Federal investigators recover $106K for 50 employees of vending machine operator after US Department of Labor finds overtime violations

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Federal investigators recover $106K for 50 employees of vending machine operator after US Department of Labor finds overtime violations

Parks Coffee California Inc. made illegal lunch break deductions from workers’ pay

WEST COVINA, CA – The U.S. Department of Labor has recovered $106,245 in overtime back wages and liquidated damages for 50 employees after finding that their Southern California employer made illegal deductions from workers’ wages and calculated workers’ overtime wages improperly.

Investigators with the department’s Wage and Hour Division found Parks Coffee California Inc. violated the Fair Labor Standards Act by making automatic one-hour lunch break deductions from employees’ wages even though their breaks were not free of work. The company – which supplies and operates refreshment vending machines – also violated FLSA’s overtime requirements by failing to document and compute bonuses and commissions into employees’ rate-of-pay when they worked more than 40 hours in a workweek.

The investigation led to the recovery of $53,122 in back wages plus an additional $53,122 in liquidated damages for the 50 employees.

“Employers must pay wages as the Fair Labor Standards Act’s minimum wage and overtime provisions require,” said Wage and Hour Division Assistant District Director Skarleth Kozlo in West Covina, California. “Parks Coffee is responsible for knowing what the law considers 'working time' for the accurate payment of wages.”

A subsidiary of Parks Coffee Inc. of Carrollton, Texas, Parks Coffee California operates gourmet vending machines in office buildings and workplaces in the Los Angeles and San Diego areas.

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
October 18, 2021
Release Number
21-1843-SAN
Media Contact: Jose Carnevali
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US Department of Labor finds home care services provider failed to pay workers overtime; recovers $57K in back wages for 29 employees

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US Department of Labor finds home care services provider failed to pay workers overtime; recovers $57K in back wages for 29 employees

DALLAS – Twenty-nine workers who offer home care services to elderly and terminally ill clients were shortchanged by their Dallas employer’s failure to pay them overtime wages as the law requires, a federal investigation recently discovered.

The U.S. Department of Labor’s Wage and Hour Division found CareStaf of Dallas L.P. violated the Fair Labor Standards Act’s overtime requirements by failing to pay overtime when employees worked over 40 hours in a workweek. The investigation recovered $57,793 in back wages for the 29 workers.

“Home care workers provide essential services to people in great need, and they deserve to be paid all of the wages they are legally due,” said Wage and Hour District Director Jesus A. Valdez in Dallas. “In addition to making it harder for their workers to make ends meet, employers who fail to meet their legal wage obligations gain an unfair competitive advantage over employers who follow the law.”

“We encourage all employers in the home healthcare industry to examine their pay practices to ensure they are in compliance with federal law,” Valdez added. “Employers are invited to contact their local Wage and Hour District Office or visit our website for compliance assistance guidance.”

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.

Agency
Wage and Hour Division
Date
October 12, 2021
Release Number
21-1714-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Federal investigators recover $198K in back wages for 93 employees of Clifton electrical contractor after US Department of Labor finds overtime violations

News Release

Federal investigators recover $198K in back wages for 93 employees of Clifton electrical contractor after US Department of Labor finds overtime violations

Leone Electric Co. LLC failed to pay employees overtime for travel time

CLIFTON, NJ – Employers have a responsibility to compensate employees as required by law for travel from one job site to another. This was not the case for 93 workers underpaid by a northern New Jersey electrical contractor for work-related travel time, a U.S. Department of Labor investigation found. 

An investigation by the department’s Wage and Hour Division determined Leone Electric Co. LLC failed to include time spent traveling between jobsites in the total weekly hours worked for HVAC technicians, construction managers, tower technicians and warehouse drivers. When time spent traveling between jobsites was included – as the law requires – employees’ workweeks exceeded 40 hours per week, and overtime pay due. By failing to count the travel time as work time and failing to pay overtime for all hours of work over 40 in a workweek, the employer violated the Fair Labor Standards Act.

