MEMPHIS, TN – The operator of a Memphis Shell gas station and convenience store paid workers cash bonuses in place of overtime pay and persuaded them to sign altered time records to avoid paying full overtime wages due, a U.S. Department of Labor investigation has found.   

The department’s Wage and Hour Division found Thirsty Enterprise LLC also failed to pay one employee the federal minimum wage. The worker received a fixed salary for all hours worked, but the salary provided less the required minimum wage for each hour of work. The employer also paid cashiers – some who worked more than 80 hours per week – with checks that showed fewer hours than actually worked and asked the employees to sign altered time records. The employer then paid those workers the balance of the hours worked in cash at straight-time rates, rather than the time-and-one-half required for hours that exceeded 40 in a workweek.

The employer’s actions violated minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act.

“The Fair Labor Standards Act specifies what employers can and can’t do when it comes to workers’ pay,” said Wage and Hour Regional Administrator Juan Coria in Atlanta. “Keeping false and inaccurate records to avoid paying workers as the law requires is illegal and makes it more difficult to retain qualified employees.”

The division recovered $30,005 in back wages and an equal amount in liquidated damages for four workers. The employer paid a $2,324 civil money penalty to address the violations.

The Wage and Hour Division encourages people to contact the agency directly with questions or use free, online resources to understand their workplace responsibilities, including an online FLSA guide that outlines common violations. Workers and employers alike, can also call the agency’s toll-free helpline at 866-4US-WAGE (487-9243) confidentially with questions regarding their rights and responsibilities.

The department is dedicated to improving the conditions of workers and helping employers understand their legal responsibilities and help them enhance workplace dynamics that cultivate healthy organizations.  

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.

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

                        Doña Anna Community College

WHAT:           2022 Agricultural Employer Seminar

WHEN:          March 31, 2022

                       8 a.m. to 12:30 p.m.

WHERE:       Doña Ana Community College Workforce Center

                        2345 Nevada Ave., #121

                        Las Cruces, NM  88001

The event will include an introduction and an overview of the responsibilities and functions of various agencies, including the Department of Labor’s Office of Foreign Labor Certification, its Wage and Hour Division and the New Mexico Department of Workforce Solutions. Federal and state legal requirements of the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act, H-2A: Temporary Agricultural Employment of Foreign Workers program, New Mexico Workman’s’ Compensation Administration and Office of Foreign Labor Certification will be discussed.

Organizers invite growers, farmers, shippers, contractors, farm labor contractors and agricultural buyers to attend. In addition, the event will offer farm labor contractors the opportunity to learn how to renew their certifications.

While attendance is free, space is limited. Register by March 30 to attend. For more information, contact Patricia Chavez at (505) 248-2674 or email chavez.patricia@dol.gov. 

PITTSBURGH – Following litigation by the U.S. Department of Labor’s Office of the Solicitor, a federal court has entered a consent judgment against three restaurants – one in Pennsylvania and two in West Virginia – and their owners after investigators found they paid back-of-the-house employees off-the-books salaries for all hours worked and denied them overtime pay for hours worked over 40 in a workweek.

The judgment, entered in the U.S. District Court for the Western District of Pennsylvania on March 16, 2022, requires Fusion Japanese Steakhouse Inc. in Washington, Pennsylvania; Fusion Japanese Steakhouse Inc. in Vienna, West Virginia; and Z&S International Cuisine Inc., operating as Fusion Japanese Steakhouse of Wheeling in Triadelphia, West Virginia, and owners Yuan Zheng Xiao and Christine Xiao, to pay $1.45 million – $725,000 in back wages and an equal amount in liquidated damages – to 116 current and former workers.

The department also assessed the restaurants and their owners $76,724 in civil money penalties for the willful nature of their violations. The employers’ pay practices and failure to maintain records of hours worked violated the Fair Labor Standards Act. In addition to the back wages and damages, the judgment prohibits the employers from future FLSA violations.

On three prior occasions – following investigations in 2012, 2011 and 2010 – the restaurants and owner Yuan Zheng Xiao have paid back wages to workers after violations of the FLSA’s minimum wage, overtime and recordkeeping provisions were discovered.

“This legal action recovers the workers’ hard-earned wages and sends a strong message to other restaurant employers that violations come at a high cost,​” said Solicitor of Labor Seema Nanda. “The U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from depriving workers of their wages.”

“Wage theft is illegal, it harms workers and their families, and undercuts responsible employers who abide by the law,” said Acting Wage and Hour Division Administrator Jessica Looman. “This sizeable judgment on behalf of restaurant workers demonstrates the Department of Labor’s commitment to protecting these essential workers.”

