DEPUTY SECRETARY OF LABOR'S BLOG ON LABOR RIGHTS DIALOGUE IN THE AMERICAS

FROM:  U.S. LABOR DEPARTMENT 
Labor Rights Dialogue in the Americas
by SETH HARRIS on NOVEMBER 26, 2013 

Just this month, at a meeting of the Organization of American States, Secretary of State John Kerry discussed the need to redefine the U.S. relationship with our hemispheric neighbors. This new era, Secretary Kerry said, will require us to make decisions together “as partners to advance the values and the interests that we share.” Two weeks ago, at the Inter-American Conference of Ministers of Labor (the labor component of the OAS) in Medellin, Colombia, I saw this new era of shared responsibility and values-based partnerships in action.
Labor ministers and deputy ministers from across the Americas and the Caribbean discussed some of our region’s most important labor issues – workers’ rights to organize and bargain collectively, the relationship between economic growth and job creation, income inequality, social protections and social dialogue, youth unemployment, and others. A great deal of work remains to be done to ensure workers a fair share of our region’s prosperity and expanding trade.  Many countries need stronger labor inspectorates and more aggressive implementation of existing labor laws. Others need law reform to meet international labor standards.  I was heartened that workers’ rights and employment are leading issues for the countries that attended the IACML. Nonetheless, the United States must remain engaged and continue to lead if there is to be a leveling up of labor standards among our trading partners and neighbors.

The wave of joblessness caused by the Great Recession significantly increased risks for working families across this hemisphere. And the recovery from the recession has been uneven.  Unemployment remains unacceptably high in some regions and among certain populations, including younger workers, workers with disabilities, indigenous peoples, and racial minorities.  The United States has aggressively advocated for macroeconomic policies across the world that are principally focused on promoting job creation. But merely creating more jobs is not enough.  New jobs must be decent jobs that deliver a fair income, voice and security in the workplace, social protection, opportunities for social integration, and equality of opportunity. Stable, sustainable jobs like these will expand growth in local and national economies.  Jobs that shift unacceptable levels of risk onto workers will not.

Among the greatest threats to decent jobs in our region is precarious work. Precarious work denies millions of workers – domestic workers, migrant workers, part-time workers, temporary workers, other workers in the informal sector – workplace benefits, employment security, and legal protections. In the United States, we often speak of workers being paid “under the table,” including employees who are misclassified as “independent contractors” and, as a result, do not benefit from unemployment insurance, workers’ compensation, and minimum wage and overtime protections, among other things.  In other words, workers bear essentially all workplace risks, and employers assume none.

Our partners in the Americas and the Caribbean generally agree on the need for effective standards to protect workers and help move them from the informal sector to more stable employment. I emphasized in my remarks at the IACML that agreement is just the beginning. We must not allow a permanent – and growing – division of our workforces into one group of well-protected workers in the formal economy and a second, expanding group of workers who do not receive basic protections and benefits because they toil in an informal sector. I challenged our hemispheric partners to meet the conditions of the IACML Declaration relating to precarious work before our next meeting in two years.

During my remarks, I also highlighted the need for effective unemployment insurance systems as one form of social protection against recessions and narrower economic downturns. Unemployment insurance systems do not benefit only the workers who receive payments. Unemployed workers use their benefits to pay bills, buy groceries, and otherwise support their families. Certainly, these funds provide a measure of security for the millions of working families in the U.S. who receive them. And without them, some unemployed workers in the Americas and the Caribbean are forced into precarious work because they must find some way to support their families after losing a job. But unemployment benefits also ensure continued consumer spending where it would otherwise be absent at a time when national economies need it most. Seventy percent of the American economy is built on consumer spending, and the economies of many of our neighbors operate similarly. Unemployment insurance systems can act as automatic stabilizers during economic downturns. I urged our neighbors to work with us to establish unemployment insurance systems in their countries. I am delighted to report that Mexico is about to create its first national UI system, and we have had discussions with other countries in the region about following suit.

In addition to the formal conference, the IACML offered opportunities to engage in bilateral meetings with selected partners in the region. In 2011, President Obama and Colombian President Juan Manuel Santos signed the Colombian Action Plan Related to Labor Rights associated with the U.S.-Colombia Trade Promotion Agreement. Ever since, the Labor Department’s Bureau of International Labor Affairs has been working closely with the Colombian government to implement the Action Plan. Recognizing some of the advances Colombia has made in the last two years, but also acknowledging that there is a great deal more work to be done, I had a frank conversation with Colombian Labor Minister Rafael Pardo regarding the steps required to satisfy the Action Plan. Minister Pardo and I also agreed to continue meeting into 2014 in order to continue implementation of the Action Plan commitments.

