2019 Minimum Wage Update

Beginning this month, minimum wages are increasing across the nation. Forty-three (43) states and municipalities are adjusting base wages in 2019 according to a blog post on minimumwage.com. The post includes a list showing 2018 wage rates as well as those planned to take effect in 2019.

It is said that the planned increases could create an extra $5.4 billion in pay over the course of the year even though some increases won't takes effect right away. In Oregon and Washington DC, their increases go into effect on July 1st. Employment Policies Institute's Minimum Wage Tracker is available to review state by state changes as well as the Consolidated Minimum Wage Table available on the Department of Labor Wage and Hour Division's website.

In addition to state and local government increases to minimum wages, the Department of Labor has set the 2019 minimum wage for contracts covered by Executive Order 13658 at $10.60 per hour. The minimum wage for covered tipped workers will stay at $7.40 per the Department of Labor Wage and Hour Division's annual update.

Source: DOL Wage and Hour Division; Wolters Kluwer

Establishing a Minimum Wage for Contractors, Notice of Rate Change in Effect as of January 1, 2017

The Wage and Hour Division (WHD) of the U.S. Department of Labor (the Department) is issuing this notice to announce the applicable minimum wage rate to be paid to workers performing work on or in connection with Federal contracts covered by Executive Order 13658, beginning January 1, 2017.

Executive Order 13658, Establishing a Minimum Wage for Contractors (the Executive Order or the Order), was signed by President Barack Obama on February 12, 2014, and raised the hourly minimum wage paid by contractors to workers performing work on covered Federal contracts to: $10.10 per hour, beginning January 1, 2015; and beginning January 1, 2016, and annually thereafter, an amount determined by the Secretary of Labor in accordance with the methodology set forth in the Order. See 79 FR 9851. The Secretary's determination of the Executive Order minimum wage rate also affects the minimum hourly cash wage that must be paid to tipped employees performing work on or in connection with covered contracts. See 79 FR 9851-52. The Secretary is required to provide notice to the public of the new minimum wage rate at least 90 days before such rate is to take effect. See 79 FR 9851. The applicable minimum wage under Executive Order 13658 is currently $10.15 per hour, in effect since January 1, 2016. See 80 FR 55646. The applicable minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is currently $5.85 per hour, in effect since January 1, 2016. Id.

Pursuant to Executive Order 13658 and its implementing regulations at 29 CFR part 10, notice is hereby given that beginning January 1, 2017, the Executive Order minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $10.20 per hour. Notice is also hereby given that, beginning January 1, 2017, the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts will increase to $6.80 per hour.

A Notice by the Labor Department on 9/20/16

Minimum Wage Increases in 14 States for 2016

Minimum wage workers deserve a raise. That’s why President Obama has urged Congress for nearly three years to raise the federal minimum wage − stuck at $7.25 per hour since 2009. While the costs for the basics like housing, food and transportation have all gone up, the national minimum wage has not. In the absence of a national raise, states and localities have taken action. Since 2013, 17 states and the District of Columbia have raised their minimum wage rates. Today, a total of 29 states as well as the District of Columbia have a minimum wage higher than $7.25.

Thanks to this momentum, the minimum wage rates in 14 states go up in January. In a dozen of those states – Alaska, Arkansas, California, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, New York, Rhode Island, Vermont and West Virginia – it will be because of legislative action or voter referenda over the past two years. For workers earning the minimum wage in Colorado and South Dakota, they’ll see a boost in their earnings because of automatic cost of living adjustments tied to inflation. And while their increases will be delayed until the summer, it’s worth noting that workers in Maryland, the District of Columbia and Minnesota will see increases in 2016 owing to legislation enacted in the past two years.

Also going up in January is the federal minimum wage for workers on certain federal contracts. In 2014, President Obama took action to raise the minimum wage where he could and issued an executive order bringing the minimum wage for workers on federal service contracts to $10.10 per hour. At the time, he also guaranteed that the wage would be adjusted annually to keep up with inflation. In January, their minimum wage will see a slight bump to $10.15 per hour. It’s a small increase because inflation was modest over the last year, but every penny counts for an employee putting in the hard work yet still struggling to get by.

