Sanford contractor pays more than $334K in back wages to 212 workers to resolve violations found in US Department of Labor investigation

News Release

Sanford contractor pays more than $334K in back wages to 212 workers to resolve violations found in US Department of Labor investigation

Del-Air Heating, Air Conditioning & Refrigeration Inc. also ordered to pay $82K in penalties

ORLANDO, FL – Since 1995, the U.S. Department of Labor has investigated the pay practices of a Sanford heating, ventilation and air conditioning contractor eight times and found violations in six of its inquiries – leading to the recovery of $155,865 in back wages for more than 440 workers.

Following the ninth investigation of Del-Air Heating, Air Conditioning & Refrigeration Inc. by the department’s Wage and Hour Division, the U.S. District Court for the Middle District of Florida ordered a resolution against the employer in a consent judgement. The court’s action led to the division’s recovery of $334,307 in back wages for 212 workers.

Investigators found Del-Air paid a piece-rate to installers regardless of how many hours they worked. The employer also failed to pay overtime to a warehouse manager when due. By failing to pay overtime when employees worked more than 40 hours in a week, and failing to include earned bonuses in the overtime rate, the employer violated Fair Labor Standards Act overtime requirements.  The division also found that the employer did not record the start and end of employees’ workdays accurately, a FLSA recordkeeping violation. Due to the employer’s history of violations the division assessed $82,616 in civil money penalties for the violations found on the most recent investigation.

Del-Air Heating, Air Conditioning & Refrigeration operates establishments in Sanford, Clermont, Melbourne, Jacksonville, Tampa, Bradenton, Fort Myers and Kissimmee. The company performs installations on new residential construction, existing residential and commercial structures. 

Del-Air Heating, Air Conditioning & Refrigeration Inc. has repeatedly ignored its responsibility to pay its workers all of their hard-earned wages and routinely broken the law,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Our investigation and the court’s action recovered wages illegally denied to more than 200 workers and resulted in significant penalties for the employer.”

“We invite workers who believe they are not being paid legally and employers who are uncertain about their responsibilities to contact the Wage and Hour Division,” De Jesús added.

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

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

Agency
Wage and Hour Division
Date
August 30, 2021
Release Number
21-1487-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor finds wage violations at southwest Louisiana seafood distributor, recovers $138K for 100 workers

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US Department of Labor finds wage violations at southwest Louisiana seafood distributor, recovers $138K for 100 workers

Acadia Processors LLC failed to pay overtime to piece-rate workers

CROWLEY, LA – A coronavirus-related federal whistleblower investigation prompted a referral to the U.S. Department of Labor and an investigation that recovered $138,629 in back wages for 100 employees of a southwest Louisiana seafood processor.

The department’s Wage and Hour Division found Acadia Processors LLC violated the Fair Labor Standards Act’s overtime requirements when the employer paid only straight time to employees when they worked more than 40 hours in a workweek. The employer, who paid employees on a piece rate basis, must also include incentives and bonuses in the calculation of overtime pay. The company distributes seafood, mainly crawfish, and other Cajun food products from its facilities in Crowley.

“Our investigation found a significant number of workers were being denied their legally earned wages,” said Wage and Hour District Director Troy Mouton in New Orleans. “These violations occurred amid the pandemic when food industry workers put themselves at risk to support the economy and supply U.S. consumers. Ensuring that these workers receive the pay they earned is among the division’s top priorities.”

In June 2020, the Center for Migrant Rights filed a whistleblower complaint with the department’s Occupational Safety and Health Administration on behalf of two former Acadia Processors’ workers who tested positive for coronavirus and allege the company fired them after they raised concerns about safety protocols at housing provided by the employer. During OSHA’s ongoing investigation, the agency made the Wage and Hour Division aware of Family First Coronavirus Act irregularities.

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 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
August 26, 2021
Release Number
21-1330-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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US Department of Labor finds wage violations at northeast Louisiana drug and alcohol recovery center, recovers $23K in back wages for six workers

News Release

US Department of Labor finds wage violations at northeast Louisiana drug and alcohol recovery center, recovers $23K in back wages for six workers

Rayville Recovery paid flat rate instead of required overtime wages

RAYVILLE, LA – Like many in the addiction treatment industry, Rayville Recovery employees work long hours – beyond regular shifts and on weekends – to help individuals overcome their drug and alcohol dependence. A recent federal investigation found Rayville failed to pay some of these essential workers legally when they worked overtime. 

