Savannah River Nuclear Solutions to pay employees in wage discrimination settlement

Investigators find federal contractor underpaid some female and African American workers

 

Savannah River Nuclear Solutions will pay $234,895 and review its personnel policies to resolve allegations of systemic pay discrimination at its site in Aiken. A compliance review by the U.S. Department of Labor's Office of Federal Contract Compliance Programs found that the management company for the Savannah River nuclear site discriminated against women in some engineering, technical and administrative positions. The review also determined that African Americans were underpaid in certain operation specialist positions.

"Workers often don't know how their pay compares with that of their colleagues, so discrimination like this can go undetected. That's why OFCCP's ability to conduct audits of contractors' pay practices is critical to closing pay gaps based on race and gender," said OFCCP Director Patricia A. Shiu, who represents the department on President Obama's National Equal Pay Enforcement Task Force.

OFCCP investigators determined that from 2009 to 2010, Savannah River paid 57 female employees less than their male counterparts, and 15 African American employees less than their white counterparts. The agency found a statistically significant difference in pay even after taking into account legitimate factors affecting pay. The company denied liability, but entered into a conciliation agreement to resolve the alleged violations.

"Women and African Americans are underrepresented in the science, technology, engineering and mathematics professions. It is disturbing that at Savannah River, we found that many were employed in a STEM job, but were paid less than male or white counterparts because of discrimination," said OFCCP Southeast Regional Director Samuel Maiden.

Executive Order 11246 mandates that federal contractors must not discriminate in pay or other compensation on the basis of sex or race. Savannah River is a federal contractor.

In addition to back pay, the company will evaluate whether promotion decisions, performance evaluation ratings, procedures for assigning work, training opportunities, leave policies, assigning applicants to jobs, and limiting job transfers have a negative effect on compensation of women and African Americans.

Savannah River will also develop new policies to eliminate practices that affect compensation of women and African Americans adversely. The company will conduct an annual compensation analysis during the term of the conciliation agreement. If the analysis shows systemic race- or gender-based pay disparities, Savannah will increase the salaries of women and African Americans.

A partnership of Fluor Corp., Honeywell International Inc. and Newport News Nuclear Inc., Savannah River Nuclear Solutions has a contract to maintain and operate the Savannah River site, a nuclear reservation built in the 1950s. It is the only source for new tritium gas for the U.S. nuclear weapons stockpile and the corporate laboratory for the U.S. Department of Energy's environmental management work, which includes nuclear material disposition, waste management and environmental cleanup. Obligated contract amounts range from $2.5 billion in 2009 to $948 million in 2014 and more than $500 million in 2015.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Cox subcontractor End 2 End Communications failed to pay overtime to field employees

For 246 current and former employees of an Arizona cable installation company, a fair day's pay for a fair day's work is finally ringing true as their employer has pay them a total of $350,150 in back wages after failing to pay them overtime rates, as required by federal law.

An investigation of End 2 End Communications by the U.S. Department of Labor's Wage and Hour Division found the Gilbert-based company paid field technicians on a per-task basis for all installations without regard to the number of hours they worked. For example, a technician performing enough tasks to earn $500 was paid that amount — whether it took 30 or 50 hours. As a result, the employer failed to pay legally required overtime at time and one-half for each hour worked beyond 40 in a workweek, in violation of the Fair Labor Standards Act.

"Commonly, cable installation industry employers do not pay overtime to employees who work long hours in the field," said Eric Murray, director of the division's Phoenix District Office. "Employees paid on a piece-work basis are still entitled to overtime for hours worked beyond 40 per week. Those employers who don't pay workers correctly should take note of this case." 
 
End 2 End Communications, which does business as End 2 End Technologies, signed a consent judgment and agreed to ensure future compliance with federal labor law and pay the back wages. The company is a subcontractor for Cox Communications, the nation's third largest cable and broadband company. 
 
As part of its agreement, End 2 End has notified current and former employees of the case's resolution and redesigned the company's payroll system to ensure that all overtime-eligible employees receive pay stubs that properly record the wages paid for overtime hours worked. The employer also provided companywide training on the updated payroll system and on workers' rights under the FLSA and included a reference to the Wage and Hour Division in employee handbooks.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

DOL finds federal contractor misclassified workers as independent contractors

Employees due more than $135K in back wages

 

Employer name: Pegasso Construction & Floor Covering LLC

Investigation site: Office at 1746 Hazel Wood Drive, Marietta, Ga., 30067 and various jobsites including Ft. Gordon army base in Augusta, Ga.

Investigation findings: Investigators from the department's Wage and Hour Division found that Pegasso misclassified all of its workers as independent contractors. This unlawful practice resulted in violations of the Fair Labor Standards Act, the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act. The employer paid many of these workers on a weekly salary basis without regard for the number of hours worked. In some cases this salary, when divided by the number of hours worked, was not sufficient to meet the current federal minimum wage of $7.25 per hour. The contractor also failed to pay legally required overtime when these employees worked beyond forty hours in a workweek. As a result of these violations of the minimum wage and overtime provisions of the FLSA, Pegasso owes 151 employees back wages of $135,819. The firm also violated the DBRA and CWHSSA, which apply to the federally financed work done at Fort Gordon, by not accurately completing the required certified payrolls and by failing to pay overtime to one worker.

Resolution: Pegasso has agreed to future compliance with DBRA, CWHSSA and the FLSA and to pay the back wages. The employer has also put all workers on his payroll and will properly classify them as employees.