While we’ve seen a lot of progress around the county on lifting the wage floor for workers, there’s still work that needs to be done. If the federal minimum wage were raised to $12 per hour by 2020, some 35 million workers overall would benefit – nearly 90 percent adults, and more than half working women. More than 2 million people would be lifted out of poverty. Raising the national minimum wage would be good for families with millions no longer needing food assistance and 23 percent of all children seeing at least one parent getting a raise. And for business owners, a higher minimum wage means reduced turnover costs, higher morale and more productive workers.

This is an issue that is about the dignity of work and our national values. I applaud those public officials and voters across the country who have already taken action to raise their minimum wages. This January, the workers who are seeing a raise are a step closer to getting a fair day’s pay for a fair day’s work.

By Heidi Shierholz (Labor Department’s chief economist)

Protecting Wages and Benefits

Building an America that works:  The Houston Labor Leaders Breakfast brought together members of the Texas congressional delegation, Houston-area elected officials, union leaders and members on Oct. 15 — an annual gathering hosted by Rep. Al Green of Texas. In keynote remarks, U.S. Secretary of Labor Thomas E. Perez said he wakes up every morning asking, “What can we do to build an America that works for everybody, that builds shared prosperity?” Perez said that much progress has been made, pointing to 67 consecutive months of private-sector job growth. But, he noted, economic progress “that helps only a few at the expense of the many is not the America we know.” The breakfast came on the heels of a summit on worker voice hosted by President Obama, which provided examples of how America succeeds when workers speak up in the workplace. The secretary said the department would continue with initiatives that support and protect workers, such as championing a minimum wage increase and enforcing wage laws. Since 2009, the department has helped 1.5 million workers recover $1.3 billion in back wages, Perez said. “Nobody who works a full-time job should have to live in poverty.”

Source: US Department of Labor Blog

Final Rule: Executive Order 13658, Establishing a Minimum Wage for Contractors

On February 12, 2014, President Obama signed Executive Order 13658, “Establishing a Minimum Wage for Contractors,” to raise the minimum wage to $10.10 for workers on Federal construction and service contracts. The President took this executive action because boosting wages lowers turnover and increases morale, and will lead to higher productivity overall. Raising wages will improve the quality and efficiency of services provided to the government. The Executive Order directed the Department of Labor to issue regulations to implement the new Federal contractor minimum wage.

The Department published a Notice of Proposed Rulemaking (NPRM) in the Federal Register on June 17, 2014. The NPRM proposed standards and procedures for implementing and enforcing Executive Order 13658 and invited public comment on the proposed provisions. The Department received many comments from a variety of interested stakeholders, such as labor organizations; contractors and contractor associations; worker advocates, including advocates for individuals with disabilities; contracting agencies; small businesses; and workers.

After carefully considering all timely and relevant comments, the Department has published a final rule to implement the provisions of Executive Order 13658. The final rule issued by Secretary of Labor Tom Perez is an important milestone in raising the minimum wage for workers on Federal contracts.

On September 16, 2015 the Department published a Notice to announce the applicable minimum wage rate to be paid to workers performing work on or in connection with federal contracts covered by Executive Order 13658, beginning January 1, 2016.

For additional information on the Final Rule, click here.

Source: Department of Labor (DOL)

Amalgamated Bank Sets Example By Raising the Wage for Its Minimum Wage Employees

According to a recent study, full time bank tellers earn an average of $28,500 per year on a median wage of $12.44 an hour, despite working in one of the highest grossing industries in the world.

At a time when banks are thriving and many CEOs make tens of millions of dollars annually, this is simply unacceptable. Banks must act now to raise the wage and stand up for the workers who make possible their success. That’s why this week at Amalgamated Bank we announced that we’ve raised our minimum wage to $15 per hour and challenged the rest of the industry to do the same.

Nationwide, around 25 percent of all working people rely on at least one form of public assistance. Among workers in financial services, that number is nearly 31 percent. When banks fail to pay a living wage, they are passing the cost of services for their employees on to taxpayers.

The tellers, customer service reps, new account clerks, collectors, and cleaners who work at our financial institutions are crucial to keeping the economy growing, and they deserve the dignity of a fair wage. It is wrong that they have been left to fend for themselves for so long.

