US LABOR DEPARTMENT RECOVERS $189K IN WAGES ON BEHALF OF 28 UNDERPAID WORKERS ON FEDERALLY FUNDED MANHATTAN CONSTRUCTION PROJECT

SJ Insulation debarred from future government contracts following joint enforcement effort with New York Attorney General

WHD News Release: 05/25/2016
Release Number: 16-0804-NEW

NEW YORK – The U.S. Department of Labor has recovered $189,000 in unpaid wages and overtime for 28 carpenters and laborers who worked on the federally funded West 131st St. Cluster Project in Harlem between April 2009 and April 2010. This was the result of a joint enforcement effort with the office of New York Attorney General Eric Schneiderman in which the two agencies shared information and worked collaboratively on behalf of workers in New York. The attorney general’s investigation continues.

“Contractors on federally funded construction projects commit to paying their workers the required wages and fringe benefits when they bid these contracts. When, as in this case, they cheat their workers, they are also cheating the taxpayers who ultimately fund these jobs,” said Wage and Hour Division Regional Administrator Mark Watson, Jr. “As the resolution of this case demonstrates, we will not tolerate such illegal behavior.”

“We thank Attorney General Schneiderman and his staff for working jointly with us during the prosecution of this case. We have the mutual goals of ensuring that employees in our jurisdictions are paid and treated properly and employers who underpay their workers do not secure an unfair advantage over law-abiding employers,” said Jeffrey S. Rogoff, the department’s regional solicitor in New York.

(Read More)

ELMWOOD PARK, ILLINOIS, MASONRY COMPANY ORDERED TO PAY MORE THAN $104K IN BACK WAGES, DAMAGES TO 20 WORKERS MISCLASSIFIED AS INDEPENDENT CONTRACTORS

WHD News Release: 05/19/2016
Release Number: 16-0876-CHI

Type of Action: Fair Labor Standards Act consent judgment

Defendant(s): Expertize Masonry Inc., Pawel Walaszek

Investigation Findings: An investigation conducted by the department’s Wage and Hour Division found that Elmwood Park, Illinois-based Expertize Masonry Inc., and Walaszek violated the Fair Labor Standards Act’s minimum wage, overtime and recordkeeping provisions when they misclassified employees working as laborers, masonry workers, crew leaders and foreman on masonry jobs in the Chicago area as independent contractors.

Investigators found the misclassification resulted in workers receiving less than the legally required federal minimum wage, and led to the employer’s failure to pay the workers overtime when they worked more than 40 hours in a workweek. Additionally, the employer failed to maintain accurate time records as required by the FLSA.

(Read More)

USDOL Prevailing Wage Seminars for 2016

Join us at a Prevailing Wage Seminar in your region!

The Wage and Hour Division (WHD) Prevailing Wage Seminars (Prevailing Wage Seminars) are three-day compliance trainings designed for regional stakeholders (unions, private contractors, state agencies, federal agencies and workers). In these seminars, conference participants will learn about the following:

  • The Davis-Bacon Act and McNamara O’Hara Service Contract Act
  • Executive Order 13495 “Nondisplacement of Qualified Workers”
  • Executive Order 13658 “Establishing a Minimum Wage for Contractors”
  • The process of obtaining wage determinations and adding classifications
  • Compliance assistance and enforcement processes
  • The process for appealing wage rates, coverage, and compliance determinations
There is no fee to attend these seminars; however, space is limited. If you wish to attend, please click on the registration link for your desired location and follow the registration prompts. Each attendee must register separately. If registration is not yet open for the event you wish to attend, please check back. Please feel free to email WHDPWS@dol.gov if you have any questions.

Date                                 Location

June 7 -9, 2016                Stamford, CT
June 14 – 16, 2016           Albuquerque, NM

August 23 – 25, 2016       Portland, OR

For more information regarding the upcoming prevailing wage seminars, as well as information on the DBA and SCA visit http://www.dol.gov/whd/govcontracts or call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).

Final Rule: Overtime

Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act

On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. This long-awaited update will result in a meaningful boost to many workers’ wallets, and will go a long way toward realizing President Obama’s commitment to ensuring every worker is compensated fairly for their hard work.

In 2014, President Obama signed a Presidential Memorandum directing the Department to update the regulations defining which white collar workers are protected by the FLSA’s minimum wage and overtime standards. Consistent with the President’s goal of ensuring workers are paid a fair day’s pay for a hard day’s work, the memorandum instructed the Department to look for ways to modernize and simplify the regulations while ensuring that the FLSA’s intended overtime protections are fully implemented.

(Read More)

Court Orders Payment of Government Contract Retirement Plan Contributions

The DOL alleged that James Brunk and Brunk Industries Inc. failed to collect prevailing wage employer contributions for the employees’ 401(k) plan provided by government contracts for work performed by defendant’s employees.

By Rebecca Moore
April 22, 2016

The Department of Labor (DOL) has secured a consent judgment to restore of $95,000 to the 401(k) plan sponsored by Brunk Industries Inc. in Oakdale, California.

Based on an investigation by the DOL’s Employee Benefits Security Administration (EBSA), the DOL filed a complaint alleging that James Brunk and Brunk Industries Inc. failed to collect prevailing wage employer contributions for the employees’ 401(k) plan. These contributions were provided by government contracts for work performed by defendant’s employees under prevailing wage laws.

Instead, the defendants retained and comingled the contributions with company assets and used the funds for non-Plan purposes, in violation of the Employees Retirement Income Security Act (ERISA).

