Matters Management

The U.S. Department of Labor has filed a suit in the U.S. District Court for the Central District of California alleging that Coway USA Inc., a Los Angeles-based company that sells, leases and services household appliances, failed to pay overtime wages earned by more than 180 employees, a violation of the Fair Labor Standards Act.

“Our investigation found Coway, with brand ambassadors such as Korean pop band BTS, failed to pay more than 180 workers their overtime wages,” said Wage and Hour Division District Director Kimchi Bui in Los Angeles. “Employers can pay by piece-rate based on the number of units employees service, but they must pay overtime using the correct methodology and accounting for all hours worked.”

A U.S. Department of Labor investigation has recovered $238,746 in overtime wages owed to 1,024 solar panel and system installers employed by a renewable energy company in Puerto Rico that failed to include various bonuses in their salaries and calculated overtime wages incorrectly.

“Our investigators identified that more than 1,000 solar industry workers were being shortchanged because their employer failed to include performance bonuses when calculating overtime wages,” said Wage and Hour Division District Director Jose Vazquez in Guaynabo, Puerto Rico. “Employers in Puerto Rico’s fast-growing solar industry should familiarize themselves with regulations governing their pay practices to avoid the often significant financial consequences that come when these laws are violated.”

The employer did not pay kitchen staff the required overtime rates for employees that worked over 40 hours in a workweek. The kitchen staff received a fixed salary which excluded them from overtime pay regardless of the hours they worked. They investigation also found that the manager unlawfully took a portion of tips.

“Many restaurant employers in Hawaii and elsewhere in the nation continue to shortchange workers and deprive them of their hard-earned wages,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “The restaurants failing to pay employees in compliance with the law will pay a hefty price in back wages due plus liquidated damages. We are determined to protect workers and stop these illegal practices.”

Employer: NurseRight Staffing Agency LLC

The department's 'investigation determined that the company misclassified workers as independent contractors. This led to them not paying overtime pay according to the Fair Labor Standards Act. $70,488 in back wages and $70,488 in liquidated damages were awarded

“When employers misclassify workers as independent contractors, they deny them wages due under the Fair Labor Standards Act – such as overtime – and fail to pay employment taxes or workers’ compensation on their behalf,” explained Wage and Hour District Director Tom Gauza in Chicago. “There are clear conditions that must be met for an individual to be classified as an independent contractor. Employers or workers with questions about whether they are independent contractors or employees should contact the Wage and Hour Division for guidance.”

Recoved $78,664 in Back Wages, $78,664 in Liquidated Damages

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found LJ2 Investments LLC – operator of Jasso Express food trucks – failed to pay the required time and one-half the hourly wages of 46 catering service workers for hours worked over 40 in a workweek. Additionally, the employer failed to keep records, in violation of federal law.

In fiscal year 2023, the division recovered more than $29 million owed to nearly 26,000 food service industry workers. Food service is among the division’s low-wage, high violation industries with the third highest amount of back wages recovered and the second highest amount of civil money penalties assessed.

“Federal law is very clear about paying overtime and leaves no excuse for an employer to deprive workers of their lawfully earned wages,” said District Director Cynthia Cantu-Flores in McAllen, Texas. “The U.S. Department of Labor remains committed to protecting our nation’s workers and holding employers accountable.”

$1.85 Million in Back Wages and Damages

SEATTLE – A federal court has ordered a producer of Christmas wreaths and seasonal greens for major retailers — including Costco, Publix, Target, Trader Joe’s, Walmart and Wegmans — to pay $1.85 million in back wages and damages to nearly 700 workers after the U.S. Department of Labor found the employer failed to pay required overtime wages and violated migrant and seasonal workers’ rights.

The department’s Wage and Hour Division determined that Continental Floral Greens denied hundreds of workers their required overtime pay for hours over 40 in a workweek, a violation of the Fair Labor Standards Act. Division investigators also found the Shelton company submitted, under penalty of perjury, fraudulent information on job orders about wages, housing and transportation to bring workers to the U.S., a violation of the H-2B worker program. Continental Floral Greens employs temporary workers from El Salvador, Guatemala and Mexico.

Recovered:$1,000,000

Investigation findings

MCALLEN, TX – The U.S. Department of Labor’s recovery of more than $1 million in minimum and overtime wages owed to 859 home healthcare workers employed by two Texas companies show that improper pay practices in the industry remain a systemic problem in Texas and across the nation.

Specifically, division investigators found both employers failed to combine all hours worked for the purpose of calculating employees’ overtime wages. The employers paid the affected employees straight-time rates for all hours worked, including for hours over 40 in a workweek when an overtime rate applies. In addition, the division found Alegre Home Health Care and Pas Home Care adjusted employees’ established wage rates during weeks when they worked overtime to avoid paying the required overtime rates.

Recovered:$54,423

Investigation findings

Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found 53 locations of Boom-a-Rang Diner failed to include employee monthly performance bonuses to non-exempt management personnel in their regular pay rate when computing overtime wages, as required by the Fair Labor Standards Act.

OKLAHOMA CITY – While mortuary workers are called on to provide after-life care for the deceased and compassion for the bereaved, a federal investigation has found the operators of an Oklahoma City mortuary were less than caring when it came to paying dozens of workers overtime wages they rightfully earned.

A U.S. Department of Labor Wage and Hour Division investigation has recovered $231,390 in back wages and an equal amount in damages for 66 employees of Stillwell Limited Inc. — operator of Alpha & Omega Mortuary Service and Crematory — after learning the employer paid them straight-time rates for all hours worked, instead of paying time-and-one-half their regular rate-of-pay for hours over 40 in a workweek. A review of company records showed many of the affected workers earned low wages and often worked more than 50 hours per week.

U.S. Department of Labor Wage and Hour Division investigators found a Clearwater roofing contractor of mobile and manufactured homes failed to pay overtime for hours worked over 40 in a workweek to 21 employees as required by the Fair Labor Standards Act . Specifically, the employer paid workers by the piece, but failed to pay the time-and-one-half rate for hours worked over 40. In addition, All Florida Weatherproofing did not include non-discretionary bonuses in the employees’ regular rate when computing overtime payments. The employer also failed to maintain time records outlining start and stop times for employees’ workdays.

The U.S. Department of Labor’s Wage and Hour Division determined the two companies entered into an “employee lease agreement,” for which Jordi Construction provided leased workers to augment Stark Truss Baltimore’s workforce. Division investigators found that once “leased” employees worked 40 hours in a workweek for Jordi Construction at Stark Truss Baltimore’s worksite, they were directed to work additional hours under Stark Truss Baltimore. This arrangement led to the joint employers willfully paying affected employees straight time instead of the required overtime premium for hours worked over 40 in a workweek, a violation of the Fair Labor Standards Act.