PHILADELPHIA – By one industry study’s account, more than 290 million cars, trucks, SUVs and vans will be roaming America’s roads in 2022, making the people who maintain and repair these vehicles essential to the nation’s economic stability and growth. Yet, after hundreds of investigations in the auto repair industry in fiscal year 2021, the U.S. Department of Labor has found employers shortchanged thousands of these workers nationwide.

Specifically, the department’s Wage and Hour Division carried out 546 investigations in fiscal year 2021, which recovered more than $4.3 million for 3,564 workers, up from fiscal year 2020 when 442 investigations led to the recovery of $2.9 million for 2,465 workers.

To help protect workers’ rights to their legally earned wages and assist employers in avoiding compliance issues, the division has scheduled a webinar for the industry’s employers, workers, and associations nationwide on Jan. 13, 2022, from 1 to 2:30 p.m. EST.

Part of the division’s “Essential Workers – Essential Protections” initiative, the nationwide virtual event will review worker protections under the Fair Labor Standards Act. Representatives from the division’s New Jersey, South Carolina, and Virginia district offices will lead presentations to educate employers and workers, and assist employers with compliance concerns.

“The U.S. Department of Labor is committed to protecting the rights of all workers,” said Wage and Hour Regional Administrator Mark Watson in Philadelphia. “As we continue our pandemic recovery, we must ensure the essential workers who keep us on the road are paid as the law requires in return for the hard work they do. We encourage workers, employers and other stakeholders to attend this event to learn more about federal wage and hour standards.”

Participation is free, but registration is required. Click here to register.

Learn more about low-wage workers, and the division’s investigations in the industries in which they work.

The Wage and Hour Division offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as an Auto Repair and Maintenance Industry Compliance Assistance Toolkit, online videos and confidential calls to their local offices.

Learn more about the FLSA. Contact the division toll-free at 866-4US-WAGE (487-9243) for more information. Regardless of immigration status, workers can call the division confidentially with questions and the department can speak to callers in more than 200 languages.

DALLAS – Many home healthcare workers performed their jobs heroically in the face of challenges and risks presented by the global pandemic. Yet, their efforts were undercut by industry employers who failed to pay them for the essential, sometimes life-saving work performed. A recent federal investigation found the operators of two related Garland home care agencies underpaid workers in violation of the Fair Labor Standards Act.

A U.S. Department of Labor Wage and Hour Division investigation determined Vital Home Health Care Inc. and Comfort Home Health Care Inc. violated the Fair Labor Standards Act’s minimum wage and overtime requirements by failing to pay employees for all the hours they worked and failing to pay overtime as required. The employer also violated FLSA recordkeeping provisions by failing to record all hours employees worked.

Employees were paid straight time for all hours of work, even when they worked over 40 hours in a work week, a violation of federal overtime regulations. Several employees were paid for scheduled hours and not actual hours worked, leading to FLSA minimum wage and overtime violations.

The investigation led the division to recover $1,218,320 in back wages for 202 workers. 

“The importance of home health care workers to the families they serve cannot be overstated. The Wage and Hour Division protects these essential workers and works tirelessly to ensure they are paid all of the wages they have earned,” said Acting Administrator of the Wage and Hour Division Jessica Looman. “We are also here to help responsible employers who follow the law and encourage them to reach out to us for confidential compliance assistance. 

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.

SANTA FE, NM – In the nation’s third largest market for fine art, industry employers must meet exacting standards to safeguard and transact their clients’ work. Ironically, a recent federal investigation found the operator of a Santa Fe art delivery service was far less careful when it came to paying all of the wages earned by seven of its drivers.

Investigators with the U.S. Department of Labor’s Wage and Hour Division determined that Perro Grande Management Corp., which operates as Art Delivery Service, denied overtime wages to the drivers by paying them either a day rate or per mile, with no additional overtime pay when they worked over 40 hours in a workweek. The division found, by law, the employer should have paid these drivers overtime, and their failure to do so violated the Fair Labor Standards Act.

