Twin Cities area grocer will pay $212K in overtime back wages to 81 workers after US Department of Labor investigation

News Release

Twin Cities area grocer will pay $212K in overtime back wages to 81 workers after US Department of Labor investigation

Supermercado Lomabonita paid straight-time rates for overtime hours

ST. PAUL – Twin Cities’ area shoppers know about Supermercado Lomabonita’s five locations, but they may not know that a recent U.S. Department of Labor investigation found the grocer failed to pay overtime to its cooks, butchers, bakers and cashiers as required by law.

Following an investigation as part of an education and enforcement initiative in the grocery industry by the department’s Wage and Hour Division, Supermercado Lomabonita will pay $212,459 in overtime back wages to 81 employees. The division found the grocer violated the Fair Labor Standards Act by:

  • Paying employees “straight-time” for all the hours that they worked, including overtime hours that the employer should have paid at time-and-one-half workers’ regular rates of pay;
  • Failing to combine hours that employees worked at multiple store sites during the same workweek, leading to  violations when total weekly hours exceeded 40, but the employer failed to pay overtime;
  • Erroneously considering some employees as exempt from overtime. These employees worked up to 70 hours a week for a flat salary, and should have received overtime when they worked more than 40 hours in a week; and  
  • Failing to maintain accurate records of the number of hours employees worked.

“Violations like these are all too common in the grocery industry. Shorting low-wage workers’ pay prevents them from meeting their basic needs,” explained Acting Wage and Hour Division District Director Kristin Tout, in Minneapolis. “Our enforcement and education initiatives raise awareness of federal labor laws and protections among employers, workers, community organizations and others, and help ensure that workers take home every penny of their hard-earned wages.”

The Wage and Hour 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. For more information visit https://www.dol.gov/agencies/whd or call the division’s toll-free helpline at 866-4US-WAGE (487-9243).

The investigation disclosed the following back wages due, by location:

 

Location

# of Workers

Back Wages Due

Crystal

23

$74,551

Savage

25

$83,692

Hilltop

11

$16,597

Saint Paul

17

$33,202

Monticello

5

$4,418

 

Agency
Wage and Hour Division
Date
February 18, 2021
Release Number
21-223-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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Guam contractor’s violation leaves 43 construction workers from the Philippines in search of their overtime pay

News Release

Guam contractor’s violation leaves 43 construction workers from the Philippines in search of their overtime pay

US Department of Labor recovers more than $202K in back wages

HAGATNA, GUAM – Forty-three workers left the Philippines, traveling 1,550 miles to Guam through a federal temporary work visa program. While working at various construction sites on Guam, their employer willfully withheld their hard-earned overtime pay. Once the U.S. Department of Labor investigated, these workers received all of the wages they had earned.

After its investigation, the department’s Wage and Hour Division recovered $202,390 in unpaid overtime wages that Asian Construction Development Corp. owed to the 43 employees. Investigators found that the general contractor employer failed to pay the workers overtime when they worked more than 40 hours in a workweek. The division also assessed the employer $29,971 in civil money penalties for the willful nature of the violations found.

Investigators found the contractor paid workers for their first 40 hours each week by check, and recorded these payments in their payroll records. However, Asian Construction Development Corp. paid for any overtime hours employees worked in cash, at straight-time rates, and kept a separate, unreported record of these overtime hours.

“Employers must record and pay workers for all of the hours they work, including overtime,” said Wage and Hour Division District Director Terence Trotter, in Honolulu. “The workers in this case left their home countries to work for this employer, and deserved to be paid every penny they have legally earned.”

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

Agency
Wage and Hour Division
Date
February 17, 2021
Release Number
21-153-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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Fort Lauderdale HVAC contractor pays $20K in back wages to 18 employees as US Department of Labor finds overtime violations

News Release

Fort Lauderdale HVAC contractor pays $20K in back wages to 18 employees as US Department of Labor finds overtime violations

FORT LAUDERDALE, FL A Fort Lauderdale heating, ventilation and air conditioning contractor has paid $20,547 in back wages to 18 employees after a federal investigation found the employer failed to pay workers overtime when they worked more than 40 hours in a workweek.

U.S. Department of Labor Wage and Hour Division investigators determined Fuss Free AC LLC – operating as Fuss Free AC and Appliances – violated the Fair Labor Standards Act’s overtime requirements. The employer failed to record and pay employees for all of the hours that they worked, resulting in overtime violations in workweeks of more than 40 hours. Fuss Free AC also paid two workers flat weekly salaries regardless of the number of hours they actually worked. By doing so, the employer failed to pay overtime as the law requires when the employees worked more than 40 hours in a workweek. The employer also failed to maintain payroll records as required by the FLSA.

