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.

Who:               Wage and Hour Division

What:             Outreach assistance and enforcement action after December 2021 tornadoes

When:             Jan. 24-28, 2022

Where:           Mayfield, Kentucky

Background:  Members of the U.S. Department of Labor’s Wage and Hour Division response team are currently providing in-person assistance in the area where tornadoes in December 2021 caused widespread damage. Team members are reminding workers of their rights, and making sure employers understand their responsibilities when it comes to paying workers properly.

When emergencies and disasters strike, the Wage and Hour Division assists in recovery efforts in the communities affected by severe storms, floods and other disasters by ensuring employees conducting essential recovery work are paid as the law requires. The agency is committed to ensuring that workers in this country are paid properly and for all the hours they work, regardless of immigration status.

The agency also enforces contracts entered in with the federal government to include the Davis Bacon and Related Acts as well as The McNamara-O’Hara Service Contract Act.

Learn more about the Wage and Hour Division. If you feel that you have not been paid correctly or have questions/concerns, you can contact a representative from the agency at 1-866-487-9243 or find your nearest Wage and Hour Division office for assistance.

Employer Name:              Three Rivers Home Care LLC

Employer Address:          3629 Brownsville Road, Pittsburgh 15227

Company Description:     Home health services company

Investigation By:              U.S. Department of Labor

                                           Wage and Hour Division – Pittsburgh District Office

Findings: The division’s investigation found that Three Rivers Home Care failed to pay an overtime premium on sign-on bonuses for 26 home health aides. The bonuses were contingent upon each employee’s continuing employment until the time of payment. The Fair Labor Standards Act requires the bonuses be included in the regular rate of pay for overtime purposes. The employer also failed to maintain daily and weekly totals on the hours worked records, as the law requires.

Back Wages Recovered: $12,469 in back wage, $12,469 in liquidated damages

Quote: “Home health aides provide essential services that allow people with significant needs to remain living at home,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “Our investigation has recovered nearly $25,000 in rightfully earned wages owed to 26 hard-working employees.”

Learn more about the Wage and Hour Division. 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 more information:  Minimum Wage and Overtime Pay for Direct Care Workers

PRINCETON, WV – A federal investigation recovered $270,984 in back wages and liquidated damages for 166 workers of a Princeton skilled nursing care facility. The employer failed to pay proper overtime as required by the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division determined that Princeton Memorial Company – operating as Princeton Health Care Center – failed to pay the proper overtime premium to employees working 12-hour shifts.  Specifically, the employer failed to pay the required overtime when employees worked in excess of 8 hours in any workday and in excess of 80 hours in an established 14-day period, a practice permitted for hospitals and residential care facilities, under certain conditions. Princeton Health also failed to include on-call pay and other bonuses in the calculation of overtime pay. The employer paid bonuses for longevity, recruitment, vacation deferral and hero pay related to the pandemic.

To resolve its violations, Princeton Health Care Center paid $270,984 in back wages and liquidated damages to the affected workers including registered nurses, licensed practical nurses and certified nursing assistant as well as dietary, maintenance and housekeeping/laundry workers.

“Healthcare workers have been and continue to be some of our nation’s most essential workers. We look to them to care for us and our families, and they deserve our appreciation, respect and protection,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “The Wage and Hour Division is committed to ensuring these essential workers, and all workers, are paid all of the wages they have earned.”

Under the FLSA, hospitals and residential care establishments may use a fixed work period of 14 consecutive days in lieu of the 40-hour workweek for the purpose of computing overtime. To use this exception, an employer must have a prior agreement or understanding with affected employees before the work is performed. The Wage and Hour Division’s Health Care Industry and Calculating Overtime Pay factsheet provides guidance to employers on accurate determination of overtime wages.

For more information about the FLSA and other laws the division enforces, 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.

HONOLULU – A Hawaii company that provides security officers to the state’s National Guard, the Hawaii State Arts Museum, Foster Botanical Gardens and other public and private facilities, will pay $1,539,773 in back wages and liquidated damages to 171 guards – and civil penalties – after a federal investigation determined the company denied workers overtime pay illegally.

Investigators with the U.S. Department of Labor’s Wage and Hour Division found Alii Security Systems Inc. of Honolulu established a “voluntary program” that offered guards more work hours if they waived their right to overtime and accepted straight-time pay for all hours worked. The division determined the company intentionally violated the Fair Labor Standards Act’s overtime laws, which requires that most employees be paid overtime pay when they work more than 40 hours in a workweek. 

The division identified $739,886 in back wages and an equal amount in liquidated damaged owed to the workers, and assessed $60,000 in civil money penalties for the willful nature of violations.

