U.S. Department of Labor Recovers $141,047 in Back Wages For Louisiana-Based Employees of Security Contractor

News Release

U.S. Department of Labor Recovers $141,047 in Back Wages For Louisiana-Based Employees of Security Contractor

NEW ORLEANS, LA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Classic Air Charter LLC – a federal contractor based in Melbourne, Florida – has paid $141,047 in back wages to employees in Louisiana to resolve violations of the McNamara-O’Hara Service Contract Act (SCA) and the Contract Work Hours and Safety Standards Act (CWHSSA).

WHD investigators found Classic Air Charter LLC received a federal contract with the U.S. Immigration and Customs Enforcement (ICE) but failed to include SCA wage requirements in its contract with its subcontractor.  The subcontractor then failed to pay required prevailing wages and fringe benefits to employees providing security services on the contract. Paying rates below those required by the SCA further resulted in the subcontractor paying overtime at rates below those required by law. As the prime contractor on this contract, Classic Air was liable for all the back wages due to employees of the subcontractor.

ICE awarded Classic Air Charter the contract for detainee security services on flights from several U.S. airports.

“Employers who provide services to the federal government must ensure their subcontractors have the information they need to comply with the law,” said Wage and Hour Division District Director Troy Mouton in New Orleans, Louisiana. “When a contractor fails to communicate contractual requirements to its subcontractors, they increase the risk of violating the law and that workers will not receive the pay and benefits they have earned.  Government contractors are welcome to contact any WHD office for additional information on how to comply with the Service Contract Act.”

The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor's collective bargaining agreement.

The Contract Work Hours and Safety Standards Act (CWHSSA) requires contractors and subcontractors to pay covered workers employed in the performance of covered contracts one and one-half times their basic rate of pay for all hours worked over 40 in a workweek.

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.

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

The mission of WHD 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 paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, 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 11, 2021
Release Number
20-2015-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
Share This

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

News Release

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

WASHINGTON, DC The U.S. Department of Labor today announced two 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:

  • FLSA2021-1: Addressing whether account managers at a life science products manufacturer qualify for the administrative employee exemption under the FLSA.
  • FLSA2021-2: Addressing whether the ministerial exception allows a private religious daycare and preschool to pay its teachers on a salary basis that would not otherwise conform with the requirements of the FLSA.

“The opinion letters the Wage and Hour Division issued today demonstrate our longstanding commitment to providing clear guidance and compliance assistance to workers and employers,” said Wage and Hour Administrator Cheryl Stanton. “The Division continues to provide clarity to ensure workers are paid all the wages they have legally earned, and that employers compete on a level playing field.”

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 73 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 8, 2021
Release Number
21-29-NAT
Media Contact: Megan Sweeney
Phone Number
Share This

U.S. Department of Labor Announces Final Rule to Clarify Independent Contractor Status Under the Fair Labor Standards Act

News Release

U.S. Department of Labor Announces Final Rule to Clarify Independent Contractor Status Under the Fair Labor Standards Act

WASHINGTON, DC – The U.S. Department of Labor today announced a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA).

“This rule brings long-needed clarity for American workers and employers,” said U.S. Secretary of Labor Eugene Scalia. “Sharpening the test to determine who is an independent contractor under the Fair Labor Standards Act makes it easier to identify employees covered by the Act, while recognizing and respecting the entrepreneurial spirit of workers who choose to pursue the freedom associated with being an independent contractor.”

“Streamlining and clarifying the test to identify independent contractors will reduce worker misclassification, reduce litigation, increase efficiency, and increase job satisfaction and flexibility,” said Wage and Hour Division Administrator Cheryl Stanton. “The rule we announced today continues our work to simplify the compliance landscape for businesses and to improve conditions for workers. The real-life examples included in the rule provide even greater clarity for the workforce.”

