MANCHESTER, NH – A North Carolina-based tree thinning contractor who employed foreign forestry workers in Maine as fir-tippers has paid a total of $55,810 in civil money penalties to the U.S. Department of Labor to resolve violations of federal laws protecting migrant and seasonal workers, and preventing adverse conditions for U.S. workers. The U.S. Department of Labor’s Office of Administrative Law Judges ordered the resolution in a decision and order approving consent findings.

The department’s Wage and Hour Division began an investigation after a van accident in Maine injured 14 workers. Investigators found that Garcia Forest Service LLC and Samuel Garcia violated the Migrant and Seasonal Agricultural Worker Protection Act when they:

• Failed to comply with U.S. Department of Transportation vehicle standards for safe loading and minimum age requirements, and applicable state safety standards.
• Failed to ensure each driver had an appropriate and valid license.
• Failed to pay wages to workers when due, provide a wage statement to each worker, make and keep records with respect to each worker, and disclose employment conditions to workers.
• Violated, without justification, the terms of working arrangements they made with the workers.

The employees worked as fir-tippers under the H-2B visa program, through a temporary employment certification. Violations of that program’s requirements resulted from the employers’ failure to:

• Retain all documents pertaining to applications and registration related to temporary employment certifications.
• Place H-2B employees only in the approved area of intended employment.
• Comply with the prohibition against preferential treatment of the guest workers. Garcia Forest Service paid H-2B employees rates higher than they disclosed when recruiting U.S. workers, required three months experience in the job orders but hired H-2B workers without the requisite experience, and failed to disclose that lodging costs would be covered for the duration of the petition.

In addition to the penalties, Garcia and his company must hire an outside consultant – for the next three years – who will assist them with properly drafting and submitting MSPA-related applications, and issue an annual compliance report with a copy to the division. They are also required to use a third party to aid in drafting and submitting their applications for temporary employment certifications under the H-2B program.

“Migrant forestry workers are often among the most vulnerable populations in the workforce. They deserve to receive the full protection the laws provide, including wage, disclosure and worker safety requirements,” said Wage and Hour Division Acting District Director Steven McKinney in Manchester, New Hampshire. “The injuries sustained in this accident were preventable. We strongly encourage farm labor contractors and others employing such workers to review their practices to ensure they comply with applicable laws and contact the Wage and Hour Division if they have questions.”

The division’s Northern New England District Office conducted the original investigation. The department’s regional Office of the Solicitor in Boston drafted and filed the consent findings in the case.

For more information about the MSPA, H-2B program and other laws enforced by the division, contact the 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.

SEATTLE – Pipe fitters, electricians, forklift operators and carpenters working on two separate federally funded contracts on Naval Base Kitsap failed to receive the prevailing wages and benefits required for their occupations because their employer classified them incorrectly as lower-compensated general laborers.

A U.S. Department of Labor Wage and Hour Division investigation found Nova Group failed to pay 26 employees required prevailing wages and health and welfare benefits in those occupations while employed on two federally funded contracts in Bremerton and Bangor.

The investigation led to the recovery of $238,511 in back wages and fringe benefits for the workers, and resolution of Nova Group’s violations of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards. In 2018, the division found NOVA Group committed similar DBRA violations and, in 2015, the division cited the employer for violating the Fair Labor Standards Act.

“Our investigation found this employer shorting the hard-earned wages of these skilled workers,” said Wage and Hour Division District Director Thomas Silva in Seattle. “The U.S. Department of Labor will enforce prevailing wage requirements on federal contracts to ensure workers are fairly compensated as the law requires and to prevent contractors from gaining an unfair advantage over employers who abide by the law.”

With more than 200 employees worldwide, the Nova Group has received more than $2 billion in federal contracts. It is a subsidiary of Quanta Services Inc., a publicly traded Houston-based specialized contracting services company operating in utility, communications, pipeline and energy industries throughout the U.S., Canada, Australia and other international markets.

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

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MANCHESTER, NH – Pizza shops rely on drivers to make timely deliveries to their customers. These drivers depend on their employers to pay them their hard-earned wages, as the law requires. When Checkmate Pizza in Concord and Londonderry failed to deliver all the wages drivers had earned, the U.S. Department of Labor stepped in.

