NORTH CHARLESTON, SC – Laws protecting the wages of tipped workers apply whether they work in restaurants or in grocery stores where food is served. A South Carolina employer learned this expensive lesson after a U.S. Department of Labor investigation.

Investigators with the department’s Wage and Hour Division found that Hang Lung Inc. – operator of H&L Asian Market, a North Charleston business that includes a grocery and restaurant – illegally kept all tips left by restaurant customers. H&L also failed to pay employees overtime as required when they worked over 40 hours in a workweek. The employer’s actions violated the Fair Labor Standards Act.

The division recovered $154,033 in back wages and liquidated damages for 10 employees.

“Tipped employees work hard to deliver good service and earn every tip they receive. When employers keep the tips for themselves and fail to pay the overtime when due, they not only violate federal labor laws but they also deny the workers the respect they are due,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “The U.S. Department of Labor encourages workers and employers at grocery stores and restaurants to contact Wage and Hour staff if they have questions about rules concerning pay, hours or tips.”                                   

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). 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.  A Restaurant Compliance Toolkit is available for employers seeking additional compliance resources.  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.

NEW YORK – A federal court has ordered a prominent Long Island thoroughbred horseracing stable and its owner to pay a total of $132,631 in back wages and liquidated damages to 52 grooms and hot walkers at several locations, including Belmont and Aqueduct racetracks. The stable owner failed to pay workers the overtime wages they earned.

The action by the U.S. District Court for the Eastern District of New York follows an investigation by the U.S. Department of Labor Wage and Hour Division. Investigators found that Danny Gargan and Gargan Stables Corp. paid certain employees at the racetracks, stables and other locations a fee per horse handled and not per hour as stated in their payroll records.

In addition to shortchanging workers’ hours and unlawfully denying them overtime when they worked more than 40 hours in a workweek, the division determined the employer falsified payroll records to give the appearance that employees were paid by the hour when they were not. The court affirmed the department’s assessment of $37,368 in civil money penalties for willful wage theft and for falsifying records in violation of the Fair Labor Standards Act.

Following the division’s investigation and litigation by the department’s Office of the Solicitor, the court entered a consent judgment ordering the defendants to pay $66,315 in back wages and an equal amount in liquidated damages to the affected workers.

The judgment also requires the defendants to:

• Hire, at their own expense, a qualified compliance monitor to review their payroll and record keeping practices to ensure FLSA compliance, recommend changes to any non-compliant practices and consult with the defendants on any changes to their time or recordkeeping practices.
• Implement and use an electronic timekeeping system to ensure accurate recording of employees’ work hours.
• Train employees, in languages they understand, on the proper use of the timekeeping system and pay them for that training time.
• Post and provide employees with information and documents in English and Spanish about the FLSA’s requirements and their FLSA rights.

The order also permanently enjoins the defendants from inaccurately editing or altering employees’ work hours, having employees work “off the books,” retaliating or discriminating against employees who engage in FLSA protected activity and requiring or asking employees to kick back wages.

“The defendants took advantage of their employees by underpaying them and then tried to hide this illegal behavior by falsifying their payroll records,” said Wage and Hour Division District Director David An in Westbury, New York. “Gargan Stables Corp. and Danny Gargan have learned that disregard for federal labor laws and their employees’ rights have costly consequences. We suggest other employers review their own pay practices to prevent violations. The Wage and Hour Division has many tools to assist employers and workers in understanding the law.”

“To put it plainly, underpaying employees is wage theft. The U.S. Department of Labor has, and will continue to pursue all necessary legal avenues to obtain proper compensation for employees and deter future violations by employers. This settlement – the latest of several with racing industry employers – compensates these underpaid workers and includes enhanced training and timekeeping requirements to change this employer’s behavior and prevent future violations,” said Regional Solicitor of Labor Jeffrey Rogoff in New York.

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

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

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

Walsh v. Gargan Stables Corp. and Danny Gargan

Civil Action No. 21-cv-03390

ATLANTA – While the cotton gin has greatly increased the speed of crop production since its invention more than three centuries ago, the U.S. Department of Labor has found 8 out of 10 cotton gin employers it investigated in the Southeast region violated the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act, or provisions of the H-2A visa program.

