GRAND RAPIDS, MI – Every day, millions of careworkers tend to the vital needs of people in communities nationwide. They work long hours and put themselves at risk amid the pandemic, yet they are among the nation’s lowest paid workers. Their jobs are made even more difficult when employers fail to pay them all their rightfully earned wages.

Recent investigations by the U.S. Department of Labor’s Wage and Hour Division recovered $259,647 for 330 workers of two West Michigan employers whose pay practices denied the workers their full overtime wages and violated the Fair Labor Standards Act.

At the Dobie Road-Ingham County Medical Care in Okemos, the division found the employer violated the  FLSA’s overtime requirements for healthcare workers when it paid overtime after 12 hours per day instead of after 8 hours in day and 80 hours in a two-week pay period, whichever is greater. The investigation led to the recovery of $235,742 for 305 workers at the long-term residential and rehabilitation facility.

In Muskegon, at the main office of Martell & Company Home Care and Assistance LLC, investigators found the employer paid straight time instead of time-and-a-half the required rate of pay after 40 hours in a workweek. The employer also failed count spent traveling between worksites as hours worked and compensate workers for that time. Both actions led the division to assess overtime violations, and to recover $23,905 for 26 home healthcare workers in Muskegon and Martell & Company’s Grand Rapids branch office.

“Today’s commemoration of National Caregivers Day reminds us of the important work that the nation’s healthcare workers do for us and for the community as a whole,” said Wage and Hour Division District Director Mary O’Rourke in Grand Rapids, Michigan. “We owe these workers our gratitude and the Wage and Hour Division will hold accountable those employers who fail to pay employees their fair and rightfully earned wages.”

“Failure to pay overtime accurately is a common violation, especially in healthcare. These practices can affect an employer’s ability to recruit and retain needed workers. When workers are not paid the wages they have earned, especially under the stresses caused by the pandemic, they may look for work elsewhere.”

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.

“Healthcare workers are in great demand and facing record burnout,” added O’Rourke. “Healthcare employers whose pay practices comply with the law have a competitive advantage when it comes to attracting and retaining workers. Employers unsure about their legal obligations should contact the U.S. Department of Labor to prevent costly violations and be able to compete as an employer.”

From 2019 to 2021, the Wage and Hour Division recovered $3.5 million for Michigan’s healthcare workers.

The department’s essential workers, essential protections initiative focuses resources on educating essential care workers and their communities about their rights to minimum wage and overtime pay and how to file a complaint if they believe their rights have been violated. The initiative also targets misclassification of workers as independent contractors, an illegal practice that may deprive workers of legally earned wages, and other protections.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Calls can be received confidentially in over 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.

Employers’ names:   Schuetz Enterprises Inc., operating as Regency Home Care Georgia
1750 Old Spring House Lane
Atlanta, GA 30338

Edlyn Healthcare Services Inc.
1755 N. Brown Road, Ste. 200
Lawrenceville, GA 30043

Investigation site:      Atlanta

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators identified overtime violations by the two Atlanta home healthcare providers. The two employers combined failed to pay overtime to 108 workers when they worked more than 40 hours in a workweek. Regency Home Care Georgia paid its caregivers straight time for overtime hours by reducing the hourly pay rate when workers exceeded 40 hours in a workweek. Edlyn Healthcare Services Inc. paid its workers straight-time rates for overtime hours, instead of time-and-one-half rates.  These actions violated the Fair Labor Standards Act’s overtime violations.

Back Wages Recovered:       $228,464 for 61 workers at Regency Home Care Georgia

$127,084 for 47 workers at Edlyn Healthcare Services

“While they provide essential services to people in need, home healthcare workers are among our nation’s lowest wage earners. Their employers must pay them all of the wages they have legally earned,” said Wage and Hour District Director Steven Salazar in Atlanta. “Violations like those committed by Regency Home Care Georgia and Edlyn Healthcare Services are all-too-common in the home healthcare industry. Employers can easily avoid these violations by contacting a local Wage and Hour Division office for technical assistance.”