At the end of the same week, I also participated in an International Forum on Employment and Social Security Public Policy hosted by the Mexican Labor Minister Alfonso Navarrete in Mexico City. I spoke on a panel about the importance of innovation in the U.S. skills training system as a driver for growth, and a necessity in a modern, developed economy. Corporations increasingly look to the availability of skilled labor – or at least, an infrastructure that can produce a pipeline of skilled workers – when making decisions about where to site new factories and other facilities. Skills training, driven by regional business needs and available job openings, is a necessity. President Obama has made innovative programs to create and expand these pipelines a key element of his economic agenda. Programs like the Labor Department’s Trade Adjustment and Community College Career Training grants and Workforce Innovation Fund, with their emphasis on partnerships with employers to identify the skills their businesses demand, can and should be models of innovative approaches to workforce development throughout the Americas and the Caribbean. The recently announced CareerConnect grants program, a joint project of the Labor and Education Departments, similarly seeks to bring employers and high schools together to ensure that graduates are ready to compete in 21st-century labor markets. We expect it will create a host of models worth emulating.

These trips to Medellin, Colombia, and Mexico City, Mexico, are part of an expanding effort in the Labor Department to engage aggressively with our partners, particularly our trading partners, to elevate labor standards around the world. No one conference or meeting will achieve our result. We made important progress at the IACML and the Mexico City forum, but U.S. engagement must remain focused, constant and values-based. Secretary Perez and I are committed to maintaining that effort throughout President Obama’s second term.

Seth D. Harris is the U.S. deputy secretary of labor.

LABOR SECRETARY USES BLOG TO PROMOTE INCREASING THE MINIMUM WAGE

FROM:  U.S. LABOR DEPARTMENT 
Holiday Belt-Tightening for Minimum Wage Workers
by SECRETARY TOM PEREZ on NOVEMBER 26, 2013 

“I’m living out of a spare room at my children’s house.”

“I’m working 70 hours a week…my day starts at 6am…I want to go to college, [but] I don’t have time [and] I can’t afford it.”

“I shouldn’t have to decide: am I going to pay the electric bill or do I pay the heat? I’m a thousand dollars behind in rent now…where is this money going to come from?”

“I’ve worked since I was 15 years old, and I’ve never been fired or asked to leave a job. I can’t work more than 8 hours a day or I’ll lose my day care… If I lose that, I’ll lose access to food assistance. I’m barely staying above water now as it is.”

This is just a sampling of what I’ve heard from low-wage workers I’ve met with recently. I come away from these conversations more convinced than ever that we have to raise the federal minimum wage.

In a nation as wealthy as ours, one based on the belief that anyone can make it if they try, it’s unconscionable that people working full-time are living in poverty and resorting to safety net programs for their very survival. As one young man who works in fast food in Milwaukee told me: “This fight – it’s about the minimum wage, but it’s about respect.”

This is a time of year for plentiful family gatherings. But while many of us are fortunate to enjoy a Thanksgiving of abundance and relaxation, the holidays are too often a source of even greater economic anxiety than usual for those earning at or near the minimum wage.

The American Farm Bureau Federation has estimated that feeding a table of 10 this Thanksgiving will cost $49 on average. But it takes minimum wage workers nearly a full shift to earn that much (and many will have to work on Thanksgiving anyway). For them, putting any meal on the table, let alone a multi-course feast, is a penny-squeezing struggle. So while many Americans will be loosening their belts after helpings of turkey and stuffing, it’s another day of belt-tightening for workers trying to get by on the minimum wage.

But increasing the minimum wage isn’t about holiday giving or charity. This is smart economic policy with universal benefits. In an economy driven by consumer demand, more purchasing power for working families means more sales at businesses large and small. With tens of millions of people heading to stores to start their holiday shopping this weekend, imagine how much more retailers could benefit if low-wage workers had more to spend. I can’t put it any better than one worker who told me: “If they would pay us what we need, we could put money back into the economy and pay for what we need. And that strengthens all of us.”

