US Department of Labor offers webinars for Indiana employers on coronavirus-related employee protections during the pandemic

News Release

US Department of Labor offers webinars for Indiana employers on coronavirus-related employee protections during the pandemic

IRS, SBA, EEOC and OSHA join Wage and Hour Division to discuss worker protections

INDIANAPOLIS – The U.S. Department of Labor’s Wage and Hour Division and its Occupational Safety and Health Administration will host representatives of the IRS, the U.S. Small Business Administration and the U.S. Equal Employment Opportunity Commission to present a series of webinars for Indiana-area employers and human resources professionals on each agency’s continued response during the coronavirus pandemic.

Employers, business owners and other stakeholders are encouraged to join one of the “Essential Workers-Essential Protections: Indiana Virtual Conference” on either May 4, 11, 18 or 25. The seminars, which will offer identical presentations, will take place from 1 to 3 p.m. EDT. Attendance is free but advance registration is required. The events will also include time for questions and answers.

Wage and Hour Division representatives will provide an overview on critical workplace protections and the rights of essential workers who are keeping the country moving forward during the pandemic.

OSHA will provide information on workplace safety and health compliance with an emphasis on OSHA’s coronavirus response.

The IRS will provide information about tax credits under the Employee Retention Credit, Paid Sick Leave, and Expanded Family and Medical Leave for child care. These programs offer a credit on employment taxes to business owners that participate.

The SBA will provide a guide on relief efforts to help small businesses, non-profits, faith-based organizations and entrepreneurs recover and grow.

The EEOC will provide an overview of the Americans with Disabilities Act and EEOC coronavirus resources.

Register for the Essential Workers-Essential Protections: Indiana Virtual Conference.

Agency
Wage and Hour Division
Date
April 27, 2021
Release Number
21-711-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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NEWS: US Department of Labor recovers $74K in back wages for 31 workers after investigation finds overtime violations at local restaurant

News Release

US Department of Labor recovers $74K in back wages for 31 workers after investigation finds overtime violations at local restaurant

NEW PORT RICHEY, FL Following a U.S. Department of Labor Wage and Hour Division investigation, Joey’s New York Pizza LLC – operating as Joey’s New York Pizza & Italian Restaurant – has paid $74,955 in back wages to 31 workers to resolve overtime violations of the Fair Labor Standards Act.

Investigators found the employer classified cooks incorrectly as exempt from overtime requirements and paid them a flat weekly salary, regardless of the number of hours that they worked. By doing so, the employer failed to pay these workers required overtime when they worked more than 40 hours in a workweek. Joey’s New York Pizza also failed to pay tipped servers overtime at required rates. The employer paid some of these workers straight time rates for their overtime hours, while paying some servers overtime based upon time and one-half their direct cash wages as tipped workers, instead of basing overtime on the full minimum wage.

The investigation took place at Joey’s New York Pizza LLC in its two New Port Richey locations and in its Palm Harbor location.

“These essential workers deserve to be paid every penny of their hard-earned wages,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “We encourage other employers in this industry to use the results of this investigation to evaluate their own pay practices to make sure they comply. Too often, we find workers wrongly denied overtime simply because the employer believes paying them a flat salary covers their obligation. Workers or employers with questions can call us and speak directly and confidentially with a trained wage and hour professional to get answers to their questions, or to file a complaint.”

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). Information is also available at www.dol.gov/agencies/whd, including a search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
April 26, 2021
Release Number
21-573-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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US Department of Labor recovers $129K in back wages for 154 workers at Ziegler Tire locations in Kentucky, Ohio, Pennsylvania

News Release

US Department of Labor recovers $129K in back wages for 154 workers at Ziegler Tire locations in Kentucky, Ohio, Pennsylvania

Investigation finds employer failed to record all hours worked, pay overtime

PITTSBURGH – For more than a century, The Ziegler Tire and Supply Company has changed tires and wheels, and made repairs on all types of vehicles at locations in Ohio and surrounding states, but the company fell flat when it came to paying workers in three states for all the wages they legally earned.