Background: Edlyn Healthcare Services Inc. and Schuetz Enterprises Inc. provide companionship and other services to individuals with disabilities. 

The U.S. Department of Labor is working to protect the country’s professional caregivers through an ongoing education, outreach and enforcement initiative to ensure their employers pay them their rightful wages and honor all protections afforded them by law.

Learn more about Wage and Hour Division.

MANCHESTER, NH – A recent investigation by the U.S. Department of Labor’s Wage and Hour Division found Dos Amigos Burritos LLC, a Concord restaurant operator, improperly included managers in its tip pool. The investigation led to the recovery of $61,788 in tips and liquidated damages for 39 employees to rectify the violation and compensate them properly.   

The department published a final rule, “Tip Regulations under the Fair Labor Standards Act”, effective April 30, 2021. Under that rule, an employer cannot keep employees’ tips under any circumstances; managers and supervisors also may not keep tips received by employees, including through tip pools. This prohibition applies even if tipped workers are paid hourly at rates equal to or above the full minimum wage. 

“Tipped workers in the food services industry rely on their hard-earned tips to make ends meet. Restaurant employers must understand that keeping workers’ tips or diverting a portion of these tips to managers or supervisors in a tip pool is illegal,” said Wage and Hour Division District Director Steven McKinney in Manchester, New Hampshire. “To avoid costly mistakes, like those found in this investigation, employers should contact us to discuss their responsibilities.”

The division’s investigation also identified three 15-year-old minors working in violation of the FLSA’s child labor hours restrictions at Dos Amigos Burritos’ Portsmouth, New Hampshire, location. The restaurant allowed employees under 16 years of age to work more than five hours on a school day and as late as 10 p.m. The employer paid $2,073 in civil money penalties to resolve these child labor violations.

The FLSA limits the hours youth under the age of 16 can work in non-agricultural occupations and outside of school hours to no more than 3 hours on a school day or 8 hours on non-school days; no more than 18 hours in school weeks or 40 hours in non-school weeks; not prior to 7 a.m. or after 7 p.m., except between June 1 through Labor Day when evening hours are extended to 9 p.m.

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, restaurant employment and restaurant workers, or 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 a search tool to use if you think you may be owed back wages collected by the division.

DES MOINES, IA – The U.S. Department of Labor recovered $125,000 in back wages for 34 workers after an investigation found a subcontractor paid workers the incorrect prevailing wage rate. The employer paid workers the pipe layer rate when they performed plumbing work on a U.S. Department of Housing and Urban Development apartment project under federal contract in Des Moines.

The department’s Wage and Hour Division determined that Ja-Ra Inc. – operating as AJ Plumbing in Des Moines – a subcontractor on the Nexus at Gray’s Landing LLC National Housing Act project, violated the Davis Bacon and Related Acts and the Fair Labor Standards Act.

In consent findings filed with the Office of Administrative Law Judges in Boston, workers will receive $106,000 in back wages from funds issued under the U.S. Housing and Urban Development contract and currently held by the Wage and Hour Division.

Additionally, in a consent judgment filed in the U.S. District Court for the Southern District of Iowa, AJ Plumbing will pay 27 of the 34 employees $19,000 in overtime back wages for violations of the Fair Labor Standards Act. Investigators found the company provided time off in lieu of overtime pay to employees who worked over 40 hours in a workweek. Federal law requires overtime be paid at a rate of time and one-half the employees’ rate of pay. AJ Plumbing agreed to future compliance with federal labor law as part of the judgment.

“Enforcement of prevailing wage laws ensures that federal contracting does not depress local wages, that workers receive the wages they are due, and that responsible, law-abiding contractors are able to compete for federal contracts,” explained Wage and Hour Division District Director Marcy Boldman in Des Moines, Iowa. “Federal contractors must be certain that they and their subcontractors pay employees working on federal projects the accurate prevailing wage rates and fringe benefits and correctly calculate all pay due. The Wage and Hour Division will remain vigilant in its enforcement of prevailing wage laws.”

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.