Minimum wage workers are proud and hardworking. They need and deserve a raise. And that’s not just Tom Perez talking — more than three-quarters of Americans agree, according to a recent Gallup poll. As a matter of social justice and economic common sense, it’s time for Congress to act.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING NOVEMBER 23, 2013

FROM:  U.S. LABOR DEPARTMENT 
          SEASONALLY ADJUSTED DATA

In the week ending November 23, the advance figure for seasonally adjusted initial claims was 316,000, a decrease of 10,000 from the previous week's revised figure of 326,000. The 4-week moving average was 331,750, a decrease of 7,500 from the previous week's revised average of 339,250.

The advance seasonally adjusted insured unemployment rate was 2.1 percent for the week ending November 16, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 16 was 2,776,000, a decrease of 91,000 from the preceding week's revised level of 2,867,000. The 4-week moving average was 2,831,750, a decrease of 22,750 from the preceding week's revised average of 2,854,500.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 363,053 in the week ending November 23, an increase of 37,229 from the previous week. There were 358,869 initial claims in the comparable week in 2012.

The advance unadjusted insured unemployment rate was 2.1 percent during the week ending November 16, an increase of 0.2 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,684,088, an increase of 143,750 from the preceding week. A year earlier, the rate was 2.2 percent and the volume was 2,835,628.

The total number of people claiming benefits in all programs for the week ending November 9 was 3,913,729, an increase of 38,437 from the previous week. There were 5,183,962 persons claiming benefits in all programs in the comparable week in 2012.

No state was triggered "on" the Extended Benefits program during the week ending November 9.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,943 in the week ending November 16, a decrease of 237 from the prior week. There were 2,027 initial claims filed by newly discharged veterans, a decrease of 412 from the preceding week.

There were 19,189 former Federal civilian employees claiming UI benefits for the week ending November 9, a decrease of 785 from the previous week. Newly discharged veterans claiming benefits totaled 31,277, an increase of 413 from the prior week.

States reported 1,304,899 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending November 9, an increase of 3,337 from the prior week. There were 2,119,054 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending November 16 were in Alaska (4.6), Puerto Rico (3.8), New Jersey (3.2), Virgin Islands (3.1), California (2.8), Connecticut (2.8), Pennsylvania (2.7), Oregon (2.5), Illinois (2.4), and New York (2.4).

The largest increases in initial claims for the week ending November 16 were in Florida (+888), Idaho (+573), Mississippi (+534), Minnesota (+155), and North Dakota (+103), while the largest decreases were in California (-4,644), Michigan (-3,342), Pennsylvania (-3,112), Texas (-2,584), and New York (-2,246).

PHILLY DEMOLITION CONTRACTOR CITED FOR VIOLATIONS RELATED TO BUILDING COLLAPSE AND FATALITIES

FROM:  U.S. LABOR DEPARTMENT 
Philadelphia demolition contractors cited by US Labor Department's OSHA 
for willful and serious safety violations following fatal June building collapse
Contractors removed support for wall that collapsed onto the Salvation Army store

PHILADELPHIA — The U.S. Department of Labor's Occupational Safety and Health Administration today cited Griffin Campbell, doing business as Campbell Construction, and Sean Benschop, doing business as S&R Contracting, for safety violations, including three willful per-instance violations, following the June 5, 2013, building collapse that killed six people and injured 14. Campbell Construction was demolishing the four-story building known as the "Hoagie City" building adjacent to the Salvation Army Thrift Store, located at the 2100 block of Market Street in Philadelphia. S&R Contracting was operating the building's interior walls and floors.

"Campbell Construction and S&R Contracting sacrificed worker and public safety through the deliberate neglect of demolition safety fundamentals," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "This tragic incident could and should have been prevented."

OSHA found several violations of OSHA's demolition construction standards. On the three days leading up to the collapse, Campbell Construction removed critical, structural supports for the wall that collapsed. The OSHA demolition standards prohibit the removal of lateral support walls more than one story high, leaving the wall unsupported. Campbell Construction also removed parts of the lower floors prior to the removal of the upper floors, again, contrary to the OSHA standards. Campbell Construction also failed to provide an engineering survey as promised. As a result, Campbell Construction has been cited for three willful, egregious violations for each day that it left the wall without sufficient lateral support, and two willful violations alleging the failures to demolish the building from the top down and to have an engineering survey by a competent person on the possibility of collapse prior to starting the demolition. S&R Contracting has been cited for one willful violation. A willful violation is one committed with intentional, knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health.