Quote: "Misclassification of employees as independent contractors cheats workers of wages and benefits to which they would otherwise be entitled to under the law, subsequently hurting our economy. It also leads to unfair competition because businesses that play by the rules operate at a disadvantage to those that don't. We will continue to work to ensure that workers receive the wages they have rightfully earned."
— Eric Williams, Wage and Hour Division Atlanta District Office Director

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Employer, staffing agency avoided paying overtime to temporary workers

More than 160 workers at a Philadelphia direct mail and printing company will receive $1.45 million in back wages and damages after a federal investigation found their employer and a staffing agency failed to pay overtime wages.

The U.S. Department of Labor's Wage and Hour Division conducted an investigation that resulted in a consent judgment, filed in U.S. District Court for the Eastern District of Pennsylvania, in which ICS Corp., New Century Integrity Corp. and its owner Hokkito Teddy agreed to pay 166 workers $725,583 in overtime wages, and an equal amount in liquidated damages. The investigation found ICS, New Century and Teddy employed the workers jointly.
 
"Temporary staffing agencies are valuable contributors to our economy," said Wage and Hour Division Administrator Dr. David Weil. "These agencies should not be used by employers to attempt to avoid their obligations under the law. Those who do will be held accountable, as today's action shows."

An investigation of direct mail processor ICS and two staffing companies it retained, found significant violations of the Fair Labor Standards Act. Violations included paying some workers in cash at straight time rates for all hours instead of paying overtime when employees worked beyond 40 hours in a workweek. Other employees, provided by New Century received checks for their first 40 hours from ICS. New Century then paid these employees in cash for their overtime hours at rates less than their regular pay. For example, a worker who received $13 per hour for his first 40 hours received $11 per hour in cash for overtime hours.
 
Investigators also found that Richy Services Inc., a second staffing agency used by ICS, failed to produce time and payroll records.

In addition to back wages and damages, the consent judgment requires ICS to appoint a compliance officer to ensure that the company maintains proper records, and pays temporary workers in compliance with the FLSA.
 
"Companies that use temporary agencies have a responsibility and duty to pay legally required wages," said Oscar Hampton, the department's Regional Solicitor in Philadelphia. "ICS violated the law when it failed to pay its workers the wages they earned. The company cheated its employees and sought an unfair business advantage over competitors that abide by the law."

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. The FLSA provides that employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages. Affected employees receive liquidated damages, as well.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

San Antonio oil workers due back wages benefit from DOL enforcement effort

The latest investigation in the U.S. Department of Labor's Wage and Hour Division ongoing enforcement initiative, focused on the oil and gas industry in New Mexico and Texas, has helped 188 workers who will receive $157,000 in back wages after investigators found their employer violated the Fair Labor Standards Act.
 
Wage and Hour Division investigators in the San Antonio District Office found that Elite Production Services LLC failed to include the workers' bonus payments when calculating their rates of pay for overtime hours.

Since the initiative began in 2014, the agency has recovered more than $1.3 million owed to more than 1,300 workers.

"There is a misconception in the oil and gas industry that, because workers typically earn more than the minimum wage, they are being paid legally. That is not always the case," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Employees must be paid properly for every hour worked, and employers need to calculate the total amount of pay to pay overtime correctly."

Employers must base overtime pay on an employee's total earnings, including their normal hourly rate and most bonus payments. For example, a $10-per- hour employee who works 50 hours and receives a $50 bonus in that workweek must be paid overtime based on a rate of $11 per hour. The FLSA excludes certain payments, such as reimbursement of work-related expenses, from the regular rate calculation.

Based in San Antonio, Elite Production Services provides on-site services throughout the drilling, completion and production cycles of oil fields. The company has agreed to correct the violations, comply in the future and pay the full amount of back wages.

The division's ongoing enforcement initiative has found overtime violations associated with various illegal pay practices, including the following:

• Improperly applying exemptions from overtime.
• Failing to include bonus payments made to employees when calculating overtime pay rates.
• Not paying for time spent working off-the-clock and before and after scheduled work shifts.
• Paying flat, daily shift rates without regard to how many hours the employee worked and without additional time and one-half pay for overtime.

Focused on this fast-growing industry, the initiative seeks to inform workers of their rights and ensure FLSA compliance among oil and gas companies and other related businesses including, but not limited to, trucking, lodging, haulers of water and stone, staffing service providers and other types of oil and gas supporting trades.

The division also is reaching out to employers and employer associations to provide them with compliance assistance information and to secure their cooperation in promoting industrywide compliance. Similarly, the division continues to conduct outreach to workers and community groups to inform them of the initiative and departmental services and to encourage employees to come forward with potential violations.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Federal enforcement effort finds Gulf Coast workers owed nearly $3.5 million in back wages

US Labor Department determines agencies illegally paid wages as per diem reimbursement

Six Gulf Coast staffing agencies have agreed to pay thousands of workers nearly $3.5 million in back wages after U.S. Department of Labor Wage and Hour Division investigators found part of their wages were mislabeled as "per diem" payments as reimbursement for expenses they never incurred.

Federal investigators found the agencies owed back wages to more than 3,000 workers – welders, electricians, pipe fitters, and other craftspeople – on maritime vessels and other oil and gas industry projects.

The investigations are part of an ongoing, multi-year initiative aimed at ending an illegal and alarming trend of employers labeling part of employee wages as per diem payments, often to avoid overtime, payroll taxes and other costs. Investigators are actively monitoring staffing agencies and other employers in the 1,600-mile Gulf Coast region for signs of this practice.