An investigation by the department’s Wage and Hour Division has recovered $140,203 in back wages owed to 66 Checkmate Pizza employees after investigators found the employer failed to track and reimburse drivers for expenses incurred using their personal vehicles to make deliveries. Failing to reimburse these expenses resulted in numerous drivers earning less than the federal minimum wage of $7.25 per hour, a violation of the Fair Labor Standards Act. The employer also violated overtime requirements by paying tipped workers time and one-half their direct cash wages instead of time and one-half the employees’ regular rates of pay when they worked more than 40 hours in a workweek.

“Food delivery drivers, like many restaurant workers, have remained on the frontlines since the pandemic began and deserve to be paid for all their work,” said Wage and Hour Division Acting District Director Steven McKinney in Manchester, New Hampshire. “Their employers are required to pay workers at least the federal minimum wage for all the hours they work, accounting for certain business expenses such as the vehicle expenses incurred by delivery drivers. We encourage other employers to heed the results of this investigation and review their pay practices to ensure they comply with the law.”

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.

NORTH CHARLESTON, SC – Some employees may not understand fully how federal law protects them if their employer fails to pay them as the Fair Labor Standards Act requires, as workers at two North Charleston-area food stores have learned.

The U.S. Department of Labor’s Wage and Hour Division found that Carniceria La Esperanza LLC in North Charleston and its sister store, Carniceria La Esperanza 2 LLC in Summerville, paid butchers flat salaries to cover all the hours they worked up to 54 in a workweek. The employer would then start paying overtime only when employees exceeded 54 hours. The FLSA requires overtime for hours worked beyond 40 in a workweek.

Investigators also found the two stores paid a weekly bonus to cashiers and butchers, but failed to include that bonus in the calculation when determining workers’ overtime rates. This exclusion resulted in the employer paying overtime at rates lower than those required by law. The employer also failed to maintain accurate records of the number of hours butchers worked, violating FLSA recordkeeping requirements.

The division recovered $78,613 in back wages for 27 workers to resolve the FLSA violations.

“These essential workers deserve to take home every penny of their hard-earned wages. Our experience in this industry indicates that these unlawful pay practices, and others like them, are all too common,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “Food store employers and employees who wish to learn more about their obligations and rights under these laws are encouraged to contact us for more information.”

Carniceria La Esperanza LLC and Carniceria La Esperanza 2 LLC offer groceries, meats and money transfer services.

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.

HARRISBURG, PA – When an employer shortchanges home healthcare workers they hurt the workers, their families and the people for whom they care. In the case of a Harrisburg home healthcare company, a U.S. Department of Labor investigation has remedied overtime violations involving 242 workers and recovered $1,566,457 in hard-earned wages owed to them.

The department’s Wage and Hour Division found Neoly Home Care LLC manipulated pay rates to create the appearance that they paid overtime when employees worked more than 40 hours in a workweek. In fact, Neoly paid straight-time wages for all the hours employees worked, regardless of the number of hours worked per week. Neoly paid a lower hourly rate when employees worked more hours. While appearing to pay time-and-a-half for overtime hours, Neoly actually paid employees approximately the same rate for all hours worked in both overtime and non-overtime workweeks. This scheme violated the Fair Labor Standards Act, which requires payment for overtime hours at time-and-one-half workers’ regular rates. In addition to the back wages recovered, the division assessed $46,376 in civil money penalties for the willful nature of the violations.

The recovery affects workers in Harrisburg, Pittsburgh and Scranton, and in St. Louis.

“Many workers in this industry depend on their wages just to make ends meet, so actions like those taken by Neoly Home Care are especially harmful,” said Wage and Hour Division Acting Administrator Jessica Looman. “Employers that violate the law also gain an unfair competitive advantage over law-abiding employers. We remain committed to ensuring that essential workers take home every cent they have earned, and to holding employers accountable.”

The investigation led to the recovery of back wages at the following locations:

Based in Harrisburg, Neoly provides non-medical health aide and companion care services to seniors, elderly and mentally and physically challenged adults.