The Bureau of Labor Statistics projects that 958,000 food and accommodation services workers left their positions in December 2021. BLS also projects about 41,400 openings for food service managers each year, on average, from 2020 to 2030.

“Business owners need to understand retaining and recruiting workers becomes much more difficult in today’s changing job market where workers have choices about where and for whom they work,” Looman explained. “Employers who take advantage of workers by violating their legal rights will find it increasingly difficult to find the people they need to fill jobs and stay in business.” 

The consent judgment follows an investigation by the division’s Pittsburgh District Office and litigation by the Regional Solicitor’s Office in Philadelphia.

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.

SEATTLE – An ongoing federal initiative to investigate pay practices of residential builders in Washington State found that a Lacey contractor recklessly failed to pay workers overtime for hours they worked over 40 in a workweek in violation of the Fair Labor Standards Act.

An investigation by the U.S. Department of Labor’s Wage and Hour Division  found that Norpac Financial LLC – operating as Northern Pacific Exterior – paid 39 workers straight-time rates for all hours worked without additional half-time for the overtime hours in excess of 40 per week as required. The employer also failed to produce complete and accurate records for investigators, in violation of federal recordkeeping provisions.

The investigation led to the recovery of $69,963 in overtime back wages plus an additional $69,963 in liquidated damages for the affected employees. In addition, the division assessed $7,050 in civil money penalties due to the reckless nature of Northern Pacific’s violations.

“Hard working employees have the right to be paid all of the wages they’ve legally earned,” said Wage and Hour Division District Director Thomas Silva in Seattle. “The U.S. Department of Labor found that Northern Pacific Exterior shortchanged dozens of workers of wages on which they depend to care for themselves and their families. We urge all employers to use the many tools we offer to help them understand the law and avoid costly penalties and damages.”

The division’s Residential Construction Initiative identifies wage violations in the construction industry and recovers wages owed to workers. Since 2019, the division has conducted 9,147 investigations in the construction industry, recovering more than $119 million in unpaid wages for more than 84,000 workers nationwide. Currently, more than $1.9M in back wages recovered by the division remain unclaimed in Washington. In some cases, employers failed to keep accurate records of employee addresses, and in others, former workers relocated and left no contact information.

For more information about the FLSA and other laws the division enforces, contact its toll-free helpline at 866-4US-WAGE (487-9243). Workers can speak with us confidentially, 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.

HONOLULU –The U.S. Department of Labor recovered $62,908 in back wages and liquidated damages for 42 workers after an investigation found the operators of five Hawaii restaurants denied them overtime pay and allowed a manager and other employees to take a portion of the workers’ tips illegally.

Investigators with department’s Wage and Hour Division found Elizabeth Diaz and Antonio Aguilar Aguirre – joint owners of four Pacos Tacos Cantina and Lunch Wagon restaurants on Kauai, and one on Oahu – owed workers $12,682 in overtime wages earned for hours worked over 40 in a work week. Diaz and Aguirre also permitted a manager and others at the restaurants to take as much as $18,771 from tips earned by the workers. Both actions violated the Fair Labor Standards Act.

Federal law forbids an employer from keeping workers’ tips and prohibits managers and supervisors from taking tips employees receive, including through tip pools. These restrictions apply even if the employer pays tipped workers hourly rates equal to, or above the full minimum wage. 

In addition to the recovery of back wages and liquidated damages, the division assessed $10,000 in civil money penalties due to the nature of the employers’ violations.

“Just as there are required quality standards for the food we consume at restaurants, there are also federal labor standards for workers in this industry. Federal laws require overtime pay for hours worked in excess of 40 in a workweek and that tipped employees retain the tips they’ve earned,” said Wage and Hour Division District Director Terence Trotter, in Honolulu. “Employers should take advantage of the many educational tools we offer in order to avoid costly violations such as those found in this case.”

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 projects that 958,000 food and accommodation services workers left their positions in December 2021. BLS also projects about 41,400 openings for food service managers each year, on average, from 2020 to 2030.

“As more workers choose to leave food industry jobs, employers who deny workers their rightful wages may find themselves unable to retain and recruit the people they need to operate their businesses,” Trotter added. “In turn, employers who comply with the law will have the advantage as many workers have choices when it comes to finding employment.”

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

GOOSE CREEK, SC – A Goose Creek restaurant shortchanged 21 workers and allowed minor-aged employees to work more hours than the law permits, a U.S. Department of Labor investigation has revealed.

Investigators with the department’s Wage and Hour Division found that Los Arcos Inc. – operating as Los Arcos Mexican Restaurant – failed to pay the workers their legally earned wages and violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act when the employer did not pay some employees for all hours worked and failed to include performance bonuses in pay rates to calculate overtime.