"Workers don't often complain about receiving per diem pay in place of regular wages because they believe they make more money being paid this way," said Wage and Hour Division Administrator David Weil. "The truth is these workers are losing out. They are not getting all of the short- and long-term benefits their employer owes them."

Companies break the law when they label part of a worker's regular wages as per diem expense reimbursement instead of wages to lower labor costs, avoid paying overtime, and avoid making payments toward federal and state taxes, workers' compensation, unemployment insurance and Social Security payments. By attempting to reduce these obligations illegally with this scheme, these employers also gain an unfair advantage over their competitors.

Per diem pay is intended as a way for employers to reimburse workers for lodging, meals and other travel expenses incurred on behalf of their employer.

Regular wages mislabeled as per diem cheat workers out of correct overtime wages. The payments may prevent workers from receiving full benefits in the event of a lay-off or workplace injury, and do not make full contributions toward a worker's Social Security benefits.

"Illegal per diem pay also hurts law-abiding employers, defrauds local, state and federal governments and cheats all of us who pay increased taxes as a result," Weil added. "Our division has dedicated the people and resources we need to stop this illegal pay practice on the Gulf Coast and throughout the nation."

The six companies found to be engaged in this practice in the latest investigations, the back wages found and the numbers of affected employees are as follows:

Employer Name	Back Wages	Employees
Masse Contracting	$909,667	1,257
Permanent Workers	$1,110,103	604
TREO Staffing	$511,877	428
Flexicrew Staffing	$94,496	195
Winston International	$390,361	490
Government Support Services, Inc. (GSI)	$474,938	289
TOTAL	$3,491,442	3,263

 
The initiative has also found troubling trends in the region's staffing industry in Alabama, Florida, Louisiana, Mississippi and Texas. Employers that use temporary staffing agencies may be liable if investigations find workers employed jointly by the staffing agency, and the business that contracted them, received illegal per diem payments. 
 
The FLSA requires that workers receive at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must maintain accurate time and payroll records. Under the FLSA, employers who violate the law are liable for employees' back wages and an equal amount in liquidated damages. Affected employees receive liquidated damages directly.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Federal subcontractor to back wages in Hawaii

A California-based heating, ventilation and air conditioning subcontractor has paid 58 workers $99,681 in back wages after an investigation found federal wage and hour laws were violated on three federally funded construction projects awarded by the U.S. Army in Hawaii between 2011 and 2013.
 
U.S. Department of Labor Wage and Hour Division investigators discovered Critchfield Pacific Inc., of San Jose, violated laws governing federal contractors. The subcontractor improperly categorized employees as lower-paid maintenance workers rather than using job titles for those doing plumbing and pipe-fitting work at the Schofield Barracks and Kunia job sites on Oahu. Critchfield exceeded the ratio of lower-paid apprentices to experienced plumbers and sheet-metal workers. The company also failed to pay employees for time spent at mandatory safety meetings in advance of their scheduled work shifts at Schofield Barracks.

"Federal contractors owe it to taxpayers to comply with all applicable laws, including paying their workers fairly and fully, in accordance with the government contract," said Terence Trotter, district director for the Wage and Hour Division in Honolulu. "In this case, we appreciate the cooperation by Critchfield Pacific and their endorsement of an action plan that promotes future compliance with relevant labor standards."

The Davis-Bacon Act requires that all contractors and subcontractors performing work on certain federally funded construction projects pay their laborers and mechanics at least the prevailing wage rates associated with their occupation, as determined by the secretary of labor.

The Contract Work Hours and Safety Standards Act applies to contractors and subcontractors with federal service contracts and federally funded and assisted construction contracts exceeding $100,000. It requires contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts overtime at one and one-half times their basic rate of pay for all hours worked over 40 in a workweek.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

BabyVision Inc. willfully violates federal wage and hour law, obstructs investigators and threatens employees

Poughkeepsie, New York, employer must pay more than $121K to 49 workers

A Poughkeepsie-based maker and distributor of baby apparel and accessories denied 49 workers overtime pay and then attempted to thwart federal investigators by hiding workers and threatening them if they spoke to U.S. Department of Labor Wage and Hour Division agents.

A yearlong federal probe found that BabyVision Inc. and the company's owners, Shreenivas Shah and Malti Shah, paid employees — including some not on the company payroll — straight time in cash and denied them the required overtime rate of one and one-half times their regular hourly wage when they worked more than 40 hours in a workweek. The owners also improperly classified some employees as exempt from overtime. Additionally, the Shahs failed to maintain proper payroll records.

The Shah's actions violated the federal Fair Labor Standards Act. As a result, the agency determined that the workers are due $121,349 in overtime back wages and liquidated damages.

Early in the investigation, the Shahs told employees they were to hide from investigators or provide false information. Workers were threatened with termination if they cooperated with investigators. The department responded by obtaining a temporary restraining order to protect the workers and their rights, allowing the review of the company's employment practices to continue.

A consent judgment was also secured by the department that ordered the Shahs to pay the back wages and damages, take extensive corrective action to prevent future violations and pay $13,744.50 in civil money penalties, given the willful nature of their violations.

"Deliberately denying employees their earned income is illegal, and it makes it harder for workers to care for themselves and their families," said Sonia C. Rybak, the Wage and Hour Division's assistant district director in the White Plains Area Office. "We will use every enforcement tool at our disposal to ensure a fair and level playing field for employers and fair pay for employee work."