We know that not all the other banks will follow our lead immediately, but we hope this starts an honest and productive conversation because this issue is too important to be ignored any longer. By giving our employees an honest wage, we strengthen the communities that we serve and the economies we all rely on.
At Amalgamated Bank we will pay every bank employee, regardless of position, a minimum wage of $15 an hour. This immediate change sends a message that we believe in our people, and feel they deserve a living wage. It is my sincere hope that other banks will follow us by recognizing that when it comes to the minimum wage, doing the right thing is simply good business.

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.

US DOL conducts compliance and enforcement initiative in Bay Area nursing homes, residential care facilities

$6.8 million in wages, damages recovered for more than 1,300 workers since 2011

A multiyear compliance assistance and enforcement initiative conducted by the U.S. Department of Labor’s Wage and Hour Division has found that Bay Area residential care facilities and nursing homes have underpaid more than 1,300 workers by millions of dollars.

The agency’s investigations concluded that between 2011-2014 minimum wage and overtime violations resulted in more than $6.8 million dollars in back wages and damages for the workers, money desperately needed to cover basic life expenses, such as rent, food, transportation and child care. Additionally, the initiative has served to level the playing field among the businesses by ensuring compliance with the federal Fair Labor Standards Act.

At the same time, the Wage and Hour Division has worked with business owners, worker advocacy groups and employees to educate the industry on basic federal labor law requirements. However, investigators continued to see widespread abuses where many employers took advantage of workers vulnerable to exploitation because they often don’t know their rights. As a result, they were subject to wage violations and retaliation.

“The hardworking men and women who take care of our relatives and friends need to be compensated fully for their time,” said Ruben Rosalez, regional administrator for the department’s Wage and Hour Division in San Francisco.
“We know that rewarding hard work with fair and full pay leads to happier and more productive workers. The trend of violations is therefore not only harming workers, but patients alike who might suffer with less quality care. We will continue to investigate and penalize employers who cheat their employees and gain an unfair competitive advantage over their law-abiding competitors at the expense of their workers.”

Working conditions in some residential care facilities can be difficult for many caregivers. Many of the facilities require employees to stay overnight on the premises to ensure round-the-clock care for patients. Despite the fact that they are on call assisting residents overnight, investigators found that some workers were not paid for such time, and some were denied adequate sleeping facilities and were forced to sleep on the floor. Such conditions can erode the quality of care patients receive.

Additionally, investigators found that employees who are paid hourly often worked 10 to 14 hours per day, six days per week, but were only paid for eight hours per day. Some workers were paid a flat weekly salary regardless of the hours they worked and were therefore denied time and one-half pay for hours worked beyond 40 per workweek. Employees were also threatened and harassed if they questioned their working conditions. Some employees were intimidated or retaliated against by their employers and were instructed not to cooperate with Wage and Hour investigators.

Investigations completed in the past year reflect the disturbing trend in violations. These include:

• The owners of Retirement Plus of San Carlos and four other Bay-Area facilities paid its caregivers as little as $5 per hour and misclassified one employee as an independent contractor. The employer paid more than $630,000 in minimum wage, overtime and damages to resolve the case.
• Lake Alhambra Assisted Living Center violated a protective order prohibiting retaliation against caregivers for cooperating with the investigation. Ultimately, the business paid $304,000 in back wages and damages to 32 caregivers, plus $25,000 in civil money penalties, as ordered in a consent judgment filed in the U.S. District Court for the Northern District of California. The order also included the appointment of an independent monitor to ensure the business pays its workers properly in the future.
• Anne’s Guest Home, which operates six facilities in Pleasanton and Livermore, was found in violation of the minimum wage, overtime, and record-keeping provisions of the FLSA. The company paid some workers below the federal minimum wage of $7.25 per hour and failed to pay overtime at time and one-half for hours worked beyond 40 in a workweek. The firm was ordered to pay more than $447,000 in back wages and damages in a consent judgment filed in the U.S. District Court for the Northern District of California.
• Farol’s Residential Care Home paid caregivers salaries below the minimum wage in many cases and did not pay overtime when employees worked over 40 hours per week. The business was ordered to pay a total of $405,284 in back wages, damages, interest and penalties in a consent judgment filed in the U.S. District Court for the Northern District of California. Twenty-seven workers will receive back wages in this settlement.
• Vicky Rebecca Quedado, doing business as We Care ICF/DD-H and Becker Home Inc. of Northern California, operates three intermediate residential-care facilities and will pay $261,356 in back wages and liquidated damages to 21 low-wage workers for violations of the FLSA. The division found that the business paid the workers flat salaries for all hours worked instead of paying them overtime when they worked more than 40 hours in a workweek, as the law requires.

