RESTAURANT OWNER TO PAY $325,500 BACK WAGES FOR OVERTIME AND MINIMUM WAGE VIOLATIONS

FROM:  U.S. LABOR DEPARTMENT
Raymond's to pay more than $325,500 in back wages for overtime, minimum wage violations at Ridgewood and Montclair, NJ, eateries
160 workers to be compensated after federal investigation
Employer: Raymond's Ridgewood LLC, restaurant owner
Sites: Raymond's restaurants located at 101 East Ridgewood Ave., Ridgewood, N.J., and 28 Church Street in Montclair, N.J.

Investigative findings: The Northern New Jersey District Office of the U.S. Department of Labor's Wage and Hour Division found that 76 workers at the Montclair establishment are due $225,486 in back wages because the employer did not pay members of the kitchen staff overtime when they worked in excess of 40 hours in a workweek. The employer also failed to use the correct rate when calculating overtime for tipped workers.

At the Ridgewood location, 84 employees are due $100,048 in back wages because the company failed to pay the kitchen staff overtime when required. Investigators also found that the employer did not pay tipped workers the proper wage rate at the very beginning of their employment and improperly computed overtime for tipped employees.

"Restaurant workers who live on low wages often struggle to make ends meet, so when they aren't paid correctly, that burden is even greater," said John Warner, director of the Northern New Jersey Wage and Hour District Office. "This case reinforces the division's commitment to protect the rights of all workers, particularly those working hard in low-wage industries, as well as to hold employers accountable when they do not pay the wages required by law."
Back wages due: $325,534

DOL OBTAINS $35 MILLION IN BACK WAGES FOR PUERTO RICAN CORRECTIONS AND REHABILITATION WORKERS

FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor obtains more than $35 million in back wages for nearly 5,000 workers in the commonwealth of Puerto Rico
Recovery is among largest in department's history

SAN JUAN, Puerto Rico — Following an investigation by the U.S. Department of Labor's Wage and Hour Division that found violations of the federal Fair Labor Standards Act's overtime and record-keeping provisions, the commonwealth of Puerto Rico has agreed to pay $35,037,586 in back wages and interest to 4,490 current and former employees of the territory's Department of Corrections and Rehabilitation. This is one of the largest settlements in the Wage and Hour Division's history.

The agreement is a part of a consent judgment approved today by Judge Juan M. Pérez Giménez of the U.S. District Court for the Commonwealth of Puerto Rico. Officials representing the commonwealth and the Department of Corrections and Rehabilitation also have agreed to take significant steps to ensure future compliance with the law, including installing an electronic timekeeping system at its facilities, training supervisors in the use of the new system, hiring additional staff to reduce the need for overtime and adjusting daily tours of duty for guards.

The commonwealth government already has restored more than $15 million in back wages due to employees for overtime hours worked since November 2011. The remaining back wages will be paid on an installment basis, and distributed to current and former employees as scheduled through 2016.

"We are pleased that the commonwealth of Puerto Rico has been our partner, through a long and arduous process, in correcting the improper payment of back wages," said acting Secretary of Labor Seth D. Harris. "This agreement returns hard-earned wages to workers and underscores the U.S. Department of Labor's commitment to ensuring that workers receive the wages they earn, as mandated by federal law."

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 hourly 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, or 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.

Under certain conditions, employees of state or local government agencies may receive compensatory time off, at a rate of not less than one and one-half hours for each overtime hour worked, instead of cash overtime pay. Law enforcement personnel may accrue or "bank" up to 480 hours of comp time. In this case, the Department of Corrections and Rehabilitation regularly allowed employees' comp time "banks" to greatly exceed 480 hours. The back wages found due for the employees are the cash amounts of unpaid comp time accrued in excess of the limit. 

"The Labor Department has been working tirelessly with the commonwealth of Puerto Rico to reach this agreement," said Mary Beth Maxwell, acting deputy administrator of the Wage and Hour Division. "I am very pleased that staff in our Caribbean region persevered, ensured these employees will be paid the back wages they are owed and brought this case to conclusion. Thanks to this resolution, thousands of employees will see money put back into their pockets – and into their local economies."

