MIRAMAR BEACH, FL – A federal investigation has recovered $47,088 for 30 employees from the operator of a Miramar Beach restaurant who denied them their rightfully earned overtime wages. 

Investigators with the U.S. Department of Labor’s Wage and Hour Division found MTLE LLC, operating as Mezcal Mexican Grill, violated the overtime and recordkeeping regulations of the Fair Labor Standards Act. They determined the employer:

• Failed to pay time-and-one-half the employee’s rate of pay for hours worked in excess of 40 in a workweek. The employer paid straight-time rates for all hours of work. Bartenders and servers were paid only their straight-time cash wage for all hours, including those in excess of 40 in a workweek.  
• Failed to maintain complete time records and addresses of workers.

Mezcal Mexican Grill leased workers from Good Stand, a staffing company that paid the workers, and investigators determined that the workers were jointly employed by Good Stand and Mezcal Mexican Grill. 

“Employers who use staffing agencies to provide workers and then continue to control and manage them are responsible for ensuring they are paid as the law requires,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “This case should remind other restaurant employers to review their pay practices and employment relationships. We encourage employers, workers and staffing companies to contact the Wage and Hour Division with questions.”

The Wage and Hour Division provides multiple tools, including a Restaurant Compliance Assistance Toolkit, to help employers understand their responsibilities under 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.

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.

WASHINGTON – The U.S. Department of Labor today announced that its Wage and Hour Division is seeking to add 100 investigators to its team to support its enforcement efforts including the protection of workers’ wages, migrant and seasonal workers, rights to family and medical leave and prevailing wage requirements for workers on federal contracts.

The Wage and Hour Division is one of the nation’s most essential labor law enforcement agencies, responsible for enforcing some of the most comprehensive labor laws affecting more than 148 million workers. The cornerstone of its enforcement team, investigators’ responsibilities include the following:

• Conducting investigations to determine if employers are paying workers and affording them their rights as the law requires.
• Helping ensure that law-abiding employers are not undercut by employers who violate the law.
• Promoting compliance through outreach and public education initiatives.
• Supporting efforts to combat worker retaliation and worker misclassification as independent contractors.

“Adding 100 investigators to our team is an important step in the right direction,” said Acting Wage and Hour Administrator Jessica Looman. “We anticipate significantly more hiring activity later in fiscal year 2022. While appropriations will determine our course of action, we are optimistic we will be able to bring new talented professionals onboard to expand our diverse team.”

In fiscal year 2021, the Wage and Hour Division collected $230 million in wages owed to 190,000 workers. Division representatives also conducted 4,700 outreach events to educate employers and workers alike about their workplace rights and responsibilities.

Search “usajobs.gov” to learn more about the available Wage and Hour Division positions, and to apply.

Learn more about the Wage and Hour Division.

SEATTLE – A federal investigation recovered $96,973 in back wages and liquidated damages from the operator of 11 frozen yogurt shops in Washington and Oregon who allowed store managers to take a portion of workers’ tips illegally, and failed to pay some workers overtime wages when they worked over 40 hours in a workweek. The employer also did not keep an accurate record of hours worked.

Investigators with the U.S. Department of Labor’s Wage and Hour Division found multiple violations of the Fair Labor Standards Act by BroYo LLC – operator of nine Menchie’s Frozen Yogurt franchises in Washington and two in Oregon, and recovered back wages and damages for 330 workers.

The division also determined the employer violated the FLSA’s child labor regulations at four Washington locations by allowing several minors under 18 to operate trash compactors.

Given the nature of the violations, the division assessed $19,736 in civil money penalties.

“Food service workers frequently receive low wages and few benefits. BroYo LLC made the jobs of hundreds of food service workers less gainful when they allowed managers to illegally take tips from employees who earned them and denied some workers their overtime pay,” said Wage and Hour Division District Director Thomas Silva in Seattle. “This employer’s disregard for federal labor laws has had costly consequences. We encourage other food service employers to review their pay practices to prevent violations and contact the Wage and Hour Division for compliance assistance.”

