tips, resulting in minimum wage underpayments.
• Paying no overtime to these employees who received exclusively tips.
• Paying straight-time wages to employees for hours worked over 40 in a week.
• Failing to maintain accurate time records for certain employees.

In addition to payment of the back wages and liquidated damages, the consent judgement and order, entered in the U.S. District Court for the District of New Hampshire, restrains the employers from engaging in future violations of the FLSA’s wage, recordkeeping and antiretaliation requirements. It also requires them to cooperate with any U.S. Department of Labor investigation under the FLSA, including providing investigators access to all required records and providing truthful responses, information and documents.

“Paying restaurant workers straight-time for their overtime hours and requiring servers to work for tips only with no cash wages is quite simply wage theft,” said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. “While we often find such violations in the restaurant industry, these violations can easily be prevented if employers know and understand the Fair Labor Standards Act’s requirements. We encourage them to reach out to us with questions they may have about their responsibilities under the law.”

“The department moved for summary judgment in this case, and it was in the wake of that motion that the employers decided to settle for $890,169 in back wages and liquidated damages. This case shows that the department will use all the tools it has under the Fair Labor Standards Act to prevent wage theft and recover stolen wages and liquidated damages,” said Regional Solicitor of Labor Maia Fisher in Boston.

“We encourage employers to comply with the FLSA to avoid costly litigation. We also encourage employees to take note of how the department will litigate aggressively to recover wages that have been taken from them, and hope that employees will feel confident bringing wage theft complaints to the department,” Fisher added.

The division’s Northern New England District Office in Manchester conducted the investigation. The department’s Boston Regional Office of the Solicitor litigated the case.

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 and other laws enforced by the agency, 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.

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Ed’s note: The release now reflects that the general manager, not the owner, has agreed to pay the back wages and damages.

LYNDHURST, NJ – Week after week, a worker at Advantix Logistics Corp. kept finding paychecks short of their expectations. After several complaints to a supervisor, the company responded by firing the worker. When the worker raised concerns that the final paycheck did not include all wages earned, the company threatened continued retaliation.

An investigation of the Lyndhurst staffing agency by the U.S. Department of Labor’s Wage and Hour Division determined that Advantix attempted to dissuade workers from cooperating with investigators.

To address the employer’s egregious and obstructionist behavior, the department filed a complaint and obtained a temporary restraining order in the U.S. District Court for the District of New Jersey. The order:

• Enjoins Advantix and any related entities from retaliating against the affected employee as well as current and former employees who make complaints about their pay, speak with investigators or otherwise assert their rights under the Fair Labor Standards Act.
• Enjoins Advantix and anyone acting on its behalf from taking any actions that would obstruct the division’s ongoing investigation of Advantix’s pay practices.
• Orders Advantix to notify the department in writing at least 7 days prior to any employee’s termination for any reason.
• Orders Advantix to allow U.S. Department of Labor representatives to read aloud in English, Spanish and any other language as necessary to be understood by Advantix’s  employees a statement about the order and their FLSA rights.

The department’s complaint seeks a permanent order enjoining Advantix and those acting on its behalf from violating the FLSA by further retaliation, intimidation, harassment or other adverse action against employees who engage in protected activity. It also seeks compensatory and punitive damages for the fired employee.

View the complaint and the temporary restraining order. 

“Threatening or firing employees who ask for proper pay is egregious and illegal retaliation,” said Regional Solicitor Jeffrey Rogoff in New York. “Effective enforcement of the Fair Labor Standards Act depends on employees’ ability to report their experiences without fear. In this case, the U.S. Department of Labor is seeking a restraining order to protect employees so they can cooperate with the department’s investigation and assert their rights under the law.”

“Retaliation or threats of retaliation can prevent employees from exercising their right to question their wages and their employers’ pay practices. It can also inhibit cooperation in good faith with an investigation and inhibit employees from engaging in activities protected by federal law,” said Wage and Hour Division District Director Paula Ruffin in Mountainside, New Jersey. “To prevent violations from occurring in the first place, we encourage employers to contact the Wage and Hour Division to learn about their responsibilities under the law.”