Additionally, Campbell Construction was cited for serious violations for the company's failures to provide: employees with hard hats when there was a possible risk of head injury; fall protection for employees working on surfaces at least six feet high; training on fall hazards; and adequate personal fall arrest systems. Campbell Construction also failed to inspect all stairs periodically and to maintain them in a clean, safe condition. S&R Contracting was cited for two serious violations for failing to protect employees from falling through holes and to provide fall hazard training. A serious violation occurs when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known if an accident were to occur.

OSHA proposed penalties of $313,000 for Campbell Construction and $84,000 for S&R Contracting. Both companies have 15 business days from receipt of the citations to comply, request an informal conference with the OSHA area director in Philadelphia, or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.
To ask questions; obtain compliance assistance; file a complaint; or report workplace hospitalizations, fatalities or situations posing imminent danger to workers, the public should call OSHA's toll-free hotline at 800-321-OSHA (6742) or the agency's Philadelphia Area Office at 215-597-4955.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.

IMPROVING EMPLOYMENT FOR THE PREVIOUSLY INCARCERATED

FROM:  U.S. LABOR DEPARTMENT 

US Labor Department awards nearly $24 million in Pay for Success grants

New York and Massachusetts awarded grants to improve employment outcomes for formerly incarcerated individuals

WASHINGTON — The U.S. Department of Labor today announced nearly $24 million in Workforce Innovation Fund grants to pilot the Pay for Success program, a new model of financing social service programs to help federal, state and local governments ensure that public funds only go to programs that achieve positive, measurable outcomes. Under this model, independent investors provide the financial capital to cover the operating costs for the programs, and the Department of Labor disburses funds when and if those programs demonstrate that they have achieved the targeted outcomes.

Two grants were awarded: one to the New York Department of Labor in the amount of $12,000,000 and the other to the Massachusetts Executive Office of Labor and Workforce Development in the amount of $11,670,000. These grants will support programming that aims to increase employment and reduce recidivism among formerly incarcerated individuals.

"The Pay for Success model is a promising strategy for expanding effective programs while ensuring maximum return on taxpayer dollars," said Secretary of Labor Thomas E. Perez. "At a time when all levels of government are experiencing cutbacks, Pay for Success offers a new approach to strategically leverage resources to provide essential services for vulnerable populations through programs with measurable success rates."

The grants announced today represent amounts of committed funds, which the department will release in installments based on whether the grant outcomes were met. Both grantees are expected to employ rigorous evaluation methods in gauging the results of their respective programs, and the findings will be reviewed by independent validators at the end of grant performance period.

The robust evaluation component incorporated in Pay for Success projects will also help to: 1) the expand the body of knowledge about the intervention strategies being tested, 2) demonstrate the feasibility and viability of this funding model and 3) use taxpayer dollars wisely by shifting the investment risk to private investors and releasing funding based on results.

The original solicitation for Pay for Success grant applications announced that $20 million would be awarded. Because of the quality of applications received, the department elected to fully fund the top two grant applicants’ projects using funds from fiscal years 2012 and 2013.

THE PRESENCE OF THE NYPD IN AFGHANISTAN

FROM:  U.S. DEFENSE DEPARTMENT 
Face of Defense: NYPD Officer Serves in Afghanistan
By Marine Corps Cpl. Paul Peterson
2nd Marine Logistics Group

CAMP LEATHERNECK, Afghanistan, Aug. 30, 2013 - Before the War on Terror, the toppling of the oppressive Taliban regime in Afghanistan, or the attacks of Sept. 11, 2001, a young boy from the Bronx knew one thing: he wanted to help.
Marine Corps Sgt. Jonathan L. Vasquez was that boy in New York City. Today, Vasquez is a Marine Corps reservist currently serving with Combat Logistics Regiment 2, Regional Command-Southwest, in Helmand province, Afghanistan
"I've been that way since I was young," said Vasquez, who spent four years persistently applying to become a New York City police officer after joining the military at the age of 17.

"Both the career choices I made happen to help people. It's the best of both worlds, I say," he said.

While already committed to the idea of public service, the attacks on the World Trade Center changed things for the then-12-year-old Vasquez.

"I was in social studies class -- go figure, history," Vasquez recalled. "They actually brought the TV into the classroom and explained to us the World Trade Center was hit. At first they thought it was an accident, but then they told us it wasn't. I actually wish I was older, and I had joined right then."

As Americans paused to grieve and unite, he tightened his focus on the future. It was a five-year wait before he met the age requirements for military service and nearly a decade before he realized his dream of joining the New York City Police Department.

The wait and the right to wear the uniforms were worth it, Vasquez said.

