WEST COVINA, CA – The U.S. Department of Labor has ordered a Colton car wash to pay 15 workers more than $62,000 in back wages and liquidated damages after federal investigators found their employer intentionally failed to pay them overtime, as the Fair Labor Standards Act requires.

Investigators with the department’s Wage and Hour Division found Sparkling Clean Car Wash Inc. flouted its legal obligation to pay workers the overtime pay when they worked over 40 hours in a workweek and instead paid them straight-time rates, regardless of the number of hours worked. They also determined the employer failed to pay one worker up to $393 in minimum wages. The division assessed $8,715 in penalties to Sparking Clean for its willful disregard of the law. In addition, the division cited the employer for failing to maintain complete payroll records, another FLSA violation.

“Car wash industry workers are often low-wage earners and when employers fail to pay these workers for all the hours they work as required by the law, it can be difficult for the workers to attend to their basic needs” said Wage and Hour Division Assistant District Director Rafael Valles in West Covina, California. “The deliberate nature of this employer’s violations are unacceptable, and they have been held maximally accountable for shortchanging their workers.”

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

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ORLANDO, FL – A U.S. Department of Labor investigation found an Orlando air conditioning and heating service company failed to pay workers the overtime wages they legally earned, in violation of the Fair Labor Standards Act.

The department’s Wage and Hour Division investigators found Mills Air Conditioning & Heating Inc. – operating as Mills Air Inc. – violated provisions of the FLSA when it failed to pay workers proper overtime when they worked more than 40 hours in a workweek. The violations occurred when the employer failed to include commission and incentive pay in the workers’ overtime pay rate. The division also determined that payroll records failed to accurately document overtime hours worked. Mills Air Inc. also failed to record hours worked for one employee paid on a salary basis. Both practices resulted in violations of the FLSA recordkeeping requirements.

The division’s investigation led to the recovery of $34,142 in back wages for 43 workers.

“Employers who pay production bonuses, incentives and commission must include those earnings in the weekly overtime computations,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Wage and Hour Division’s mission, in part, is to ensure workers are paid correctly as outlined by federal laws. This case should encourage all employers to review their pay practices and contact the division with questions to avoid violations.”

Mills Air Inc. is located in Orlando and provides services across 18 cities in Central Florida including in Kissimmee, Oviedo and Longwood.

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.

SAN ANTONIO – Since the pandemic’s start, pharmacy workers in our communities have served their customers’ many needs – filling prescriptions, scheduling vaccinations and using contact-free services at counters and drive-through windows – and, in return, they expected to be paid their legally earned wages.

In separate investigations of three San Antonio-area pharmacy operators, the U.S. Department of Labor’s Wage and Hour Division recovered a total of $58,659 in back wages owed to 28 workers for violations of the Fair Labor Standards Act’s overtime requirements.  

Division investigators found Carvajal Pharmacy LTC LLC, operator of six San Antonio locations, paid 11 workers straight time for all the hours they worked in violation of the federal law that requires additional overtime pay when employees work more than 40 hours in a workweek. The employer failed to pay overtime at six Carvajal Pharmacy locations and paid $54,705 in back wages as a result.

At Davila Pharmacy Inc., investigators found the employer failed to include “on-call” incentive pay when calculating overtime for 14 workers. The division recovered $3,687 in back wages for these workers.

At REXCO Pharmacy in Pleasanton, the division determined that operator James B. Magel computed overtime after 80 hours in a pay period incorrectly, instead of after 40 hours as the FLSA requires. By doing so, REXCO paid employees straight time for all hours worked, including those hours when overtime was owed. The employer also violated FLSA recordkeeping requirements. The REXCO Pharmacy investigation led to the recovery of $267 in back wages owed to three workers.

“Pharmacy workers proved to be an essential part of the workforce in the past year, and continue to play important roles in the wellbeing of our communities,” said Wage and Hour District Director Cynthia Ramos in San Antonio. “These investigations have recovered wages that should have been paid to these workers if their employers had followed the law. Employers are responsible for ensuring that their employees receive all of their legally earned wages.”

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 and confidential calls to local Wage and Hour Division offices.