Source: DOL

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

J&J Mongolian Grill and Spa Therapy workers were cheated and threatened

Jury awards more than $1.3M in back wages and damages to 101 former employees at defunct Bellingham businesses

Although a Bellingham restaurant and a spa have closed, 101 workers once employed by the businesses will receive more than $1.3 million in back wages and damages, thanks to a Washington State jury. The decision is the result of a U.S. Department of Labor investigation that revealed numerous violations of federal labor law.

A unanimous verdict found that the workers were systematically denied minimum wage and overtime pay under the Fair Labor Standards Act by business owners Huang “Jackie” Jie and Zhao “Jenny” Zeng Hong. The lawsuit was filed in 2013 against the two owners and their companies, Pacific Coast Foods, Inc., doing business as J&J Mongolian Grill, and J&J Comfort Zone, Inc., doing business as Spa Therapy. The jury also found that the defendants interfered with and retaliated against workers, most of whom spoke little to no English, who cooperated in the Labor Department’s investigation.

“No one who works hard and plays by the rules should be cheated out of the wages to which they are legally entitled,” said U.S. Secretary of Labor Thomas E. Perez. “In this case, the business owners took advantage of their workers and continued to do so even after being informed by investigators that they were operating in violation of federal labor law. That’s unconscionable. We will hold accountable those businesses that break the law, and just like in this case, ensure that justice prevails for workers.”

The department’s Wage and Hour Division found that employees of the J&J Mongolian Grill and Spa Therapy put in on average more than 70 hours during a six to seven day workweek. A number of the workers were paid less than the federal minimum wage of $7.25 per hour, and none of them received overtime pay for hours worked beyond 40 in a workweek. Both businesses were located in Bellingham’s Bellis Fair Mall.

“Dozens of brave men and women will now get the long overdue back wages they rightfully earned following years of abuse, trickery and retaliation,” said Janet Herold, the department’s regional solicitor in San Francisco. “This verdict is a warning to others: We will find you and the courts will back us when employers try to shortchange their workers to maximize profits.”

The department brought the case to court to stop the business owners, who have since divorced, from continuing to break the law and to recover wages owed to 101 cooks, kitchen helpers, cashiers and masseurs. The jury awarded the back wages and also awarded compensatory damages to four employees who had suffered retaliation, including threats, reduction of hours and, finally, termination of employment because they refused to be silenced about the defendants’ labor law violations.

Source: DOL

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.

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.

Florida's Minimum Wage Increases to $8.05 in 2015

Florida's minimum wage will increase to $8.05 on January 1, 2015. The state's minimum wage will increase to $8.05, up 12 cents from $7.93 in 2014. 

The increase will mean that Florida's required minimum wage is nearly $1 more than the federal minimum wage of $7.25.

That's still far below the $10.10 an hour that President Barack Obama called for during his State of the Union address earlier this year.

On September 30th of each year, Florida's Department of Economic Opportunity recalculates the State's minimum wage as required by Florida's minimum wage law found in Section 448 of the Florida Statutes. This calculation is based on the increase in the federal Consumer Price Index for Urban Earners and Clerical Workers in the Southern Region. This minimum wage increase applies to all employees who are covered by the Fair Labor Standards Act.

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

US Labor Secretary's statement on the need to raise the minimum wage

U.S. Secretary of Labor Thomas E. Perez released the following statement on the five-year anniversary of the last increase in the federal minimum wage:
"It's been exactly five years since workers at the bottom of the income ladder have gotten a raise. Since then, the cost of a gallon of milk, a week of child care, a month's rent and everything else a working family needs has gone up. But the federal minimum wage remains frozen at $7.25 per hour.

"President Obama believes five years is far too long, and a clear majority of Americans agree. Too many people are working harder but falling further behind, and it's just plain wrong that men and women working full-time in America should have to raise their families in poverty.

"A minimum wage increase to $10.10 would benefit 28 million people, giving them a little bit of breathing room and peace of mind. And it would help their bosses as well. As I've traveled around the country, employers of all sizes and in varied sectors have told me they see higher wages as a sound business investment. They know that it boosts productivity and reduces training costs. They know that, in an economy driven by consumer demand, more money in people's pockets means more customers for them. This isn't just anecdotal — a recent poll shows that more than 3-in-5 small business owners support a $10.10 minimum wage. 
 
