WASHINGTON, DC – U.S. Secretary of Labor Marty Walsh today issued a statement on Pennsylvania Attorney General Josh Shapiro’s announcement that Glenn O. Hawbaker Inc. has today pleaded to and been sentenced for theft relating to violations of the Pennsylvania Prevailing Wage Act and the federal Davis-Bacon Act.

“Today’s plea and sentencing of Hawbaker Inc. is a victory for the more than 1,200 workers whose hard-earned money was stolen. Ensuring workers get all the money owed  them is a priority for the U.S. Department of Labor, and our partners in state government, when they act with courage and conviction as Pennsylvania Attorney General Josh Shapiro has in this case, can help us secure more just outcomes for workers.

“Contractors working on federally funded projects subject to the Davis-Bacon and Related Acts are required to pay prevailing hourly wages and fringe benefits. The violation of Davis-Bacon and Related Acts in this case is clear. I commend Attorney General Shapiro and the team for their commitment in getting these workers the wages they earned, and leveling the playing field for contractors who play by the rules.”

WASHINGTON, DC – The U.S. Department of Labor today announced a final rule to rescind an earlier rule, “Joint Employer Status under the Fair Labor Standards Act,” that took effect in March 2020. By rescinding that rule, the department will ensure more workers receive minimum wage and overtime protections of the Fair Labor Standards Act.

The rescinded rule included a description of joint employment contrary to statutory language and Congressional intent. The rule also failed to take into account the department’s prior joint employment guidance. The U.S. District Court for the Southern District of New York vacated most of the rule in 2020.

Under the FLSA, an employee can have more than one employer for the work they perform. Joint employment applies when – for the purposes of minimum wage and overtime requirements – the department considers two separate companies to be a worker’s employer for the same work. For example, a joint employer relationship could occur where a hotel contracts with a staffing agency to provide cleaning staff, which the hotel directly controls. If the agency and the hotel are joint employers, they are both responsible for worker protections.

“Joint employment is part of our longstanding federal labor laws,” said Wage and Hour Division Acting Administrator Jessica Looman. “The U.S. Department of Labor’s Wage and Hour Division will continue to follow the law and judicial precedent when evaluating joint employer relationships to enforce worker protections.”

The final rule becomes effective Sept. 28, 2021.

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 does not meet the definition of 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.

WASHINGTON, DC – To help employers, workers and others stakeholders understand federal standards for prevailing wages on federally funded construction and service contracts, the U.S. Department of Labor is offering virtual compliance seminars in August for contracting agencies, contractors, unions, workers and other stakeholders.

Presented by the department’s Wage and Hour Division, the seminars will include video training on a variety of Davis-Bacon Act and Service Contract Act topics that participants can view on demand, followed by live question and answer sessions on several dates to accommodate participants’ schedules. The division will offer live sessions from 1:30 to 3:30 p.m. EDT on August 11, 12, 25 and 26.

“Prevailing wage laws ensure that the federal government’s purchasing power pays local wages and protects fair competition among contractors,” said Wage and Hour Division Acting Administrator Jessica Looman. “These seminars provide an excellent opportunity for the entire contracting community to ensure they have the information they need to comply with the law. They also reflect our longstanding commitment to education and enforcement.”

Attendance is free, but registration is required by Aug. 11. Register for a prevailing wage seminar. More information – including links to video training and virtual Q&A session dates – will be sent to registrants in the near future.

For more information on the Davis-Bacon Act, the Service Contract Act, and other federal wage laws, please call the division’s department’s toll-free helpline at 1-866-4US-WAGE (487-9243) or visit the Wage and Hour Division online.

BROOKHAVEN, MS – A Brookhaven restaurant failed to maintain records proving tipped employees earned at least the required $7.25 federal minimum wage and committed other violations of the Fair Labor Standards Act, the U.S. Department of Labor Wage and Hour Division has found.

A review of Lin Chen LLC’s pay and recordkeeping practices revealed that tipped employees did not keep all tips and that the employer failed to keep the required records to verify that tips employees received, when combined with their direct wages from the employer, met federal minimum wage requirements. Lin Chen’s recordkeeping failure disallowed the employer’s ability to use a “tip credit,” – a credit an employer can take for workers’ tips toward its minimum wage obligations. The restaurant operates as Little Tokyo Japanese Steak House.