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

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.

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WASHINGTON, DC – The U.S. Department of Labor today announced the extension of the effective date of a final rule to rescind an earlier rule, “Joint Employer Status under the Fair Labor Standards Act,” that took effect in March 2020. The original Sept. 28, 2021, effective date of the rescission is now Oct. 5, 2021.

On March 12, 2021, the department issued a notice of proposed rulemaking proposing to rescind the March 2020 Joint Employer Rule. After reviewing the comments submitted in response to the Notice of Proposed Rulemaking, the department decided to finalize the rescission of the rule. The department believes that the rule narrowed the test for vertical joint employment improperly and conflicted with decades of department interpretation, the text of the Fair Labor Standards Act, and congressional intent.

The rescission will result in the removal and reserving of part 791 of Title 29 of the Code of Federal Regulations in its entirety. The department will continue to consider legal and policy issues relating to FLSA joint employment before determining whether alternative regulatory or sub-regulatory guidance is appropriate.

The FLSA requires covered employers to pay employees at least the federal minimum wage for every hour they work and overtime compensation at not less than one-and-one-half times their regular rate of pay for every hour they work over 40 in a workweek. A strong joint employer standard is critical because FLSA responsibilities and liability for worker protections do not apply to a business that is not the employee’s employer.

For more information about the FLSA or other laws it enforces, visit the Wage and Hour Division, or call toll-free 1-866-4US-WAGE.

SWEDESBORO, NJ – JP Technology Inc. operates a hafnium crystal bar production facility in Swedesboro 24 hours a day. At the facility, many employees work 12-hour shifts, seven days a week. A recent federal investigation found the employer failed to pay some of these employees any overtime pay, a violation of federal wage laws.

The U.S. Department of Labor’s Wage and Hour Division determined that JP Technology violated the Fair Labor Standards Act when it paid straight time for all hours worked even when employees worked more than 40 hours in a single workweek. The law requires overtime pay for hours employees work beyond 40 in a workweek. The department’s investigation led to the recovery of $114,656 in back wages and liquidated damages for seven employees.

During the investigation, investigators observed that the company exposed employees to chemical hazards in the workplace. The agency informed the department’s Occupational Safety and Health Administration and the New Jersey Department of Environmental Protection, which are conducting separate investigations.

“All too often, employers in the manufacturing sector subject their employees to substandard working conditions, including failure to pay workers for all the wages they are lawfully owed,” said Wage and Hour Division District Director Charlene Rachor in Lawrenceville, New Jersey. “When employers don’t pay overtime as required – especially when they take advantage of individuals working more than 80 hours per week – they violate the law, hurt their employees and gain an unfair competitive advantage over employers that play by the rules.”

Headquartered in Jiangsu, China, JP Technology in Swedesboro is the company’s sole U.S. production facility.

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.

TAFTON, PA – A U.S. Department of Labor investigation has found the owner of two Pike County companies violated the Fair Labor Standards Act by denying 65 workers their rightfully earned wages, resulting in the recovery of nearly $120,000 in back wages and damages.

Investigators with the department’s Wage and Hour Division determined that Mohammad Tahir – owner and manager of Promised Land Truck Stop in Tafton and Whistle Stop convenience store in Greentown – violated FLSA minimum wage, overtime and recordkeeping requirements, resulting in a total of $59,690 in back wages and an equal amount in liquidated damages owed to his employees. The division recovered $42,265 in back wages for 47 Promised Land Truck Stop workers and $17,424 in back wages for 18 Whistle Stop employees, plus an equal amount in damages.

The employer failed to pay workers at the Tafton location for time spent counting cash drawers and completing reports, and took deductions from workers’ pay for cash drawer shortages. By doing so, the employer paid workers less than the federal minimum wage. Tahir also did not pay any overtime when employees worked over 40 in a workweek, and did not maintain payroll and time records as required. Similarly, employees at the Greentown store were paid straight time with no overtime pay when they worked over 40 in a workweek. Investigators also found the employer paid several workers identified as assistant managers a fixed salary, with no overtime pay, in violation of the law. The employer also deducted pay from the assistant managers’ salaries when they worked fewer than 50 hours, and again failed to retain required records.

