[US] Department of Labor recovers $2.5m unpaid wages

The US Department of Labor has announced the recovery of $2.5 million in unpaid wages for over 450 employees involving eight different companies, The Franklin News-Post reports.

The announcements, made over a 3-day period, revealed that there is no single industry violating the Fair Labor Standards Act (FLSA); the companies spanned several sectors.  The FLSA is a 1938 law requiring non-exempt employees to be paid overtime for all hours worked over 40 in a workweek. In addition, the law provides for minimum wage and has special rules around tip pooling for tipped workers.

The FLSA reportedly permits recovery of more than just the back wages owed to the employee and attorney’s fees. The law has a special provision referred to as “liquidated damages” which doubles what is owed to the employee as penalties.

The multiple FLSA provisions employers had violated included a New York gas station, convenience store and Subway franchise operator who will pay $178,000 for eight employees, including about $90,000 in back wages for overtime and minimum wage violations together with an equal amount in liquidated damages and payment for willful violations.

A Utah supermarket will reportedly pay $502,609 in back wages and liquidated damages for 148 workers to include $251,305 in back wages and an equal amount in liquidated damages to the affected employees as well as $22,390 in civil money penalties for the overtime violations. 

The DOL announced that it had also penalised the supermarket for attempting to prevent DOL investigators from interviewing employees and instructed them to tell investigators they did not work more than 40 hours per week. Instructing workers to lie to federal regulators is absolutely an unacceptable workplace practice, the labour body said.

The DOL reportedly called on the supermarket industry to comply with labour laws. In its announcement it said, “Supermarket industry workers are often paid flat daily or weekly rates of pay and are deprived of their earned overtime pay.” It added, “The department is dedicated to making sure workers are paid as required by federal law. No employee should fear their employer’s wrath for reporting pay concerns.”

An Alabama pest control company will pay $64,000 in back wages for 41 workers who worked over 40 hours in a workweek and were denied overtime pay. While a food wholesaler in Hawaii will pay $73,000 to 11 warehouse workers including $36,685 in unpaid overtime wages, $36,685 in damages and $8,877 in penalties for the reckless disregard of the law, according to the announcement.

Commenting on the violations the DOL said, “Investigators determined the employer illegally gave workers the option to either clock in overtime hours worked or to accept cash payments to avoid paying taxes on those earnings. The employer also violated FLSA recordkeeping requirements by keeping inaccurate time and payroll records.”

A San Diego café owner will reportedly pay $127,000 in back wages and damages to 18 employees, including waiters and cooks, as a result of unpaid overtime. The DOL found that some employees were required to work up to 67 hours per week without proper compensation. Its recovery includes $63,674 in unpaid wages and an equal amount in damages, in addition to $7,263 in penalties for the “reckless disregard of the law.”

“Restaurant employers such as Jimmy Carter’s Mexican Café cheat workers and commit wage theft when they refuse to pay employees’ earned overtime wages,” Min Park-Chung - Wage and Hour District Director in San Diego - said. “Cooks and servers often work long hours and, like all workers, must be paid in compliance with federal labor laws. Employers who undercut their workers’ wages will be held accountable.”

The owner of six Connecticut restaurants is set to pay a staggering $858,000 in back wages and liquidated damages to 105 workers, the judgement included the return of withheld tips.

A California staffing agency will reportedly pay $373,000 in back wages for 23 caregivers who were denied overtime, some of whom worked 12 to 16 hours a day. According to the DOL announcement, the company paid employees straight-time rates for all hours worked, including what should have been overtime hours.

Finally, a Wisconsin restaurant chain will pay $272,000 to more than 100 employees for a series of labour violations, including “denying 110 servers, cooks and other employees earned wages and tips and employing three minors to work later and longer hours than the law permits.” The DOL reportedly discovered that the company operated an invalid tip pool by illegally including kitchen staff and cooks - occupations that are not tipped - into the tip pool. 

The DOL said, “By doing so, the employer lost its ability to claim credit for tips toward its minimum wage and overtime obligations for tipped employees, such as servers.”

The violations paint a dark picture of the way employers are operating their businesses and their failure to comply with basic labour laws. The Franklin News-Post says employees frequently feel that they do not have a voice and are uncertain of their rights.

It is essential for employers to comply with federal and state wage payment laws, without exception. Employees and employers cannot agree otherwise.