“Employers who attempt to evade their legal responsibility to pay workers all of their rightfully earned wages will face costly consequences,” said Jessica Looman, acting administrator of the Wage and Hour Division. “Alii Security Systems Inc. devised a scheme that denied overtime to guards who worked more than 40 hours in a workweek, cheated other guards out of a fair share of work hours, and gained an unfair competitive advantage over others in their industry that abide by the law.”

Owned by company president Sandra Dang, Alii Security Systems Inc. has provided security services in the state of Hawaii since 2003.

In fiscal year 2021, the Wage and Hour Division identified more than $6 million in wages owed for people working 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). 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.              

HARTFORD, CT – The U.S. Marshals Service facilitated the seizure of $126,250 in back wages and liquidated damages and $22,413 in attorney’s fees from the corporate bank account of a New London home healthcare provider after the employers reneged on a payment agreement and defied orders from the U.S. District Court for the District of Connecticut.

The U.S. Department of Labor sued Care at Home and owners Daniel Karp and Suzanne Karp in April 2018 after an investigation by its Wage and Hour Division determined they violated the Fair Labor Standards Act by failing to pay overtime to home healthcare employees and taking improper deductions for food and lodging from employees’ wages.

On Sept. 17, 2021, the court entered a consent judgment ordering the defendants to pay $126,250 in back wages and liquidated damages to 51 employees within 30 days. Previously, on Jan. 7, 2021, the court had ordered defendants to pay $22,413 in attorneys’ fees to the department by Jan. 28, 2021 because of defendants’ actions in the discovery phase of the litigation. In both cases, the defendants failed to make any payments despite the court’s orders and additional notices from the department.

The defendants’ actions led the department to seek and obtain a contempt order against the defendants, fining them $100 per business day until they are no longer in contempt. The department also obtained a writ of execution to authorize removal of the back wages, liquidated damages and attorneys’ fees from the defendants’ corporate bank account. The U.S. Marshals Service carried out the writ at Care at Home’s bank on Dec. 14, 2021. The division will distribute the back wages and liquidated damages to the affected workers.

“The defendants’ failure to pay their workers properly and their repeated refusal to obey court orders are unacceptable and will not be tolerated. The U.S. Department of Labor will not only pursue wages owed to employees up to the point of obtaining a judgment, but also will take appropriate legal steps, when warranted, to hold employers in contempt and seize their assets to satisfy those judgments,” said Regional Solicitor of Labor Maia Fisher in Boston.

“Employers are responsible for ensuring their pay practices comply with federal wage laws and that workers are paid all of the wages that they earn. When employers fail to do so, they risk costly consequences, such as in this case. We encourage employers to contact the Wage and Hour Division to ensure they understand their responsibilities and prevent violations,” said Wage and Hour District Director Donald Epifano in Hartford, Connecticut.

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.

Walsh v. Care at Home, Daniel Karp and Suzanne Karp

Civil Action No.  3:18-cv-711

TAMPA, FL – When three Arcadia citrus farm labor contractors failed to comply with the requirements of the federal H-2A agricultural worker visa program, they shortchanged 123 employees – owing them $72,609 in total wages.

The U.S. Department of Labor’s Wage and Hour Division found that Benjamin M. Ramirez Harvesting Inc., AO Harvesting LLC and Gustavo Cisneros Harvesting Inc. failed to provide H-2A employees with at least three-quarters of the work hours guaranteed on their work contracts, and failed to pay them the wages required by law under the program. The H-2A temporary agricultural program allows agricultural employers to bring nonimmigrant foreign workers to the U.S. legally to perform agricultural labor or services of a temporary or seasonal nature when domestic workers are in short supply.

Investigators found that Benjamin M. Ramirez Harvesting violated the program’s required three-quarters guarantee and owed $30,915 in back wages to 31 employees. The agency also assessed a $1,429 civil penalty for the violation. AO Harvesting violated the same requirement and owed $37,005 in back wages to 38 employees. In that case, the agency also assessed a $1,429 civil penalty for the violation.

Labor contractor, Gustavo Cisneros Harvesting, violated the three-quarters guarantee and also failed to properly reimburse workers for inbound transportation costs as required by law. As a result, the employer paid $4,688 to the 13 employees affected and paid a $1,250 civil penalty assessed by the agency.

“The Wage and Hour Division will continue to protect the rights of essential agricultural workers, both domestic and H-2A visa workers, by conducting robust investigations of labor contractors and grove owners,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “Sadly, these types of violations are all too common in the citrus industry. We urge employers to review the many tools available on our website to understand their obligations and reach out directly to our offices with questions.”

All three employers used the services of Yolanda B. Celaya, an agent with CCH Bookkeeping Inc., and harvested citrus for Alico. Benjamin M Ramirez Harvesting Inc. also harvested for Oakley Groves. These growers sell their citrus to processors including Tropicana and Peace River.

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.

Read this news release En Español.