"This case shows our commitment to take all necessary legal steps, including using restraining orders, to protect workers and their rights," said Jeffrey S. Rogoff, the department's regional solicitor of labor in New York. "The judgment here does more than secure back wages. It commits BabyVision and the Shahs to a comprehensive compliance plan that includes corrective action and worker education to keep these violations from happening again."

The compliance plan requires the defendants to use a time clock or another automated timekeeping device to record all hours worked by their employees accurately; prohibits employees from working off-the-clock; record employees' work hours and break time correctly; prominently post an employees' rights notice and poster in Spanish and English; and provide all current workers and new hires with a copy of the consent judgment in Spanish and English.

BabyVision designs and distributes baby apparel and accessories to retail stores and on the Internet under brands such as Luvable Friends, Hudson Baby, Yoga Sprout and Nurtria. It operates a warehouse and offices at 30 Firemens Way in Poughkeepsie. The underpaid employees prepared customer orders, loaded and stocked items in the warehouse and maintained the company's website.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Comcast Corporation settles charges of sex and race discrimination

Company will pay nearly $190K in back wages and interest to 96 former and current female employees and 100 minority job applicants; reform hiring practices

Comcast Corporation has entered into a conciliation agreement with the U.S. Department of Labor's Office of Federal Contract Compliance Programs to resolve allegations of sex and race discrimination.

OFCCP investigators determined that between March 2006 and September 2007 in Everett, Washington, Comcast violated Executive Order 11246 by steering 96 women into lower-paying positions that assisted customers with cable services rather than higher-paid positions providing customer assistance for Internet services because these positions were considered "technical."

Investigators also established that Comcast disproportionately rejected 100 African American, Asian, and Hispanic applicants for call center jobs because its hiring tests were neither uniformly applied nor validated as related to the job. This resulted in systemic hiring discrimination on the basis of race. Comcast Corporation is a federal contractor.

"Sex-based compensation discrimination and race-based hiring discrimination are not only illegal, they also hurt our economy," said OFCCP Director Patricia A. Shiu. "We cannot build an economy that works for everyone by depriving women and minorities of opportunities to get ahead."

The notices of violation were issued March 22, 2011. After a lengthy conciliation process, an agreement was reached on April 30, 2015. The agreement requires Comcast to:

• Pay a total of $53,633.48 in back pay and interest to 96 current and former female employees;
• Pay $133,366.52 in back pay and interest to 100 African-American, Asian and Hispanic applicants; and
• Hire up to 31 members of the affected class as call center positions become available, to immediately correct any discriminatory practices, and to undertake self-monitoring measures to ensure that all compensation practices fully comply with the law.

The Comcast Corporation is a global media and technology company. It is also the largest provider of video, high-speed Internet, and phone services to residential customers in the United States. The company also provides these services to business customers and in federal facilities and installations.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Drywall contractor owes ‘tapers’ more than $98K in back wages

PR Drywall of Hillsboro, Oregon, underpays 7 workers in wages and overtime

Seven “tapers” working for PR Drywall LLC of Hillsboro will receive more than $98,000 in back wages after a U.S. Department of Labor investigation found their employer failed to pay prevailing wages and overtime payments as they worked constructing the Tualatin Marquis Assisted Living Center. Built with federal financing assistance from the U.S. Department of Housing and Urban Development, the project and its contractors were subject to the Davis-Bacon and Related Acts and the Fair Labor Standards Act.

The department’s Wage and Hour Division investigated PR Drywall, a subcontractor on the Tualatin project. The agency determined that the tapers, also called drywall finishers, who prepare and press wet compound into joints, nail or screw holes in the drywall and then cover the wet material with tape, were paid below the prevailing wage rates required by the DBRA. The employees also worked beyond 40 hours in a workweek without being paid time and one-half, as required by law.

PR Drywall was found liable for $89,525 under the DBRA for prevailing wage violations, and $8,557 under the FLSA for overtime violations.

“Taxpayers have a right to expect federal contractors to understand their obligations and comply with the law,” said Thomas Silva, district director of the department’s Wage and Hour Division in Portland. “When PR Drywall or any other employer violates labor laws, they cheat their employees and gain an unfair advantage over competing employers who obey the law.”

The DBRA applies to contractors and subcontractors performing federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair, including painting and decorating, of public buildings or public works. DBRA contractors and subcontractors must pay their laborers and mechanics employed under the contract no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area.

Source: EEOC

This information is intended to be educational and should not be considered legal advice on any specific matter.

Investigation reveals Chang & Sons Enterprises Inc.continues to cheat workers

Reinspection leads to court order for back wages, damages, penalties and monitoring

A follow-up investigation by the U.S. Department of Labor’s Wage and Hour Division has found that Whately agribusiness Chang & Sons Enterprises Inc., and its owner Sidney Chang, continue to deny workers the wages they have legally earned, despite prior investigations and a legal judgment requiring the employer to pay back wages and comply with federal wage and hour laws.

In 2013, the company paid $305,500 in back wages and liquidated damages to 14 workers for violations of the Fair Labor Standards Act. A recent follow-up investigation revealed additional minimum wage violations, resulting in another $73,535 in back wages and liquidated damages due to six employees. The new consent judgment requires that the employer hire a qualified, independent consultant who will monitor the firm’s compliance with the FLSA and provide the Wage and Hour Division with quarterly reports for the next three years. The employer has paid the most recent back wages, damages and penalties in full.