"Thirteen states and the District of Columbia, responding to grass-roots energy in their communities, have increased their minimum wages since the beginning of 2013. And the president has signed an Executive Order mandating a $10.10 minimum wage for workers under federal service contracts. But still, Congress has failed to act on behalf of all workers.

"This step is long overdue. Our workers need it and they've earned it. After five years, it's time to reward hard work and raise the wage."

Source: DOL

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

Farm operation previously ordered to stop misclassifying migrant workers

Copemish employer Darryl Howes, doing business as Darryl Howes Farms, signed a consent judgment under which he agreed to pay $11,253 in back wages to 36 migrant workers to resolve a lawsuit filed by the U.S. Department of Labor. Howes has agreed to implement enhanced record-keeping procedures to ensure the business complies with the record-keeping provisions of the Fair Labor Standards Act.

The consent judgment resolves a federal lawsuit filed by the department alleging minimum wage, record-keeping and housing violations and alleges that Howes unlawfully interfered with the Wage and Hour Division’s investigation. The Wage and Hour Division’s investigation revealed that Darryl Howes Farms misclassified its migrant agricultural workers as independent contractors rather than employees entitled to minimum wage and other protections of the FLSA and the Migrant and Seasonal Agricultural Worker Protection Act. The back wages due must be paid within 10 days of the consent judgment being entered by the court. “This consent judgment sends a clear message to farm operations that denying workers their rightfully earned wages by misclassifying them as independent contractors will not be tolerated, and that wage laws will be enforced,” said Mary O’Rourke, district director for the Wage and Hour Division in Grand Rapids. “The department is committed to protecting the many low-wage migrant workers who deserve the wages they earn.”

In earlier case proceedings, U.S. District Judge Gordon J. Quist issued an opinion and order that upheld the department’s findings of record-keeping and housing violations during the 2011 harvest at Howes’ 60-acre cucumber farm and migrant housing camp. The court ruled previously that Howes provided substandard housing to migrant workers at a housing camp he controlled, in violation of the MSPA. The violations at the housing camp included failures to provide adequate shelter; to prevent insect or pest infestation; to remove standing wastewater; to repair broken screen doors and showers; and to maintain toilets in a sanitary condition. The court ordered Howes to ensure all MSPA housing he owns or controls complies with the MSPA. The court previously held that Howes interfered with the department’s investigation by impeding the department’s confidential interviews with his employees.

Source: DOL

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

Los Angeles-area restaurants ordered to pay back wages

The U. S. Department of Labor has obtained a judgment from the U.S. District Court for the Central District of California ordering China Wok Express in Whittier and Golden Wok Fried Chicken in Los Angeles to pay $172,264 to 11 employees in unpaid minimum wage and overtime wages due under the Fair Labor Standards Act. The judgment also orders the two restaurants and their owner, Richard Huot, to pay an additional $172,264 in liquidated damages to the workers.


“We have put a stop to this employer’s repeated and willful attempts to cheat workers out of their hard-earned wages with this successful litigation,” said Ruben Rosalez, regional administrator for the Wage and Hour Division in the Western Region. “The employer’s disregard of the department’s findings in this case has resulted in a judgment that not only makes vulnerable workers whole, but sends a clear message to all employers in the restaurant industry. The industry employs some of our country’s lowest paid workers, who are vulnerable to exploitation. We will continue our effort to promote awareness and compliance in this industry.”


The U.S. District Court also entered an injunction enjoining and restraining Huot from withholding all unpaid compensation and from violating the FLSA in the future. The department’s Regional Office of the Solicitor in Los Angeles litigated this case.


Investigators with the department’s Wage and Hour Division in West Covina and Los Angeles found that the two restaurants paid the workers on a salary basis without regard to the required minimum wage and overtime requirements under the FLSA. Several of the affected workers, including cooks and cashiers at both locations, worked between 67 to 69 hours per week on average, and often from about 10 a.m. to 10 p.m., six days a week.


Additional violations included failure to maintain accurate and complete records of hours worked and wages paid to the employees. Investigators established that the employer provided falsified records in an attempt to hide real hours worked and wages paid. Investigators also determined that after the Wage and Hour Division informed the employer of the violations found, he continued to disregard the minimum wage, overtime and record-keeping requirements.