The Wage and Hour Division’s Northern New Jersey District Office is conducting the investigation. Senior Trial Attorneys Jason Glick and Susan Jacobs of the Regional Office of the Solicitor in New York are litigating the case.

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 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 or have been retaliated against.

FORT MYERS, FL – Federal laws exist to ensure employees get all their legally earned wages and when a Fort Myers security group’s pay practices shortchanged the overtime wages of 29 workers, the U.S. Department of Labor’s Wage and Hour Division helped to recover $107,936 in back wages and liquidated damages owed.

Division investigators found AIM Security Group LLC paid some employees straight-time when they worked over 40 hours in a workweek instead of overtime pay, a violation of the Fair Labor Standards Act. They also determined the employer paid $1 or more per hour – in addition to the employees’ regular rates – and labeled it as commissions on payroll records, an FLSA recordkeeping violation.

“In most cases, workers are owed overtime wages at a rate of time and one-half their rate of pay for hours over 40 in a workweek in the U.S.,” explained Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “While there are exceptions, none of them applied in this case. AIM Security Group’s pay practices violated federal law and, as importantly, denied full wages to 29 of its workers.”

AIM Security Group LLC is a private security guard and patrol service business that provides services for facilities such as shopping centers and construction sites in Fort Myers. 

In fiscal year 2021, the Wage and Hour Division recovered more than $6 million for more than 5,300 workers in the guard services industry.

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). Calls can be answered confidentially in more than 200 languages. Learn more about the Wage and Hour Division, including a fact sheet that covers how the FLSA applies to security guard and maintenance service industries.

Employer: Señor Frog’s Orlando LLC

Investigation site: 8747 International Drive, Orlando, FL 32819

Investigation findings: The employer paid straight-time rates for overtime hours – recorded on payroll as bonuses. By doing so, the employer paid overtime at rates lower than the law requires. Señor Frog’s also kept inaccurate pay records, another Fair Labor Standards Act violation.

Back Wages and Liquidated Damages Recovered: $71,262 in back wages and an equal amount in damages for 91 workers.

Quote: “The Wage and Hour Division too often finds violations by restaurant industry employers,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Employers are required to pay workers their rightful wages by law. As businesses struggle to find people needed to succeed, those who deny workers full wages will find it hard to retain and recruit workers. Wage and Hour Division representatives urge employers to contact the agency to get the information they need and resolve compliance concerns.”

Background: The U.S. Department of Labor’s Wage and Hour Division mission is to ensure employers pay workers their rightful wages and honor protections afforded them by law. Employers can get more information about their responsibilities online, including a fact sheet that outlines how business can apply Fair Labor Standards Act wage laws for employees of restaurants and fast-food businesses. Learn more about Wage and Hour Division.

OKLAHOMA CITY – The operator of seven Oklahoma City-area taco shop franchises claimed that workers requested higher hourly wages rather than being paid overtime for hours over 40 in a workweek – an illegal agreement whether the workers consented or not – and as a recent U.S. Department of Labor investigation shows, is a costly error by the employer.

Investigators with the department’s Wage and Hour Division determined Tavern Ventures LLC paid 164 workers at seven Fuzzy’s Taco Shop locations straight-time rates when they worked overtime hours, instead of time and one-half their regular rate of pay. The actions by the Oklahoma City-based employer violated the overtime requirements of the Fair Labor Standards Act.

The division recovered $348,007 in back wages for the affected workers. The investigation is part of the Wage and Hour Division’s Cross-Regional Food Service Workers initiative in the Southwest Region.

“Employers cannot enter into agreements with workers that violate pay practices governed by the Fair Labor Standards Act,” said Wage and Hour Division Administrator Betty Campbell in Dallas. “The operator of these Fuzzy’s Taco Shops in Tulsa has learned a costly lesson. We encourage all employers to contact the Wage and Hour Division to ensure their pay practices comply with the law.”

Founded in 2003 in Fort Worth, Texas, Fuzzy’s Taco Shops is a franchisor with about 150 locations nationwide.

