MANCHESTER, NH – Two Nashua restaurants learned that paying flat salaries to its workers doesn’t waive their responsibility to pay overtime when those employees work more than 40 hours in a workweek. Doing so violated the Fair Labor Standards Act, and resulted in the back wages found due in a U.S. Department of Labor Wage and Hour Division investigation.

The division recovered $108,043 in back wages for 17 employees and cited Lilac Blossom North and Lilac Blossom South for violations of the FLSA’s minimum wage and overtime requirements.

Investigators found the employer paid cooks and bussers flat salaries, regardless of the number of hours they worked per week. By paying flat salaries, the employer failed to pay overtime when those employees worked more than 40 hours in a workweek, in violation of federal law. The division also found the employer violated FLSA recordkeeping requirements when it failed to record the number of hours employees worked, including time some employees spent transporting other workers to and from employer-provided housing.

In addition, the employer violated the FLSA’s minimum wage requirements when it failed to provide a final paycheck to one employee at its Lilac Blossom South location.  

“Simply paying someone a salary doesn’t mean they are exempt from overtime,” said Wage and Hour Division District Director Daniel Cronin in Manchester, New Hampshire. “Most employees, even those paid a fixed salary or flat amount per day or shift, are entitled to overtime unless a specific exemption applies. Workers deserve to take home every penny they have earned, and other employers should use this case as an opportunity to review their own pay practices to ensure they comply with the law.”

The division 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. Learn more about the FLSA. Contact the Wage and Hour Division toll-free at 866-4US-WAGE (487-9243) for more information.

SANIBEL, FL –Restaurant workers such as servers and bartenders depend on tips to supplement their low hourly wages, so when a Sanibel Island eatery required its workers to contribute to an unlawful tip pool, the restaurant made it even harder for them to make ends meet.

An investigation of Island Cow Inc. by the U.S. Department of Labor’s Wage and Hour Division has recovered $222,432 in back wages for 48 workers.

The division’s investigators determined Island Cow violated the Fair Labor Standards Act by operating an unlawful tip pool, which required tipped employees to share earnings with non-tipped workers, including dishwashing assistants and kitchen expeditors. The employer also classified cooks, a bookkeeper and a bar manager incorrectly as exempt from overtime requirements, and paid them flat salaries regardless of the number of hours they worked. By doing so, Island Cow violated the FLSA when it failed to pay these workers overtime when they exceeded 40 hours in a workweek. The employer also failed to maintain accurate records of the number of hours employees worked and of the wages paid to workers, violating FLSA recordkeeping requirements.

“Front-line employees in the food service industry deserve to be paid all the hard-earned wages they have earned,” said Wage and Hour Division District Director Nicolas Ratmiroff in Tampa, Florida. “The law allows the employers of tipped workers to use those tips as a credit towards the employee’s wages, but only if they meet all the legal requirements. Employers must also understand that paying an employee a flat salary does not automatically make them exempt from overtime. We hope the results of this investigation encourage other employers to review their own pay practices, and to ensure they comply with the law. They can avoid violations like those found in this case.”

The division 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. Learn more about the FLSA. Contact the Wage and Hour Division toll-free at 866-4US-WAGE (487-9243) for more information.

OCALA, FL – A consent order issued by an administrative law judge in the U.S. Department of Labor has allowed the department’s Wage and Hour Division to recover $81,139 in back wages for 29 foreign workers brought to Florida for employment under the federal H-2B guest worker visa program.

The order by the Office of Administrative Law Judges follows an investigation that found Wavertree Stables violated the program when it failed to pay guest workers required wages. The shortage resulted from the employer’s failure to pay employees for all the hours that they worked, effectively lowering their hourly rates.

The employer also staggered the workers’ arrival in the U.S., contrary to the need stated in Wavertree Stables’ H-2B Petition requesting foreign workers. Investigators also found the employer failed to reimburse workers for their travel expenses incurred traveling to and from their home countries, as the program requires. The employer also failed to keep an accurate record of the number of hours employees worked. In addition to the back wages, Wavertree Stables paid a $56,806 civil penalty the department assessed for the violations.

“These vulnerable workers left their home countries and came to the U.S. to work under conditions clearly prescribed by the H-2B visa program. They deserve every protection that comes along with those promised conditions,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Our enforcement of the labor provisions of guest worker visa programs protects guest workers, protects front line U.S. workers, and protects employers from having to compete with those who would gain an unfair competitive advantage by skirting the rules.”

The division 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. Learn more about the H-2B Visa Program. Contact the Wage and Hour Division toll-free at 866-4US-WAGE (487-9243) for more information.

PASCAGOULA, MS – A Pascagoula, Mississippi, staffing agency for the marine and shipbuilding industries has paid $46,372 in back wages to 45 employees to resolve overtime and recordkeeping violations of the Fair Labor Standards Act found in a U.S. Department of Labor Wage and Hour Division investigation.