The Final Rule includes the following clarifications:

  • Reaffirms an “economic reality” test to determine whether an individual is in business for him or herself (independent contractor) or is economically dependent on a potential employer for work (FLSA employee). 
  • Identifies and explains two “core factors” that are most probative to the question of whether a worker is economically dependent on someone else’s business or is in business for him or herself:
    • The nature and degree of control over the work.
    • The worker’s opportunity for profit or loss based on initiative and/or investment.
  • Identifies three other factors that may serve as additional guideposts in the analysis, particularly when the two core factors do not point to the same classification. The factors are:
    • The amount of skill required for the work.
    • The degree of permanence of the working relationship between the worker and the potential employer.
    • Whether the work is part of an integrated unit of production.
  • The actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
  • Provides six fact-specific examples applying the factors.

The rule will take effect 60 days after publication on the Federal Register, on March 8, 2021.  

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 paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, 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 6, 2021
Release Number
20-2308-NAT
Media Contact: Megan Sweeney
Phone Number
Share This

U.S. Department of Labor Investigation Finds Kentucky Landscaping Contractor Violated Requirements of Guest Worker Visa Program

News Release

U.S. Department of Labor Investigation Finds Kentucky Landscaping Contractor Violated Requirements of Guest Worker Visa Program

WILDER, KY – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Merkle Lawn Care Inc. – based in Wilder, Kentucky – has paid $20,502 in back wages to 42 employees for violating labor provisions of the H-2B visa program. The Department also assessed Merkle Lawn Care Inc. a civil penalty of $10,335.

WHD investigators found the landscaping contractor failed to disclose rent, vehicle insurance and uniform deductions in job advertisements. The employer charged employees rent on a weekly basis in excess of fair market value. In addition, Merkle Lawn Care charged its employees on a weekly basis for uniforms bearing the company’s name.

“Employers seeking H-2B workers must abide by all of the program’s requirements, including paying the workers as the law requires and not making illegal deductions from employees’ pay,” said Wage and Hour District Director Karen Garnett-Civils in Louisville, Kentucky. “The U.S. Department of Labor will continue to safeguard American jobs and level the playing field for law-abiding employers. We encourage employers to contact the Wage and Hour Division by phone, online or to attend any of our many virtual outreach events for assistance and to learn more about their responsibilities.”

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.

The H-2B nonimmigrant program permits employers to hire temporarily nonimmigrants to perform nonagricultural labor or services in the United States. The employment must be of a temporary nature for a limited period of time, such as a one-time occurrence, seasonal need, peak load need or intermittent need. 

For more information about the H-2B 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 5, 2021
Release Number
20-2190-ATL
Media Contact: Eric R. Lucero
Phone Number
Share This

Auto Care and Tire Shop Pays $152,109 in Back Wages to 248 Employees After U.S. Department of Labor Finds Wage Violations in Carolinas and Virginia

News Release

Auto Care and Tire Shop Pays $152,109 in Back Wages to 248 Employees After U.S. Department of Labor Finds Wage Violations in Carolinas and Virginia

COLUMBIA, SC After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Colony Tire Corp. has paid $152,109 in back wages to 248 employees for overtime violations of the Fair Labor Standards Act (FLSA) at 25 establishments throughout the Carolinas and Virginia.

WHD investigators determined the automotive care and tire sales company, which operates as Colony Tire and Service in North Carolina, South Carolina and Virginia, failed to include mechanics’ and technicians’ commissions in their regular rates of pay when calculating their overtime rates. Excluding those amounts from the calculation resulted in the employer paying overtime at rates lower than those required by law. 

“Employers must base overtime payments on employees’ regular rates of pay, which can include earned bonuses or commissions. Paying overtime simply on workers’ base hourly rates denies them wages they have legally earned,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “We encourage employers to reach out to us with questions and to use the wide variety of tools we offer to ensure they clearly understand their responsibilities. We appreciate this employer’s cooperation in resolving these issues quickly.”