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. 

ST. LOUIS, MO – The federal Family and Medical Leave Act entitles workers to take unpaid, job-protected leave to care for their own or a family member’s serious health condition, so when a St. Louis metal finishing company terminated an employee on protected FMLA leave without notice, the U.S. Department of Labor intervened.

An investigation by the department’s Wage and Hour Division confirmed the worker’s FMLA eligibility and directed Precoat Metals – a division of Sequa Corp. – to pay the employee $45,014 in back wages and benefits. The employee chose not to seek reinstatement.

“The Family and Medical Leave Act allows for critically needed workplace flexibility precisely when employees need it the most,” said Wage and Hour Division District Director Jim Yochim in St. Louis. “In this case, the employer violated the worker’s rights by terminating the employee. The Wage and Hour Division stands ready to act when an employer violates an employee’s rights and breaks the law.”

The Family and Medical Leave Act provides eligible employees the right to take up to 12 weeks of unpaid leave for specified family and medical reasons with continuation of group health insurance coverage.

For more information about the FMLA 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.

HOUSTON – The U.S. Department of Labor has entered into a conciliation agreement with Bechtel Oil, Gas and Chemicals Inc., to resolve alleged pay discrimination affecting 22 female employees at its Houston location.

Pursuant to the agreement, Bechtel Oil, Gas and Chemical will pay $200,000 in back wages and interest. In addition BOGC agreed to set aside $50,000 in salary adjustments to female employees with engineering job titles. The company will also take steps to ensure its personnel practices, including recordkeeping and internal auditing procedures, meet legal requirements.

A routine compliance evaluation by the department’s Office of Federal Contract Compliance Programs found Bechtel Oil, Gas and Chemical – a provider of contractor services for engineering, construction and project management for heavy construction projects – allegedly discriminated against female employees beginning on or before April 1, 2013, by paying them less than comparable male employees in similar jobs. Such actions violate Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin. The company denies the allegations.

“The law is clear that federal contractors must provide a level playing field for workers through equal employment opportunities,” said Office of Federal Contract Compliance Programs Regional Director Melissa Speer in Dallas. “All employees deserve equitable pay and federal contractors who deny this opportunity will be held accountable.” 

Bechtel Oil, Gas and Chemicals provides engineering and construction services for the energy and chemicals markets worldwide. Its business lines consist of liquefied natural gas, downstream, chemicals, pipeline and tanks. During the course of the OFCCP investigation, Bechtel Group Inc., the parent company of Bechtel Oil, Gas and Chemical and Bechtel National Inc. has received more than $11 billion in federal contracts from the U.S. Department of Energy for the design, construction and commissioning of the Hanford Tank Waste Treatment and Immobilization Plant.

OFCCP launched the Class Member Locator to identify applicants or workers who may be entitled to monetary relief and/or consideration for job placement as a result of OFCCP’s compliance evaluations and complaint investigations. If you think you may be a class member employed by Bechtel Oil, Gas and Chemical, learn more about this and other settlements.

Editor’s Note: This press release has been changed to correctly describe Bechtel’s services and business lines.

MATHISTON, MS – Home healthcare providers expect their workers to meet their clients’ many daily needs. In turn, these workers count on their employers to pay them fairly and legally so they may care for themselves and their families. A recent federal investigation found a Mathiston provider failed to pay its employees overtime and minimum wages as the law requires.

A U.S. Department of Labor Wage and Hour Division investigation of Neighbor’s Heart Private Care Providers LLC found the employer failed to pay legally required overtime to 54 employees, and failed to pay some workers at least the federal minimum wage of $7.25 per hour. The employer’s practice of paying workers flat weekly salaries regardless of the number of hours they worked led to violations when employees worked more than 40 hours in a workweek and the employer failed to pay overtime. Neighbor’s Heart also violated minimum wage provisions when workers’ salaries failed to cover all the hours they worked at $7.25 per hour. The division also cited the employer for failing to keep accurate records of employees’ work hours.

Following its investigation, the division recovered $50,281 back wages for 54 employees.