The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as one and one-half times their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. The FLSA provides that employers who violate the law are generally liable to employees for their back wages and an equal amount in liquidated damages, which are paid directly to the affected employees.


Source: DOL

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

Minimum wage increase fails again

In case anyone forgot there’s a congressional election coming up, the Senate held yet another doomed-to-fail vote Wednesday on raising the minimum wage to $10.10 an hour.

The bill fell far short of the 60 votes needed to clear a procedural hurdle, as all but one Republican voted against the motion to bring up the bill. But Democrats said they’ll keep bringing the bill up for a vote — 28 million Americans need a raise, they say. Plus, it fits with the populist message they’re running on in November: Republicans only care about the rich, not working people.

“This is the start of our fight on minimum wage, not the end,” said Sen. Tom Harkin, D-Iowa.

Republicans, meanwhile, tried to turn the message around. Businesses already face too many obstacles in creating jobs under President Barack Obama, they say, and raising the minimum wage would just depress employment further.

“Surely Senate Democrats could come up with a better jobs program than one that the nonpartisan Congressional Budget Office says would destroy 500,000 jobs,” said Sen. Lamar Alexander, R-Tenn.

President Barack Obama, fresh off an Asian trip that failed to produce a breakthrough for his trade agenda, got in on the act Wednesday afternoon.

With minimum wage workers standing behind him in the East Room of the White House, Obama said that because of Republicans, “These folks are going to have to wait for the raise they deserve.”

Obama noted that some states aren’t waiting for Congress to act — they’re raising the minimum wage on their own.

Plus, the president noted that many businesses have decided to pay their workers more “because they know it’s good business.”

Plus, the president noted that many businesses have decided to pay their workers more “because they know it’s good business.”

Businesses with higher-paid employees face less turnover, and their workers are more productive, he said. Plus, their customers “see the difference.”

Small business owners who support raising the federal minimum wage make the same point.

“We raised our minimum wage to $10.10 without raising prices, knowing that employees who make ends meet stay longer and are more productive,” said Chris Sommers, co-owner of Euclid Hospitality Group, which includes Pi Pizzeria in St. Louis and Washington, D.C.

Democrats enlisted small business owners to make the case for raising the minimum wage in order to counter Republican arguments that doing so would hurt small business. Members of Business for a Fair Minimum Wage also contend it would boost the economy by giving workers more money to spend in their local communities.

That’s good if you can afford it, but many business owners can’t, say various other business groups.

“For the many franchise businesses that are labor-intensive and already operate on thin profit margins, this legislation could be the difference between continuing to operate and going out of business – between maintaining employees or shedding more jobs,” the International Franchise Association contended in a letter to senators.

Low-skilled Americans would find it harder to find work, it added.

Plus, if raising wages is good for business, as Obama contends, then it seems like businesses that can raise wages would do so without being forced to by the government.

Nearly 60 percent of small and mid-sized businesses plan to give their employees a raise this year, according to a new survey conducted by Pepperdine University and Dun & Bradstreet Credibility Corp.

That will put pressure on their competitors to do the same, in order to get the best talent.

“Businesses should be able to determine the most competitive starting wage and subsequent raises for their employees within their industry and local economy,” IFA writes.

If Congress followed that principle, there wouldn’t be a minimum wage at all.

But that battle is over — the minimum wage is here to stay, both as a business reality and a political issue.

If you’re a business owner who pays the minimum wage, be prepared to be called greedy, even if being able to pay only $7.25 an hour enables you to hire somebody who otherwise wouldn’t even have a job.

And if you’re a politician, be prepared to discuss the economics of labor. Money doesn’t grow on trees, and neither do jobs.

Source: South Florida Business Journal

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

Garcia Forest Service debarred from federal contracts for 3 years following DOL investigation

A U.S. Labor Department investigation has resulted in the debarment of Garcia Forest Service LLC, and its president, Samuel Garcia, from eligibility for further service contracts with any U.S. government agency for three years. The investigation found that the Rockingham, N.C.-based company violated the McNamara-O'Hara Service Contract Act and the Contract Work Hours and Safety Standards Act by failing to pay fringe benefits, minimum wage, overtime and holiday pay to workers hired for a reforestation project in the Superior National Forest in Minnesota. Administrative Law Judge Kenneth A. Krantz issued the debarment order in Newport News, Va. The consent findings were filed by the department's Regional Office of the Solicitor in Chicago.