The U.S. Department of Labor’s Wage and Hour Division found Rayville Recovery violated the Fair Labor Standards Act’s overtime requirements when the employer failed to pay six workers time-and-one-half for overtime hours as the law requires. The employer also failed to provide complete payroll records, another FLSA violation.

The investigation led to the division’s recovery of $23,510 in back wages for six workers.

“Essential workers who provide healthcare services supply critical support to those most in need, and employers must pay these workers as legally required when they work long hours,” said Wage and Hour District Director Troy Mouton in New Orleans. “Employees who are subject to the Fair Labor Standards Act’s overtime protections must receive overtime pay when they work more than 40 hours in a week.”

Rayville Recovery has 85 employees at two facilities in Louisiana. The employer paid all back wages due and agreed to comply with the law in the future.

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
August 25, 2021
Release Number
21-1336-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez
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Maryland subcontractor pays $531K in back wages to 45 ironworkers after US Department of Labor investigation

News Release

Maryland subcontractor pays $531K in back wages to 45 ironworkers after US Department of Labor investigation

Federal wage laws violated at federally funded National Institute of Health project

CLINTON, MD – The U.S. Department of Labor’s Wage and Hour Division recovered $531,173 in back wages for 45 ironworkers subcontracted for federally funded construction at the National Institute of Health in Bethesda. Investigators found their employer failed to pay them the required prevailing wages and benefits for ironworkers.

The investigation revealed that Clinton-based HMW LLC falsified its certified payrolls and hid the fact that the employees were making at least $14 an hour less, per hour, than the projects required wage for ironworkers. The subcontractor also failed to maintain proper records.

The department executed a Debarment Consent Agreement with the firm HMW LLC; the firm’s owner and president, Roxanne Harris; and its operations manager, Robert Harris, as a result of serious labor standards violations related to the firm’s performance on the NIH contract.  Under this agreement, the debarred parties will remain ineligible to bid on federal contracts covered by the Davis Bacon and Related Acts for a period of three years.

“Employers awarded federal contracts are aware of requirements such as the Davis Bacon and Related Acts and the Contract Work Hours and Safety Standards Act, and must certify that all employees on the job site receive the wages and benefits they are rightfully due,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “In this case, HMW failed to do so and we stepped in to require the company to pay its ironworkers all of their legally earned wages.” 

HMW LLC was a subcontractor for a large scale, multi-level renovation project at the NIH’s Clinical Center Complex.

The prime contractors on federally funded projects are required to ensure all on-site laborers are paid at least the locally prevailing wage rates – including fringe benefits – and that subcontractors comply with the law. Contractors and subcontractors on these projects are also required to pay covered workers weekly and submit certified weekly payroll records to the federal agency contracting the work. In addition, they must post the Davis-Bacon poster (WH-1321) on the job site so that workers are aware of their protections.

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.

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
August 25, 2021
Release Number
21-1421-NEW
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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US Department of Labor finds Louisiana landscape, pest control enterprise violated guest worker program; recovers $20K in back wages for 133 workers

News Release

US Department of Labor finds Louisiana landscape, pest control enterprise violated guest worker program; recovers $20K in back wages for 133 workers

Company also pays $17K in penalties for undisclosed housing deductions, unpaid travel costs

CENTRAL, LA – An East Baton Rouge Parish landscape and pest control company failed to disclose housing deductions in its H-2B application and failed to pay for all meals during travel periods for 133 guest workers, a U.S. Department of Labor investigation has found. 

An investigation by the department’s Wage and Hour Division has recovered $20,695 in back wages from, and assessed $17,459 in penalties to Corporate Green LLC. The corporation owns and operates several area companies including Big Bark Tree Care, Bug Ninja Pest Control, Great With Tools and Green Seasons. Its workers perform pest control, landscaping and other exterior services for commercial and residential customers. 

“Employers who use the H-2B guest worker program for temporary employment must comply with all of its terms and conditions,” said Wage and Hour District Director Troy Mouton in New Orleans. “By failing to satisfy all wage-related obligations, an employer reduces their labor costs and may gain an unfair advantage over other employers. All employees and guest workers must be treated and paid equally, consistent with the terms and conditions of the laws that govern their employment.”

Corporate Green LLC was certified to employ temporary non-agricultural workers under the H-2B visa program. At the time of this investigation, the company employed 95 workers from Mexico under the H-2B program and 58 U.S. workers.

For more information about H-2B visa program, 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.