The division’s investigation led to the recovery of $198,275 in back wages for the 93 workers.

“By not paying the proper overtime, Leone Electric Co. denied employees their hard-earned wages,” said Wage and Hour Division District Director Paula Ruffin in Mountainside. “Employers are legally obligated to pay employees for all hours worked, including travel that occurs during the course of the normal work day. When employers fail to pay the wages that workers are legally entitled to, they not only violate the rights of these individuals, but also harm workers’ families who depend on these earnings. Additionally, they put law-abiding employers at a competitive disadvantage.”

Leone Electric Co. LLC is a privately owned electric company that services both residential and commercial customers, primarily in northern New Jersey.

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 agency, contact the division’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
October 7, 2021
Release Number
21-1747-NEW
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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US Department of Labor recovers $94K for 8 laborers after investigation finds Detroit area contractor failed to pay prevailing wages, fringe benefits

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US Department of Labor recovers $94K for 8 laborers after investigation finds Detroit area contractor failed to pay prevailing wages, fringe benefits

Contractor on Detroit’s McNamara Building renovation project violated Davis-Bacon Act

CHESTERFIELD, MI – A Chesterfield electrical subcontractor violated the Davis-Bacon and Related Acts by paying electricians, laborers and apprentices on a federal construction project less than the required prevailing wage rates and benefits.

An investigation by the U.S. Department of Labor’s Wage and Hour Division found Sawyer Services – a subcontractor on the General Services Administration project – did not pay the correct wages to employees doing electrical work for the renovation of Detroit’s Patrick V. McNamara Building. Investigators found the employer incorrectly paid both laborers and electricians the lesser prevailing wages rates for low-voltage installers or technicians, even though their work was not restricted to low-voltage data cabling.

The investigators also found violations of the Contract Work Hours and Safety Standards Act’s overtime and record keeping provisions.

Contractors and subcontractors must pay workers employed on federally funded work sites the local prevailing wages and fringe benefits listed in the Davis-Bacon wage determination for the contract,” explained Wage and Hour Division District Director Timolin Mitchell in Detroit. “Following our investigation Sawyer Services promptly paid the back wages and is evaluating their pay practices to ensure all employees on the job site receive the wages and benefits they are due.”

Sawyer Services is also working with the department’s Office of Apprenticeship to ensure its apprentices register in bonafide apprentice programs.

Contractors and subcontractors on federally funded projects are required to pay covered workers weekly and submit weekly certified payroll records to the contracting agency. They are also required to post the Davis-Bacon poster (WH-1321) on the job site.

For more information about the DBRA 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
October 5, 2021
Release Number
21-1630-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Federal court enters judgment affirming US Department of Labor finding oil, energy services employer misclassified 700 Pennsylvania workers

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Federal court enters judgment affirming US Department of Labor finding oil, energy services employer misclassified 700 Pennsylvania workers

Holland Services concedes liability for more than $40 million in back wages, damages

PITTSBURGH – A federal court in Pittsburgh has entered a consent judgment in which a company that provided land services for the oil and gas industry admitted liability for more than $40 million in back wages and damages after a U.S. Department of Labor investigation found Fair Labor Standards Act violations.

After more than six years of contested litigation, Holland Acquisition Inc. – which operated as Holland Services in Washington, Pennsylvania – conceded liability in a consent judgment approved today by the U.S. District Court for the Western District of Pennsylvania. The court affirmed the company’s liability for $43,276,638 in back wages and liquidated damages owed to 700 workers.

Investigators with the department’s Wage and Hour Division found that from Aug. 20, 2012 to April 21, 2019, Holland Services improperly classified abstractors, title examiners and landmen as independent contractors. The employer also failed to pay overtime, as required by law, when employees worked more than 40 hours in a week. The company also did not keep accurate records of all daily and weekly hours employees worked, and instead only recorded the number of days worked per week. Holland’s actions violated the FLSA’s overtime and recordkeeping requirements.