The Wage and Hour Division’s follow-up investigation found that some employees were paid in cash, usually $5 per hour, while working in the berry harvest. In light of the repeated violations, the defendants, whose business grows, harvests, packages and distributes bean sprouts and other agricultural products, will also pay $8,250 in civil money penalties.

“The Wage and Hour Division does reinvestigate employers to confirm that they are paying their employees the wages they have rightfully earned,” said Carlos Matos, the Wage and Hour Division’s district director in Boston. “Chang & Sons Enterprises’ repeated disregard for the law and workers’ rights is inexcusable. Aware of the obligation to pay the minimum wage as the result of our prior investigations and enforcement actions, it chose to continue to pay a number of these employees only $5 per hour, far less than what the law requires.”

“Employers’ actions have consequences. We will not hesitate to use enhanced compliance procedures to help ensure that employers comply with the law. We will seek liquidated damages and civil money penalties when employers flout the law,” said Michael Felsen, the regional solicitor of labor for New England, whose office litigated the case.

The Wage and Hour Division enforces labor laws to protect employees, employers and American taxpayers, to provide a level playing field for employers, and to ensure fair wages and safe working environments for employees. Such protections help to support ladders of opportunity, igniting economic engines to grow a strong middle class.

When employees are denied their hard-earned income, the Wage and Hour Division is committed to ensuring that the money ends up in the hands of those who worked for money that will be spent on rent, transportation and to put food on the table. Since the beginning of 2009, the agency has concluded investigations nationwide resulting in more than $1.3 billion dollars in back wages for more than 1.5 million workers.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Triumph Aerostructures, LLC Agrees to Reinstate Employees and Pay Back Pay and Lost Benefits

Triumph Aerostructures, LLC will reinstate five discharged employees to their previous positions at their Grand Prairie, TX facility. In addition, Triumph will pay seven employees $204,665 as compensation for back pay and losses in retirement contributions and other pay and benefits pursuant to charges before the National Labor Relations Board.

The Employer manufactures parts for commercial, military, and business aircraft. The NLRB’s Region 16 Office in Fort Worth issued a complaint on September 29, 2014, alleging that the Employer violated the National Labor Relations Act by failing to bargain in good faith with its employees’ bargaining representative, International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW and its Local Union 848, when it unilaterally implemented changes to its SPA 1700 training program, resulting in the discharge of seven employees.

On January 30, 2015, the parties entered into an informal Board settlement agreement resolving the dispute. As part of the settlement agreement, the Employer will pay $204,665 to seven employees. Nine employees will also have a total of 480 hours of paid leave restored. The Employer will also post a notice in its workplace that addresses the alleged violations and advises employees of their rights under the Act.

Source: NLRB

This information is intended to be educational and should not be considered legal advice on any specific matter.

US DOL recovers more than $637K in back wages for employees at facilities providing care for elderly and ill

The U.S. Department of Labor reached an agreement with owners of five Bay-Area facilities who will pay $637,048 in total to 24 employees providing care for the elderly and ill. The amount includes $318,524 in minimum wage and overtime back wages, plus an additional $318,524 in liquidated damages. The facilities are Retirement Plus of San Carlos I; Retirement Plus of San Carlos II; Laurelwood Care Home; Three Sisters Care Home; and Three Sisters Care Home II. The department’s Wage and Hour Division began a two-year investigation of the firms beginning in February 2012 to spot Fair Labor Standards Act violations.

“These workers perform a vital role as caregivers. Some should have earned as much as an additional $300 per week to meet minimum legal requirements. That money can help support a family,” said Susana Blanco, district director for the Wage and Hour Division in San Francisco. “The employer also treated one employee as an independent contractor—a trend that characterizes employees as contractors and denies them basic workplace protections. For vulnerable workers, this case represents a victory in the protection of their rights.”

San Francisco District Office investigators found that the firm paid most employees a weekly salary without regard to hours worked. Entitled to minimum wage and overtime, many affected employees received as little as $5 per hour and worked up to 11 hours per day, five to six days a week. The owners also failed to keep accurate and complete records of employee hours. Additionally, a caregiver was misclassified as an independent contractor and worked long hours without minimum wage and overtime pay.

“In an industry with a substantial record of labor violations and exploitation, these results should warn employers,” said Ruben Rosalez, the division’s regional administrator in San Francisco. “We will hold employers accountable for noncompliance, and we urge workers to contact the department if they believe their rights have been violated.”

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

General Interior Systems Inc. to pay back wages to employees misclassified as independent contractors

US Labor Department seeking employees to ensure payment

An investigation by the U.S. Department of Labor’s Wage and Hour Division found that Liverpool employer General Interior Systems Inc., and its president, Jeffrey T. Mento, violated the federal Fair Labor Standards Act by misclassifying more than 300 employees working as drywall installers as independent contractors and failed to pay them overtime. The department obtained a judgment in the U.S. District Court for the Northern District of New York that required payment of $380,000 in back wages to the affected employees.

“The issue here—misclassifying employees as independent contractors to avoid paying required wages and benefits—is a critical one. Misclassification impacts not only employees and their families, but entire industries,” said Mark Watson, regional administrator for the Wage and Hour Division in the Northeast. “This case sends a clear message that the Wage and Hour Division will use every tool available to protect workers and to ensure a level playing field so that law-abiding employers are not put at a competitive disadvantage.”