After the investigation, the department filed a complaint against the employer in court to resolve the violations. In a summary judgment, the U.S. District Court for the Middle District of Pennsylvania affirmed that the employer violated law and owed the amounts the department sought.

“The wages recovered for these low-wage workers will help them pay rent and put food on the table for their families,” said Wage and Hour District Director Alfonso Gristina in Wilkes-Barre, Pennsylvania. “The U.S. Department of Labor is determined to ensure that employers follow the law and create a level playing field for those competitors who pay their workers all of the wages they have rightfully earned.”

“Employers have a legal responsibility to comply with the Fair Labor Standards Act. The U.S. Department of Labor continues to pursue appropriate and effective legal remedies, including filing suit in federal court, to ensure employees are paid for all their hard work and employers who violate the law come into compliance,” said Regional Solicitor of Labor Oscar L. Hampton III in Philadelphia.

Shalimar Distributors LLC operates as Promised Land Truck Stop and TAFS Corp. operates as Whistle Stop. Mohammad Tahir owns and manages both enterprises.

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.

SELBYVILLE, DE – A federal court has ordered a Selbyville business operator to pay $300,000 in back wages and liquidated damages to 16 workers – some of whom worked 75 hours or more a week for a flat salary while the business kept no time records of the hours they worked. 

Following a U.S Department of Labor Wage and Hour Division investigation, the department filed a complaint alleging that APS Market & Grill LLC – a combined restaurant, grocery store and butcher shop that operates as Taqueria La Sierra – violated provisions of the Fair Labor Standards Act. The department had determined that the employer paid some of its workers on a flat salary basis and did not require them to clock in or out or record their time.

The employer paid employees a fixed salary for all hours worked, and by doing so failed to pay overtime as required when they worked more than 40 hours in a workweek.  

The consent judgment approved by the U.S. District Court for the District of Delaware requires the employer and its owner to pay the back wages and liquidated damages and prohibits them from violating the FLSA in the future. In addition to paying back wages and damages, the employer was also assessed a $5,000 civil money penalty for the willfulness of their violations.

“For workers in the restaurant industry, basic labor rights like minimum wage and overtime are being denied and hard-earned wages are out of reach,” said Wage and Hour District Director James Cain in Philadelphia, Pennsylvania. “The consent judgment will ensure that these workers receive all of the wages they legally earned and that Taqueria La Sierra is no longer gaining an unfair advantage over other restaurant employers in the area.”

“This judgment sends a clear message to employers that failure to pay employees their rightfully earned wages will not be tolerated,” said Regional Solicitor Oscar L. Hampton III in Philadelphia.

View the complaint and consent judgment. 

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.

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HOUSTON – With Houston-area home sales setting records, insulation installers are working hard to meet demand and endure hard, strenuous labor and discomfort caused by contact with insulation materials. For 46 workers at JVA Insulation Inc., the work felt a bit harder because their employer failed to pay them all their legally earned wages.

A U.S. Department of Labor Wage and Hour Division investigation determined that JVA Insulation violated the Fair Labor Standards Act when the company:

• Failed to pay overtime to workers when they worked over 40 hours in a workweek. Instead, the employer paid workers on a per-square foot basis, regardless of the number of hours they worked per week.
• Reduced an employee’s pay below the federal minimum wage with illegal deductions for lost or broken tools.
• Failed to maintain accurate records of employees’ hours of work.

JVA Insulation will pay $150,080 in back wages to 46 workers.

“These essential workers overcome heat and many other factors to do their jobs and their employer has an obligation to pay them fairly for the wages they legally earned,” said Wage and Hour District Director Robin Mallett in Houston. “The Wage and Hour Division offers employers and workers many resources for understanding compliance issues, and will speak confidentially to anyone with questions. We will also hold employers who fail to comply with the law accountable when they shortchange employees for the work performed.”

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

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.

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AUBURN, AL – Following an investigation and federal court order, the U.S. Department of Labor recovered $26,496 in back wages and liquidated damages from a personal injury law firm in Auburn, Alabama, that failed to pay overtime to 42 workers.