The following Menchie’s Frozen Yogurt locations were included in the investigation:

Started in suburban Los Angeles in 2007, Menchie’s Frozen Yogurt is the world’s largest self-serve, frozen yogurt franchise with approximately 540 locations in the U.S. and abroad.

Since 2016, the Wage and Hour Division has conducted more than 25,000 investigations of food service establishments, recovering more than $195 million in back wages for more than 195,000 workers throughout the nation. The division provides restaurant employers a compliance assistance toolkit and encourages routine self-assessment of pay practices.

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. You may also call toll-free 1-866-4US-WAGE to speak directly and confidentially to a trained Wage and Hour Division professional. The division protects workers regardless of immigration status, and can communicate with workers in more than 200 languages.  

HONOLULU – The U.S. Department of Labor recovered $117,718 in back wages and liquidated damages to 33 workers after their employer in Hawaii recklessly denied them overtime wages they earned.

The department’s Wage and Hour Division found United Fishing Agency – a seafood trader purchasing and selling seafood to markets and restaurants in Hawaii – failed to include bonuses when calculating the employee’s overtime pay. The employer should have included the bonuses in the overtime wages because they awarded the bonuses to the workers to promote their productivity. Additionally, the employer did not keep accurate payroll records, also a Fair Labor Standards Act violation.

The investigation found the employer owed the workers $58,859 in unpaid overtime wages and an equal amount in liquidated damages. The reckless nature of the violations led the division to assess United Fishing Agency with $14,805 in civil money penalties.

“When employers compute the additional hourly half-time rate due to employees who work more than 40 hours in a workweek, they must include incentive pay such as certain bonuses, shift pay and on-call pay in those calculations,” 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.”

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.

NEW YORK – The U.S. District Court for the Eastern District of New York has entered a consent judgment  ordering a Brooklyn bus and shuttle service to pay $742,500 in back wages and liquidated damages for overtime wages denied to 368 shuttle drivers, following an investigation and litigation by the U.S. Department of Labor.

The department’s Wage and Hour Division investigation determined that Brooklyn-based Trans Express Inc., a subsidiary of National Express Transit Corp. failed to pay overtime wages to employees who picked up and dropped off passengers for Trans Express Inc.’s clients.

The division found Trans Express paid the drivers flat rates ranging from approximately $100 to $190 per day without regard to the number of hours they worked in a day or in a workweek. Employees typically worked 45 to 60 hours per workweek. The Fair Labor Standards Act requires employers to pay overtime when employees work more than 40 hours in a workweek. The division found Trans Express improperly assumed its employees were not entitled to overtime under FLSA. Investigators also found Trans Express failed to keep adequate and accurate records as the law requires.

“Trans Express failed to pay hundreds of workers all of their hard-earned wages,” said Wage and Hour Division District Director Jorge Alvarez in New York. “The company shortchanged these employees and their families, and gained an unfair advantage over their law-abiding competitors. Now, Trans Express is being held accountable.”

In addition to payment of the back wages and liquidated damages, the court ordered Trans Express to comply with the FLSA’s overtime and recordkeeping requirements.

“The U.S. Department of Labor vigorously pursued legal action to ensure Trans Express’s employees were properly compensated as required by the law. The department will continue to pursue litigation where employers fail to comply with the FLSA’s minimum wage and overtime requirements,” said Regional Solicitor of Labor Jeffrey Rogoff in New York.

The division’s New York City District Office conducted the investigation. Senior Trial Attorney David Rutenberg of the department’s regional Office of the Solicitor in New York litigated the case for the department.

Based in Brooklyn, New York, Trans Express Inc. is a regional transportation firm, specializing in point to point shuttle services.

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 collected by the division.

Walsh v. Trans Express Inc.

Civil Action No. 19-1423-SJ-RER

BOISE – The U.S. Department of Labor recovered $221,053 in back wages and liquidated damages for 59 drywall installation workers in Idaho after their employer recklessly denied them overtime wages they earned and then lied to investigators about it.