“When employers misclassify employees as independent contractors and fail to pay workers their hard-earned wages, we must hold them accountable under the law,” said Wage and Hour Acting Administrator Jessica Looman. “We encourage employers to review their pay practices to ensure they comply with federal law, and to contact the Department of Labor for the information needed to avoid violations.”

“We hope that other employers in this industry use the outcome of this investigation and court action as an opportunity to review their own pay practices to ensure they comply with the law. Failure to do so, as we saw in this case, comes at a significant cost,” said Regional Solicitor Oscar L. Hampton III in Philadelphia. “The Department of Labor is committed to enforcing the law and protecting workers no matter how long it takes.”

View the complaint and consent judgment. 

Headquartered in Fort Worth, Texas, Holland Services provided abstract/title examinations for the oil and gas industry. The company has filed for bankruptcy. The department is continuing to litigate the case against the company’s former Chief Operating Officer Bryan Gaudin.

For more information about the FLSA and other laws enforced by the agency, contact the division’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
October 1, 2021
Release Number
21-1717-NAT
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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Court orders Northern New Jersey car washes, oil change shop to pay $325K in back wages, damages to 45 employees for underpaying workers

News Release

Court orders Northern New Jersey car washes, oil change shop to pay $325K in back wages, damages to 45 employees for underpaying workers

US Department of Labor found Westwood companies failed to pay minimum wage, overtime

WESTWOOD, NJ – Owners of two Westwood car wash establishments and an oil change shop routinely shortchanged employees who worked long hours doing physically demanding work. As a result of a federal investigation and recent court order, the firm must pay $325,000 in back wages and liquidated damages for failing to pay the minimum wage and overtime. Some employees who worked as many as 70 hours in a workweek received only straight time for all the hours they worked.

Investigators from the U.S. Department of Labor’s Wage and Hour Division found that Nanard Enterprises Inc., Oilube R We Inc., and owners Bernard and Nancy Torraco and General Manager Anton Musto failed to pay the federal minimum wage of $7.25 per hour and did not pay overtime to employees who worked over 40 hours in a workweek, in violation of the Fair Labor Standards Act. The department’s Regional Solicitor in New York began litigation when the firm would not agree to a resolution.

In response to the department’s complaint, the U.S. District Court for the District of New Jersey in Newark entered a consent judgment requiring Westwood Car Wash, Old Hook Car Wash and 10-Minute Oil Lube to pay $162,500 in back wages and an equal amount in liquidated damages to 45 car wash and oil change technicians, and cashiers. In addition to paying back wages and liquidated damages, the employers have agreed to an injunction against future violations.

“When workers in low-wage industries such as these are illegally denied minimum wages and overtime pay, it is difficult for them to make ends meet and care for their families,” said Wage and Hour Director Paula Ruffin in Mountainside. “The Wage and Hour Division will hold employers accountable when they fail to comply with the law and will take robust action when workers’ rights are being violated.”

“This consent judgment ensures these workers are paid fairly and receive all of their hard-earned wages,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York. “Our litigation and the court’s action sends a clear signal to employers that shortchanging workers and violating the law to gain an unfair competitive advantage will not be tolerated.”

Trial attorney Rosemary Almonte litigated the case for the department’s Regional Office of the Solicitor in New York.

For more information about the FLSA and other laws enforced by the agency, contact the division’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.

Agency
Wage and Hour Division
Date
September 29, 2021
Release Number
21-1606-NEW
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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Federal investigation recovers nearly $100K in back wages for 53 home healthcare workers after US Department of Labor found overtime violations

News Release

Federal investigation recovers nearly $100K in back wages for 53 home healthcare workers after US Department of Labor found overtime violations

Angel Wings Home Health of Danville violated FLSA requirements

DANVILLE, VA Fifty-three personal care aides and certified nursing assistants of a Danville home healthcare agency worked overtime hours to provide clients with compassionate care and a better quality of life, but their employer failed to pay them $99,427 for the additional time worked – overtime back wages the U.S. Department of Labor has recovered for them.