Source: The Franklin News-Post

(Quotes via original reporting)

The US Department of Labor has announced the recovery of $2.5 million in unpaid wages for over 450 employees involving eight different companies, The Franklin News-Post reports.

The announcements, made over a 3-day period, revealed that there is no single industry violating the Fair Labor Standards Act (FLSA); the companies spanned several sectors.  The FLSA is a 1938 law requiring non-exempt employees to be paid overtime for all hours worked over 40 in a workweek. In addition, the law provides for minimum wage and has special rules around tip pooling for tipped workers.

The FLSA reportedly permits recovery of more than just the back wages owed to the employee and attorney’s fees. The law has a special provision referred to as “liquidated damages” which doubles what is owed to the employee as penalties.

The multiple FLSA provisions employers had violated included a New York gas station, convenience store and Subway franchise operator who will pay $178,000 for eight employees, including about $90,000 in back wages for overtime and minimum wage violations together with an equal amount in liquidated damages and payment for willful violations.

A Utah supermarket will reportedly pay $502,609 in back wages and liquidated damages for 148 workers to include $251,305 in back wages and an equal amount in liquidated damages to the affected employees as well as $22,390 in civil money penalties for the overtime violations. 

The DOL announced that it had also penalised the supermarket for attempting to prevent DOL investigators from interviewing employees and instructed them to tell investigators they did not work more than 40 hours per week. Instructing workers to lie to federal regulators is absolutely an unacceptable workplace practice, the labour body said.

The DOL reportedly called on the supermarket industry to comply with labour laws. In its announcement it said, “Supermarket industry workers are often paid flat daily or weekly rates of pay and are deprived of their earned overtime pay.” It added, “The department is dedicated to making sure workers are paid as required by federal law. No employee should fear their employer’s wrath for reporting pay concerns.”

An Alabama pest control company will pay $64,000 in back wages for 41 workers who worked over 40 hours in a workweek and were denied overtime pay. While a food wholesaler in Hawaii will pay $73,000 to 11 warehouse workers including $36,685 in unpaid overtime wages, $36,685 in damages and $8,877 in penalties for the reckless disregard of the law, according to the announcement.

Commenting on the violations the DOL said, “Investigators determined the employer illegally gave workers the option to either clock in overtime hours worked or to accept cash payments to avoid paying taxes on those earnings. The employer also violated FLSA recordkeeping requirements by keeping inaccurate time and payroll records.”

A San Diego café owner will reportedly pay $127,000 in back wages and damages to 18 employees, including waiters and cooks, as a result of unpaid overtime. The DOL found that some employees were required to work up to 67 hours per week without proper compensation. Its recovery includes $63,674 in unpaid wages and an equal amount in damages, in addition to $7,263 in penalties for the “reckless disregard of the law.”

“Restaurant employers such as Jimmy Carter’s Mexican Café cheat workers and commit wage theft when they refuse to pay employees’ earned overtime wages,” Min Park-Chung - Wage and Hour District Director in San Diego - said. “Cooks and servers often work long hours and, like all workers, must be paid in compliance with federal labor laws. Employers who undercut their workers’ wages will be held accountable.”

The owner of six Connecticut restaurants is set to pay a staggering $858,000 in back wages and liquidated damages to 105 workers, the judgement included the return of withheld tips.

A California staffing agency will reportedly pay $373,000 in back wages for 23 caregivers who were denied overtime, some of whom worked 12 to 16 hours a day. According to the DOL announcement, the company paid employees straight-time rates for all hours worked, including what should have been overtime hours.

Finally, a Wisconsin restaurant chain will pay $272,000 to more than 100 employees for a series of labour violations, including “denying 110 servers, cooks and other employees earned wages and tips and employing three minors to work later and longer hours than the law permits.” The DOL reportedly discovered that the company operated an invalid tip pool by illegally including kitchen staff and cooks - occupations that are not tipped - into the tip pool. 

The DOL said, “By doing so, the employer lost its ability to claim credit for tips toward its minimum wage and overtime obligations for tipped employees, such as servers.”

The violations paint a dark picture of the way employers are operating their businesses and their failure to comply with basic labour laws. The Franklin News-Post says employees frequently feel that they do not have a voice and are uncertain of their rights.

It is essential for employers to comply with federal and state wage payment laws, without exception. Employees and employers cannot agree otherwise.

Source: The Franklin News-Post

(Quotes via original reporting)