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).

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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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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.

Leer en español.

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.