In December 2020, the U.S. District Court for the Middle District of Alabama Eastern Division issued a default judgment, affirming the findings of the department’s Wage and Hour Division that Slocumb Law Firm LLC and owner Michael W. Slocumb failed to pay the workers overtime when they worked more than 40 hours in a workweek. In response, Slocumb filed a motion to set aside the judgement. They later withdrew it, and the department sent a demand letter requiring payment for the wages that the workers were legally owed.

Investigators also determined Slocumb failed to keep accurate records of hours worked for workers paid on a salary basis. The firm’s action violated overtime and recordkeeping provisions of the Fair Labor Standards Act.

The court ordered the firm and its owner to pay $13,248 in back wages and an equal amount in liquidated damages.

“The court’s action shows that no one is above the law. Employers must pay employees all the wages they’ve legally earned, including overtime when they work over 40 in a workweek,” said Wage and Hour Division District Director Kenneth Stripling in Birmingham, Alabama. “The Wage and Hour Division will use every avenue, including the courts, to protect workers’ rights and ensure they receive the wages they are lawfully owed. Employers should contact the agency and speak with a Wage and Hour professional to avoid these violations and ensure compliance with federal wage laws.”

In addition to three Alabama locations, Slocumb’s law offices are located in Baltimore; Chicago; Dallas; Denver; Houston; New Orleans; Washington, D.C.; Charleston, West Virginia; and in Jackson and Gulfport, Mississippi.

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.

PHILADELPHIA – The operator of a popular Fishtown bar and bottle shop that prides itself on offering Philadelphia’s largest selection of beer and wine appeared to be less focused on paying its bartenders and servers as the law requires, a federal investigation found and a consent judgement entered in a U.S. District Court confirmed.

U.S. Department of Labor Wage and Hour Division investigators found that BHMK Enterprises LLC – operator of Bottle Bar East – violated the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act. The division determined the employer failed to pay bartenders and servers any cash wages, causing them to work for tips only, and required workers to attend quarterly staff cleaning meetings, but did not pay front-of-house employees for the time they spent there. These actions violated the FLSA minimum wage requirements.

In addition, investigators found Bottle Bar East paid back-of-house employees straight-time wages for all the hours that they worked, including those in excess of 40 hours worked in a single workweek. The law requires overtime pay for hours employees work beyond 40 in a workweek. The employer also failed to pay overtime to front-of-house servers and bartenders. After the investigation, the department filed a complaint against the company in court to resolve the violations.

“Restaurant workers are among the most vulnerable in the service industries,” said Wage and Hour Division District Director Jim Cain in Philadelphia. “Like all workers, they deserve to be paid every penny they have earned. The Wage and Hour Division will continue to hold employers accountable. Other employers should use the outcome of this investigation, and this lawsuit, as an opportunity to review their own pay practices to make sure they comply with the law, and avoid costly violations like those in this case.”

The Department of Labor filed a complaint in the U.S. District Court for Eastern District of Pennsylvania in April 2020, alleging that Bottle Bar East and its owners willfully violated the minimum wage overtime provisions of the FLSA through their unlawful pay practices.  After months of litigation, the parties resolved this matter when Defendants agreed to pay the full amount of back wages, an equal amount of liquidated damages, and civil money penalties.  On August 31, the Hon. Berle Schiller entered a consent judgment ordering BHMK Enterprises LLC to pay $246,457.99 in back wages and an equal amount in liquidated damages to 73 bartenders, servers, cooks, and dishwashers. The court also ordered the employer to pay $25,729 in civil money penalties for the willful nature of the violations.

“Bottle Bar East stole wages from its workers, harming them and their families and gaining an unfair advantage over employers who play by the rules,” said Regional Solicitor Oscar L. Hampton III in Philadelphia. “The U.S. Department of Labor will enforce the law to recover hard-earned wages for workers and to ensure a level playing field for law-abiding business owners.”

Bottle Bar East also failed to maintain payroll records for servers and bartenders and had incomplete records for the back-of-house cooks and dishwashers, and did not display the FLSA required poster.

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.