Indiana employer pays $154K in back wages to workers with disabilities at Jeffersonville non-profit industrial work center

News Release

Indiana employer pays $154K in back wages to workers with disabilities at Jeffersonville non-profit industrial work center

New Hope Services failed to follow requirements for sub-minimum wage program

JEFFERSONVILLE, IN – About one-third of adults with moderate disabilities participate in the workforce. A unique federal program allows these workers to make meaningful workforce contributions with employers allowed to pay a sub-minimum wage as long as they meet all program requirements. These employers must also provide the workers with job and life skills training designed to help them lead lives that are more independent and contribute to the economy.

An investigation by the Wage and Hour Division of the U.S. Department of Labor found that New Hope Services, a non-profit industrial work center that hires workers with disabilities, failed to ensure workers with disabilities received required job and career training.  As a result, the employer could no longer pay sub-minimum wages, and should have paid the workers the full federal minimum wage of $7.25 for every hour of work. The investigation led to the recovery of $154,443 in minimum wages for 74 workers.

“Employers who qualify for the sub-minimum wage program have a moral and legal obligation to provide the career and skills training to qualified workers as required,” said Wage and Hour District Director Patricia Lewis in Indianapolis. “Encouraging employment of adults of all abilities has a positive impact on the lives of these workers and our nation’s economy, but it must be done legally.”

Employees in New Hope Services’ vocational training program are paid a pro-rated minimum wage based upon the number of pieces or tasks completed within a specific timeframe. The vocational training program teaches employees skills such as staying on task, following directions and socializing at appropriate times.

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.

Agency
Wage and Hour Division
Date
February 10, 2022
Release Number
22-63-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Were you a Puerto Rico Police Department officer between 2010 and 2014? US Department of Labor may have back wages you’re owed

News Release

Were you a Puerto Rico Police Department officer between 2010 and 2014? US Department of Labor may have back wages you’re owed

287 former employees affected by $8.7M court decision remain unfound

SAN JUAN, PR – The U.S. Department of Labor is seeking 287 former or current officers of the Puerto Rico Police Department, who worked for the department between June 13, 2010, and Aug. 31, 2014, and are owed back wages as part of a 2016 federal court order.

The order requires the Puerto Rico Police Department to pay $8,732,386 in back wages and interest to 2,642 current and former police officers in eight annual installments through 2024. The police department has delivered the back wages to most of these workers. However, the department was unable to contact 287 of the affected employees.

The U.S. Department of Labor’s Wage and Hour Division is now responsible for distributing these back wages and wants these employees to know that they can still claim their back wages. Even if employees received some installment payments, the Wage and Hour Division may have additional funds to distribute.

“While the Wage and Hour Division is determined to deliver back wages to the workers who earned them, sometimes we cannot find them. If we cannot do so, then by law, the uncollected funds will become property of the U.S. Department of the Treasury,” said Wage and Hour Division Caribbean District Director José R. Vázquez in Puerto Rico. “We encourage these workers to contact the Wage and Hour Division at 787-775-1947 or use our online search tool, Workers Owed Wages, in either Spanish or English to find out if they are owed back wages. When using the Workers Owed Wages system, please use the search term “PR Police.””

View how WOW works in English                            View how WOW works en Español

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.

Lea el comunicado de prensa en Español.

Note to Editors: Wage and Hour Division Caribbean District Director José R. Vázquez is available for news media interviews to discuss the back wage search and the Workers Owed Wages tools. Contact fitzgerald.edmund@dol.gov and lally.james.c@dol.gov.

Agency
Wage and Hour Division
Date
February 10, 2022
Release Number
22-82-NEW
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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US Department of Labor recovers $26K in back wages for 16 workers after Flagler Beach restaurant violates federal labor laws

News Release

US Department of Labor recovers $26K in back wages for 16 workers after Flagler Beach restaurant violates federal labor laws

Johnny D’s Beach Bar & Grill kept employee credit card tips to fund shortages

FLAGLER BEACH, FL – A Flagler Beach bar and grill’s decision to keep portions of employees’ credit card tips to cover cash drawer shortages and customer walkouts voided their ability to receive a tip credit and pay each affected worker less than the full federal minimum wage.

As a result, the U.S. Department of Labor’s Wage and Hour Division found Johnny D’s Beach Bar & Grill responsible for paying these workers the full minimum wage. The agency also found the employer paid overtime at improper rates. The employer’s actions violated the Fair Labor Standards Act.