# # #

U. S. Department of Labor, Office of Administrative Law Judges, Washington, D.C.

Case: No. 2020-DBA-00004

U.S. District Court, Southern District of Iowa, Central Division

Civil Action File No.: 4-20-cv-64

KEVIL, KY – Twenty-three employees of three Kentucky gas stations and convenience stores are now being paid for all the wages they earned after a U.S. Department of Labor investigation found their employer violated the law by willfully sidestepping required overtime wages owed.

The department’s Wage and Hour Division investigators found Doloma Corp. – operating as Indian Hills #6 in Arlington and Indian Hills #1 in Wickliffe – and Parth Corp. – operating as Indian Hills #3 in Kevil – paid only straight-time wages when employees worked more than 40 hours in a workweek. The employer paid workers by check for their first 40 hours, then paid straight-time wages in cash for all the hours worked over 40 in that workweek. By doing so, the employer denied workers the required additional half-time rate for overtime hours. The employer also failed to maintain an accurate record of hours the employees worked. Their practices violated the Fair Labor Standards Act.

The investigation led the division to recover $10,618 in back wages and liquidated damages for the workers, and assess Doloma Corp. with a $16,703 civil money penalty to address its willful violations. The review also found the employer owed $555 in back wages to an employee who they wrongly denied emergency paid sick leave while the worker self-quarantined after contracting coronavirus. The refusal to pay the employee emergency sick leave violated the Families First Coronavirus Response Act.

“The Wage and Hour Division prioritizes low wage workers and stands ready to protect them from employers who attempt to shortchange their wages,” said Wage and Hour Division Acting District Director Richard Blaylock in Louisville, Kentucky. “Employers who do so make it difficult for workers to provide for themselves and their families. These employers also gain an unfair and illegal business advantage over other industry employers.”

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 – 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.

DALHART, TX – Each year, hundreds of agricultural workers enter the U.S. with an H-2A visa and make the long trip toward the Texas Panhandle’s far northwest corner. In the small town of Dalhart at Larsen Farms – a sprawling potato farm operated by one of the nation’s largest growers – they work under an open sky, some spending long days in the hot sun harvesting the crop and repairing farm equipment while others keep warehouses operating.

A recent U.S. Department of Labor investigation found the farm’s operator, Blaine Larsen Farms Inc. failed to pay workers with H-2A visas, in addition to workers from the U.S., all of the wages they are legally due. Specifically, the department’s Wage and Hour Division found Larsen Farms failed to pay warehouse workers time and one-half of their regular rate of pay when they worked more than 40 hours in a workweek as required by the Fair Labor Standards Act.

Investigators also determined Larsen Farms violated the H-2A provisions of the Immigration and Nationality Act by providing incomplete pay statements to H-2A workers and allowing drivers to transport workers without the proper license. They also found that the employer violated the Occupational Safety and Health Administration’s temporary labor camp standards  by failing to properly report communicable disease after an outbreak of coronavirus at the farm.

The investigation led to the recovery of $1,345,960 in back wages for the warehouse workers, and assessment by the division of $10,900 in civil money penalties to the employer for violating the law.

This investigation is the latest in a series of departmental actions related to Larsen Farms. Following a joint racketeering and fraud investigation with the Department of Homeland Security, the department’s Office of the Inspector General’s Office of Labor Racketeering and Fraud Investigations filed a criminal complaint in July 2020 alleging a company manager demanded that workers from Mexico pay as much as $1,500 each to get work visas. In August 2020, OSHA opened investigations at two other Texas farms operated by Blaine Larsen Inc. after COVID-19 infections killed two farmworkers amid allegations that federal workplace safety requirements were ignored.

“The pandemic highlighted the essential contributions agricultural workers – including workers in the H-2A visa programs – make every day to feed the nation and support our economy. In return for their hard work, they must be paid all of their wages and protected from workplace hazards,” said Acting Wage and Hour Administrator Jessica Looman. “The Wage and Hour Division found that Blaine Larsen Inc. failed to meet its legal obligations, and the Office of the Inspector General determined that the employer subjected its workers to discrimination and intimidation when they asserted their rights. These actions will not be tolerated, and the agency will use all available tools to hold the employer accountable.”