Following a federal investigation that found overtime and recordkeeping violations, the U.S. Department of Labor has recovered $129,612 in back wages for 154 workers in Pennsylvania, Kentucky and Ohio.  

The department’s Wage and Hour Division found Ziegler Tire called mechanics and tire technicians in the evening after normal working hours to complete auto service repairs. The employer failed to add these “call-out” hours to the total hours these employees worked, and failed to include commissions and call-out bonuses in workers’ regular rates of pay when determining overtime rates. These failures led to systemic overtime violations of the Fair Labor Standards Act. Ziegler’s failure to record all the hours employees worked resulted in recordkeeping violations.

“Employers who fail to pay their workers all their hard-earned wages shortchange these people and their families and gain an unfair advantage over competitors who abide by the law,” said Wage and Hour District Director John DuMont in Pittsburgh. “The Wage and Hour Division provides many tools and resources to help employers avoid violations and fully comply with the law.”

The investigation led to recovery of back wages at the following The Ziegler Tire and Supply Company locations, which operate as Ziegler Tire at:

Address

City

State

Amount

10149 Toebben Drive

Independence

KY

$3,090

960 Nandino Boulevard

Lexington

KY

$12,896

547 Wolf Ledges Parkway

Akron

OH

$11,322

8500 Clinton Road

Brooklyn

OH

$8,328

4300 Tuscarawas Street W

Canton

OH

$8,819

1111 Milepost Drive

Columbus

OH

$10,599

411 Commercial Parkway

Dover

OH

$14,743

7934 Hills & Dales Road NW

Massillon

OH

$3,352

2505 Commercial Street

Mingo Junction

OH

$6,761

1100 Reed Road

Monroe

OH

$12,027

655 Olympic Drive

Troy

OH

$2,639

30559 Lemoyne Road

Walbridge

OH

$4,981

1014 Poland Avenue

Youngstown

OH

$12,986

6011 Kentucky Avenue

Altoona

PA

$3,896

919 Brush Creek Road

Warrendale

PA

$6,575

258 W Wheeling Street

Washington

PA

$6,598

Based in Massillon, Ohio, The Ziegler Tire and Supply Company operates commercial service centers providing tires and other services. It is one of the largest wholesale distributors in Northeast Ohio.

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. 

Agency
Wage and Hour Division
Date
April 20, 2021
Release Number
21-626-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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US Department of Labor investigation reveals Boynton Beach residential construction contractor skirted federal overtime laws

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US Department of Labor investigation reveals Boynton Beach residential construction contractor skirted federal overtime laws

Properties of Elegant Distinction pays $240K to 40 workers to resolve violations

BOYNTON BEACH, FL – The U.S. Department of Labor’s Wage and Hour Division works hard to help employers understand that violating federal labor laws can be costly, a lesson a Boynton Beach-based residential construction contractor has learned.

An investigation by the division has led to the recovery of $240,497 in back wages for 40 workers employed by Properties of Elegant Distinction LLC to resolve the company’s overtime violations of the Fair Labor Standards Act. The division found the employer paid workers for their first 40 hours in the workweek with a company check or through direct deposit and paid for any hours worked over 40 with a second check issued from a separate account at the workers’ straight-time rate. By doing so, the employer failed to pay employees overtime as the law requires.

“Employers must understand and comply with federal labor laws, including paying workers the wages they have legally earned,” said Wage and Hour Division District Director Daniel Cronin in Miami. “When employers don’t comply, they violate the law, hurt their employees and gain an unfair competitive advantage over employers that play by the rules. As we emerge from the pandemic, the Wage and Hour Division is working to make sure essential workers take home every penny of their hard-earned wages.”

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.

Agency
Wage and Hour Division
Date
April 20, 2021
Release Number
21-561-ATL
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US Department of Labor files suit against Fort Washington company after investigation finds minors illegally made door-to-door sales

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US Department of Labor files suit against Fort Washington company after investigation finds minors illegally made door-to-door sales

Pennsylvania Youth Club allegedly violated child labor laws; faces $103K penalty for willful violations

FORT WASHINGTON, PA – A Fort Washington organization that employed at-risk teens to peddle candy and other items door-to-door is alleged to have violated federal child labor laws. 