The division’s investigation led to the recovery of $26,645 in back wages for 16 workers.

In the course of its investigation, the division learned that Johnny D’s allowed a 17-year-old worker to clean a dough mixer, an FLSA violation of occupations banned for minor employees under the age of 18. The employer also failed to keep an accurate record of the date of birth for the minor employee. The agency assessed the employer a $1,864 civil money penalty to address the violations.

“The Fair Labor Standards Act specifies what employers can and can’t do with tips their workers earn in return for good service. When they disregard these rules, as Johnny D’s Bar & Grill did, the outcome can be costly,” said Wage and Hour Division District Office Director Wildalí De Jesús in Orlando, Florida. “We encourage employers with tipped workers to review their pay practices to ensure compliance, and to contact us with any questions they have to avoid violations.”

In order to address child labor violations in the restaurant industry, the Southeast Region is hosting a special lunch and learn webinar for employers, minor-aged workers and their parents, school representatives and other interested stakeholders on Thursday, February 10th from 12 p.m. to 1 p.m. EST. Participation is free, but registration is required.

The Wage and Hour Division encourages employers and workers to contact the agency directly with questions or use free, online resources to understand their workplace responsibilities and rights, including fact sheets such as Deductions from Wages under the FLSA. Individuals can call the division confidentially with questions regardless of their immigration status. The department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243)

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.

Agency
Wage and Hour Division
Date
February 10, 2022
Release Number
22-132-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor finds South Carolina fast food restaurants endangered minor employees, violated their work hours limits

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US Department of Labor finds South Carolina fast food restaurants endangered minor employees, violated their work hours limits

Violations found at Subway, Popeyes, Burger King, Frodo’s locations

COLUMBIA, SC – Operators of four well-known fast food restaurant locations illegally employed workers under the age of 18 at hours and in occupations that jeopardized their safety, a series of investigations by the U.S. Department of Labor has found.

Part of a cross-regional food services initiative in the Southeast by the department’s Wage and Hour Division, the investigations identified violations by operators of Subway, Popeyes Louisiana Kitchen, Burger King and Frodo’s Pizza locations across the state.

“Restaurant industry employers must understand and comply with child labor laws concerning hours and occupations,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “Child labor laws exists to ensure that young workers gain valuable workplace experience, but not at the expense of their education or safety. Industry employers, workers and their parents should contact us with their questions about youth employment laws. The kinds of violations found in these South Carolina investigations – and the penalties associated with them – could have been avoided.”

Investigators found the following violations of the child labor provisions of the Fair Labor Standards Act:

  • Subway:
    • Harvey Restaurant Co., operator of two Greenville locations and two in Travelers Rest, allowed 13 minor employees between the ages of 14 and 15 to work past 9 p.m. during summer months. The division assessed the employer a $4,491 civil money penalty.
    • Pleasantway Inc., operator of two Greenville locations and one in Greer, allowed five 15-year-old employees to work past 7 p.m. between Labor Day and June 1. Four of these minors were also employed in prohibited baking activities. The division assessed the employer a $4,902 civil money penalty.
  • Burger King:
    • Carolina Franchise Holdings LLC, operator of 36 Burger King franchise locations in the Carolinas, Georgia and Florida, allowed two 15-year-old employees to work more than 18 hours per week during school weeks at a Newberry location. The division assessed the employer a $1,382 civil money penalty.
  • Popeyes Louisiana Kitchen:
    • PLC Dev Group LLC, operator of nine franchises in South Carolina and one in North Carolina, allowed three 15-year-old employees to work more than 18 hours per week during school weeks at South Carolina establishments in Seneca, Columbia and Mauldin. The division assessed the employer a $2,073 civil money penalty. Investigators also determined that PLC Dev Group clocked out some employees automatically, while they continued to perform work. The division recovered $2,031 in overtime back wages and liquidated damages for nine workers at South Carolina locations in Anderson, Boiling Springs, Columbia, Mauldin and Greer.
  • Frodo’s Pizza:
    • FPI Inc., operator of a Greenville location, allowed three 16-year-old employees to work as delivery drivers. Federal law prohibits minors from operating motor vehicles as part of their occupation. The division assessed the employer a $3,006 civil money penalty.

In fiscal years 2020 and 2021, the Wage and Hour Division’s Southeast region found child labor violations in more than 190 food service employers investigated, resulting in more than $1 million in penalties assessed to employers.