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Agency
Wage and Hour Division
Date
August 24, 2021
Release Number
21-1428-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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Marianna facility for persons with developmental disabilities to pay $304K in back wages after US Department of Labor finds special wage rate violations

News Release

Marianna facility for persons with developmental disabilities to pay $304K in back wages after US Department of Labor finds special wage rate violations

Sunland Center will pay back wages to 163 workers to remedy FLSA violations

MARIANNA, FL A state-funded center for persons with developmental disabilities in northern Florida will pay $304,466 in back wages to 163 workers due to incomplete training and recordkeeping in violation of the Fair Labor Standards Act.

The Agency for Persons with Disabilities – operating as Sunland Center – holds certificates authorizing special minimum wage rates for workers with disabilities affecting the jobs they perform as allowed by Section 14(c) of the FLSA. The U.S. Department of Labor’s Wage and Hour Division found that the center failed to ensure all workers received the career counseling information and referrals required by the Workforce Innovation and Opportunity Act. For failing to comply with these requirements, the employer must pay the workers the full federal minimum wage for every hour they worked. The investigation also noted that payroll records did not show amounts paid to employees, a violation of FLSA recordkeeping requirements.

“To participate in the federal special minimum wage program, employers must provide the required counseling and referral opportunities to ensure workers with disabilities have every opportunity to reach their potential,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Sunland Center’s failures to meet these requirements led to costly violations of laws that ensure all employees receive proper wages for their work.”

Located in Marianna, many of Sunland Center’s 208 resident clients are employed by the center for work in the community in custodial, landscaping and recycling occupations. Funded primarily through the state’s general appropriations, Sunland Center directs revenue from the services into the clients’ welfare trust fund.

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

Agency
Wage and Hour Division
Date
August 24, 2021
Release Number
21-1459-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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Pensacola auto dealer pays $36K in back wages to resolve minimum wage, overtime violations found in US Department of Labor investigation

News Release

Pensacola auto dealer pays $36K in back wages to resolve minimum wage, overtime violations found in US Department of Labor investigation

Step One Automotive’s piece-rate pay system led to violations

PENSACOLA, FL – Employees at a Pensacola car dealership received more money in their paychecks after a U.S. Department of Labor Wage and Hour Division investigation found the auto dealer failed to pay minimum wage and overtime as required under the Fair Labor Standards Act.

Division investigators found Step One Automotive Group BC PN LLC – operating as Step One Automotive – violated the FLSA when it failed to ensure that auto detailers who were paid a flat-rate per vehicle received at least the required federal minimum wage for each hour of work. The employer also failed to pay detailers required overtime when they worked over 40 hours in a workweek.

Investigators also found that Step One paid other employees flat salaries regardless of the number of hours they worked. By doing so, the employer failed to pay overtime when employees worked over 40 hours per week. Additionally, Step One failed to include bonuses earned in the calculation of overtime rates. As a result, they paid workers less than the overtime rate required by law. The division determined that the employer failed to maintain accurate payroll records for the auto detailers and other employees paid on a salary basis, in violation of FLSA recordkeeping requirements.

Step One Automotive has paid $36,320 in back wages to 16 workers.

Automotive workers continued to provide essential services during the pandemic. These workers deserve the protections the Fair Labor Standards Act affords them and must receive all the pay they have legally earned each workweek,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “We urge employers to contact us with questions so that together, we can make certain that employees are fairly compensated for their work and that all employers compete on a level playing field.” 

Step One Automotive LLC and Step One Investments LLC – both based in Fort Walton Beach – own and operate nine establishments in Florida in Pensacola, Fort Walton Beach, Crestview, Niceville; and four in Brunswick and Savannah, Georgia.

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

Agency
Wage and Hour Division
Date
August 23, 2021
Release Number
21-1443-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Lansing contractor pays 18 subcontracted workers $26K in back wages, fringe benefits after US Department of Labor investigation

News Release

Lansing contractor pays 18 subcontracted workers $26K in back wages, fringe benefits after US Department of Labor investigation

Grand Rapids Home for Veterans contractor failed to certify subcontractor followed rules

GRAND RAPIDS, MI – The prime contractor responsible for construction of the Grand Rapids Home for Veterans paid back wages and benefits to 18 workers on the project after a federal investigation found the subcontractor who employed them had shortchanged them.

The Davis Bacon and Related Acts require that contractors and subcontractors on federally funded construction projects pay prevailing wage rates and benefits to all laborers on site. They also mandate that prime contractors make sure their subcontractors comply with the law and certify payrolls properly.