As a result of the investigation, the division recovered $57,323 in back wages owed for the affected workers.

“These hard-working, essential workers deserve to be paid all of the wages they have legally earned,” said Wage and Hour Division District Director Audrey Hall, in Jackson, Mississippi. “We encourage employers to contact their nearest Wage and Hour Division office to better understand their legal responsibilities and avoid costly errors. Workers with questions can call us confidentially to ask questions or file complaints. We can communicate with callers in more than 200 languages, and enforce the law regardless of a worker’s immigration status.”

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.

HOUSTON – As vaccination levels rise and weather warms in the U.S., more Americans have returned to dining out. Much has changed in the restaurant industry since 2020, but a few things have not. Servers remain among the lowest-paid workers, and provide good service in the hope of earning good tips to make ends meet. They depend upon getting paid all of their hard-earned wages.

When a restaurant employer fails to pay overtime and makes matters worse by illegally deducting uniform costs from workers’ pay, a server’s job feels that much harder.

In Houston, an investigation by the U.S. Department of Labor’s Wage and Hour Division found Rams Food Inc. – the operator of three Denny’s locations – violated minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The investigation led to the recovery of $73,735 in back wages to 160 tipped employees.

The division found Rams Food deducted the cost of uniforms from hourly and salaried employees illegally, causing minimum wage violations. The employer also failed to combine all hours individual employees worked in multiple positions and at multiple locations for the business in the same workweek. By doing so, Rams Food failed to recognize and pay overtime when workers totaled more than 40 hours in a workweek. The employer also failed to maintain records accurately for tipped employees, in violation of the FLSA.

“Employers must pay workers all the wages they have earned. Servers count on every dollar to care for themselves and their families,” said Wage and Hour District Director Robin Mallett in Houston. “The outcome in this case should remind other employers to review their pay practices to avoid violations like those found in this case. Employers may call us, confidentially, to speak with a trained Wage and Hour professional to get their questions answered.”

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.

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EAST ST. LOUIS, IL – After a long shift patrolling the streets of East St. Louis together, the city’s K-9 unit police officers returned home and groomed, fed and cared for their trusted furry, four-legged partners. While these officers are legally entitled to be paid for this additional work, the U.S. Department of Labor’s Wage and Hour Division has found the City of East St. Louis failed to record the hours or pay overtime as required for the animal care provided by three officers.

The division determined East St. Louis’ failures violated the Fair Labor Standards Act, and found the employer required officers to kennel their canine partners at their homes. Investigators also discovered that the city required all K-9 officers to sign a document agreeing to forgo overtime compensation because the East St. Louis Police Department lacked the funds to pay them.

During the investigation, the division also found the City of East St. Louis failed to pay overtime to some patrolmen, sergeants and detectives.

The division has recovered $158,973 in back overtime wages for 19 of the city’s Metro East Police Department employees as a result of the investigation.

“Police officers who pledge to uphold the law should not themselves fall victim to illegal pay practices,” said Wage and Hour Division District Director Jim Yochim in St. Louis. “Employers cannot coerce or require employees to forgo pay they’re entitled to, regardless of the employer’s financial circumstances. The U.S. Department of Labor is committed to ensure that all employees are paid for all the hours they work.”

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.

DEDEDO, GUAM – Heavy equipment operators often work long hard days outdoors to meet deadlines and complete projects on schedule. The U.S. Department of Labor’s Wage and Hour Division exists to ensure that their employers pay them the wages they have legally earned, and takes action when they do not.

A recent investigation found UMS Heavy Equipment Rental Inc. in Chalan Pago failed to pay dump truck drivers and operators of other heavy equipment legally required overtime when they worked more than 40 hours in a workweek. The division also determined the company failed to pay operators for time they spent working before and after their scheduled shifts, including necessary time spent inspecting and preparing their trucks prior to leaving the UMS yard, traveling to the job sites and traveling back to the yard. When the employer did record and pay for overtime hours, they paid for them in cash at workers’ straight-time rates. The FLSA requires payment at one and one-half times workers’ regular rates of pay for hours they work beyond 40 in a workweek.

The investigation led the division to recover $17,308 in back wages for 20 employees. The division also assessed $7,250 in civil penalties due to the willful nature of the violations.