The department’s Wage and Hour Division identified violations in 81 percent of the 71 cotton gin investigations completed between November 2019 and March 2021 in the Southeast, home to some of the largest cotton producers in the nation. These investigations led the department to recover $282,626 in back wages and $10,785 in liquidated damages for 620 workers. The division also assessed $152,539 in civil money penalties to 37 employers.

The most common violations cited include:

• Failure to pay proper overtime and maintain accurate records as required by the FLSA.
• Failure to disclose actual terms and conditions and provide wage statements to workers.
• Failure to ensure housing safety and health and provide terms and conditions of occupancy as required by MSPA and the H-2A visa program.

Among the employers and recoveries made by the division are the following:

The division is engaged in an ongoing education, outreach and enforcement initiative to ensure that the Southeast cotton and agriculture industries operate within federal law. In addition to enforcement, Wage and Hour Division representatives are working with stakeholders to promote better understanding of the laws governing their industry and offering compliance assistance for those seeking to avoid costly violations. “Our investigations show that far too many cotton gin operators are not compliant with federal labor law,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “The U.S. Department of Labor’s Wage and Hour Division maintains a dogged commitment to ensure that cotton gin workers receive all of their hard earned wages as well as the worker protections they are due. We encourage employers and stakeholders in the ginning industry to review their policy and practices and contact us to request compliance assistance.”

The division offers multiple compliance assistance resources, including an agriculture compliance assistance toolkit, to provide employers the information they need to comply with the law. For more information about the Migrant and Seasonal Worker Protection Act, the H-2A Visa Program and other laws enforced by the division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Callers can receive information confidentially in more than 200 languages. Learn more about the Wage and Hour Division.

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Who:               Wage and Hour Division

                          Occupational Safety and Health Administration

What:             Assistance and enforcement action in Arkansas after December 2021 tornadoes

When:            Ongoing

Where:           Northeast Arkansas

Background: The department’s Wage and Hour Division and Occupational Safety and Health Administration response teams are in the area affected by tornadoes on Dec. 10, 2021, to remind workers of their rights and to make sure employers understand their responsibilities when it comes to paying workers properly, and remind them of their responsibility for their workers’ safety and health.

In-person assistance is ongoing and a virtual outreach event is scheduled for today. OSHA enforcement actions are ongoing, and Wage and Hour enforcement actions begin Jan. 10.

Attend the virtual event at 1 p.m. CST today or call 202-735-3644, Code: 676497763#

Learn more about the Wage and Hour Division.

Learn more about OSHA.

WASHINGTON – The U.S. Department of Labor and the National Labor Relations Board announced today that the department’s Wage and Hour Division and the NLRB have signed a Memorandum of Understanding strengthening the agencies’ partnership and outlining procedures on information-sharing, joint investigations and enforcement activity, as well as training, education and community outreach.

The agreement is an effort by the agencies to improve the enforcement process of the laws they administer and reaffirms their commitment to ensure the rights and protections of workers. The partnership will help ensure that employers pay workers their rightful wages and that workers can take collective action to improve their working conditions without fear of retaliation.

“Workers across this nation put food on our tables, and keep our families well and our neighborhoods safe. In return, they deserve equity, fair pay and our respect,” said Acting Wage and Hour Division Administrator Jessica Looman. “The Wage and Hour Division works tirelessly to ensure workers receive their hard earned wages and job-protected leave without fear of harassment and retaliation. Collaborating with the National Labor Relations Board will expand both of our agencies’ impact and effectiveness in enforcing workplace protections and combatting misclassification, and preventing retaliation against them.”

The division and NLRB’s collaboration will strengthen their interagency relationship by creating mechanisms to share information efficiently and establish a process for referral, joint investigation and cross training of personnel. The agreement will also allow for better enforcement against unlawful pay practices, misclassification of workers as independent contractors and retaliation against workers who exercise their legal rights.

“All too often, workers face adverse action for speaking out about their compensation, whether it is discussing their wages, fighting back against wage theft, or advocating for higher wages. The National Labor Relations Act makes it illegal for employers to interfere with, or retaliate against, workers for taking these actions,” said National Labor Relations Board General Counsel Jennifer Abruzzo. “These issues frequently cut across multiple worker protection agencies, which is why it is so important to work collaboratively to prevent and address them.”

In addition to enhanced enforcement, the agencies will use the partnership to increase the public’s understanding of the laws enforced by the Wage and Hour Division and the NLRB through increased community outreach, shared compliance materials, joint presentations and training events. The cooperative agreement will support joint goals protecting workers who exercise their workplace rights and educating employers about their legal responsibilities under federal laws.