The investigation led the division to recover $32,044 in overtime back wages and an equal amount in liquidated damages for the seven drivers.

“Perro Grande Management did not pay overtime and, as a result, are dealing with the costly consequences. Employers are responsible to ensure their pay practices comply with federal wage laws and that workers are paid all of their legally earned wages,” said Wage and Hour Division District Director Evelyn Ortiz in Albuquerque. “We encourage employers to contact the Wage and Hour Division to ensure they understand their responsibilities so they may avoid similar violations.”

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.

PETAL, MS – The operator of two Mississippi auto service and repair shops has come into compliance after a U.S. Department of Labor Wage and Hour Division investigation recovered $90,068 in back wages for 33 workers and determined the employer failed to pay them overtime as the law requires.

Investigators found that Paul’s Discount Glass Inc. in Petal and Paul’s Discount Glass & Tire Inc. in Laurel paid auto glass installers and auto mechanics a fixed weekly salary for working 45 hours per week. The employer violated the Fair Labor Standards Act’s overtime provision by not including additional overtime pay for hours worked over 40 in a workweek. In addition, the agency also cited Paul’s Discount for failing to maintain accurate pay records.

“Overtime and other wage violations are all too common among the auto care industry. Employers who fail to comply with the law and pay fair wages wind up hurting the people they depend on most, their employees,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “The Wage and Hour Division will continue to hold all employers accountable when they fail to uphold their obligations to their workers. We are also available to assist any employer who has questions or needs assistance meeting their obligations to their employees.”

The Wage and Hour Division offers additional information, including free resources. The division’s Northeast and Southeast regions will host a webinar, Jan. 13 at 1 p.m. to educate the auto care industry of essential protections for workers. Register for the webinar here.

Learn more about the Fair Labor Standards Act and other laws enforced by the division or contact its toll-free helpline at 866-4US-WAGE (487-9243). Use the division’s free search tool use if you think you may be owed back wages collected by the division.

BELLEVUE, WA – A federal investigation has uncovered overtime pay violations at a Bellevue restaurant that state labor investigators in Washington cited in 2020 for underpaying workers.

The U.S. Department of Labor’s Wage and Hour Division found The Roll Pod failed to pay workers overtime rates when they worked over 40 hours in a workweek, and knowingly disregarded the Fair Labor Standards Act. The employer attempted to evade overtime requirements by paying workers less than they were legally due in the form of a “bonus” when they worked over 40 hours. 

The division’s investigation led to the recovery of $67,699 in back wages found due and an equal amount in liquidated damages for a total of $135,399 for 23 workers. The willful nature of the violations also led to an assessment $1,450 in civil money penalties.

The division’s action follows a 2020 state investigation of The Roll Pod’s pay practices that resulted in state investigators recovering $13,121 in overtime wages back for two of the restaurant’s employees.

“Many restaurant industry employers shortchange vulnerable workers, depriving them of their full earnings and making it difficult for them to care for themselves and their families,” said Wage and Hour Division District Director Thomas Silva in Seattle. “Employers who evade the law, exploit workers and cheat their competitors will be held accountable and face costly consequences for their actions.”

Since 2016, the Wage and Hour Division has conducted more than 2,650 investigations in the drinking and eating establishments industry in the Western Region, recovering $24 million in back wages for more than 15,300 employees.

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 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.

SUGAR HILL, GA – A Sugar Hill landscape company violated requirements of the federal H-2A temporary agricultural worker programs related to hours, wages, transportation costs and work assignments, an investigation by the U.S. Department of Labor determined.

Following the investigation and subsequent lawsuit by the Solicitor of Labor, the department’s Office of Administrative Law Judges ordered Resendiz Pine Straw LLC to pay $136,971 in back wages to 110 workers, and affirmed the assessment of a $39,016 civil money penalty due to the nature of the violations. The order also debars Resendiz from participating in the H-2A program for three years.

