PENSACOLA, FL – Among some of the nation’s lowest-paid workers, home healthcare aides remain especially dependent on their employers to pay them all of their legally earned wages. When an employer shortchanges these workers, the impact hits employees and their families hard as it did those employed by a Pensacola-based home healthcare provider.

A U.S. Department of Labor Wage and Hour Division investigation of the Chris Lewis Agency LLC found that the employer failed to pay employees working at two 24-hour care homes for all of the hours they worked. Employees working 16-hour days were paid for only 12 or 13 hours. By doing so, the agency violated overtime requirements of the Fair Labor Standards Act. The division also found Chris Lewis’ failure to maintain accurate daily and weekly records of their employees’ work hours violated FLSA recordkeeping requirements.

The investigation led the division to recover $93,932 in back wages for seven workers.

“When employers fail to meet their obligations to pay essential workers all the wages they have earned, it hits our lowest wage-earners the hardest, significantly impacting their ability to earn a living,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Other employers in this industry should use the outcome of this investigation as an opportunity to review their own pay practices, ensure they comply with the law, and 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.

GOLDEN VALLEY, MN – Low-wage workers often do much of the essential work in our communities, and women, immigrants and people of color often hold those jobs. The healthcare industry employs many of the nation’s low-wage workers, which underscores the importance of a federal court action and a U.S. Department of Labor Wage and Hour Division investigation related to a Golden Valley home healthcare provider.

On Aug. 5, 2021, U.S. District Court Judge Wilhelmina M. Wright for the District of Minnesota approved a settlement agreement between the department and Alliance HHC & Nursing Service LLC to resolve Fair Labor Standards Act violations the department found in an investigation. The agreement requires Alliance to pay $241,582 in back wages and $241,582 in liquidated damages to 82 home healthcare workers it employs.

The investigation determined Alliance HHC & Nursing Service LLC and its owner Robin Nyangena failed to pay workers overtime when they worked more than 40 hours in a workweek, as the law requires. Instead, the employer continued to pay workers straight-time rates, regardless of the number of hours they worked each week. The home healthcare workers provide skilled nursing, private duty, personal aide and therapy services.

“The essential care that home healthcare workers provide helps their clients maintain their dignity and remain in their homes,” said Acting Wage and Hour Division District Director Kristin Tout in Minneapolis. “The Wage and Hour Division is committed to ensuring essential employees receive every dollar of their hard-earned wages and that employers abide by the federal wage laws. Other employers should use the outcome of this investigation as an opportunity to review their own pay practices to ensure they comply with the law.”

The division recently launched the Essential Workers, Essential Protections initiative to ensure that workers know about the workplace laws that protect them – and how to contact the division to get the help they need.

Learn more about wage rules for healthcare workers.

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.

COURT NO: Walsh v. Alliance HHC & Nursing Service LLC, Robin Nyangena

0:20-cv-01259 WMW-KMM

SHAFTER, CA – U.S. Department of Labor Wage and Hour Division investigators found that while employees at four Central California restaurants worked hard to ensure customers enjoyed their experience, their employer failed to ensure they received all the wages they had legally earned.

The division’s review of La Fonda Taquería y Mariscos’ payroll practices revealed the employer paid workers at straight-time hourly rates regardless of the number of hours they worked each workweek. By doing so, La Fonda violated the Fair Labor Standards Act’s overtime requirements when it failed to pay overtime wages for hours worked beyond 40 in a workweek. Instead, the employer paid workers for their first 40 hours each week on the payroll, by check, but paid for additional hours separately, at straight time rates, often in unrecorded cash. The employer also failed to maintain complete time and payroll records, also a violation of the FLSA.

Following the investigation, La Fonda Taquería y Mariscos will pay $200,682 in back wages to 49 employees, including cooks and cashiers. The division also assessed $23,265 in civil penalties to address the willful nature of the violations.

“Restaurant industry workers are among the lowest-paid essential employees in our nation and are often unaware of their most basic rights,” said Wage and Hour Division Assistant District Director Patricia Canites in Sacramento, California. “Violations like these are all too common and the U.S. Department of Labor is committed to using every enforcement tool available to achieve compliance from employers who willfully violate the law, hurt workers and their families, and take an unlawful advantage of their competitors that abide by the law.”

La Fonda Taquería y Mariscos has restaurants in Shafter and Wasco, and two in Bakersfield.

The Wage and Hour Division enforces the law regardless of a worker’s immigration status, and can speak confidentially 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.

Read this news release En Español.

PHILADELPHIA – A North Carolina farm labor contractor that hired temporary workers to pick and pack melons in southern Delaware violated federal law when it employed them in jobs not listed in its application to hire foreign guest workers, failed to provide required kitchen facilities or meals, paid insufficient wages and housed workers in overcrowded living quarters, the U.S. Department of Labor’s Wage and Hour Division has found.

Division investigators found Jose Gracia Harvesting Inc., based in Four Oaks, violated several provisions of the H-2A temporary agricultural workers visa program, which allows employers to hire temporary, nonimmigrant workers for seasonal agricultural work.

The investigation led the department’s Office of Administrative Law Judges to approve a settlement in which Garcia paid $13,996 in back wages to 47 workers to resolve the wage violations. The contractor has also paid a $6,861 civil penalty.