Wage and Hour Division investigators found Quality Marine Staffing LLC failed to pay some employees overtime when they worked more than 40 hours in a workweek. Instead, the employer artificially labeled a portion of the employees’ hours as “per diem” payment, at an hourly rate, and paid that hourly payment at straight time for overtime hours. In addition, the division found the employer failed to maintain accurate payroll records as required by the FLSA.

“Employers must ensure they pay their workers the wages they have rightfully earned, and as federal law requires,” said Wage and Hour Division District Director Audrey Hall in Jackson, Mississippi. “Concealing overtime as per diem payment and shorting workers by paying for those hours at straight time will not be tolerated. The U.S. Department of Labor will continue working to level the playing field for employers that play by the rules, and to ensure workers get paid the hard-earned wages they have legally earned.”

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 Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/agencies/whd.

PHILADELPHIA – Every day, seniors and people with disabilities rely on home health care workers for vital services. While the demand for these skilled employees is high, wages remain low. So when a Philadelphia home health care agency failed to pay millions in overtime wages to its workers, the impact hit more than 450 workers hard as they struggled to make ends meet.

A recent investigation by the U.S. Department of Labor’s Wage and Hour Division has recovered $2,125,429 in back wages for 456 workers employed by Good Family Support Services Inc., operator of Good Family Support Services, a non-profit organization in Philadelphia.

The division found that the employer paid family care workers on an hourly basis, but paid straight-time rates for overtime hours. Good Family Support Services also failed to record the number of hours that two employees worked, and failed to record hourly rates, violating Fair Labor Standards Act’s recordkeeping requirements.

“Home health care workers provide essential services and have remained on the front lines, taking care of our loved ones and keeping us moving forward,” said Senior Counselor to the Secretary M. Patricia Smith. “These employees deserve to be paid every cent they have earned.”

“This case demonstrates our commitment to protecting and respecting vulnerable workers, in home health care and all low-wage industries,” said Wage and Hour Division Principal Deputy Administrator Jessica Looman. “The U.S. Department of Labor is committed to protecting all workers’ wages and to ensuring a level-playing field for all employers.”

Good Family Support Services Inc. offers in-home care services and caregiver trainings.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the division.

CHICAGO – Kitchen staff worked countless hours making authentic dishes like Banh Mi and Pho for a fixed salary while co-workers serving customers seeking Vietnamese cuisine at a popular Chicago restaurant often worked for tips only.

The U.S. Department of Labor’s Wage and Hour Division has recovered $697,295 in back wages for 60 employees following an investigation of Tank Noodle Inc. Investigators found the employer owed some workers more than $10,000 each in back wages and identified numerous violations of the Fair Labor Standards Act’s minimum wage and overtime requirements. The agency also found the employer failed to keep accurate records of the number of hours employees worked, as the law requires. On Oct. 14, 2020, the division notified Tank Noodle Inc. that they were in violation of the FLSA. Tank Noodle Inc. signed an agreement to pay the back wages they owed on Dec. 7, 2020.

 “This investigation recovered a considerable amount of back wages for 60 employees in an industry whose essential workers are often among the lowest paid in our society,” said Wage and Hour Division District Director Thomas Gauza in Chicago. “Failing to accurately record the hours employees work does not prevent a federal investigation, the discovery of violations and ultimately, back wage recovery. This case shows that employers that attempt to gain an unfair competitive advantage by flouting the law will be held accountable.”

Investigators found the Northside restaurant employed some servers to work only for tips, failing to pay them any direct wages, as the law requires. Tank Noodle also shorted servers when the employer pooled tips each day, and divided them evenly among all staff, which illegally included management. The FLSA does not permit management to participate in tip pooling arrangements. Additionally, the restaurant violated overtime requirements when it paid some workers flat amounts per day, regardless of the number of hours that they worked. Doing so resulted in violations when those employees worked more than 40 hours per week but the employer failed to pay overtime.

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, or confidential calls to local Wage and Hour Division offices. For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243).

NORTH CHARLESTON, SC – While a North Charleston catering facility relied on the hard work of its hourly workers to make their guests’ weddings and special events memorable, a recent U.S. Department of Labor investigation found 18 workers had less to celebrate when their employer failed to pay them $22,970 in overtime they had earned.

U.S. Department of Labor Wage and Hour Division investigators determined Crazy Dutchman Catering LLC violated the Fair Labor Standards Act by paying straight-time rates for overtime hours employees worked at catered events. The employer tracked hours employees worked at their establishment with a time clock, but failed to record the number of hours employees worked at events off site. Instead, Crazy Dutchman paid workers flat rates per event, regardless of the number of hours they worked. By doing so, the employer failed to pay workers overtime when their work time spent at offsite events combined with their work at the employer’s establishment exceeded 40 in a workweek.

In addition to recovering the overtime back wages for the workers, the division found Crazy Dutchman’s failure to keep a record of the number of hours the employees worked at catered events violated FLSA recordkeeping requirements.

“Workers in the food service industries are among the most vulnerable we see,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “Workers, particularly those on the front lines who have kept us moving forward during a global pandemic, deserve to be paid every penny they have earned. The U.S. Department of Labor encourages all employers to contact their nearest Wage and Hour Division office for assistance with understanding their responsibilities under the law.”