The Southeast Region is hosting a lunch and learn webinar, Feb. 10 from 12 p.m. to 1 p.m. EST. This event provides an opportunity for participants to learn more about federal laws governing youth employment. Participation is free, but registration is required. Get information about protections for young workers on the department’s YouthRules! website. 

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.

Agency
Wage and Hour Division
Date
February 9, 2022
Release Number
22-127-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers 42K in back wages, liquidated damages for six Northern California restaurant workers after investigation

News Release

US Department of Labor recovers 42K in back wages, liquidated damages for six Northern California restaurant workers after investigation

Taqueria Guadalajara owners in Davis, Woodland found in violation of federal law

SACRAMENTO, CA – Federal investigators found that the owners of three northern California restaurants willfully denied a cook and five other workers overtime wages for hours over 40 in a workweek.

The U.S. Department of Labor’s Wage and Hour Division found that the ownership group of RMN Inc., SRMNR Inc. and MRN Inc. – joint owners of two restaurants operating as Taqueria Guadalajara and one as Taqueria Guadalajara Grill – failed to maintain accurate employee records, and did not combine hours worked across multiple locations. By doing so, they incurred overtime violations when employees worked more than 40 hours per week. Their actions violated the Fair Labor Standards Act.

“The pandemic clearly demonstrated that restaurant workers are essential, frontline workers. Many are also among the lowest-paid workers in our economy. When a restaurant employer shortchanges their workers, it hurts them and their families,” said Wage and Hour Division District Director Cesar Avila in Sacramento, California. “We encourage all employers to review their pay practices and to contact us for information about how to avoid violations like those found in this case.”

The division’s investigation led to the recovery of $42,496 in back wages and liquidated damages to six workers after the employer failed to pay them overtime wages as the Fair Labor Standards Act requires. In addition, the division also assessed $4,230 in penalties for the employer’s willful violations.

In fiscal year 2021, the Wage and Hour Division recovered more than $31.7 million in back wages for workers in the food service industry.

The division enforces the law regardless of a worker’s immigration status and can speak confidentially with callers in more than 200 languages. 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.

 

Agency
Wage and Hour Division
Date
February 9, 2022
Release Number
22-189-SAN
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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Federal court orders New Jersey company, co-managers who deliberately denied workers’ overtime wages to pay $711K to 89 workers

News Release

Federal court orders New Jersey company, co-managers who deliberately denied workers’ overtime wages to pay $711K to 89 workers

Defendants assessed more than $16K in penalties, interest for willful violations

UNION, NJ – A federal court in New Jersey ordered an electrical and heating, ventilation and air conditioning company based in Union, and its two co-managers, to pay 89 electricians, electrician helpers and HVAC technicians after a U.S. Department of Labor investigation found the defendants deliberately denied overtime.

In a consent judgment in the U.S. District Court for the District of New Jersey, the court ordered FTR Electrical and Mechanical Contractors Inc. – operating as FTR Electrical & HVAC Services – the company’s part-owner, President Antonio Goncalves, and company Vice President Francisco Carmo to pay $711,694 in back wages and liquidated damages to the affected workers. The court also ordered the employer and its co-managers to pay $16,450 in civil money penalties and interest to the department for their willful violations of the Fair Labor Standards Act.

The court’s action follows an investigation by the department’s Wage and Hour Division into the employer’s pay practices and litigation by the Office of the Solicitor. The division found that the defendants willfully violated the FLSA when they did the following:

  • ­­­Paid employees straight-time for hours worked over 40 per week.
  • Required employees to work off the clock and did not pay them for all hours worked.
  • Required employees to clock in when they started work each workday, but directed them not to clock out when they finished working at the end of each workday.
  • Paid employees for a maximum of eight hours each workday, regardless of how many hours employees actually worked each day.
  • Failed to pay additional wages to employees who regularly worked more than eight hours each workday, resulting in workweeks longer than forty hours.
  • Failed to maintain accurate records of employees’ hours worked and total wages paid.

“The company and its co-managers intentionally denied overtime wages to employees and deprived them of their basic right to the wages they earned for the hard work they provided,” said Wage and Hour Division District Director Paula Ruffin, in Mountainside, New Jersey. “We encourage employers to reach out to us and to use the many tools we provide to help them understand their responsibilities under the law. The consequences of non-compliance with federal labor laws can be serious and expensive.”

“The U.S. Department of Labor will hold violators like FTR Electrical and Mechanical Contractors legally accountable to protect law-abiding employers against those who attempt to game the system and gain an unfair competitive advantage,” said Regional Solicitor Jeffrey Rogoff in New York. “We will pursue all appropriate and effective legal remedies, including securing liquidated damages for workers in addition to back wages.”