The department’s Wage and Hour Division found Intermountain Drywall and Acoustical Inc. of Eagle intentionally underpaid its workers by denying them their rightfully overtime wages earned, a Fair Labor Standards Act violation. The employer repeatedly told investigators that the company paid employees overtime wages at time-and-one-half their rates of pay when they worked more than 40 hours per week, as the law requires. Investigators determined the employer’s claims were untrue and that the employer had not paid workers overtime as claimed.

The investigation led to the division’s recovery of $110,526 in unpaid overtime wages and an equal amount in liquidated damages for the shortchanged workers. The reckless nature of the violations led the division to assess Intermountain Drywall and Acoustical with $22,560 in civil money penalties. 

“Shortchanging employees who work long, hard hours to provide shelter and safety to so many is unfair and illegal. Then, Intermountain Drywall and Acoustical lied to federal investigators. It’s hard to understand how they thought that would end well,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “In this case, the employer has learned that such actions have significant and costly consequences. We encourage other construction industry employers to avoid making similar mistakes.”

In fiscal year 2021, more than 3,000 Wage and Hour Division investigations recovered more than $36 million in back wages for more than 20,000 construction industry workers.

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.

FORT MYERS, FL – A Fort Myers heating, ventilating and air conditioning company paid commissions and stipends to a rotation of on-call dispatchers but failed to include those payments in the workers’ rate of pay when calculating overtime in violation of federal law, the U.S. Department of Labor has determined.

Investigators with the department’s Wage and Hour Division found that, in addition to the pay practice violation, Sunset Air & Home Services Inc. failed to maintain accurate time records for work conducted by on-call dispatchers. The employer’s pay and recordkeeping practices violated the Fair Labor Standards Act.

As a result, the division recovered $36,123 in back wages and liquidated damages for 23 workers. 

“When employers pay commissions, differentials, certain bonuses, stipends or other incentives, they must include them in calculation of overtime pay. We see this violation frequently. We encourage all employers and especially those who offer various types of incentive pay, to review federal requirements regarding overtime,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “Additionally, those who pay workers on a piece-rate, day rate, or on commission must maintain an accurate record of hours worked. These requirements cannot be waived by employees or employers.”

Learn more about the Fair Labor Standards Act provisions of overtime pay.

Get more information concerning other laws enforced by the division by contacting its toll-free helpline at 866-4US-WAGE (487-9243). Calls can be answered confidentially in more than 200 languages. The Wage and Hour Division offers additional information, including a search tool to use if you think you may be owed back wages collected by the division.

ATLANTA – Employers must accurately count all the hours employees work and include certain commissions earned when calculating overtime pay due. Failing to do so can lead to violations and result in unexpected costs in the form of back wages and, in some cases, penalties.

The U.S. Department of Labor’s Wage and Hour Division conducted three investigations of Dorsey Tire Co., a Pooler-based tire and automotive repair shop with locations in Summerville and North Charleston, South Carolina, and Pooler, Darien and Dublin, Georgia. Investigators found that Dorsey Tire failed to calculate overtime hours properly by not including time spent on after-hours service calls. Additionally, the employer did not include certain commission payments when calculating overtime pay due to tire technicians and sales employees. By failing to factor those commissions into their overtime rate, the employer paid workers lower overtime rates than required by law.

As a result of these findings, the division cited the employer for violations of the Fair Labor Standards Act’s overtime and recordkeeping requirements, and recovered $79,505 in back wages for 72 workers in both states.

“Employers must calculate and pay proper overtime rates, which can include earned bonuses or commissions, for each hour worked in excess of 40 hours in a work week. Not including all hours of work and commissions earned in overtime calculations denies workers the wages they have legally earned,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “Other employers should use the outcome of these investigations as an opportunity to review the requirements of the FLSA and ensure their pay practices comply with the law.”

The division conducted the investigations as part of the Southeast Region’s auto care initiative. In August 2021, three other South Carolina auto centers paid more than $78,000 to 34 workers as a result overtime violations found by agency investigators.