"Contractors that do business with the federal government have an obligation to abide by the law, pay their employees the required contractual rates and benefits, and keep accurate and complete required records," said Laura A. Fortman, principal deputy administrator of the Wage and Hour Division. "The Service Contract Act requires debarment when violations are found unless the high standard of 'unusual circumstances' is met. Debarring this employer illustrates the department's commitment to vigorous enforcement of government contracting laws and helps level the playing field for law-abiding employers."

Garcia Forest Service entered into a contract in 2007 with the U.S. Forest Service, an agency of the U.S. Department of Agriculture, for reforestation services, such as planting seedlings and clearing brush in the Superior National Forest. The company primarily uses the H-2B Visa Program to recruit and employ foreign guest workers to perform seasonal work under its contracts.

An investigation by the department's Wage and Hour Division's district office in Minneapolis found that the company violated the SCA and the CWHSSA by failing to ensure hours worked were accurately reported resulting in minimum wage violations, not paying required fringe benefits, overtime and holiday pay. The company and its president, Garcia, cooperated fully with the Wage and Hour Division during its investigation and subsequently paid 12 workers $27,489 in back wages.

Garcia Forest Service had previously been investigated by the Wage and Hour Division regarding three contracts during the period of 2005-2006. That investigation found the company had failed to pay holiday pay under these contracts. The company provided back wages to the effected employees as a result of the investigation.

The SCA applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services in the United States through the use of service employees. The SCA requires that contractors and subcontractors performing services on covered federal contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality.

Source: DOL

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

Lawsuits filed againsg 5 hotels to recover unpaid wages and damages

The U.S. Department of Labor has filed two lawsuits in the federal district court in Columbus against Darpan Management Inc.; five hotels the company owns and manages; and its owners, Darshan Shah, Vibhakar Shah and Prakash Patel. One of the lawsuits addresses violations of the Fair Labor Standards Act’s minimum wage and overtime provisions for the hotel staff directly working for Darpan Management, and the other addresses similar violations for workers jointly employed by Fantastic Cleaning Ltd., a company that provided hotel staff to Darpan Management. The two lawsuits seek back wages and an equal amount in liquidated damages for 89 workers.

The hotels where the violations occurred, all operated by the Hilliard, Ohio-based Darpan Management, are the Baymont Inn & Suites, the Country Inns & Suites and two Four Points by Sheraton in Columbus, as well as the Holiday Inn Express & Suites in Reynoldsburg, Ohio.

“Darpan Management failed to meet minimum legal wage standards for housekeeping and other staff in these hotels. This practice, as well as failing to pay overtime and maintain accurate records, resulted in a substantial loss of income for these employees,” said George Victory, the Wage and Hour Division’s district director in Columbus. “Housekeepers were misclassified as independent contractors and paid by the room. In many cases, they did not even earn the minimum wage. These lawsuits should remind employers that the Labor Department is committed to ensuring that workers receive pay to which they are legally entitled.”

Investigators from the division’s Columbus District Office found violations of the FLSA’s minimum wage, overtime and record keeping provisions for 61 workers jointly employed by Darpan Management and Fantastic Cleaning. Fantastic Cleaning, which provided housekeepers, attendants and laundry staff for the hotels owned and operated by Darpan Management, misclassified the housekeepers, who were employees, as independent contractors. These employees were paid by the room and frequently did not earn enough to make the federal minimum wage, currently $7.25 per hour. Employees also were not paid legally required overtime at time and one-half the employees’ regular rate when they worked beyond 40 hours in a workweek. Investigators determined that a total of $42,288 in back wages is owed to the 61 workers jointly employed by Darpan Management and Fantastic Cleaning.