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.

Learn more about the National Labor Relations Board or call 1-844-762-6572. For assistance filing a charge, contact your NLRB Regional Office.

HIDDEN HILLS, CA – A Southern California construction company has paid $72,342 in back wages and liquidated damages to 12 workers after the U.S. Department of Labor found the employer failed to pay them overtime wages as required by the Fair Labor Standards Act. The department also assessed $8,460 in penalties for the employer’s willful violations.

Investigators with the department’s Wage and Hour Division found Covello Plastering Corp. underpaid their workers by failing to track and pay for work it required before and after their scheduled shifts. The employer violated the FLSA’s overtime requirement by not paying required overtime rates for hours worked over 40 in a workweek. The agency also cited the employer for failing to maintain accurate employee records.

“One hour worked should be one hour paid. It’s unjust and illegal to ask residential construction workers to do the hard work of building our homes and then deny them the wages they need to support themselves and their families,” said Wage and Hour Division District Director Kimchi Bui in Los Angeles. “Too often, we find employers requesting additional work from employees without providing the requisite additional pay.”

This latest investigation is part of the division’s Cross Regional Initiative addressing wage violations in the construction industry. Since 2019, the division has conducted 421 investigations in this industry in California, and recovered more than $6 million in unpaid wages for more than 4,000 workers.

The Wage and Hour 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.

TAMPA, FL – An investigation by the U.S. Department of Labor led to major changes by a Tampa employer in its pay practices that have the potential to affect the lives of more than 2,000 local workers.

The investigation by department’s Wage and Hour Division found HealthPlan Services Inc. – a healthcare benefits management provider – failed to pay employees for time spent setting up their computers and logging in to software applications before the start of their shifts. Additionally, the employer failed to include bonuses in the calculation of overtime pay, which led to the payment of overtime at a rate lower than the law requires.

The department recovered $105,200 in back wages for 92 employees. In addition to paying back wages, HealthPlan Services agreed to correct its pay practices company-wide to avoid future violations of the Fair Labor Standards Act.

“Failure to count and properly pay for pre-shift work is a common violation of federal labor laws. These unpaid minutes add up and can lead to minimum wage or overtime violations. The law requires that workers to be paid every cent they are due for the work they perform,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “If employers are unsure about federal requirements regarding hours of work or payment of wages, they should contact us for information to avoid violations.”

A subsidiary of Wipro Limited, a global info technology, consulting and business process services company headquartered in Bengaluru, India, HealthPlan Services is an independent provider of sales, benefits administration, retention and technology solutions to the health insurance and managed care industries.

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.

NEW YORK – A federal court in New York has ordered a Long Island pizzeria and its owner to pay $178,000 in back wages, damages and civil money penalties after a U.S. Department of Labor investigation found the employer’s pay practices shortchanged workers when it failed to pay overtime wages.

A consent judgment entered by the U.S. District Court for the Eastern District of New York ordered Lynbrook Pizza & Pasta Inc., operating as Regina’s Pizzeria and owner Nunzio DiLorenzo to pay $84,160 in back wages and an equal amount of $84,160 in liquidated damages, plus interest, to the affected workers. The court also ordered them to pay $9,679 in civil money penalties assessed by the department due to the violations’ willful nature.

The court’s action follows a Wage and Hour Division investigation that concluded Regina’s Pizzeria and DiLorenzo failed to pay certain employees overtime when they worked in excess of 40 hours per week, as required by the Fair Labor Standards Act. They also violated the FLSA’s recordkeeping requirements by failing to keep accurate records of work hours and pay rates.

Specifically, the division’s investigation found the employer:

• Paid non-exempt kitchen employees a fixed salary for all hours worked with no additional overtime pay when they worked more than 40 hours in a workweek.
• Calculated the overtime rate for their tipped employees based solely on the direct cash wage and not the full minimum wage rate. 
• Rounded weekly wages up or down to the nearest dollar. 
• Created an artificial hourly rate for workers to try to show FLSA compliance.

“Over the past year, the services provided by essential food industry workers have helped us cope with the many challenges we’ve faced. They deserve to be paid every cent of their lawfully earned wages,” said Wage and Hour District Director David An in Westbury, New York. “Too often, employers fail to pay proper overtime to workers and attempt to obscure their actions with incomplete and inadequate records. Other employers should view this investigation’s outcome as a reason to review their own pay practices and avoid the costly consequences of disregard for the law.”

