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.

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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.

WASHINGTON – The U.S. Department of Labor today announced a final rule that restores the department’s ability to assess civil money penalties against employers who take tips earned by their employees, regardless of whether those violations are repeated or willful. In addition, today’s rule modifies the department’s broader civil money penalties regulations addressing when a violation is willful, further aligning these regulations with applicable precedent and how the department litigates willfulness. The rule also allows managers and supervisors to contribute to valid tip pooling arrangements, without receiving tips from those pools.

“Workers who depend on tipped wages are every bit as entitled to expect to keep what they’ve earned as other workers,” said U.S. Secretary of Labor Marty Walsh. “An employer who withholds workers’ tips in violation of the law deprives them of that security and, in some cases, leads to workers earning less than the federal minimum wage. This final rule helps us protect their earnings by strengthening tools to hold employers legally responsible for those violations.”

With this rule’s publication, the department withdraws the civil money penalties’ provisions in the 2020 Tip final rule that would have allowed the department to assess these penalties for violations only when employers kept employees’ tips and the department found their violations to be repeated or willful. The Consolidated Appropriations Act of 2018 allows the department to impose civil money penalties to $1,100 when employers keep employees’ tips – in violation of the law – regardless of whether violations are repeated or willful.

The final rule also clarifies that – while managers and supervisors may not receive tips from mandatory tip pools or tip-sharing arrangements – managers or supervisors may contribute to mandatory tip pools or sharing arrangements. In addition, the rule clarifies that a manager or supervisor may keep tips only when the manager or supervisor receives tips from customers directly for service a manager or supervisor directly and “solely” provides.

“The final rule announced today strengthens protections for tipped workers – who are largely women, immigrants and people of color – and advances equity in the workplace,” said Wage and Hour Division Acting Administrator Jessica Looman. “Civil money penalties are an incentive for employers to comply with their legal responsibilities. When they do comply, essential workers benefit. When employers don’t comply, these penalties are a useful enforcement tool we can use to help achieve compliance.”

The Fair Labor Standards Act allows employers with tipped workers to pay as little as $2.13 per hour in direct wages, while taking a credit against the tips earned by the employee to make up the balance of the federal minimum wage of $7.25 per hour.

For more information on protections for tipped workers and others under the FLSA, or learn more about the Wage and Hour Division. You may also call toll-free 1-866-4US-WAGE to speak directly and confidentially to a trained Wage and Hour Division professional. The division protects workers regardless of immigration status, and can communicate with workers in more than 200 languages.

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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