In fiscal year 2021, the Wage and Hour Division conducted 4,237 investigations in the food service industry, recovering $34.7 million in back wages for more than 29,000 employees nationwide. The Bureau of Labor Statistics reports that 958,000 food and accommodation services workers left their positions in December 2021. BLS projects about 41,400 openings for food service managers each year, on average, from 2020 to 2030.

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. 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.

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Employer:                              Fayetteville Miyabi Inc., operating as Miyabi Japanese Steak Restaurant

Investigation site:                 1990 Skibo Road, Fayetteville, NC 28314

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that inaccurate timekeeping practices resulted in a minimum wage violation for not paying for all hours worked. Miyabi also paid some employees a flat salary for hours over 40 in a workweek. As a result, the employer failed to pay the required overtime.

Back Wages Recovered:       $25,617 in back wages for six workers                                        

Quote: “Employers that manipulate time records to avoid paying employees their legally earned wages harms workers and their families,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Employers who fail to realize this can quickly find themselves struggling to keep and find workers.”

Background: Employers can get more information about their responsibilities online, including a fact sheet that outlines how business can apply Fair Labor Standards Act wage laws for employees of restaurants and fast-food businesses.

Learn more about Wage and Hour Division.

Employer: Magnolia Processing Inc.

Investigation site: 5255 Hwy 4, Tunica, MS 38676

Investigation findings: Wage and Hour Division investigators found the employer failed to comply with H-2A program regulations and also violated the Fair Labor Standards Act when they failed to do the following:

• Did not state actual terms and conditions related to workers’ duties in the job order, as required.
• Failed to provide U.S. workers in the same jobs as H-2A workers with a copy of the work contract.
• Failed to pay workers subsistence as required by inbound transportation regulations for travel to the U.S.
• Failed to pay required rate to 38 current and former employees who worked in the same positions as the H-2A workers, resulting in back wages due.
• Did not meet pay statement requirements.

Back Wages Recovered: $11,383 in back wages for 45 workers. The employer paid $23,320 in civil money penalties for H-2A violations.                 

Quote: “The H-2A program is intended to provide employers with workers needed to operate their businesses for a temporary time period when workers are needed. The program prohibits employers from discriminating against U.S. workers and paying them less than H-2A workers,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi.

“Magnolia Processing’s failure to comply with requirements of the H-2A program denied workers their full wages, and led to costly penalties for the employer. This investigation emphasizes the department’s commitment to using all our enforcement tools to protect the rights of all people – both domestic and visa workers – who work in this essential industry,” Hall added.

Background: Magnolia Processing Inc. handles fresh and frozen seafood processing.

The Immigration and Nationality Act authorizes the lawful admission into the U.S. of temporary, nonimmigrant workers – H-2A workers – to perform agricultural labor or services of a temporary or seasonal nature. Employers can get more information about their responsibilities online, including guidance for employees regarding the H-2A program. Learn more about Wage and Hour Division.

ESTERO, FL – A federal investigation of three North Miami Beach restaurants that found the operator denied 58 workers their full overtime wages, has recovered $18,705 in back wages and liquidated damages for the affected employees.

Investigators with the U.S. Department of Labor’s Wage and Hour Division determined that Restaurant Investment at Bonita LLC – the operator of three Divieto Ristorante locations in Estero, Doral and Aventura – failed to pay the additional overtime premium required at half of the applicable minimum wage or regular rate when employees worked more than 40 hours in a week. The employer’s actions violate the Fair Labor Standards Act.  

The division also found the employer allowed two 15-year-old employees to work after 10 p.m. on non-school days, a violation of FLSA work hour standards for workers under the age of 16. The department assessed the employer a $1,382 civil money penalty to address the child labor violation.

“Denying workers their legally earned wages hinders their ability to provide for themselves and their families,” said Wage and Hour Division District Office Director Nicolas Ratmiroff in Tampa, Florida. “As employers find it increasingly difficult to recruit and retain the workers they need, those who shortchange wages and take advantage of their employees may struggle to find the staff to support their businesses.”

In December 2021, the Bureau of Labor Statistics projected that 958,000 food and accommodation services workers left their positions, and that there will be about 41,400 openings for food service managers each year, on average, from 2020 to 2030.

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

For information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the agency’s website to learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.