The employees, who worked throughout central New York and the Northeast, put in as many as 60 to 70 hours per week with regularity and were paid straight time for hours worked beyond 40 in a workweek. The defendants are paying the back wages covering a three-year period. The Wage and Hour Division will distribute the wages to the workers. The division is now seeking to locate these employees, including those who have moved and left no forwarding address, to ensure that they receive their back wages.

“We want to make sure that these employees receive the wages to which they are entitled,” said Jay Rosenblum, the Wage and Hour Division’s district director in Albany. “We ask them to contact the Wage and Hour Division, at either our Albany or Syracuse offices or, if they have moved, the division office closest to where they live now.”

Misclassified employees are often denied access to critical benefits and protections, such as overtime, minimum wage, family and medical leave and unemployment insurance. Misclassification also undercuts law-abiding businesses who pay workers properly. Responsible employers often find it difficult to compete with those who skirt the law and avoid their financial responsibilities.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

U.S. DOL helps oil and gas workers recover $4.5M in back wages

Multi-year initiative finds widespread and significant violations

Thousands of workers employed by contractors engaged in natural gas extraction in the Marcellus Shale region of Pennsylvania and West Virginia are putting in a fair day's work but not receiving a fair day's pay. An ongoing multiyear enforcement initiative conducted by the U.S. Department of Labor's Wage and Hour Division offices in Wilkes-Barre and Pittsburgh from 2012 to 2014 found significant violations of the Fair Labor Standards Act which resulted in employers agreeing to pay $4,498,547 in back wages to 5,310 employees. Wage and Hour Division investigators attribute the labor violations in part to the industry's structure.

"The Department of Labor is committed to protecting working families who bear the greatest burden when labor standards are violated," said U.S. Secretary of Labor Thomas E. Perez. "Recovering wages for these workers will help them pay the rent, buy food for the table and clothing for their children. And it will help ensure that employers who play by the rules and pay their employees the wages they have earned are not undercut by those who gain advantage by cheating the system and their workers."

"The oil and gas industry is one of the most fissured industries. Job sites that used to be run by a single company can now have dozens of smaller contractors performing work, which can create downward economic pressure on lower level subcontractors," said Dr. David Weil, administrator of the Wage and Hour Division. "Given the fissured landscape, this is an industry ripe for noncompliance."

The majority of violations were due to improper payment of overtime. In some cases, employees' production bonuses were not included in the regular rate of pay to determine the correct overtime rate of pay. Under the FLSA, all pay received by employees during the workweek must be factored in when determining the overtime premium to be paid. Investigators also found that some salaried employees were misclassified as exempt from the FLSA overtime provision, and were not paid an overtime premium regardless of the number of hours they worked.

Large energy providers such as Chesapeake Energy, Citrus Energy and Anadarko Petroleum are engaged in site exploration and production in the Marcellus Shale region. These companies own the mineral rights and secure the technical and specialized workforce needed to identify natural gas well extraction sites, develop well sites, complete drilling and bring wells on-line for production. The providers then use subcontractors for the majority of the work performed on the extraction, or "well" site. The subcontractors include drilling and geological services, land leasing and acquisition service, and oilfield support services companies.

Secondary subcontractors are often hired for more specialized work and ancillary support services like welding, laboratory services, landscaping, pipeline maintenance, safety and traffic control, and water treatment. Frequently, this level of services does not take place directly at the well sites.
"The more fractured an industry is, the more likely there will be significant labor law violations," said Mark Watson, regional administrator for the Northeast. "Companies further down the contracting chain feel pressured to provide services at a competitive and often cut-rate price point. They are also more likely to cut corners and offer a low bid to secure a business opportunity."

The ongoing enforcement initiative began in 2012. In addition to investigations in Pennsylvania and West Virginia, the agency is examining potential wage and hour violations like these in other parts of the country.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

General Interior Systems Inc. misclassified workers as independent contractors

US Labor Department seeking employees to ensure payment

An investigation by the U.S. Department of Labor’s Wage and Hour Division found that Liverpool employer General Interior Systems Inc., and its president, Jeffrey T. Mento, violated the federal Fair Labor Standards Act by misclassifying more than 300 employees working as drywall installers as independent contractors and failed to pay them overtime. The department obtained a judgment in the U.S. District Court for the Northern District of New York that required payment of $380,000 in back wages to the affected employees.

“The issue here—misclassifying employees as independent contractors to avoid paying required wages and benefits—is a critical one. Misclassification impacts not only employees and their families, but entire industries,” said Mark Watson, regional administrator for the Wage and Hour Division in the Northeast. “This case sends a clear message that the Wage and Hour Division will use every tool available to protect workers and to ensure a level playing field so that law-abiding employers are not put at a competitive disadvantage.”

The employees, who worked throughout central New York and the Northeast, put in as many as 60 to 70 hours per week with regularity and were paid straight time for hours worked beyond 40 in a workweek. The defendants are paying the back wages covering a three-year period. The Wage and Hour Division will distribute the wages to the workers. The division is now seeking to locate these employees, including those who have moved and left no forwarding address, to ensure that they receive their back wages.

“We want to make sure that these employees receive the wages to which they are entitled,” said Jay Rosenblum, the Wage and Hour Division’s district director in Albany. “We ask them to contact the Wage and Hour Division, at either our Albany or Syracuse offices or, if they have moved, the division office closest to where they live now.”