“Employers must pay their workers all of their hard-earned wages for all of the hours they have worked,” said Wage and Hour Division Acting District Director Lesbia Rodriguez, in Miami. “Other employers should use the results of this investigation as an opportunity to review their own pay practices. 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 wages they have legally earned.”

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.

Agency
Wage and Hour Division
Date
February 10, 2021
Release Number
21-113-ATL (41)
Media Contact: Eric R. Lucero
Phone Number
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Ohio health care service provider for individuals with developmental disabilities pays $92K in overtime back wages to 61 employees

News Release

Ohio health care service provider for individuals with developmental disabilities pays $92K in overtime back wages to 61 employees

Labor Department investigation finds FLSA violations

MAUMEE, OH – While records at Journey Through Life Care Services LLC showed the Maumee health care service provider paid employees legally required state minimum wage plus time-and-a-half for overtime, federal investigators found the employer regularly failed to pay its employees overtime wages – sometimes paying a mere 50 cents per hour more for hours over 40 in a workweek.

Following an investigation by the U.S. Department of Labor’s Wage and Hour Division, Journey Through Life Care Services has paid a total of $92,275 to 61 direct support care employees in owed overtime back wages and agreed to future compliance with the Fair Labor Standards Act’s overtime and recordkeeping provisions. The division determined the employer violated the FLSA’s overtime wage requirements by generally paying workers straight time for all hours worked, including hours over 40 in a workweek.

“By assisting individuals with developmental disability with daily tasks, education and transportation, direct care workers provide dignity and hope to vulnerable clients,” said Wage and Hour District Director George Victory, in Columbus, Ohio. “Unfortunately, we continue to find employers in the health care industry violating wage and overtime laws which denies these employees their rightful and hard-earned wages.”

The Wage and Hour 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 division offices. For more information on federal wage and hour laws, visit http://www.dol.gov/whd or call the division’s toll-free helpline at 866-4US-WAGE (487-9243) for more information.

Agency
Wage and Hour Division
Date
February 5, 2021
Release Number
21-152-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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US Department of Labor ends program that allowed employers to self-report federal minimum wage and overtime violations

News Release

US Department of Labor ends program that allowed employers to self-report federal minimum wage and overtime violations

PAID program enabled employers to avoid accountability

WASHINGTON, DC – The U.S. Department of Labor today announced that the immediate end of its Payroll Audit Independent Determination program launched by the department’s Wage and Hour Division in 2018. The program allowed employers to self-report federal minimum wage and overtime violations under the Fair Labor Standards Act to avoid litigation, penalties or damages, and prohibited affected workers from taking any private action on the identified violations.

“Workers are entitled to every penny they have earned,” said Wage and Hour Division Principal Deputy Administrator Jessica Looman. “The Payroll Audit Independent Determination program deprived workers of their rights and put employers that play by the rules at a disadvantage. The U.S. Department of Labor will rigorously enforce the law, and we will use all the enforcement tools we have available.”

The division provides significant outreach and educational resources for employers seeking assistance to understand their responsibilities to comply with wage and hour laws. These resources are sufficient for helping employers comply without relieving them of their legal obligations, and ensure that workers understand their rights.

The Wage and Hour Division investigates FLSA violations to verify that employers comply with their obligations. When enforcement actions are necessary, the FLSA provides for the payment of back wages and liquidated damages to workers and the assessment of civil money penalties when the agency determines the violations to be repeat or willful. The FLSA also gives workers the right to pursue private legal action against employers for back wages and damages.

Employers and workers are encouraged to call a Wage and Hour Division office in their area for FLSA compliance assistance. Calls are confidential. Learn more about the FLSA and other federal wage laws by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243).

Agency
Wage and Hour Division
Date
January 29, 2021
Release Number
21-142-NAT
Media Contact: Grant Vaught
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U.S. Department of Labor Issues Four Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues Four Wage and Hour Opinion Letters

WASHINGTON, DC The U.S. Department of Labor today announced four opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA). An opinion letter is an official, written opinion by the Department’s Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the person or entity that requested the letter.