The U.S. Department of Labor has filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia against Pennsylvania Youth Club Inc. and owners Tarique Smith and Karon Duffy alleging the defendants violated the child labor provisions of the Fair Labor Standards Act and seeking an injunction against future violations.

The department has separately assessed a $103,051 civil money penalty for child labor law violations. Because the company has contested the penalty, the department has filed an order of reference with its Office of Administrative Law Judges seeking to affirm the penalty amount.  

The actions follow an investigation by the department’s Wage and Hour Division that found the organization hired 17 minors, some as young as 12 years old, to work illegally as door-to-door salespersons. The employer also permitted teens to work during prohibited work hours, and failed to maintain proper records, both FLSA violations. Teens as young as 12 and 13 years old sold products through door-to-door sales, some working as late as 10 p.m. Federal law requires that teens must be at least 16 years old to be employed for door-to-door sales, and limits the number of hours those under 16 years old may work. 

“Protecting our youngest workers continues to be a top priority for the Wage and Hour Division,” said Wage and Hour Division District Director James Cain, in Philadelphia. “Child labor laws ensure that when young people work, the work does not jeopardize their health, well-being or educational opportunities. Employers of minors have a responsibility to understand their obligations under the law, and to comply with those requirements. This case should serve as notice to other employers who may be employing minors in similar circumstances.” 

For more information about the FLSA and other laws enforced by 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. 

 

Agency
Wage and Hour Division
Date
April 20, 2021
Release Number
21-556-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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US Department of Labor investigation finds three Florida mail-hauling contractors in violation of federal contract requirements

News Release

US Department of Labor investigation finds three Florida mail-hauling contractors in violation of federal contract requirements

Employers to pay more than $293K in back wages to 34 employees

ORLANDO, FL – Private mail carriers provide useful support in mail delivery across the nation, and those who work for these federal contractors are expected to meet schedules, and follow specific standards. When three Florida-based contractors failed to deliver all of the workers’ hard-earned wages, the U.S. Department of Labor responded on the workers’ behalf.

Following its investigations, the department’s Wage and Hour Division determined that three mail haulers in northern and central Florida – Mercado Santiago Inc. in Middleburg, Copa Post Services LLC in Gainesville and M&M Superior Contracting LLC in Orlando – owed a total of $293,779 to 34 employees. All three employers violated requirements of the McNamara-O’Hara Service Contract Act.

The division found Mercado Santiago failed to pay workers for all the hours that they worked, resulting in the contractor paying less than the prevailing wage rates required. In addition, the division found the employer failed to pay required health and welfare benefits for employees and failed to keep accurate time and payroll records. As a result, Mercado Santiago has paid $219,166 in back wages to 16 employees.

Investigators determined Copa Post Services LLC also failed to pay required health and welfare benefits to workers. The employer has paid $25,848 in back wages to 10 employees.

The division found M&M Superior Contracting LLC failed to pay required prevailing wage rates. The employer also failed to pay required health and welfare benefits and holiday pay to workers, and failed to allow employees to accrue vacation time or vacation pay. The employer owes $48,765 in back wages to eight employees.

“Prevailing wage laws provide a safety net for fair wages and benefits to workers on contracts providing services to the federal government. Enforcement of these laws protects the wages of hard-working, middle-class American workers,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “The Wage and Hour Division will remain vigilant in its work to ensure employees are paid in compliance with these laws, and that employers compete on a level playing field.”

In April 2013, the U.S. Postal Service awarded Mercado Santiago a contract to provide mail-hauling services in Duval, Clay and St. Johns counties. The contract expires in September 2022. Copa Post Services hires employees to work at USPS locations delivering mail on SCA contracts in Alabama, Florida and Georgia. M&M Superior Contracting holds three separate SCA contracts to deliver mail for the USPS in Orlando.

For more information about the SCA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/agencies/whd, including a search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
April 19, 2021
Release Number
21-450-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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US Department of Labor recovers $20K in back wages for 31 workers after investigation finds overtime violations by North Charleston company

News Release

US Department of Labor recovers $20K in back wages for 31 workers after investigation finds overtime violations by North Charleston company

Quality Touch Janitorial Service Inc. failed to calculate overtime properly

NORTH CHARLESTON, SC – During the pandemic, commercial cleaning workers remain a lifeline to businesses, keeping employees, customers and others safe. These workers risk coronavirus exposure in return for the wages they need to care for themselves and their families.