The division recovered $108,924 in back wages and liquidated damages for the affected workers.

Investigators also determined that Los Arcos allowed two 15-year-olds to work more than 18 hours during several school weeks. By doing so, the employer violated federal youth employment requirements that limit the times of day and the number of hours youth can work during the school year.

In December 2021, the Bureau of Labor Statistics reported that 958,000 accommodation and food services workers left their positions. The need for restaurant food servers is expected to grow by 20 percent from 2020-2030 to about 2.4 million jobs, the bureau reports.

“As food service industry employers struggle to find people to fill the jobs needed to remain competitive, they must take into account that retaining and recruiting workers is more difficult when employers fail to respect workers’ rights and pay them their full wages,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina.

In fiscal year 2021, more than 4,200 Wage and Hour Division investigations recovered more than $34.7 million for more than 29,000 workers in the food service industry.                         

For information about laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Workers can call the Wage and Hour Division confidentially with questions, regardless of immigration status, and the department can speak with callers in more than 200 languages.

The Wage and Hour Division has a number of resources online for workers and employers, including a restaurant compliance toolkit. 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.

Read this news release En Español.

INDEPENDENCE, VA – Following a U.S. Department of Labor investigation, and an administrative law judge’s order, 20 temporary agricultural workers who traveled from Mexico to help provide pumpkins, Christmas trees and produce for Mid-Atlantic consumers will be paid $19,988 in back wages by an Independence farm. The farm will also pay $36,000 in civil money penalties.

The department’s Wage and Hour Division investigation determined that Reyes Nature Greens LLC hired the workers under the H-2A temporary agricultural workers visa program, which allows employers to hire temporary, nonimmigrant workers for seasonal agricultural work.

Specifically, the division found Reyes Nature Greens failed to comply with H-2A requirements to:

- Pay the offered and required wage rate. The employer paid the temporary workers $11.42 an hour instead of $11.46 per hour, the required adverse effect wage rate at the time. The employer also missed payrolls and made no payments during certain workweeks.

- Provide a copy of the work contract, pay statements with all required information, and display required H-2A posters.

- Provide or secure housing for workers and transportation between the workers’ living quarters and the employer’s worksite without cost to the worker and in compliance with all applicable laws, safety and health standards.

- Guarantee workers employment hours of at least 75 percent of the workdays in the contract period.

The department’s Office of Administrative Law Judges issued a decision and order approving consent findings, which requires Reyes Nature Greens to pay back wages to resolve the wage violations. The farm also paid a $36,000 civil money penalty, and agreed to enhanced compliance through a three-year monitoring agreement.

“Agricultural workers are among the most vulnerable essential workers our laws protect,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “This investigation underscores the department’s commitment to using all enforcement tools to protect the rights of people who work in the U.S. Other employers should use the outcome of this investigation as an opportunity to review their own practices to make sure they comply with the law and avoid violations like those found in this case.”

Learn more about the H-2A program.

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.

ATLANTA – The U.S. Department of Labor’s Wage and Hour Division is continuing its multi-year education and enforcement initiative to increase compliance with federal labor laws in the Southeast’s agricultural industry. In addition to enforcement activity, the initiative provides compliance assistance to employers and educates workers and other stakeholders.

The division and industry stakeholders in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee, are exploring methods to raise industry awareness and provide tools to increase compliance. In the months ahead, the division will complete investigations and provide outreach to workers and employers – and when necessary – leverage H-2A debarment and certificate revocations.

In 2021, investigators in the division’s Southeast Region found violations in 81 percent of the nearly 300 investigations they completed of agricultural employers. These investigations found that the employers owed more than $1.9 million to more than 4,000 employees and led the division to assess more than $1.7 million in civil money penalties. During that timeframe, the division debarred seven Southeast growers and farm labor contractors from eligibility to participate in the H-2A temporary labor certification agricultural guest worker program.

“Compliance assistance and enforcement work hand-in-hand, and data supports the need for the division’s focus on both fronts,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “The Wage and Hour Division is committed to protecting workers who, like those in these cases, work hard to put food on America’s tables. When employers attempt to unlawfully increase their profits at the expense of the dignity, respect and – in some cases freedom – of workers, we will use every available tool to hold them accountable.”

The department encourages recruiters, labor contractors, growers, processors, distributors, wholesalers and retailers to join in this effort to protect workers and combat labor trafficking.