One of the nation’s largest potato growers, Blaine Larsen Inc. is based in Idaho Falls, Idaho. Its operations serve retail and food service customers worldwide.

For more information about the H-2A visa program, 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. 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.

Employer name:        Lubbock Essential Home Health Care Inc., operating as Essential Home Health

Investigation site:      Lubbock, Texas

Investigation findings:  Fair Labor Standards Act overtime violations were found when the employer paid 71 workers – most working as health aides – straight time for all hours worked instead of time and one-half the employees’ hourly rate of pay, as the law requires in this case.

Back wages recovered:     $137,838 ($68,919 and an equal amount in liquidated damages)

“Home health workers are essential healthcare workers who perform vital care for people in need and often work long hours. These workers must be paid time-and-a-half for hours worked over 40,” said Wage and Hour District Director Evelyn Ortiz in Albuquerque, New Mexico. “Employers must understand Fair Labor Standards Act requirements to avoid overtime violations, such as in this case.”

WASHINGTON – The historic investment in our nation’s aging infrastructure made possible by the Bipartisan Infrastructure Law – signed by President Biden on Nov. 15, 2021 – will have a significant impact on those involved in federal construction contracts. 

Since most of the projects funded or assisted through the Bipartisan Infrastructure Law will be subject to Davis-Bacon prevailing wage labor standards, construction workers on these projects must be paid at least the locally prevailing wage and fringe benefits required for the work they perform.

“Each year, the worker protections of the Davis-Bacon and Related Acts apply to roughly $217 billion in federal and federally assisted construction projects, ensuring local prevailing wages are paid to approximately 1.2 million U.S. construction workers,” explained Acting Wage and Hour Division Administrator Jessica Looman. “We are excited that these worker protections will be available to even more workers because of the unprecedented investment in infrastructure made possible by Bilateral Infrastructure Law.”

To assist contracting agencies, contractors, unions, workers and other stakeholders in understanding and meeting Davis-Bacon compliance requirements, the U.S. Department of Labor’s Wage and Hour Division will present an interactive webinar, “Davis-Bacon Labor Standards for Infrastructure Projects,” on Feb. 28 and March 1, 2022. Participants may register for either date.

“By reaching out to contractors, contracting agencies, stakeholders and workers, we can help ensure they understand their responsibilities,” Looman added. “When government promotes fair competition and ensures fair wages, our economy works for everyone.”

The webinar will offer an overview of the Davis-Bacon compliance requirements followed by a Q&A session. Participants will be able to submit questions in advance or during the webinar. Attendance is free, but registration is required. Register for the webinar at Eventbrite. Upon registration, additional information – including the links to video trainings and virtual Q&A session dates – will be provided.

This event is the latest in the Wage and Hour Division’s ongoing efforts to increase awareness and improve compliance with federal prevailing wage requirements among employers performing work on federally funded construction or services contracts.

For more information on Davis-Bacon compliance with Bilateral Infrastructure Law, the Davis-Bacon Act, the Service Contract Act, and other federal wage laws, please call the department’s toll-free helpline at 1-866-4US-WAGE (487-9243) or visit the Wage and Hour Division online.

TURLOCK, CA – Too often, federal investigators find foreign-born workers brought to the U.S. fail to receive the rights and protections they are legally due. Employers don’t pay them as the law requires, and transport them in unsafe vehicles and house them in overcrowded – and sometimes hazardous – conditions. Employers who exploit these workers gain an unfair advantage over industry competitors and lower standards for domestic workers.

A recent investigation by the U.S. Department of Labor found numerous violations of the H-2A agricultural worker program by Roberto Perez Farms and Perez Bros Farms Inc. in Turlock. Investigators with the department’s Wage and Hour Division found the employers:

• Illegally rejected domestic workers.
• Failed to pay the required H-2A rate to workers hired alongside H-2A visa workers.
• Did not provide H-2A workers with at least three-quarters of the work hours guaranteed on their contracts, and pay them the wages the program requires.
• Failed to reimburse H-2A workers for inbound and outbound transportation, visa and border crossing fees, as the law requires.
• Made illegal deductions from pay.
• Failed to maintain complete records, as required.