A compliance assistance toolkit is available for the Auto Repair and Maintenance 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). Learn more about the Wage and Hour Division, and use its search tool if you think you may be owed back wages collected by the division.

WASHINGTON – As National Human Trafficking Prevention Month concludes, the U.S. Department of Labor’s Wage and Hour Division continues to support the updated U.S. National Action Plan to Combat Human Trafficking by committing resources, collaborating with criminal enforcement agencies and providing outreach to combat labor trafficking.

In the U.S., trafficked migrant workers are often intimidated and abused by callous, dishonest employers seeking to exploit their labor. In a recent case, an employer subjected farmworkers in Georgia to unsafe conditions, paid much less than their promised wages and forced workers to reside in dangerously cramped and unsanitary employer-provided housing. Another employer in Florida was found to be part of an alleged multi-state racketeering conspiracy that victimized farmworkers by imposing debts, confiscating passports, isolating workers and forcing them to live in degrading and unsanitary conditions. This employer also threatened to harm workers’ family members if they did not comply with demands. 

“The Wage and Hour Division is engaged in the fight to prevent and identify human trafficking and is committed to ending the exploitation of workers,” said Acting Wage and Hour Division Administrator Jessica Looman. “The Wage and Hour Division works with its partner agencies to combat the crimes employers commit to increase their profits at the expense of the dignity, respect and, in many cases, freedom of workers.  The Wage and Hour Division is determined to end the cycle of fear and intimidation.”

As part of the national action plan, the division is offering its investigators increased training on human trafficking nationwide. Training will enhance their ability to identify the indicators of human trafficking and make referrals to criminal enforcement agencies. In addition, offices will seek opportunities to engage actively with local human trafficking task forces and partners on the ground who have longstanding relationships with communities at risk.

To raise awareness of the issue, the division’s Southeast region will host a virtual roundtable on Jan. 31 with stakeholders combating human trafficking to discuss the prevalence and indicators of labor trafficking in the agriculture industry. The event will take place from 1 to 2 p.m. EST. Participation is free, but advance registration for this virtual roundtable is required.

Register to attend the virtual roundtable on human trafficking.

For more information about H-2A, MSPA, 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.

VACAVILLE, CA – A U.S. Department of Labor investigation has found that – despite their hard work and long hours – a Northern California roofing and solar panel contractor denied 385 workers overtime wages by paying them on a piece-rate basis regardless of how many hours they worked.

The department’s Wage and Hour Division found JAJ Roofing – operating as Citadel Roofing & Solar in Vacaville – violated the Fair Labor Standards Act when it failed to pay installers overtime pay when they worked more than 40 per week, as the law requires. Investigators determined employees who were paid piece-rate wages worked an average of 47 hours per week, though company payroll records showed only 40 per week.

As a result of the investigation, the division recovered $845,090 in unpaid overtime wages for 385 workers. Due to the willful nature of the violations, the division also assessed $319,550 in civil money penalties against Citadel Roofing & Solar – the second highest amount of civil money penalties ever assessed by Wage and Hour’s Western region.

“The willful disregard of the law by Citadel Roofing & Solar hurt hundreds of workers and made it harder for these workers and their families to make ends meet. The company is now facing the costly consequences of their actions,” said Wage and Hour Division Acting Administrator Jessica Looman. “These installers work hard and are exposed to the elements throughout their workday. They deserve our respect and every dollar they are legally due. Employers who fail to record hours of work accurately to avoid paying overtime will be held accountable.”

Based in Vacaville, Citadel Roofing & Solar designs, installs, maintains and repairs roofs, solar energy systems and energy storage systems, and serves residential and commercial customers in Northern, Central and Southern California. It has service locations in Sacramento, Davis, Santa Rosa, Fresno and Santa Clarita.

Compliance in the construction industry is a priority for the division.  Since January the Wage and Hour Division concluded over 2150 investigations in the construction industry, finding nearly $32 million in back wages for over 17,300 workers.

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