The division 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. Learn more about the FLSA. Contact the Wage and Hour Division toll-free at 866-4US-WAGE (487-9243) for more information.

PHOENIX, AZ – The U.S. Department of Labor wants to hear from current and former employees of a Tempe stucco and plastering contractor as part of long-running investigation and lawsuit over continuous and egregious alleged overtime and recordkeeping violations of the Fair Labor Standards Act.

The department is seeking to recover back wages that Valley Wide Plastering may owe to those now working for the contractor or who have worked for the them since October 2015. Those now employed or employed by Valley Wide at any time since October 2015 should contact the department’s Wage and Hour Division at (602) 296-9723 for information about the case.

The division first investigated Valley Wide Plastering in 2012 for failing to maintain accurate records. A subsequent lawsuit filed by the department in 2018 alleged that the company failed to pay overtime to employees it paid on both a “piece rate” and hourly basis. Since the 2018 filing, the department alleges that Valley Wide Plastering has continued to fabricate and alter time records to hide the total number of hours its employees worked. The department also alleges the employer began doctoring payroll to make it appear that it had paid overtime when, in fact, Valley Wide Plastering continues to deny workers’ wages they have legally earned.  

The U.S. District Court in Arizona granted the department’s motion for a preliminary injunction Feb. 5, 2021, to prevent Valley Wide Plastering from continuing to violate recordkeeping requirements. The court found substantial evidence that Valley Wide Plastering, both before and during the litigation, inaccurately recorded employee work hours “by filling in false hours or by manually altering the number of hours employees record without adequate justification.”

The court also found evidence that showed the defendants have reduced “the regular rates of their employees to make it appear as if overtime is paid when it is not,” with evidence also showing defendants had failed to “accurately record wages paid to their employees by issuing checks from non-payroll accounts.” The court ordered Valley Wide Plastering to reform its recordkeeping practices and to notify its workers of their rights.

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.

Read this news release En Español

DALLAS – The U.S. Department of Labor’s Wage and Hour Division will host a two-day virtual event from March 3-4, 2021, to provide guidance on federal requirements governing agricultural employment to growers, farmers, shippers, contractors, farm labor contractors, buyers and agricultural workers in the agency’s Southwest region.

Presented in coordination with other agencies and stakeholders, the 2021 Virtual Agricultural Seminar will focus on federal regulations governing agricultural employment and include discussions on the Fair Labor Standards Act, Migrant and Seasonal Agricultural Worker Protection Act, H-2A temporary agricultural program and Office of Foreign Labor Certification. Learn about requirements for wages, housing, transportation, field sanitation, farm labor contractor certification, and more. Discussions will also include the impact of the coronavirus on agricultural employment.

“The Wage and Hour Division encourages workers, employers and others in the agriculture industry to participate,” said Wage and Hour Division Regional Administrator Betty Campbell. “We remain committed to ensuring that agricultural workers are paid the wages they have earned, and that employers clearly understand their responsibilities. These workers have remained on the front lines and deserve every protection the law provides.”

Scheduled to join the seminar are representatives from the following agencies and organizations:

• The Occupational Safety and Health Administration
• The U.S. Department of Agriculture’s Farm Service Agency
• The National Council of Agricultural Employers
• U.S. Equal Employment Opportunity Commission
• The National Institute for Occupational Safety and Health
• U.S. Department of Justice’s Immigrant Employee Rights Section
• The McCain Institute Combatting Human Trafficking Program

See the seminar’s agenda. Share the event flyer in English and Spanish. The event will take place on both days from 9 a.m. to 4:30 p.m. CST. Attendance is free, but the division recommends participants register for the seminar in advance. 

Read this news release En Español

MYRTLE BEACH, SC – While the operator of six South Carolina ice cream franchise locations sold customers frozen treats, a federal investigation has gotten 61 workers their just desserts – a total of $16,250 in back wages – for the employer’s failure to pay overtime at six Myrtle Beach locations.

U.S. Department of Labor Wage and Hour Division investigators found Bryers of MB Inc. and Rowland Dairies Inc. – which operate six Ben & Jerry’s locations – paid the workers straight-time for all the hours that they worked, violating the Fair Labor Standards Act by failing to pay overtime when workers’ hours exceeded 40 in a workweek.

In addition to the wage violations, the division also assessed the employer a $5,110 civil money penalty for violations of child labor requirements after the employer allowed two 12-year-olds to operate snow-cone stands, a violation of federal law that governs minimum ages for non-agricultural work. The employer also failed to keep accurate records detailing the dates of birth for the minor workers, and the number of hours some employees worked.

“Employers must ensure they pay workers all the wages they have earned, including overtime, and must pay special attention to the rules about minor employees,” said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. “The Wage and Hour Division is committed to keeping young employees safe in the workplace. This case should serve as notice to other employers who may employ minors in similar conditions to ensure they comply, and to ensure they pay all workers their rightful wages.”

The division 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. Learn more about the FLSA. Contact the Wage and Hour Division toll-free at 866-4US-WAGE (487-9243) for more information.