In addition to requiring payment of the back wages, liquidated damages, penalties and interest, the consent judgement enjoins the defendants from future violations of the FLSA’s overtime and recordkeeping requirements.

The division’s Northern New Jersey District Office conducted the investigation. Senior Trial Attorney Susan Jacobs with the department’s regional Office of the Solicitor in New York litigated the case.

Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

For more information about the FLSA and other laws enforced by the 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.

Agency
Wage and Hour Division
Date
February 8, 2022
Release Number
22-123-NEW
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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Indiana home healthcare provider ordered to pay $432K in back wages, damages to 171 caregivers following US Department of Labor investigation

News Release

Indiana home healthcare provider ordered to pay $432K in back wages, damages to 171 caregivers following US Department of Labor investigation

Employer shorted workers’ pay by failing to combine hours worked at 2 related businesses

INDIANAPOLIS – An Indianapolis employer assigned home healthcare workers to shifts at two related companies but failed to combine the hours, denying them earned overtime pay when they worked more than 40 hours per week for the same employer.

Under terms of a consent judgment, a federal court ordered Timothy Paul, owner of both Heal at Home LLC and TPS Caregiving LLC – operating as Comfort Keepers – to pay $215,859 in overtime back wages and an additional $216,938 in liquidated damages and interest to 171 workers. In the decision issued, Jan. 20, 2022, Judge Sarah Evans Barker also enjoined the employer from violating the Fair Labor Standards Act in the future.

The U.S. Department of Labor’s Wage and Hour Division found that the employer violated the FLSA when it issued workers separate checks at “straight time” for hours worked at each facility when it should have combined hours and paid overtime at time and one-half employee’s rate of pay when employees exceeded 40 hours a week.

“When an employer assigns workers to multiple facilities they must combine all hours worked and pay earned overtime. By failing to do so, they deny workers the wages they have rightfully earned,” said Wage and Hour District Director Patricia Lewis in Indianapolis. “Home healthcare workers provide their clients with skills that are essential to their well-being and dignity. Their employers have an obligation to compensate these workers all their hard-earned wages.”

For more information the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The Wage and Hour Division can answer calls 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.

United States District Court, Southern District of Indiana

No. 1:21-cv-02160-SEB-TAB

Agency
Wage and Hour Division
Date
February 8, 2022
Release Number
22-149-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor recovers $47K in back wages for 30 workers after investigation finds Miramar Beach restaurant violated law

News Release

US Department of Labor recovers $47K in back wages for 30 workers after investigation finds Miramar Beach restaurant violated law

Mezcal Mexican Grill failed to pay overtime to bartenders, servers

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.

Agency
Wage and Hour Division
Date
February 4, 2022
Release Number
22-121-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor announces plans to hire 100 investigators to support its Wage and Hour Division’s compliance efforts

News Release

US Department of Labor announces plans to hire 100 investigators to support its Wage and Hour Division’s compliance efforts

Division seeks to build out enforcement team nationwide

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.

Agency
Wage and Hour Division
Date
February 1, 2022
Release Number
22-171-NAT
Media Contact: Edwin Nieves
Phone Number
Media Contact: Grant Vaught
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Investigation recovers $97K in back wages, damages for 330 workers after US Department of Labor finds violations at 11 frozen yogurt franchise locations

News Release

Investigation recovers $97K in back wages, damages for 330 workers after US Department of Labor finds violations at 11 frozen yogurt franchise locations

Menchie’s Frozen Yogurt stores’ operator also assessed $19,736 in penalties for willful violations

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:

Location

City

State

Location

City

State

14865 Main St.

Bellevue

WA

14024 SE Petrovitsky Road

Renton

WA

21210 WA-410

Bonney Lake

WA

4502 S Steele St.

Tacoma

WA

1409 S 348th St.

Federal Way

WA

7902 NE 6th Ave.

Vancouver

WA

2902 164th St.

Lynnwood

WA

12325 SW Horizon Blvd.

Beaverton

OR

10306 156th St.

Puyallup

WA

8950 SE Sunnyside Road

Clackamas

OR

830 N 10th St.

Renton

WA

 

 

 

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.  

Agency
Wage and Hour Division
Date
February 1, 2022
Release Number
22-102-SEA
Media Contact: Michael Petersen
Media Contact: Jose Carnevali
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