“Essential workers who provide home healthcare services deserve to be paid every penny of their hard-earned wages,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “When employers choose to ignore the law, it hurts employees and their families. We encourage other employers to use this investigation’s outcome as a reminder to review their pay practices to ensure they comply with the law.”

For information about the FLSA and other laws enforced by the division, contact the agency’s toll-free 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.

MIRAMAR BEACH, FL – The U.S. Department of Labor has found an upscale Miramar Beach restaurant again violating federal minimum wage and overtime laws, and redirecting a portion of servers’ tips to non-tipped workers illegally. 

An investigation at the Ocean Club by the department’s Wage and Hour Division has recovered $97,222 in back wages owed to 30 workers. Investigators found the following violations of minimum wage and overtime requirements of the Fair Labor Standards Act by the restaurant’s operator, Ocean Club of Walton County Inc.:

• Required servers to give 5 percent of their tips to their managers, who then re-distributed them to non-tipped workers.
• Paid cooks flat salaries regardless of the number of hours they worked, failing to pay them required overtime when they worked more than 40 hour in a workweek.
• Ignored overtime obligations when it changed a manager’s status from hourly to salary – depending on the number of hours worked in the week – and failed to pay for any hours the manager worked beyond 40 in a workweek.

The employer also failed to maintain accurate records of the number of hours employees worked, violating FLSA recordkeeping requirements.

“Restaurant employees are among the nation’s lowest paid essential workers. They depend on their hard-earned wages, including tips for good service, to make ends meet,” said Wage and Hour Division District Director Wildalí De Jesús, in Orlando, Florida. “An employer like the Ocean Club that repeatedly evades its legal obligations shortchanges their workers, and gains an unfair advantage over law-abiding competitors. The results of this investigation should serve as an opportunity for other employers to examine their pay practices to ensure they comply, and avoid similar violations, back wage payments and penalties.”

The violations in this investigation mirror those the department found in a 2015 investigation which resulted in the Ocean Club paying $50,623 to 29 workers. The Ocean Club’s repeat infractions in this latest investigation led the department to assess a $10,903 civil money penalty.

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.

ATLANTA – During the pandemic, grocery store workers were among those on the front lines whose jobs put them in close contact with others – putting them at greater risk for contracting the coronavirus – while they ensured their neighbors had access to essential goods and services. In return, some of these workers, including many minors, faced wage violations or other workplace hazards.

To educate the Southeast’s grocery industry employers about federal labor laws and conditions that put young workers at risk, the U.S. Department of Labor’s Wage and Hour Division has undertaken an education and enforcement initiative to increase compliance. The agency will host a joint webinar with the department’s Occupational Safety and Health Administration on June 30 from 1 to 3 p.m. EDT to educate grocery workers and employers about their rights and responsibilities. Click here to register.

From April 2019 through March 2021, the division concluded 325 investigations of grocers in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee. In 84 percent of those investigations, the division found violations of the Fair Labor Standards Act. The investigations recovered more than $670,000 in back wages for nearly 2,000 workers.

In addition, those investigations led to assessments of more than $150,000 in civil money penalties against employers for violations, most notably child labor infractions. Typically, these violations are the result of minors under age 16 being employed to work outside of the hours the law allows. Violations also occur when employers assign or permit minors to complete tasks the law deems hazardous, as was the case with a minor in Georgia who was injured while cleaning a meat grinder, a prohibited activity.

“The U.S. Department of Labor remains focused on protecting essential workers,” said Wage and Hour Division Regional Administrator Juan Coria in Atlanta. “Minor employees are particularly vulnerable, due to their young age and lack of experience. This initiative will provide the information workers need to understand their rights, and that employers need to understand their responsibilities. Rigorous enforcement will provide additional incentive for employers to ensure they provide workers all of the required protections and play by the rules.”

The division seeks to equip employers with the information and tools they need to comply with these laws, such as our compliance assistance toolkits. It also encourages the public to contact their local Wage and Hour Division office with questions about workers’ and employers’ rights and responsibilities under federal law.

For information about the FLSA and other laws enforced by the division, contact the agency toll-free 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.