Misclassified employees are often denied access to critical benefits and protections, such as overtime, minimum wage, family and medical leave and unemployment insurance. Misclassification also undercuts law-abiding businesses who pay workers properly. Responsible employers often find it difficult to compete with those who skirt the law and avoid their financial responsibilities.

Under the FLSA, employers must distinguish employees from bona fide independent contractors. Whether a worker is an employee under the FLSA is a legal question determined by the actual employment relationship, not by title. An employee, as distinguished from a person who is engaged in a business of his own, is one who, as a matter of economic reality, follows the usual path of an employee and is dependent on the business that he serves. For more information, visit http://www.dol.gov/whd/regs/compliance/whdfs13.htm.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Watco Terminal & Port Services to pay back wages to North Dakota workers

An investigation by the U.S. Department of Labor’s Wage and Hour Division found that load operators at three Watco Terminal & Port Services’ locations in Belfield, Stanley and Tioga were not paid for pre-shift work, as required by the federal Fair Labor Standards Act. Watco will pay 261 workers a total of $304,094 in overtime back wages.

“People must be compensated for all time on the job, including before and after a shift,” said Charles Frasier, district director for the Wage and Hour Division in Denver. “We hope other local employers take note of this case and ensure they are paying their workers properly.”

The investigation found that employees were not compensated for required attendance at pre-shift safety and turnover meetings. Another overtime violation occurred when Watco failed to compute overtime properly. The company also failed to maintain accurate records of all hours worked.
Watco is based in Pittsburg, Kansas. The company provides rail-centric logistics solutions at U.S. locations.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

US DOL secures back wages for staff and workers with disabilities

Employer violated rules for subminimum wage rates for workers with disabilities

In a settlement agreement announced by the U.S. Department of Labor, Training Thru Placement Inc., based in North Providence, has agreed to pay a total of $300,000 to more than 100 employees, including workers with disabilities. The settlement resolves findings that, between June 1, 2010, and January 31, 2013, TTP violated the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act. The settlement further stipulates that the department on June 12, 2013, retroactively revoked the certificates allowing TTP, subject to specific conditions, to pay workers with disabilities less than the current federal minimum wage.

“TTP failed to meet its responsibilities under the law to some of the most vulnerable workers we see. This settlement, plus the earlier revocation of its certificates, resulted from our ongoing commitment to remedy labor violations and protect the rights of workers with disabilities,” said Mark Watson, northeast regional administrator for the Wage and Hour Division. “The law provides workers with disabilities an opportunity to work and receive a paycheck for that work. We will use available enforcement tools to prevent employers from exploiting workers.”

Specifically, the department alleged that TTP failed to properly determine a subminimum wage for each worker, as allowed under Section 14(c) of the FLSA; properly record and pay employees for all hours worked; determine the prevailing wage rates for workers performing similar work in the area; and conduct appropriate time studies to determine subminimum wage rates.

The department also alleged that the company falsified documents to mislead investigators. To redress violations fully under all applicable laws, the agency referred the matter to the U.S. Department of Justice’s Civil Rights Division which, consequently, entered into an interim settlement agreement with the state of Rhode Island and the city of Providence. The agreement resolved violations of the Americans with Disabilities Act for approximately 200 Rhode Islanders with intellectual and developmental disabilities.

Based on the severity and willful nature of the violations, the Wage and Hour Division issued a retroactive revocation of TTP’s authorization to pay subminimum wages between June 1, 2010, and Jan. 31, 2013, during which time the company was operating in violation of the FLSA. As a result, all FLSA-covered employees performing work for TTP during that period are owed no less than the federal minimum wage of $7.25 per hour for all hours worked.

When notified that its authorization to pay workers subminimum wage rates would be revoked, TTP took immediate corrective action to comply with the law. TTP implemented significant changes, including replacing its board of directors and removing or replacing management and administrative staff in charge when the violations occurred. Further, TTP contracted with a new provider of services, FedCap Rehabilitation Services, to assume day-to-day operations, hire new staff and provide training to ensure understanding and compliance with Section 14(c) of the FLSA. In connection with an asset purchase of TTP, FedCap has agreed to assume TTP’s responsibilities under the settlement agreement.

Because of the extent of these corrective actions; its commitment to ensure future protection of its workers; and the results of a follow-up investigation, the division allowed TTP to apply for a new provisional certificate and continue to operate as a Section 14(c) certificate holder under the new management. This allowed TTP to continue to operate with little to no interruption and ensured that workers with disabilities continued to receive their pay and educational and vocational training.

Under the settlement agreement, TTP will pay back wages to workers with disabilities and staff. TTP will provide free benefits counseling to the workers with disabilities who are owed the majority of the back wages, at no cost to those workers, their families and guardians.

The FLSA, in general, requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per workweek. Since its enactment in 1938, the FLSA has contained provisions designed to promote employment opportunities for individuals with disabilities.

Section14(c) of the act allows employers, after receiving a certificate of authorization from the division, to pay wages less than the federal minimum wage to workers with disabilities when their disabilities impair their productive capacities for the work being performed.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

US DOL recovers back wages for workers on federally funded construction projects

Larino Masonry Inc. and owners debarred from bidding on federal contracts

The U.S. Department of Labor has secured $2,904,000 in back wages for laborers and mechanics who worked on federally funded construction projects in four New York City boroughs.

A federal administrative law judge approved a settlement requiring Larino Masonry Inc., based in Newark, New Jersey, to pay $1,945,000 in back wages to workers at projects in Manhattan and the Bronx for violating the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act. In a separate, but related case, Larino also agreed to an order to pay $959,000 to workers at projects in Brooklyn and Queens.