The employer failed to resolve violations subsequent to the investigation leading to litigation by the department’s Office of the Solicitor.

“Failing to pay overtime time wages to workers who are entitled to overtime compensation and then trying to feign compliance is a clear violation of the law,” said Regional Solicitor of Labor Jeffrey Rogoff in New York City. “The U.S. Department of Labor will take legal action to ensure workers are paid properly and employers who violate the law are held accountable.”

The judgment requires the defendants to notify affected employees about the judgment and their FLSA rights in Spanish and English. It also prohibits the defendants from retaliating against employees and soliciting them to return or “kick back” their wages and damages.

The division’s Long Island District Office conducted the investigation. Trial Attorney Jacob Heyman-Kantor of the New York Regional Office of the Solicitor litigated the case for the department.

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).  A Restaurant Compliance Toolkit is available for employers seeking additional compliance resources.  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.

En Español.

LOUISVILLE, KY – A Fairdale country club operator failed to pay some workers minimum hourly wages, denied overtime pay to other workers, paid incorrect overtime rates to others, and assigned minor-aged workers duties not permitted by law, a U.S. Department of Labor investigation has found.

An investigation by the department’s Wage and Hour Division determined that South Park Country Club Inc. violated the minimum wage, overtime and tipped employee regulations, as well as the recordkeeping and child labor requirements of the Fair Labor Standards Act. Investigators found the employer:

• Required employees to share tips with managers.
• Computed overtime based on the direct cash wage rather than the full minimum wage.
• Failed to pay overtime to workers paid on a salary basis.
• Failed to include commission payments when computing the overtime rate, which resulted in the employer paying overtime at a lower rate than the law requires.
• Employed multiple 14 and 15-year-olds for more than 3 hours on a school day or more than 8 hours on a Saturday or Sunday during the school year and past 7 p.m. after Labor Day.
• Permitted two 15-year old workers to drive golf carts and load or unload golf bags from golf carts, in violation of the FLSA.

The division recovered $21,507 in back wages for 43 workers to resolve the minimum wage and overtime violations, and assessed South Park Country Club a $6,190 civil penalty for its child labor violations.

“Country clubs exist to provide their members with a relaxing and entertaining experience made possible by hard-working employees who have the right to be paid all of the wages they’ve earned,” said Wage and Hour Division District Director Karen Garnett-Civils in Louisville, Kentucky. “The operators of South Park Country Club not only failed to ensure workers received required minimum and overtime wages, they violated federal child labor laws by allowing minors to work more hours and later than the law permits, and by assigning them duties considered unsafe for young workers.” 

For information about child labor standards, 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.

APEX, NC – The U.S. Department of Labor has recovered $33,230 in back wages for five employees working on a federally funded construction project in Fayetteville. Investigators found the employer failed to pay workers all wages earned as required by the Davis Bacon Act.

Investigators with the department’s Wage and Hour Division found Apex Plumbing and Heating Inc. – operating as APH – violated federal law when the employer paid employees the prevailing wage for sheet metal workers even though they performed plumbers’ work. The employer paid less than the prevailing wage and benefits than the workers would have earned if paid correctly.

In addition, APH failed to comply with Executive Order 13706, Paid Sick Leave for Federal Contractors, by failing to allow employees to accrue and use paid sick leave. Record keeping violations under the Fair Labor Standards Act were also found.

“Prevailing wage laws on government contracts put competing contractors on equal footing and protect the wages and earned leave of hard-working tradespeople,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “This case should serve as a reminder for other employers that different trades require different wage rates if Davis Bacon regulations apply. When a worker performs different types of work, the employers must record the number of hours worked in each job classification and pay worker the correct prevailing rate for each type of work performed.”

The Wage and Hour Division’s investigation reviewed APH’s pay practices for work conducted work at Fayetteville VA Medical Center in Fayetteville. APH is headquartered in Apex and performs plumbing, heating and ductwork in large-scale residential and commercial developments, military installations and Veterans Affairs facilities across the eastern region of the U.S.

For information about the FLSA and other laws enforced by the division, including compliance assistance toolkits, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243) or learn more about the Wage and Hour Division on its website, including a search tool to use if you think you may be owed back wages collected by the division. Callers can receive information confidentially in more than 200 languages.