A recent investigation by the department’s Wage and Hour Division found Angel Wings Home Health Inc. violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. The division determined that Angel Wings failed to pay the personal care aides and nursing assistants time-and-a-half when they worked over 40 in a workweek, as the FLSA requires. The employer also failed to maintain accurate records of total weekly hours worked, as required by federal law.

“Overtime and other wage violations are all too common among home healthcare workers. Employers’ failure to abide by the law and pay wages fairly harms these essential workers who serve their communities by providing critical care services during a national health care crisis,” said Wage and Hour Division District Director Roberto Melendez in Richmond. “We will hold employers accountable when they fail to uphold their legal obligations.”

Angel Wings Home Health provides personal and respite care, feeding/meal preparation, household duties, laundry, errands, and companionship services between the Danville and South Boston areas.

The Wage and Hour Division provides employers with compliance assistance tools in a variety of languages, including an interactive E-laws advisor and a complete library of free, downloadable workplace posters. In addition, the Division’s Community Outreach Resource Planning Specialists (CORPS) conduct ongoing outreach activities to educate stakeholders, including employers, employees, business and labor groups, and professional associations, among others, with accessible, easy-to-understand information about their rights and responsibilities.  To find your local Wage and Hour Office, please visit Wage & Hour Local Offices.

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.

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Agency
Wage and Hour Division
Date
September 27, 2021
Release Number
21-1744-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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Departamento de Trabajo de EE.UU. recupera $163,000 para empleados por violaciones laborales intencionales por parte de restaurante de California

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Departamento de Trabajo de EE.UU. recupera $163,000 para empleados por violaciones laborales intencionales por parte de restaurante de California

Lido Bar & Grill multado también con $4,000 por pagar de menos a los trabajadores

SACRAMENTO – Mientras que trabajadores de un restaurant al Norte de California trabajaban duro para satisfacer a los clientes y ayudar al negocio a seguir adelante durante la pandemia, su empleador intencionalmente no les pagaba los salarios requeridos por sobretiempo, lo que ha llegado a tener costosas consecuencias para los propietarios del negocio.  

Una investigación de la División de Horas y Salarios  del Departamento de Trabajo de EE.UU. encontró que Lido Bar & Grill, en Carmichael, no registró todas las horas que trabajaron sus empleados y tampoco les pago las horas extra tal y como requieren las leyes federales de trabajo. O bien pagaban a los cocineros un salario sin incluir las horas extra cuando trabajaban más de 40 horas a la semana o les pagaban esas horas extra en efectivo y en base a tarifas regulares por hora.

La investigación llevó a la división a recuperar $81,577 en salarios atrasados por sobretiempo y $81,577 en compensación por daños para siete trabajadores. La división también multó al empleador con $4,067 debido a la naturaleza intencional de las violaciones cometidas bajo la Ley de Normas Justas de Trabajo.

“Los trabajadores de restaurants provén servicios esenciales para el público y apoyan las economías locales. Pagar a trabajadores un salario no elimina a los empleadores su obligación del pago de horas extra cuando los empleados trabajan más de 40 horas a la semana”, dijo la directora distrital asistente de la Division de Horas y Salarios en Sacramento, California. “Las violaciones al pago por sobretiempo son muy comunes en el sector de restaurantes, y el Departamento de Trabajo de EE.UU. está comprometido a usar todas las herramientas disponibles – incluido el litigio en corte – contra empleadores que violan la ley intencionalmente, dañan a trabajadores y sus familias, y tratan de ganar una ventaja competitiva ilegal sobre sus competidores que cumplen las leyes”.

Los trabajadores pueden llamar confidencialmente a la División de Horas y Salarios con preguntas – sin importar su estatus migratorio – y el departamento puede hablar a los que llamen en más de 200 idiomas.