The U.S. District Court for the Eastern District of California approved a consent judgment and order requiring the defendants to restore $95,109 to the 401(k) plan. In addition, the judgment removes Brunk as the plan’s fiduciary and appoints Lefoldt & Company as the independent fiduciary responsible for winding up the plan, including the distribution of its assets to participants. Brunk will pay $4,890 of the costs for this independent fiduciary, and also may be assessed a 20% civil penalty on the amount restored to the plan. The court order also permanently enjoins Brunk from serving as a fiduciary of, or service provider to, any ERISA-covered employee benefit plan in future.

(Read Court Order Here)

USDOL Announces Prevailing Wage Seminars for 2016

Join us at a Prevailing Wage Seminar in your region!

The Wage and Hour Division (WHD) Prevailing Wage Seminars (Prevailing Wage Seminars) are three-day compliance trainings designed for regional stakeholders (unions, private contractors, state agencies, federal agencies and workers). In these seminars, conference participants will learn about the following:

  • The Davis-Bacon Act and McNamara O’Hara Service Contract Act
  • Executive Order 13495 “Nondisplacement of Qualified Workers”
  • Executive Order 13658 “Establishing a Minimum Wage for Contractors”
  • The process of obtaining wage determinations and adding classifications
  • Compliance assistance and enforcement processes
  • The process for appealing wage rates, coverage, and compliance determinations

There is no fee to attend these seminars; however, space is limited. If you wish to attend, please click on the registration link for your desired location and follow the registration prompts. Each attendee must register separately. If registration is not yet open for the event you wish to attend, please check back. Please feel free to email WHDPWS@dol.gov if you have any questions.

Date                                 Location
May 3 – 5, 2016                Minneapolis, MN
May 24 – 26, 2016            Charlotte, NC
June 7 -9, 2016                Stamford, CT
June 14 – 16, 2016           Albuquerque, NM

August 23 – 25, 2016       Portland, OR

For more information regarding the upcoming prevailing wage seminars, as well as information on the DBA and SCA visit http://www.dol.gov/whd/govcontracts or call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).

AGREEMENT BETWEEN US DEPARTMENT OF LABOR, OREGON BUREAU OF LABOR PROVIDES EDUCATION, ENFORCEMENT TO PROTECT WORKERS FROM MISCLASSIFICATION

WHD News Brief:
04/04/2016

Release Number:
16-0414-NAT

Participants:
U.S. Department of Labor’s
Wage and Hour Division
Oregon Bureau of Labor and Industries

Partnership description:
The division and bureau signed a three-year Memorandum of Understanding intended to protect employees’ rights by preventing their misclassification as independent contractors or other non-employee statuses. The two agencies will provide clear, accurate and easy-to-access outreach to employers, employees, and other stakeholders; share resources and enhance enforcement by conducting coordinated investigations and sharing information consistent with applicable law.

(Read More)

Santa Ana-based Salinas Inc. owes $343,000 to 22 workers after failing to pay overtime, federal government says

By MARGOT ROOSEVELT
Dec. 7, 2015
Updated Dec. 8, 2015 2:01 p.m.

 

Salinas Inc., a Santa Ana construction company, was assessed $342,856, in back wages and damages for failing to pay overtime to 22 workers over two years, the U.S. Department of Labor announced Monday.

Salinas’ carpet installers, painters, janitors and plumbers worked as much as 70 hours per week without earning the requisite time-and-a half for weekly hours exceeding 40, the department found.

“When employers disregard employees’ rights to legally-required overtime pay, they not only harm workers and their families, but they also put law-abiding employers at a competitive disadvantage,” Rodolfo Cortez, director of the Wage and Hour Division’s San Diego District Office, said in a statement released to the media.

(Read More)

Halliburton pays nearly $18.3 million in overtime owed to more than 1,000 employees nationwide after US Labor Department investigation

Global oil and gas service provider failed to pay overtime

 

WHD News Release: [09/22/2015]
Release Number: 15-1647-DAL
UPDATED: 9:43 AM, Nov 24, 2015

 

HOUSTON – In one of the largest recoveries of overtime wages in recent years for the U.S. Department of Labor, oil and gas service provider, Halliburton, has agreed to pay $18,293,557 to 1,016 employees nationwide. The department’s Wage and Hour Division investigated Halliburton as part of an ongoing, multi-year compliance initiative in the oil and gas industry in the Southwest and Northeast.

Investigators found Halliburton incorrectly categorized employees in 28 job positions as exempt from overtime. The company did not pay overtime to these salaried employees – working as field service representatives, pipe recovery specialists, drilling tech advisors, perforating specialists and reliability tech specialists – when they worked more than 40 hours in a workweek, in violation of the Fair Labor Standards Act. The company also failed to keep accurate records of hours worked by these employees.

“The Department of Labor takes very seriously its responsibility to ensure workers receive the wages they have earned. This settlement will put millions of dollars where they belong – in the pockets of hardworking people and their families,” said U.S. Secretary of Labor Thomas E. Perez. “Employers who don’t pay their employees the wages they have earned don’t just hurt their workers, they undercut employers who play by the rules. That’s why we work every day to help level the playing field.”

(Read More)

US Labor Department’s Wage and Hour Division opens new office in Helena, Montana

WHD News Release: [11/02/2015]
Release Number: 15-2133-MON 

HELENA, Mont. – The U.S. Department of Labor’s Wage and Hour Division has opened a new field office in Helena to connect employees, employers, community organizations and other stakeholders with resources and assistance to ensure compliance with federal labor laws. The new office is located in the Max Baucus Federal Building, at 10 West 15th St., Suite 1800, Helena, MT 59626.

“This new office will serve as a one-stop resource for compliance assistance and information concerning the federal labor laws we enforce,” said Betty Campbell, acting regional administrator for the Wage and Hour Division in the Southwest. “The Helena field office will benefit all the members of the labor community of one of the fastest growing metropolitan areas in the nation by putting them much closer to available resources.”

(Read More)