Specifically, the division found Gracia failed to:

• Comply with H-2A recruitment requirements by employing workers in supervisor, cook and bus driver positions when the job order listed only farmworkers and laborers positons.
• Provide kitchen facilities or meals to the workers as required. Instead, the contractor required workers to purchase their meals and the average daily cost of meals exceeded the maximum amount allowed.
• Pay the wage rate as offered. The contractor paid a piece rate instead of an hourly rate. As a result, total wages did not always meet the required minimum rate of $11.66 per hour.
• Keep accurate records of employees’ hours and earnings.
• Provide or secure housing for workers as required. The contractor housed workers in an overcrowded motel that lacked sufficient beds for the workers.

“Farmworkers are among the nation’s most essential workers and unfortunately some of the most vulnerable to unfair and unsafe labor practices,” said Wage and Hour Division District Director Jim Cain in Philadelphia. “This investigation underscores the department’s commitment to using any and all enforcement strategies at our disposal to protect the rights of these employees, and to level the playing field for employers who obey the law. Other employers should use the outcome of this investigation as an opportunity to review their own practices to make sure they comply with the law, and avoid violations like those found in this case.”

Jose Gracia Harvesting Inc. contracts with Melon 1, one of the nation’s largest melon brokers. Once harvested, buyers ship and distribute the melons throughout the country.

For more information about the FLSA, the H-2A program 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.

MOUNT DORA, FL – Diners at Fiesta Grande Mexican Grill locations in Mount Dora and Orange City never knew that the restaurants’ operator was sharing tips intended for servers with cooks in violation of federal laws regulating the use of money in tip pools.

U.S. Department of Labor Wage and Hour Division investigators found that Fiesta Grande Mexican Grill Inc. violated the Fair Labor Standards Act by including cooks in its tip pool illegally. When an employer takes credit for workers’ tips toward its minimum wage obligation to those workers, non-tipped employees, like cooks, cannot participate in a tip-sharing agreement.

A review of the restaurants’ records led to the division’s recovery of $58,074 for 45 workers denied their rightful wages.

“Restaurant servers worked hard to keep their employers’ businesses open amid pandemic risks,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “By misusing its tip pool, Fiesta Grande’s operator shortchanged its tipped workers who depend on tips for good service and hard work to provide for themselves and their families. The U.S. Department of Labor will act to enforce the law and ensure workers are paid all of their legally earned wages.”

For more information about the FLSA and other laws enforced by the division, including compliance assistance toolkits, 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.

Read this news release En Español.

ALBUQUERQUE, NM –The U.S. Department of Labor has recovered $284,219 in back wages for 163 employees of Pappas Restaurants Inc. after an investigation found violations of the Fair Labor Standards Act’s minimum wage and overtime requirements.

The department’s Wage and Hour Division found the operator of Pappadeaux Seafood Kitchen included workers employed as oyster shuckers in its tip pool improperly. When an employer takes a credit for workers’ tips toward its obligation to pay them the federal minimum wage, only tipped workers may be included in tip pools. Illegally including non-tipped workers in this tip pool resulted in the division denying the employer’s use of that “tip credit,” meaning that every tipped worker was due the full minimum wage. The division also determined the employer calculated overtime pay incorrectly, resulting in additional violations.

“Restaurant industry employees are among the hardest working in our economy, and we must ensure they receive every penny of the wages they have earned,” said Wage and Hour District Director Evelyn Sanchez in Albuquerque, New Mexico. “The U.S. Department of Labor remains committed to protecting the wages of U.S. workers and maintaining a level playing field for employers who play by the rules. Other restaurants should use the outcome of this case as an opportunity to review their own pay practices, make sure they comply with the law, and avoid violations like those found in this case.”

Based in Houston, Pappas Restaurants Inc. is a family owned enterprise that operates branded restaurants in eight states including Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bros. Steakhouse, Pappas Seafood House, Pappas Bar-B-Q, Pappas Burger, Yia Yia Mary’s Mediterranean Kitchen, Dot Coffee Shop and Pappas Delta Blues.

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.

ALBUQUERQUE, NM – Employers may request that workers arrive before their shifts begin for briefings but workers must be paid for that time, a lesson that a New Mexico community college learned after a U.S. Department of Labor investigation.

The department’s Wage and Hour Division recovered $70,707 in back wages for 71 security guards at Central New Mexico Community College following an investigation that uncovered violations of the Fair Labor Standards Act’s overtime requirements. The division found that the college required security guards to arrive at work 15 minutes before their shifts for a briefing but systemically failed to record or pay for that time, which led to overtime violations. Failure to record this work time also resulted in the employer being cited for a recordkeeping violation.

“Employers who require employees to show up early or stay at work after their shift has ended for briefings are legally required to pay them for that time,” said Wage and Hour District Director Evelyn Sanchez in Albuquerque, New Mexico. “As essential workers, security guards deserve to be paid for the hours they work. The U.S. Department of Labor is committed to protecting the wages of all workers and ensuring that employers can compete on a level playing field.”

Based in Albuquerque, Central New Mexico Community College is the largest community college in New Mexico, and has nine locations in the Albuquerque and Rio Rancho metro areas.

 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. 

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.