Para más información sobre la FLSA y otras leyes de cumplimiento de la división, contacte a la línea de ayuda gratuita al 866-4US-WAGE (487-9243). Sepa más sobre la División de Horas y Salarios, incluyendo una herramienta de búsqueda si piensa que se le deben salarios recuperados por la división.

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Agency
Wage and Hour Division
Date
September 23, 2021
Release Number
21-1722-SAN
Media Contact: Jose Carnevali
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US Department of Labor recovers $163K in back wages, damages after investigation finds California restaurant willfully violated overtime rules

News Release

US Department of Labor recovers $163K in back wages, damages after investigation finds California restaurant willfully violated overtime rules

Lido Bar & Grill assessed $4K in penalties for underpaying workers purposely

SACRAMENTO – While workers at a northern California restaurant worked hard to satisfy customers and keep the business operating throughout the pandemic, their employer intentionally failed to pay overtime wages when required, leading to costly consequences for the restaurant’s owner.

A U.S. Department of Labor Wage and Hour Division investigation found Lido Bar & Grill, in Carmichael, failed to record all hours employees worked and failed to pay overtime as required by federal law. They either paid the cooks a salary with no overtime when they worked more than 40 hours in a workweek or paid overtime hours in cash at straight-time rates.

The investigation led to the division’s recovery of $81,577 in overtime back wages and $81,577 in liquidated damages for seven workers. The division also assessed $4,067 in civil penalties against the employer to address the willful nature of their violations under the Fair Labor Standards Act.

“Restaurant workers provide essential services for the public and support their local economies. Paying workers a salary does not relieve employers of their overtime pay obligations when employees work more than 40 hours in a week,” said Wage and Hour Division Assistant District Director Patricia Canites in Sacramento, California. “Overtime pay violations are all too common in the restaurant industry, and the U.S. Department of Labor is committed to using all tools available – including litigation – against employers who violate the law willfully, hurt workers and their families, and take an unlawful advantage of their competitors that abide by the law.”

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.

Lea en Español

Agency
Wage and Hour Division
Date
September 23, 2021
Release Number
21-1722-SAN
Media Contact: Jose Carnevali
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Nationwide driving range operator that failed to pay overtime to eligible ‘managers’ pays $750K in back wages to 255 workers in 25 states

News Release

Nationwide driving range operator that failed to pay overtime to eligible ‘managers’ pays $750K in back wages to 255 workers in 25 states

Top Golf USA Inc. paid event sales, sales account staff improperly

DALLAS – An employer learned a costly lesson about skirting federal overtime laws when it gave hollow management titles to overtime eligible employees and paid them salaries for all the hours they worked. Despite the fact that the work they do made them eligible for overtime, Top Golf USA Inc. failed to pay overtime when the employees worked more than 40 hours in a workweek, a U.S. Department of Labor investigation found.

A corporate-wide investigation by the department’s Wage and Hour Division found the Dallas-based company – which operates in 31 states as Topgolf – paid event sales managers and event sales consultants a salary plus commission with no overtime premium after 40 hours in a workweek, in violation of the Fair Labor Standards Act. Division investigators determined the employees did not meet the supervisory requirements and were eligible for overtime. The investigation began with the discovery of violations at its Loudon, Virginia, location.

The division’s investigation led to recovery of $750,063 in back wages for 255 employees in 25 states.

“Employers cannot evade federal overtime requirements by simply giving an employee a manager’s title,” said Wage and Hour Southwest Regional Administrator Betty Campbell in Dallas. “This case should serve as a clear warning and prompt other employers to review their pay practices. Employers uncertain of their obligations should contact their local Wage and Hour District Office or visit our website for guidance on how to comply with federal law.”

Topgolf is part of Topgolf Entertainment Group, a sports and entertainment enterprise, with operations throughout the U.S., in the United Kingdom, Australia, Germany, Mexico and the United Arab Emirates.

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.

Agency
Wage and Hour Division
Date
September 23, 2021
Release Number
21-1716-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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