Ensuring that workers like these are paid all of the wages they legally earn is the job of the U.S. Department of Labor and its Wage and Hour Division. A recent investigation at Quality Touch Janitorial Service Inc. has recovered $20,849 in back wages for 31 workers after the division found the North Charleston employer violated the overtime requirements of the Fair Labor Standards Act.  

Investigators determined that instead of tracking the number of hours employees worked each workweek and paying overtime when they worked beyond 40, Quality Touch tracked and paid overtime after employees worked 86.67 hours in a semi-monthly pay period. The FLSA requires employers to pay overtime for hours worked beyond 40 in a workweek. The division also found the cleaning company failed to include certain hazard and specialty cleaning pay in workers’ regular rates of pay when calculating overtime rates. Excluding those amounts resulted in the employer paying overtime at rates lower than those required by law.

“Employers are welcome to establish any pay period they choose, but regardless of whether they decide to pay weekly, bi-weekly, twice a month, or on some other schedule, they still must track workers’ hours each week to determine when overtime is due,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “The pandemic has made our work to ensure essential workers take home every cent of their hard-earned wages and that employers understand their responsibilities vitally important. We encourage anyone with questions to reach out to us for confidential assistance.”

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 its search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
April 19, 2021
Release Number
21-448-ATL
Media Contact: Erika Ruthman
Media Contact: Eric R. Lucero
Phone Number
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US Department of Labor recovers $47K in back wages after investigation finds Hancock County Sheriff’s Department violated overtime laws

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US Department of Labor recovers $47K in back wages after investigation finds Hancock County Sheriff’s Department violated overtime laws

SNEEDVILLE, TN The Hancock County Sheriff’s Department in Sneedville found they had failed to follow the law after a U.S. Department of Labor Wage and Hour Division investigation determined the employer did not pay required overtime or comp time to employees who worked more than 40 hours per workweek.

The overtime violations of the Fair Labor Standards Act led the division to recover $47,252 in back wages for 65 workers in the sheriff’s department. While the FLSA allows law enforcement employers to pay overtime or provide compensatory time to their employees based on work periods other than the standard 40 hour workweek, the Hancock County Sheriff’s Department chose not to claim that exemption. Violations occurred when payroll processing errors resulted in the employer’s failure to track when workers exceeded 40 hours in a workweek.

“Employers must pay workers all the wages they have earned, including overtime,” said Acting Wage and Hour Division District Director Kenneth Stripling in Nashville, Tennessee. “In this case, those in the business of protecting us needed protections themselves. We encourage employers to review their pay practices to ensure that they are in compliance with the law, and to reach out to us, confidentially, with any questions. A call to our help-line puts you in touch with a trained Wage and Hour professional who can answer your questions.”

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). Information is also available at www.dol.gov/agencies/whd, including a search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
April 12, 2021
Release Number
21-427-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Erika Ruthman
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Pennsylvania nonprofit pays nearly $45K in back wages to 80 employees after US Department of Labor finds overtime violations

News Release

Pennsylvania nonprofit pays nearly $45K in back wages to 80 employees after US Department of Labor finds overtime violations

Keystone Adolescent Center Inc. failed to pay 80 workers for time spent in staff meetings

GREENVILLE, PA – Every two weeks, supervisors and behavior specialists gathered at Keystone Adolescent Center Inc.’s five Greenville facilities where they discussed policy changes, completed required training and reviewed safety procedures – all to be prepared to help at-risk youth they serve.

The employer also used the gathering to distribute paychecks, yet failed to pay 80 workers who attended these meetings and required trainings outside of their regular shifts for the time they spent at them. A U.S. Department of Labor Wage and Hour Division investigation determined that – by excluding this work time from employees’ pay – Keystone Adolescent violated the Fair Labor Standards Act, and led to the recovery of $44,858 in back wages for the workers.