Investigators with the department’s Wage and Hour Division found the employer – operating as Resendiz Pine Straw LLC and Tobacco – misrepresented the work location of the employees in the H-2A application and sent some employees nearly 600 miles away to do farm work in Arcadia, Florida, when there was not enough work in Sugar Hill. By doing so, the employer engaged in cost-shifting and failed to provide workers at least three-quarters of the hours of work stated in the original job offer. Resendiz failed to uphold the terms of the H-2A contract regarding pay, duties and housing.   

The division also found Resendiz did not reimburse workers for all their transportation costs as the law requires, failed to provide them with copies of their contracts and deducted time for breaks and lunches illegally. These deductions resulted in underpayment of wages.

“The H-2A visa program allows agricultural employers to hire temporary workers to address labor shortages.  These H-2A workers keep food on our tables, allow agricultural employers to stay in business, and help our communities thrive,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “The hard work done by these men and women is vital to food production and the agricultural community. We encourage any employer with questions about pay practices, hours of work or any of our H visa programs to contact us for guidance.”

H-2A programs govern labor standards for temporary, nonimmigrant workers who come to the U.S. to perform agricultural labor or services of a temporary or seasonal nature. Learn more about the H-2A program and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division.

Read this news release En Español.

NEW YORK – Three Bellport concrete supply and construction companies and their owner, who schemed for three years to deny overtime pay to 99 laborers, have been ordered to pay the workers a total of $987,591 in back wages and liquidated damages, plus interest, in a consent judgment entered in the U.S. District Court for the Eastern District of New York.

The court’s action follows a U.S. Department of Labor investigation into the pay practices of Macedo Construction Inc., Macedo Contracting Services Inc., Odecam Concrete Supply Corp. and Manuel Macedo. The companies and their owner must also pay $53,249 in civil money penalties and interest to the department for their willful violations of the Fair Labor Standards Act.

The department’s Wage and Hour Division found that Manuel Macedo and his companies failed to combine the hours laborers worked at the commonly owned businesses. The employer paid them with multiple checks from the three companies to evade overtime requirements. Each separate check showed the employees worked less than 40 hours per workweek when they actually worked a combined total of up to 48 hours per week. In addition, they did not pay the employees for time spent traveling from the companies’ work yards to jobsites, and failed to make, keep and retain accurate records of the employees’ work hours and pay rates.

“The scheme by Macedo Construction Inc., Macedo Contracting Services Inc., Odecam Concrete Supply Corp. and Manuel Macedo deprived their employees of nearly $491,000 in hard-earned wages over three years. Now in addition to the back wages, the employer must pay these workers an equal amount in liquidated damages, plus interest,” said Wage and Hour Division District Director David An in Westbury, New York. “We encourage other employers to consider this investigation’s outcome, review their own pay practices and contact the Wage and Hour Division to avoid similar violations. The consequences of non-compliance with federal labor laws can be serious and expensive.”

“The U.S. Department of Labor does not tolerate wage theft, which shortchanges workers and puts law-abiding employers at a competitive disadvantage. We will pursue all appropriate and effective legal remedies, including securing liquidated damages for workers in addition to back wages,” said Regional Solicitor Jeffrey Rogoff in New York.

In addition to requiring payment of the back wages, liquidated damages, fines and interest, the consent judgment enjoins Manuel Macedo and the three companies from future violations of the FLSA’s overtime and recordkeeping requirements, retaliating against employees who exercise their FLSA rights and soliciting employees to return or “kick back” the wages, damages and interest awarded to them. They must also provide employees with notices of their rights under the FLSA in English and Spanish.

The division’s Long Island District Office conducted the original investigation. The department’s regional Office of the Solicitor in New York provided legal assistance 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.

En Español.

DALLAS – An information technology services company in Irving hired a system analyst under the H-1B visa program, then failed to use and pay the worker the required prevailing wage for non-productive time – an illegal practice known as “benching” – a U.S. Department of Labor investigation has found.

The department’s Wage and Hour Division determined Cigniti Technologies Inc. benched the employee illegally over a 15 month period, and failed to pay the full, pro-rated amount of the worker’s prevailing wage for periods of non-productive work. By doing so, the employer violated the requirements of the federal H-1B visa program.