U.S. DEPARTMENT OF LABOR FINDS VIOLATIONS OF LAW AT LOS ANGELES FASHION DISTRICT LOCATION



Credit:  Wikmedia Commons. 

FROM: U.S. DEPARTMENT OF LABOR

Extensive violations of federal, state laws found among garment contractors at Los Angeles Fashion District location

Shops producing garments sold by major retailers underpaid 185 workers by $326,000

LOS ANGELES — The U.S. Department of Labor's Wage and Hour Division and the California Division of Labor Standards Enforcement found serious violations of federal and state labor laws by each of 10 garment contractors inspected during a sweep of a single building in the Los Angeles Fashion District earlier this year. Division investigators found widespread violations of the Fair Labor Standards Act's minimum wage, overtime and record-keeping provisions, resulting in the recovery of more than $326,200 in back wages for 185 employees.

The garments being produced by violators were destined for sale at more than 30 retailers nationwide, including Aldo Group Inc., Burlington Coat Factory Warehouse Corp., Charlotte Russe Holding Inc., Dillard's Inc., Forever 21 Inc., Frasier Clothing Co. (Susan Lawrence), HSN Inc. (Home Shopping Network), Rainbow Apparel Inc., Ross Stores Inc., TJX Cos. Inc. (TJ Maxx and Marshall's), Urban Outfitters Inc. and Wet Seal Inc.

"The extent of the violations discovered by these investigations was disappointing. Retailers need to actively ensure that clothes produced in the U.S. for sale to the American public are made by workers who are paid at least the U.S. minimum wage and proper overtime," said Secretary of Labor Hilda L. Solis. "Federal, state, local and industry stakeholders can work together to foster a vibrant, and compliant, domestic fashion industry."

"The garment industry is a vital part of the economy of Los Angeles and California," said Julie Su, California's labor commissioner. "State law prohibits garment manufacturers from operating without a proper license, from violating state minimum wage and overtime laws, and from playing shell games to avoid paying workers properly. We are intent on making sure that sweatshop practices are eliminated so that consumers can proudly purchase garments made in L.A., honest companies can compete and garment workers can thrive."

Teams of federal and state investigators conducted unannounced investigations of employers operating out a large garment building at 830 S. Hill St. in downtown Los Angeles, where previous investigations had revealed significant labor violations and sweatshop-like employment conditions.

Investigators found many garment employees were paid a piece rate — that is, paid for each piece they sewed or cut —without regard to minimum wage or overtime pay requirements. On average, workers' wages amounted to less than $6.50 per hour — well below the federal minimum wage of $7.25 per hour and the California minimum wage of $8 per hour. None of these employees received the overtime premium of time and one-half their regular rates of pay for hours worked over 40 per week, as required under the FLSA. Significant record-keeping violations also were disclosed, including falsified time cards and under-reporting or failing to maintain accurate records of actual hours worked by garment employees.

The "hot goods" provision of the FLSA prohibits the shipment in interstate commerce of goods that were produced in violation of the act's minimum wage, overtime or child labor provisions. Upon determining that garments were produced in violation of the FLSA, the division requested that the garment contractors voluntarily not ship the goods until the violations were resolved. Several manufacturers, for whom the violators were producing goods, paid a portion of the back wages due, after which the division lifted its objection to the shipment of the goods.

State investigators issued citations to three establishments not registered as garment contractors and cited the shops for failing to provide itemized deductions, pay the state minimum wage or comply with state overtime pay requirements.

The investigations conducted at this location are part of the Wage and Hour Division's multi-year enforcement initiative focused on Southern California's garment industry, in which it historically has found consistent and widespread violations of the FLSA's minimum wage, overtime and record-keeping provisions. The initiative is concentrating on employers in Los Angeles and Orange counties, including those operating out of large garment buildings in the city's Fashion District.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for hours worked over 40 per week. In general, "hours worked" includes all time an employee must be on duty, or 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. California's minimum wage is $8 per hour, higher than the U.S. minimum wage, and overtime pay is required after eight hours worked in a day under state law. California employers are subject to both standards.