Investigators found that Keystone Adolescent paid employees for time spent at staff meetings and required trainings only if those meetings and trainings occurred during their scheduled shifts. The employer failed to pay workers attending outside of their normal work hours for time they spent in those meetings and required trainings. Failing to record and pay for this time violated FLSA overtime and recordkeeping requirements.

“Employers must pay employees all the wages they legally earn, which includes paying them for any hours they work outside of their scheduled shifts,” said Wage and Hour Division District Director John DuMont in Pittsburgh. “We encourage all employers to use the wide variety of compliance assistance tools we offer to ensure they are complying with the law, and avoid violations like those found in this case. We also invite them to call us to speak directly with a trained Wage and Hour professional for confidential assistance.”

Keystone Adolescent paid the overtime wages owed to employees at five Greenville locations as follows:

  • Keystone Female Services, 95 South Race St.: $11,650 in back wages to 23 workers.
  • Keystone Education Center, 425 South Good Hope Road: $13,309 in back wages to 21 workers.
  • Keystone Transitional Living-Female, 95 South Race St.: $2,805 in back wages to five workers.
  • Keystone Adolescent Center, 60 South Race St.: $10,171 in back wages to 22 workers.
  • Keystone Transitional Living-Male, 52 Sharon Road: $6,923 in back wages to nine workers.

Founded in 1993, Keystone Adolescent Center Inc. provides community based programs that offer behavior modification, therapeutic counseling, and educational opportunities for at-risk adolescents. The employer also provides 24-hour care and supervision for delinquent and dependent youth throughout western Pennsylvania.   

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). Information is also available at www.dol.gov/agencies/whd, including a search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
April 5, 2021
Release Number
21-550-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson
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Zeigler Auto Group pays $85K in back wages to 214 workers after US Department of Labor investigation

News Release

Zeigler Auto Group pays $85K in back wages to 214 workers after US Department of Labor investigation

Auto dealer failed to ensure commission-based sales consultants made minimum wage

KALAMAZOO, MI – Zeigler Auto Group’s sales may place it among the leading auto dealerships nationwide, but a recent federal investigation found sales consultants’ commissions often failed to meet minimum wage requirements at 13 Michigan, Indiana and Illinois locations.

The investigation by the U.S. Department of Labor’s Wage and Hour Division recovered a total of $85,111, in minimum wages and overtime back wages for 214 employees of Harold Zeigler Auto Group Inc. 

Employees paid on commission basis must earn at least the federal minimum wage per hour of work completed. If they do not, employers must make up the difference,” explained Wage and Hour Division District Director Mary O’Rourke in Grand Rapids, Michigan. “Our investigation put money into the pockets of workers who were underpaid, and levels the playing field for employers who play by the rules. Other employers in this industry should use this investigation as an opportunity to review their own pay practices and avoid similar violations.”

The division found the employer violated the Fair Labor Standards Act when they:

  • Failed to assure that sales consultants’ commissions covered at least the federal minimum wage for all the hours that they worked during each monthly settlement period;
  • Wrongly classified some salaried employees in their business development centers as exempt from overtime requirements, and then failed to pay them overtime despite their duties not qualifying for exemption; and
  • Failed to maintain accurate payroll records.

Investigators determined the employer had underpaid 80 sales consultants employed at 10 locations including: Zeigler of Kalamazoo, Zeigler Motorsports, Zeigler of Grandville and Zeigler of Plainwell, in Michigan; Zeigler Ford of Elkhart, Indiana; and Hoffman Estates Mercedes Benz, Hoffman Estates Infiniti, Zeigler Nissan of Gurnee, Zeigler of North Riverside and Zeigler of Lincolnwood, all located in Illinois.

Headquartered in Kalamazoo, Zeigler Auto Group owns and operates 30 retail automotive dealerships, three finance companies, a leasing firm, insurance firms and a real estate portfolio throughout Southwest Michigan, Northern Indiana and Illinois.

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). Information is also available at www.dol.gov/agencies/whd, including a search tool to use if you think you may be owed back wages collected by the division.

 

Agency
Wage and Hour Division
Date
March 31, 2021
Release Number
21-384-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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