Larino admitted that it failed to pay its workers the legally required prevailing wage, fringe benefits and overtime, and submitted falsified certified payrolls to a contracting agency. In addition to paying back wages, Larino and its company president Juan Luis Larino and vice president Maria Larino have been barred from bidding on federal contracts for the next three years.

“Taxpayers should expect that federal contractors understand their obligations and comply with the law,” said Maria Rosado, director of the Wage and Hour Division’s New York City District Office, which investigated the federally funded projects. “When Larino Masonry or any other employer violates labor laws, they cheat their employees and gain an unfair advantage over employers who obey the law. We will hold them accountable.”

“The department’s investigations and litigation demonstrate a commitment to ensuring workers are paid the wages to which they are legally entitled and a level playing field for employers doing business with the government,” said Jeffrey Rogoff, the department’s regional solicitor of labor in New York.

An investigation by the department’s Wage and Hour Division found that Larino Masonry failed to pay the required prevailing wage and fringe benefits to 67 laborers and mechanics on the Hobbs Ciena Project in Manhattan. The Hobbs Ciena Project involved the construction of a nine-story building at 305-307 E. 102nd St. and the rehabilitation of five buildings at 306-324 E. 100th St. in Manhattan. Larino was a first-tier subcontractor to Lettire Construction Corp.

An additional investigation found the same violations affecting 62 laborers and mechanics working on the Claremont Project at 282 E. 171st St. and 1421 College Ave. in the Bronx. Larino was a second-tier subcontractor at the site where, company officials admitted, some skilled tradesmen, such as power equipment operators, were paid as general laborers.

Further investigations found Larino committed violations of the DBRA and CWHSSA on the federally funded 97 Crooke Ave. Reverend Dan Ramm Residence in Brooklyn, where 50 workers were paid improperly, and at the Council Towers VI multifamily housing project in Queens, which found 49 workers owed back wages.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Workers Face Millions in Unpaid Wages

US Labor Department finds workers owed more than $3M in most recent year alone

Widespread labor violations by employers in the Southern California garment industry are costing workers millions of dollars a year in unpaid wages, according to the U.S. Labor Department. During fiscal year 2014, the department’s Wage and Hour Division conducted 221 investigations of employers in this industry, almost all in and around Los Angeles, and found $3,004,085 in unpaid wages for 1,549 workers. The division said that amounted to an average of $1,900 per worker, which is five times the amount a typical sewing machine operator earns in a week.

“Fierce competition in the garment industry leads many contract shops to lower the cost of their services, frequently at the expense of workers’ wages,” said Dr. David Weil, administrator for the Wage and Hour Division. “When workers don’t receive the wages to which they are legally entitled, they can’t afford the basics like food, rent and child care.”

Weil said the division is engaging in strategic enforcement efforts, such as directed investigations and identifying supply chains to combat what he calls a “race-to-the-bottom culture,” which imposes an unnecessary hardship on people who are trying to support themselves and their families. “We will uphold the American promise of a fair day’s pay for a fair day’s work,” he said.

According to the division, minimum wage and overtime violations have historically been high in the garment industry. Investigators have found violations in 89 percent of more than 1,600 cases in Southern California since 2009, leading to more than $15 million in recovered back wages for nearly 12,000 workers. The apparel industry typically employs large populations of immigrants with limited English language proficiency who are unaware of their rights or are reluctant to speak up. This makes them particularly vulnerable to labor violations.

“We are committed to strong enforcement and providing educational workshops for employers, yet we continue to find significant problems in this industry,” said Ruben Rosalez, regional administrator for the Wage and Hour Division’s Western Region. “We are using a variety of strategies to better protect workers and level the playing field for law-abiding businesses.”

According to Rosalez, the division has stepped up surveillance of establishments and deployed more multilingual investigators in the last several years. He also said that the agency is working with the department’s Office of the Solicitor to obtain liquidated damages as a remedy for workers. The division may also assess civil money penalties when employers are found to be repeat or willful offenders. And, Rosalez said, the agency is addressing supply chains by using agreements to ensure compliance with minimum wage and overtime rules by having manufacturers monitor their contractors.
Recent Wage and Hour Division cases:

• An investigation of Roger Garments in Montebello yielded more than $93,000 in overtime and minimum wage back wages paid to 44 workers. Roger Garments was contracted by Santa Ana-based Lunar Mode, an apparel manufacturer, for nearly half of its goods. Wage and Hour investigators also cited Lunar Mode for nearly $7,000 in back wages. Products in this case were sold to Macy’s and other women’s fashion retailers.
• During an investigation of Los Angeles-based garment contractor EVE LA Inc., investigators determined that 37 employees were due nearly $87,000 in unpaid minimum wage and overtime compensation. Investigators found that apparel workers utilized as checkers, trimmers and pressers were paid flat weekly salaries of $270 for an average of 50 hours a week. They were producing women’s clothing for manufacturers Dan Bee Inc. and Lovely Day Fashion. Dan Bee sells to retailers Must Have and Potter’s Pot. And Lovely Day Fashion sells apparel through online retailer Nasty Gal.
• More than $28,000 in minimum wage and overtime back wages were recovered for 13 employees at Lucky Stars, a garment contractor in South El Monte. Lucky Stars sold product to retailers, such as Macy’s, JC Penney and Kohl’s.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.