The opinion letters issued today are:

  • FLSA2021-6: Addressing whether staffing firms that recruit, hire and place employees on assignments with clients may qualify as “retail or service establishments” for purposes of the Section 7(i) exemption from the FLSA’s overtime pay requirements;
  • FLSA2021-7: Addressing whether certain local small-town and community news source journalists are creative professionals under Section 13(a)(1) of the FLSA;
  • FLSA2021-8: Addressing whether certain distributors of a manufacturer’s food products are employees or independent contractors under the FLSA; and
  • FLSA2021-9: Addressing whether requiring tractor-trailer truck drivers to implement safety measures required by law constitutes control by the motor carrier for purposes of their status as employees or independent contractors under the FLSA and whether certain owner-operators are classified properly as independent contractors.

“The Wage and Hour Division remains committed to providing clear guidance and compliance assistance to workers and employers,” said Wage and Hour Administrator Cheryl Stanton. “Moreover, publishing additional guidance on independent contractor status under the FLSA augments the Department’s recently finalized rule, providing further clarity for the American workforce.”

Those interested can search the Department’s website for existing opinion letters by keyword, year, topic and other filters. The Department also encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The Division exercises its discretion in determining whether and how it will respond to each request.

With today’s release, the Wage and Hour Division has now issued 80 opinion letters since Jan. 20, 2017.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the FMLA, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
January 19, 2021
Release Number
21-90-NAT
Media Contact: Eric Holland
Phone Number
Media Contact: Denisha Braxton
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U.S. Department of Labor Issues Three Wage and Hour Opinion Letters

News Release

U.S. Department of Labor Issues Three Wage and Hour Opinion Letters

WASHINGTON, DC The U.S. Department of Labor today announced three opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA). An opinion letter is an official, written opinion by the Department’s Wage and Hour Division (WHD) on how a particular law applies in specific circumstances presented by the person or entity that requested the letter.

The opinion letters issued today are:

  • FLSA2021-3: Addressing whether the operations of certain entities satisfy the “establishment” requirement under Section 13(a)(3) of the FLSA, and whether an accrual method of accounting may be used to satisfy the “Receipts Test” under Section 13(a)(3)(B).
  • FLSA2021-4: Addressing whether a restaurant may institute a tip pool under the FLSA that includes both servers, for whom the employer takes a tip credit, as well as hosts and hostesses, for whom a tip credit is not taken.
  • FLSA2021-5: Addressing the proper calculation of overtime pay under the FLSA when a tipped employee works as a server and bartender, and receives tips and amounts charged as automatic gratuities or service charges.

“The Wage and Hour Division remains committed to providing clear guidance and compliance assistance to workers and employers,” said Wage and Hour Administrator Cheryl Stanton. “Moreover, providing additional guidance on properly paying tipped employees augments the Department’s recently finalized rule, adding further clarity for workers and employers under these new requirements.”

Those interested can search the Department’s website for existing opinion letters by keyword, year, topic and other filters. The Department also encourages the public to submit requests for opinion letters to WHD to obtain an opinion or to determine whether existing guidance already addresses their questions. The Division exercises its discretion in determining whether and how it will respond to each request.

With today’s release, the Wage and Hour Division has now issued 76 opinion letters since Jan. 20, 2017.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the FLSA. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the FMLA, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
January 15, 2021
Release Number
21-51-NAT
Media Contact: Eric Holland
Phone Number
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U.S. Department of Labor Issues Final Rule to Modernize H-2A Temporary Agricultural Labor Certification Program

News Release

U.S. Department of Labor Issues Final Rule to Modernize H-2A Temporary Agricultural Labor Certification Program

WASHINGTON, DC – The U.S. Department of Labor today announced a final rule that modernizes the H-2A Temporary Agricultural Labor Certification Program.  

Furthering the Trump Administration’s agenda to help American farmers, the Department’s Employment and Training Administration, and Wage and Hour Division are issuing this final rule in response to the extensive public comments received from farmers, farmworkers, as well as advocates and associations for both groups from across the country.

This rule will modernize the Department’s H-2A regulations in response to stakeholder concerns and enhance employer access to a legal source of agricultural labor, while maintaining the program’s protections for the U.S. workforce and enhancing enforcement against fraud and abuse.  

“This final rule will streamline and simplify the H-2A application process, strengthen protections for U.S. and foreign workers, and ease unnecessary burdens on employers,” said Assistant Secretary for Employment and Training John Pallasch. “It is a victory for farmers, agricultural workers, and the American people, who rely on a vibrant agricultural sector to supply food for our families.”