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 4, 2021
Release Number
20-2189-ATL
Media Contact: Eric R. Lucero
Phone Number
Share This

U.S. Labor Department Recovers $35,492 in Overtime Back Wages For 12 Employees of Pittsburgh Area Ambulance Service

News Release

U.S. Labor Department Recovers $35,492 in Overtime Back Wages For 12 Employees of Pittsburgh Area Ambulance Service

PITTSBURGH, PA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Jefferson Hills Area Ambulance Association – a private ambulance service operating as Southeast Regional EMS in Clairton and Elizabeth, Pennsylvania – has paid $35,492 in back wages to 12 first responder employees for violating overtime requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found that the employer failed to comply with an FLSA provision that allows employers to deduct eight hours of sleep time for employees whose duties require 24-hour shifts, such as first responders, under certain conditions. Federal law allows an employee on duty for 24 hours or more to agree to allow the employer to exclude a scheduled eight-hour sleep period from their total of hours worked per shift. The exclusion applies only if the employer furnishes adequate sleeping facilities and prevents work responsibilities from interrupting the employee’s sleep period.  

In this case, when the employer failed to provide some employees a reasonable period of sleep – at least five hours – due to both the frequency and total time of interruptions, the conditions for the exclusion were not met. As a result, the employer was required to include the previously excluded eight-hour sleep period as work time.

Following the investigation, the employer paid eight employees at the Clairton location $25,545 and four employees at the Elizabeth location $9,947 in back wages.

“The Wage and Hour Division is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked – including legally required overtime,” said Wage and Hour Division District Director John DuMont in Pittsburgh, Pennsylvania. “The U.S. Department of Labor encourages all employers to reach out to us for information on how to comply with the law and avoid violations like those found in this case.”

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 who 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 FLSA. 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 4, 2021
Release Number
20-2226-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
Share This

U.S. Department of Labor Publishes Guidance on Expiration of Paid Sick Leave and Expanded Family and Medical Leave for Coronavirus

News Release

U.S. Department of Labor Publishes Guidance on Expiration of Paid Sick Leave and Expanded Family and Medical Leave for Coronavirus

WASHINGTON, DC – The U.S. Department of Labor’s Wage and Hour Division (WHD) today announced additional guidance to provide information to workers and employers about protections and relief offered by the Families First Coronavirus Response Act (FFCRA). The FFCRA’s paid sick leave and expanded family and medical leave requirements will expire on Dec. 31, 2020. 

The new guidance, in the form of Frequently Asked Questions on the WHD website, addresses whether workers who did not use their leave entitlement under the FFCRA in 2020 may use such leave after Dec. 31, 2020. It also explains how WHD will maintain its enforcement authority over employers’ leave responsibilities while the FFCRA’s paid leave requirements were in effect, even after these leave entitlements have expired.

Additionally, the Consolidated Appropriations Act (CAA), 2021, extended employer tax credits for paid sick leave and expanded family and medical leave voluntarily provided to employees until March 31, 2021.  However, the CAA did not extend employees’ entitlement to FFCRA leave beyond Dec. 31, 2020, meaning employers will no longer be legally required to provide such leave.

“The Wage and Hour Division is attuned to the critical need for American workers and employers to understand this relief program as they deal with the effects of this crisis on the workplace,” said Wage and Hour Division Administrator Cheryl Stanton. “The guidance we issued today provides clarity around some of the novel issues that the FFCRA’s expiration raises. We remain committed to providing as many tools and as much information as possible to all parties.”

The FFCRA helps the U.S. combat and defeat the workplace effects of the coronavirus by giving tax credits to American businesses with fewer than 500 employees to provide employees with paid leave, either for certain of the employee’s own health needs or to care for family members, for certain reasons related to COVID-19. Please visit WHD’s “Quick Benefits Tips” for information about how much leave workers are qualified to use, and the wages employers were required to pay. By extending these tax credits to employers who voluntarily provide FFCRA leave, the CCA enables employers to provide paid leave, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

WHD provides updated information on its website to ensure that workers and employers have the information they need about the benefits and protections of this law. The agency also provides information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked under the Fair Labor Standards Act and on job-protected leave under the Family and Medical Leave Act at https://www.dol.gov/agencies/whd/pandemic

For further information about the coronavirus, please visit the Centers for Disease Control and Prevention.

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 paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, 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. For more information about the laws enforced by WHD, call 866-4US-WAGE, or visit www.dol.gov/agencies/whd.

