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.

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.