The rule mandates electronic filing of job orders and applications, bringing the H-2A application process into the digital era and harnessing the power of electronic filing through the Foreign Labor Application Gateway system to share information with federal agencies like the Department of Homeland Security, and with State Workforce Systems and domestic farmworkers.

It also provides small employers that cannot offer full-time work for their H-2A employees with an opportunity to participate in the H-2A program by establishing new standards that permit individual employers possessing the same need for agricultural services or labor to file a single application and job order to employ workers jointly in full-time employment.

Additionally, the rule will provide additional flexibilities that will reduce unnecessary burdens on the agricultural employers that use the program. These flexibilities include the ability to stagger the entry of workers into the country over a 120-day period, allowing agricultural employers the flexibility to file a single application for different start dates of need within a certified employment period instead of multiple applications. 

The rule will strengthen protections for U.S. and foreign workers by enhancing standards applicable to rental housing and public accommodations, strengthening surety bond requirements, and expanding the Department’s authority to use enforcement tools like program debarment for substantial violations of program rules.

Learn more about H-2A Temporary Agricultural Labor Certification Program. The Department will publish the final rule in the Federal Register at a later date. Read the final rule.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Employment and Training Administration
Date
January 15, 2021
Release Number
20-2306-NAT
Media Contact: Eric Holland
Phone Number
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Florida Beekeeper Pays $10,487 in Back Wages and Penalties After U.S. Department of Labor Finds Violations of Guest Worker Visa Program

News Release

Florida Beekeeper Pays $10,487 in Back Wages and Penalties After U.S. Department of Labor Finds Violations of Guest Worker Visa Program

NEW SMYRNA BEACH, FL – After an investigation, the U.S. Department of Labor’s Wage and Hour Division (WHD) assessed S&S Apiaries LLC – a New Smyrna, Florida-based beekeeper – a $6,357 civil money penalty and found the employer owed $4,130 in back wages to three employees for violating the labor provisions of the H-2A guest worker visa program.

WHD investigators found the employer violated the requirements of the H-2A visa program by failing to disclose the actual terms and conditions of the job when applying to employ guest workers. In its petition to participate in the program, the employer stated that employees would work 38 available hours per week, but in the performance of the actual work, employees worked more than 50 hours per workweek. The employer also failed to provide a copy of the work contract to the employees and to display an H-2A poster at the job site or warehouse, as required. In addition, WHD found back wages due when S&S Apiaries failed to pay employees for any hours they worked beyond 50 in a workweek.

“Agricultural employers that bring in temporary guest workers on H-2A visas must comply with all the program’s requirements, including accurately advertising the terms and conditions of the job,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Failure to properly disclose the accurate number of potential work hours may discourage qualified U.S. applicants from applying to the position. We offer a wealth of compliance information readily available to assist employers in understanding their obligations under the law.”

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 a compliance assistance toolkit for agriculture employers, online videos and confidential calls to local WHD offices.

For more information about the H-2A visa program 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.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
January 13, 2021
Release Number
20-2296-ATL
Media Contact: Eric R. Lucero
Phone Number
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U.S. Department of Labor Recovers $53,841 in Back Wages for Florida Beauty Supply Retailer’s Employees After Finding Wage Violations

News Release

U.S. Department of Labor Recovers $53,841 in Back Wages for Florida Beauty Supply Retailer’s Employees After Finding Wage Violations

FORT LAUDERDALE, FL After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Classy Beauty Supply Inc. – based in Fort Lauderdale, Florida – will pay $53,841 in back wages to 10 employees to resolve minimum wage and overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer – which operates as Classy Girl Beauty Supply – violated overtime requirements when it paid some employees for their first 40 hours each workweek on the payroll, but paid for additional hours in cash, at straight time rates, failing to pay overtime at time-and-one-half workers’ regular rates of pay. Additional overtime violations occurred when the employer paid other employees unrecorded cash for all of their hours, including overtime hours, at straight time rates.

“Employers must pay their employees all of the wages they have earned for all of the hours they have worked, including overtime when they work beyond 40 hours in a workweek,” said Wage and Hour Division Acting District Director Lesbia Rodriguez in Miami, Florida. “The U.S. Department of Labor will continue working to level the playing field for employers who play by the rules. We encourage all employers to reach out to us for compliance assistance and for help understanding their obligations to their employees.”

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 WHD 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). Employers that discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/agencies/whd.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis-Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
January 13, 2021
Release Number
20-2305-ATL
Media Contact: Eric R. Lucero
Phone Number
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