The investigation by the division’s New Orleans District Office led to the recovery of $64,244 in wages owed to the employee.

“Employers who hire workers under the H-1B visa program must comply with all legal requirements, which are clearly detailed in the program’s application process,” said Wage and Hour District Director Troy Mouton in New Orleans. “We encourage employers to contact the Wage and Hour Division for information about their obligations to avoid violations.”

The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, an H-1B presentation and confidential calls to local Wage and Hour Division offices.

A subsidiary of Cigniti Technologies Limited in India, Cigniti Technologies Inc. provides staffing services and information technology support, including software development, programming analysis and engineering services. The company employs U.S. and H-1B workers throughout the U.S. 

For more information about H-1B visa, 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.

HONOLULU – A federal court has affirmed the findings of a U.S. Department of Labor investigation that determined the owner of three Hawaii restaurants denied workers overtime and minimum wages, and discarded time records in violation of the Fair Labor Standards Act.

In its action, the U.S. District Court for the District of Hawaii ordered Sujin Tomita and her restaurants Sura Hawaii I and Than Q Pocha in Honolulu, and Sura Hawaii II in Kapolei, to pay of $210,000 in back wages and liquidated damages to 71 workers, and $10,000 in civil money penalties for willfully violating the law.

The outcome follows an investigation by the department’s Wage and Hour Division that found Tomita and her restaurants willfully paid workers less than federal minimum wage and no overtime for hours worked beyond 40 hours in a workweek. The division also found the employer discarded time records each month.

Many of the workers – predominantly from Chuuk, one of the four Federated States of Micronesia – worked an average of 46 hours per week. Investigators also found that Sura Hawaii I paid servers and other workers a flat salary for all hours worked without considering whether such salary amounted to at least the required federal minimum wage.  

“Paying a flat salary for all hours worked does not allow an employer to ignore its legal obligation to pay frontline staff overtime wages when they work more 40 hours in a workweek.” said Wage and Hour Division District Director Terence Trotter in Honolulu. “In this case, the employer willfully shortchanged workers of hard-earned wages. The U.S. Department of Labor is committed to ensuring that workers get paid all the wages they have legally earned. We encourage other employers in this industry to use the results of this investigation as an opportunity to review their own pay practices and to avoid violations like those found in this case.”

In fiscal year 2021, the Wage and Hour Division identified more than $230 million in back wages owed to workers nationwide, and helped more than 190,000 workers as a result of its investigations. Specifically, the division found more than $34.7 million in wages owed to food service workers.

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.

WASHINGTON – The U.S. Department of Labor today announced the upcoming launch of an online portal through which federal government contractors and subcontractors will certify compliance with annual Affirmative Action Program requirements.

Led by the department’s Office of Federal Contract Compliance Programs, the Affirmative Action Program Verification Interface, or the Contractor Portal, provides a method for covered federal contractors to certify, on an annual basis, whether they have developed and maintained affirmative action programs for each establishment or functional unit, as applicable. In addition, the Contractor Portal will provide a secure method for contractors scheduled for compliance evaluations to submit to OFCCP their Affirmative Action Program(s).

“The Contractor Portal will provide federal contractors with a secure method of certifying compliance with their affirmative action program requirements,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang.  “OFCCP’s new online portal provides a mechanism to promote greater contractor attention to removing barriers to opportunity and evaluating employment practices.”

Affirmative action requirements are intended to ensure that applicants and employees of federal contractors have equal employment opportunity without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. Contractors within OFCCP’s jurisdiction that meet certain contract dollar and employee thresholds are required to develop and maintain Affirmative Action Programs and will be required to annually certify compliance. Covered federal contractors and subcontractors may register on the Contractor Portal beginning Feb. 1, 2022. The portal’s certification features will be available beginning on March 31, 2022, and existing contractors will be required to certify their compliance by June 30, 2022. Additional information on the Contractor Portal, including Frequently Asked Questions, can be found on OFCCP’s Contractor Portal Landing Page.

Learn more about OFCCP.