Federal law empowers the division to suspend, revoke or withhold renewal of farm labor certificates for contractors that commit violations under the Migrant Seasonal Protection Act. Employers are encouraged to review the ineligible farm labor contractor and H-2A debarment lists prior to contracting for labor. The Wage and Hour Division offers compliance assistance resources, including an agriculture compliance assistance toolkit, employers can access to get the information they need to comply with the law.

For information about MSPA, H-2A and other laws enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243).

Read this news release En Español.

WASHINGTON – The U.S. Department of Labor will offer online compliance seminars for contracting agencies, contractors, unions, workers and other stakeholders to provide information on the requirements governing payment of prevailing wages on federally funded construction and service contracts.

Offered by the department’s Wage and Hour Division, the seminars are part of the division’s ongoing effort to increase awareness and improve compliance with federal prevailing wage requirements.

The seminars will include video training on many Davis-Bacon and Related Acts and McNamara-O’Hara Service Contract Act topics that participants can view on demand. In addition to viewing the recorded videos on specific DBA and SCA topics, online Question & Answer sessions on DBA and SCA compliance will be offered live in March, June and September from 1:30 to 3:30 p.m. EDT.

Davis-Bacon Act compliance Q&A’s are scheduled for March 29, June 14 and Sept. 13.

Service Contract Act compliance Q&A’s are scheduled for March 30, June 15 and Sept. 14.

“As the Biden-Harris administration makes unprecedented investments in the nation’s infrastructure, ensuring that employers comply with the Davis-Bacon and Service Contract acts and other laws we enforce to protect workers is critical to creating good jobs and supporting responsible employers,” said Acting Wage and Hour Division Administrator Jessica Looman. “These seminars offer excellent opportunities for contractors, workers  and contracting agencies to understand the laws that govern wages and benefits on federal contracts better.”  

While seminar attendance is free, registration is required. Register to attend the Prevailing Wage seminar.

Additional information – including links to video trainings and dates for upcoming Q&A sessions, will be provided to registrants soon.

Learn more about the Wage and Hour Division.

WASHINGTON – Women in the U.S. must work until March 15 to be paid the same amount men were in the prior year. This unequal burden on women – especially on women of color – reflects the distance that remains before we achieve an inclusive economy with good jobs for everyone. Among other health, security and education inequities, this economic disparity drove the Biden-Harris administration’s creation of the Gender Policy Council, which has led a historic effort to dismantle these structures of inequality.

“Equal Pay Day is a concept intended to get us thinking differently about how insidious the pay disparity between men and women really is – and to get us motivated to remedy it, once and for all,” said U.S. Secretary of Labor Marty Walsh. “Gender inequality shows up everywhere in our society, but its expression in the workplace is striking in its fundamental unfairness. The Department of Labor has long been a leader in combating that inequality, and we continue to find new ways to understand and address it, as we are doing today by releasing new research.”

The pandemic complicated this dynamic, laying bare some of the factors that contribute to the gender pay gap. One of these is the reality of occupational segregation, whereby women are concentrated in certain occupations that pay lower wages. And the occupations and industries where women are most concentrated experienced greater job losses during the pandemic industries.

To better understand how this impacts women, the department has produced “Bearing the Cost: How Overrepresentation in Undervalued Jobs Disadvantaged Women During the Pandemic,” a report on women’s employment impacts during the pandemic and the role of occupational segregation being released today.

The report newly finds that segregation by industry and occupation cost Black women an estimated $39.3 billion, and Hispanic women an estimated $46.7 billion, in lower wages compared to white men in 2019. 

“Occupational segregation is a long-standing driver of gender and racial inequality in the workplace, but the COVID-19 pandemic exploded many of its outcomes, causing real economic harm to working women and their families, especially women of color,” said Women’s Bureau Director Wendy Chun-Hoon. “We encourage our partners and coalitions working throughout the country to use the occupation segregation data contained the department’s report to accelerate and strengthen their work.

The department is committed to addressing occupational segregation by supporting women entering male-dominated fields, raising wages and job quality especially in women-dominated jobs, and ensuring racial and gender equity in all jobs. To achieve this, the report includes a series of recommendations for action, such as:

• Creating more equitable educational and training opportunities for women to enter non-traditional fields through pre-apprenticeships and apprenticeships.
• Increasing access to policies that support workers with caregiving responsibilities, like paid leave and childcare.
• Building worker power by supporting workers’ right to organize and collectively bargain.
• Addressing discrimination and harassment in workplaces.

These actions are key components of the department’s Good Jobs Initiative, an effort Secretary Walsh announced in January 2022 to provide critical information to workers, employers and government entities as they seek to improve job quality and create access to good union jobs – free from discrimination and harassment – for all workers and job seekers.

Learn more about the Women’s Bureau.