“These workers deserve to be paid all the wages they have legally earned, including overtime,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Employers must comply with the overtime pay and recordkeeping requirements detailed in the Fair Labor Standards Act. The U.S. Department of Labor will continue to enforce the law so all employers play by the same rules. We encourage employers to contact us confidentially with any questions they may have about their responsibilities, and to take appropriate actions to avoid costly compliance errors.”

Following the investigation, UMS Heavy Equipment Rental acknowledged the violations, changed their pay practices, and signed a written compliance action plan assuring future compliance with labor laws.

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.

MEDFORD, OR – Diners at Misoya Bistro in Medford were likely unaware that, for nearly two years, the owner was withholding nearly all of their workers’ tips.

The U.S. Department of Labor’s Wage and Hour Division has recovered $280,124 in back wages for 36 employees after investigators found the employer kept all of their workers’ earned cash and credit card tips except for a minor stipend. Misoya Bistro paid workers an hourly ‘tip wage’ rate that was significantly lower than the actual amount of tips the employees earned.

The investigation also determined Misoya Bistro failed to pay overtime to several employees when they worked more than 40 hours in a workweek, another Fair Labor Standards Act violation.

“Restaurant workers are among the nation’s lowest paid and are often unfamiliar with their legal rights regarding tips, minimum wages and overtime. The pandemic made clear these workers are essential to our economy and they must be paid all of their hard-earned wages,” said Wage and Hour Division District Director Carrie Aguilar in Portland, Oregon. “Employers who violate the law hurt workers and their families. They also gain an unfair advantage over law-abiding competitors who operate legally.”

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.

FAYETTEVILLE, NC – Hotels commonly pay housekeepers on a piece-rate basis, often basing their pay on the number of rooms they cleaned or tasks they accomplished. When that approach allows workers’ wages to fall below the federal minimum wage, the employer has violated the Fair Labor Standards Act.

An investigation by the U.S. Department of Labor has found NJ Hospitality LLC – operator of a Days Inn location in Fayetteville – violated FLSA minimum wage requirements when their piece-rate pay practice caused some housekeepers’ average hourly rate to fall below the federal minimum wage of $7.25 per hour. Investigators with the department’s Wage and Hour Division also determined the employer paid straight time to employees, instead of required time-and-a-half overtime wages when they worked more than 40 hours in the workweek.

As a result of the investigation, the division recovered $67,556 in back wages for 18 employees.

“These essential workers deserve to be paid all the wages they legally earned,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Employers cannot make deals with their employees that fail to comply with the law, even if both parties agree to the terms. Workers cannot waive their rights to be paid minimum wage and overtime as the law requires. We encourage employers to use our resources or contact us with their questions to avoid violations like those found in this case.”

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.

COLUMBIA, MD – A Columbia plumbing subcontractor working on a federally funded project in Washington, D.C. failed to pay workers all the wages they earned, until a U.S. Department of Labor investigation recovered $50,088 in back wages and benefits for four employees. 

An investigation by the U.S. Department of Labor’s Wage and Hour Division found CRL Plumbing System LLC violated the Davis-Bacon and Related Acts when it failed to pay the required prevailing wages and fringe benefits to four plumbers working at a district work site. The employer classified plumbers erroneously as skilled laborers and paid them $25.05 per hour rather than the correct hourly rate of more than $40 for their job classification. CRL Plumbing also paid those workers below the required hourly rate for fringe benefits required by their contract. 

“Enforcement of the prevailing wage laws levels the playing field for all contractors and protects the wages of hard-working, middle-class American workers,” said Wage and Hour Division District Director Roberto Melendez in Richmond, Virginia. “All contractors and subcontractors working on federally funded contracts must comply with the law to ensure workers are paid fairly and receive their earned benefits. The Wage and Hour Division will remain vigilant in its enforcement to ensure employees get paid the wages they have earned.”

Contractors and subcontractors on federally funded construction projects are required to pay covered workers weekly and submit certified payroll records to the federal agency contracting the work. They are also required to post the Davis-Bacon poster (WH-1321) on the job site so that workers are aware of their protections.

CRL Plumbing System LLC specializes in the installation of commercial and residential plumbing systems. The company subcontracts for large companies working on contracts with federal government agencies and the private sector.

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). Additionally, the division’s Community Outreach Resource Planning Specialists 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. Contact the nearest division local office to connect with the CORPS.

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.