The division also determined that the employers transported workers in unsafe vehicles with bald tires and inoperable lights, and housed workers in unsafe and overcrowded conditions. Investigators also found Roberto Perez Farms and Perez Bros Farms Inc. failed to disclose all conditions of employment, provide wage statements to workers and pay wages when due, all violations of the Migrant and Seasonal Agricultural Worker Protection Act.

The investigation recovered $82,616 in back wages for 92 workers and led the department to assess $36,765 in civil money penalties against the two California agricultural employers for multiple violations of the H-2A guest worker program.

“Agricultural employers violate basic labor laws when they reject domestic workers and instead use, abuse and steal the hard-earned wages and limited funds of guest workers,” said Wage and Hour Division District Director Cesar Avila in Sacramento. “These violations are all too common in the agricultural industry. The Wage and Hour Division will continue to use every enforcement tool available to hold accountable those taking advantage vulnerable farmworkers and putting their health at risk.”

In fiscal year 2021, the Wage and Hour Division conducted 1,000 investigations of agricultural employers, recovering more than $8.4 million in back wages for 10,000 and assessing $7 million in penalties.

For more information about the H-2A visa program 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.

Lea en Español

BOSTON – An order issued by a federal judge in Massachusetts, has fully granted the U.S. Department of Labor’s motion for summary judgment regarding numerous violations of federal law by a Weymouth restaurant and its owner that deprived workers of their hard-earned wages and tips.

Entered in the U.S. District Court for the District of Massachusetts, the judgment orders Sweet Lemon Inc. – doing business as Sweet Lemons Thai Restaurant – and Pornthip Neampong to pay 13 affected workers $159,899 in back wages and tips, and an equal amount in liquidated damages, plus $25,000 in punitive damages, for a total of $344,798. The court also permanently enjoined the defendants from violating the Fair Labor Standards Act’s overtime, recordkeeping and anti-retaliation provisions in the future.

The court’s action follows a U.S. Department of Labor Wage and Hour Division investigation and litigation by the department’s Office of the Solicitor.

The court determined there was no dispute that Sweet Lemon Inc. and Pornthip Neampong violated the FLSA as follows. The employers:

• Failed to pay employees one and one-half times their rate of pay when they worked more than 40 hours in a workweek.
• Kept all the tips the servers earned.
• Failed to maintain true and accurate records of employees’ work hours and wages.
• Retaliated against workers by having them sign statements containing false information and by interrogating an employee as to whether they spoke with the Wage and Hour Division.

“Sweet Lemon Inc. and Pornthip Neampong disregarded the rights of their essential workers to receive fair pay, and retaliated against employees who asserted their rights and cooperated with a federal investigation,” said Wage and Hour Division District Director Carlos Matos in Boston. “The Wage and Hour Division does not tolerate FLSA retaliation against employees. Employees and employers alike should feel free to contact the Wage and Hour Division to learn about their respective rights and responsibilities under the Fair Labor Standards Act. We suggest other employers review their own pay practices to prevent violations.”

“In this significant victory for restaurant workers, the Secretary of Labor has recovered almost $320,000 in back wages, tips and liquidated damages for 13 employees who were denied the overtime compensation and tips that they worked hard to earn. The court’s decision recognizes that employers who retaliate against employees who assert their rights under the Fair Labor Standards Act may pay the price in punitive damages. In this case, these punitive damages total $25,000. The U.S. Department of Labor is committed to pursuing all necessary legal avenues to obtain proper compensation for employees and deter retaliation and future violations by employers,” said Regional Solicitor of Labor Maia Fisher in Boston.

The Wage and Hour Division’s Boston District Office conducted the original investigation. The Boston Regional Solicitor’s Office litigated the case for 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.

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.

Civil Action No. 20-12217-RGS.