A U.S. Department of Labor Wage and Hour Division investigation found that while Staffing Solutions – a subcontractor on the veterans home project – had certified that it paid 18 carpenters the required $18.14 in prevailing wages and $4.59 in fringe benefits per hour, their employer had actually paid them less per hour and failed to pay for, or provide, fringe benefits.

The Christman Company, the project’s prime contractor, has paid the 18 subcontracted carpenters $26,671 in back wages and benefits owed to resolve the discrepancy, and its failure to certify.

The Lansing-based prime contractor hired Staffing Solutions Inc. of Grand Rapids to provide workers for the project. Staffing Solutions hired and paid the workers as laborers when, in fact, most of them performed carpentry work on the job site. Instead of paying the $18.14 per hour prevailing wage rate for carpentry work, the subcontractor paid most of the workers between $15 and $18 an hour. Staffing Solutions also failed to provide fringe benefits or pay a cash equivalent of $4.59 per hour to the workers and to pay correct overtime rates.

“Enforcement of the prevailing wage laws levels the playing field for all contractors and protects the wages of hard-working, middle-class American workers,” explained Wage and Hour Division District Director Mary O’Rourke in Grand Rapids. “The Wage and Hour Division will remain vigilant in its enforcement to ensure employees are paid in accordance with prevailing wage laws. Contractors with questions about their responsibilities are encouraged to call us, confidentially, for help.”

Contractors and subcontractors on federally funded construction 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
August 19, 2021
Release Number
20-1386-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor recovers $1.7M in back wages, fringe benefits for 81 employees wrongly classified by defense contractor in 21 states

News Release

US Department of Labor recovers $1.7M in back wages, fringe benefits for 81 employees wrongly classified by defense contractor in 21 states

D2 Government Solutions LLC processes ID cards for armed forces, families, others

DETROIT– A South Carolina-based contractor that processes identification cards for members of the armed forces, their families, retirees, government contractors and civilians has paid $1,705,441 in back wages and fringe benefits to 81 employees after the company violated the requirements of the McNamara-O’Hara Service Contract Act.

A U.S. Department of Labor Wage and Hour Division investigation found D2 Government Solutions LLC – formerly operating as Onvoi LLC – failed to pay required fringe benefits to employees working on this contract.  

The investigation revealed that the employer erroneously paid employees as word processors when they should have been classified as ID clerks, which require a higher rate of pay. Investigators found that a vague position description in the contract lead to an unintentional classification error that affected employees at 30 U.S. Department of Defense locations in 21 states.

“D2 Government Solutions cooperated throughout the course of the investigation and agreed to audit its pay practices and contracts quickly to ensure compliance with the law and to pay employees all back wages and benefits found due by Wage and Hour Division investigators,” explained Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago.

Wage and Hour Division Acting Administrator Jessica Looman affirmed, “Enforcement of prevailing wage laws protects the wages of hard-working, middle-class American workers. The division is committed to ensuring that employees are paid the wages they have rightfully earned and that Federal contractors are aware of specific wage and benefit requirements and are complying with the law.”

For more information about the SCA 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
August 18, 2021
Release Number
21-1349-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor finds Rio Blanco County failed to pay 40 law enforcement officers for pre- and post-shift work

News Release

US Department of Labor finds Rio Blanco County failed to pay 40 law enforcement officers for pre- and post-shift work

Investigation recovers $69K in back wages for 40 employees

MEEKER, CO – While law enforcement officers in Rio Blanco County worked to uphold the law, they themselves fell victim to illegal pay practices when their employer failed to pay them for time spent performing work before and after their scheduled shifts, an investigation by U.S. Department of Labor has found.

After its investigation, the department’s Wage and Hour Division recovered $69,870 in back wages owed to 40 county employees. The division found the county violated the Fair Labor Standards Act by failing to pay workers for all the hours they worked. Time spent by some officers in pre-shift briefings, completing paperwork, and other shift-change activities was not recorded as work time or included in the officers’ pay. The investigation also uncovered that the county paid workers their overtime late, in some cases by up to three months, and failed to maintain accurate time records – both also FLSA violations.

“All employers, including state and local governments, must pay their employees all of their legally earned wages on their designated payday,” said Wage and Hour District Director Charles Frasier in Denver. “The outcome of this investigation should serve as a reminder to all employers to review their pay practices, ensure they comply with the law, and avoid violations like those found in this case.”

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.

Agency
Wage and Hour Division
Date
August 17, 2021
Release Number
21-1231-DEN
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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