A second investigation found that 28 workers directly employed by Darpan Management as hotel staff are due $11,181 in unpaid minimum wage and overtime. The company failed to pay some workers for training time, resulting in minimum wage violations. It also only paid workers overtime after they had worked over 80 hours in a two-week period, as opposed to after 40 hours in a work week required by law. Hours worked were not computed accurately by the employer, resulting in uncompensated overtime. The investigation also found some employees were wrongly classified as exempt from overtime. Additionally, Darpan Management failed to maintain accurate and complete payroll records.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 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. In general, “hours worked” includes all time an employee must be: on duty, on the employer’s premises or at any other prescribed place of work from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employees’ wages, hours and other conditions of employment be maintained. The law also prohibits employers from discharging or discriminating against an employee for filing a complaint or for cooperating with an investigation.

The misclassification of workers as something other than employees, such as independent contractors, presents a serious problem for affected employees, employers and to the entire economy. Memoranda of understanding with the IRS and state government agencies arose as part of the department’s Misclassification Initiative, with the goals of preventing, detecting and remedying employee misclassification. These memoranda will enable the department to share information and to coordinate enforcement efforts with participating agencies in order to level the playing field for law-abiding employers and to ensure that employees receive the protections to which they are entitled under federal and state law. More information is available on the department’s misclassification Web page at http://www.dol.gov/misclassification

Source: DOL

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

DOL investigating wage violations at McAllen TX produce distributor

The U.S. Department of Labor has filed an action in the U.S. District Court in McAllen seeking a temporary restraining order and preliminary injunction to protect workers from retaliation and threats of retaliation from some ISPE Produce Inc. officials.
 
The department’s Wage and Hour Division is currently investigating ISPE Produce under the minimum wage, overtime, record-keeping and anti-retaliation provisions of the Fair Labor Standards Act.

“Employee intimidation and coercion will not be tolerated. Employers are prohibited from retaliating against any employee who files a complaint or cooperates in a Wage and Hour investigation,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “We will leverage any resources necessary to ensure that a fair investigation is conducted and workers are protected.”

During the investigation, the employer required workers to leave the job site when Wage and Hour investigators arrived to conduct interviews. Company officials threatened workers with termination of employment and deportation for cooperating with the department. The temporary restraining order asks the court to enjoin the owner and two company officials from continuing threatening and retaliatory conduct aimed at employees who cooperate in the Wage and Hour investigation.

The department also seeks an order requiring the owner or a department employee to read aloud a statement to all employees informing them of their right to speak with Wage and Hour investigators without fear of retaliation; to post a copy of the statement at all ISPE Produce work sites; and to prohibit the owner and named officials from speaking directly to employees about the Wage and Hour investigation.

Source: DOL

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

 

China Town Super Buffet agrees to pay unpaid wages

Workers at China Town Super Buffet in Kansas City, Independence and Blue Springs will receive a total of $196,971 in unpaid wages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found violations of the Fair Labor Standards Act’s minimum wage, overtime and record-keeping provisions.

“Through investigations like this one, the Wage and Hour Division continues to combat widespread minimum wage and overtime violations among restaurants,” said Patricia Preston, district director for the Wage and Hour Division in Kansas City. “The restaurant industry employs some of our country’s most vulnerable workers who, especially during hard economic times, are at risk for exploitation. We will continue our effort to promote awareness and improve compliance in this industry.”

Investigators from the division’s Kansas City District Office determined that the company paid kitchen workers a fixed salary that was insufficient to cover minimum wage for all hours worked, and it failed to pay these workers at one and one-half times their hourly rate for hours worked beyond 40 in a workweek. The company also failed to maintain accurate and complete records of hours worked by kitchen employees, as well as failing to record payments made to employees accurately.

The three corporations in this investigation include China Town Super Buffet Inc. of Independence; China Town Café Inc. of Blue Springs; and C.T. Mancilla of Kansas City, Kan., all doing business as China Town Super Buffet. China Town Inc. signed a settlement agreement with the department, in which they agreed to comply with the FLSA in the future.

Additional terms of the agreement include the company’s commitment to the following: to pay employees on a biweekly basis; track all hours on timecards; provide all employees information in their native language on their rights under the FLSA; and provide a pay stub on each pay date that shows the total hours worked, total hours paid and deductions. The company will also provide the phone number to the local Wage and Hour office, post the FLSA poster in a conspicuous location, and train managers in the provisions of the FLSA and terms of the settlement agreement.

The FLSA requires that covered, nonexempt 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 hourly rates for hours worked beyond 40 per week. Additionally, the law requires employers to maintain accurate time and payroll records, and prohibits retaliation against employees who exercise their rights under the law.

Source: DOL

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