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
December 31, 2020
Release Number
20-2338-NAT
Media Contact: Eric Holland
Phone Number
Share This

City of Tipton, Indiana, Pays $91,924 in Overtime Back Wages To 15 Firefighters Following U.S. Department of Labor Investigation

News Release

City of Tipton, Indiana, Pays $91,924 in Overtime Back Wages To 15 Firefighters Following U.S. Department of Labor Investigation

TIPTON, IN After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), the City of Tipton, Indiana, paid $91,924 in back wages to 15 firefighters for violations of the overtime requirements of the Fair Labor Standards Act (FLSA).

The WHD investigation found the City of Tipton failed to pay overtime to firefighters who worked more than 106 hours in their two-week pay period. 

The FLSA provides an exemption that allows employers to pay fire protection or law enforcement employees overtime on a “work period” basis, instead of a standard 7-day workweek, with a work period ranging from seven to 28 consecutive days. Fire protection personnel are due overtime after 106 hours worked during a 14-day work period. In this case, the City of Tipton failed to pay overtime when firefighters worked more than 106 hours. Additional information about FLSA requirements that apply to law enforcement and fire protection employees is available on WHD’s website.

“Employers must pay their employees all the wages they have legally earned and must understand the laws that apply to specific employment situations, such as those that govern pay for public safety employees,” said Wage and Hour Division District Director Patricia Lewis in Indianapolis, Indiana. “Employers should review their pay practices to ensure they comply with the law. We encourage employers to contact the Wage and Hour Division to better understand their responsibilities.”

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 who 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 paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, 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
December 31, 2020
Release Number
20-2227-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
Share This

U.S. Department of Labor Issues Two Wage and Hour Opinion Letters on Fair Labor Standards Act Compliance

News Release

U.S. Department of Labor Issues Two Wage and Hour Opinion Letters on Fair Labor Standards Act Compliance

WASHINGTON, DC The U.S. Department of Labor today announced two 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:

  • FLSA2020-19: Addressing whether certain travel time occurring on a partial telework day is compensable under the FLSA.
  • FLSA2020-20: Addressing whether certain overtime payments based on an expected number of hours worked may be credited towards the amount of overtime pay owed under the FLSA and whether such overtime payments are excludable from the regular rate.

“The Wage and Hour Division remains committed to providing clear guidance and compliance assistance to workers and employers,” said Cheryl Stanton, Wage and Hour Division Administrator. “The opinion letters we issued today demonstrate that commitment and provide clarity to ensure workers are paid all the wages they have legally earned and employers compete on a level playing field.”

Those interested can search the WHD 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, WHD has now issued 71 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
December 31, 2020
Release Number
20-2340-NAT
Media Contact: Eric Holland
Phone Number
Share This

U.S. Department of Labor Recovers $81,399 in Back Wages For 45 Employees of Columbus, Ohio, Nursing Home

News Release

U.S. Department of Labor Recovers $81,399 in Back Wages For 45 Employees of Columbus, Ohio, Nursing Home

COLUMBUS, OH – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Chelsea Health Care LLC –has paid $81,399 in back wages to 45 employees for violating the Fair Labor Standards Act’s (FLSA) overtime requirements at its Columbus, Ohio, nursing home facility.

The employer violated the FLSA’s overtime wage requirements when it paid licensed practical nurses and health aides straight time plus an additional $1 for each hour they worked beyond 40 in a workweek, instead of the required time-and-one-half the normal rate of pay for overtime. WHD’s investigation found the employer’s payroll company advised them to implement this unlawful pay method as a cost-saving measure. The business came into compliance immediately upon advice of their legal counsel and through the WHD’s investigation. 

“Employers must educate themselves on labor laws,” said Wage and Hour District Director Marcy Boldman in Des Moines, Iowa. “Payroll companies are a resource for employers, but the pay practices implemented by the employer are ultimately their own responsibility. Covered employers must pay overtime at time-and-one-half employees’ regular rates. The Wage and Hour Division works to ensure employers comply with federal labor laws and employees receive all the wages they have legally earned. We encourage employers to contact us for guidance and use the wide variety of compliance assistance tools and information that we offer to them.”

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 paid sick leave and expanded family and medical leave requirements of the Families First Coronavirus Response Act, 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
December 30, 2020
Release Number
20-2309-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
Share This
Subscribe to Wages