"I don't want to sound corny. It's not like Superman or anything like that, but it feels good," he said. "New York is very patriotic. You get a lot of grace and a lot of thanks. It's an awesome feeling."

Not every day is easy. Both jobs come with separation from family, constant stress, and the burden of responsibility. Not all the right choices are clear, Vasquez said.

"You don't know," he said. "Sometimes you just have to make a decision and go with it. That's a trait of being a leader, especially in the Marine Corps where they grow you to become a leader."

Vasquez said he takes it all in stride. The strain is difficult, but it also forges bonds between him and his fellow service members and police officers. Still, the risks are palpable.

"When you put on that uniform for your shift, you don't know if you're coming home," Vasquez said. "You don't know if you'll [experience] a shooting or deliver a baby that day. It's very stressful, and it's every day of your life."

Vasquez balances the stress with an inherent optimism. Whether he's serving as a vehicle commander on a convoy in Afghanistan or working as a patrol officer out of the 47th Precinct, he's upbeat.

It's in his voice every day, a nasal-heavy New York accent even a Midwesterner could appreciate and a snicker-like smile to back it up. On patrol or drenched in sweat inside the sweltering gym at Camp Leatherneck, Vasquez keeps smiling, laughing and joking.

He's the kind of New Yorker who will interrupt the climax of a perfectly good movie to point out the setting is his city. He's got "attitude."

"Not in a bad way," Vasquez said. "I'm very respectful, and I'll respect anyone as long as they respect me."

Vasquez said his family back home worries about him, but their constant support is a source of strength. He said he finds contact with his daughter particularly uplifting.

"She puts a smile on my face," he said, completely dropping his shield of military toughness. "I can see it in her eyes [when we talk online] that she really misses me ... it feels good."

Vasquez also has deployed to South America, Asia, and Iraq. At every turn, he's brought his love for service with him.

"I'm grateful for all the things the military has done for me as well as the things I try to do for the military," Vasquez said. "It's the same thing for the police department. I'm glad I have a career back home I can go to and also help people."

LABOR DEPARTMENT AWARDS GRANT MONEY FOR HURRICANE SANDY RECOVERY IN R.I.

FROM:  U.S. DEPARTMENT OF LABOR 

US Department of Labor awards grant increment to continue Hurricane Sandy recovery efforts in Rhode Island

WASHINGTON — The U.S. Department of Labor today announced a $500,000 National Emergency Grant increment to assist Rhode Island with continued cleanup and recovery efforts following the devastation caused by Hurricane Sandy.

"Rhode Island is still cleaning up beaches and other public lands damaged by Hurricane Sandy," said acting Assistant Secretary of Labor for Employment and Training Eric M. Seleznow. "This additional funding will provide much needed cleanup assistance while also providing temporary work for those in need of employment."

On Nov. 3, 2012, the Federal Emergency Management Agency initially declared the Rhode Island counties of Bristol, Newport and Washington as eligible for FEMA's Public Assistance Program. FEMA subsequently declared Kent County as eligible for the program. More information on designated disaster areas in Rhode Island is available from FEMA at http://www.fema.gov/disaster/4089/designated-areas.

The department approved a grant for up to $1.5 million on Nov. 6, 2012, with $500,000 released initially. The department awarded a $500,000 grant increment in May 2013. This latest funding increment brings the total awarded to $1.5 million.

National Emergency Grants are part of the secretary of labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines.

DOJ FILES LAWSUIT AGAINST BUS COMPANY FOR ALLEGED DISCRIMINATION AGAINST U.S. CITIZENS

FROM:  U.S. DEPARTMENT OF JUSTICE 
Monday, August 5, 2013

Justice Department Files Lawsuit Against Texas Bus Company Alleging Employment Discrimination Against U.S. Citizens and Other Individuals
The Justice Department announced today the filing of a lawsuit with the Executive Office of Immigration Review’s Office of the Chief Administrative Hearing Officer (OCAHO), against Autobuses Ejecutivos LLC, d/b/a Omnibus Express, a bus company based in Houston.

The complaint alleges Omnibus Express violated the Immigration and Nationality Act’s (INA) anti-discrimination provision by preferring to hire temporary nonimmigrant visa holders over U.S. citizens, certain lawful permanent residents and other protected individuals for bus driver positions.  Specifically, the complaint states that from at least September 2012 to February 2013, Omnibus Express failed to consider the applications of many qualified U.S. citizens and other protected individuals, or actively discouraged them from pursuing their applications, while at the same time petitioning the U.S. Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS) for permission to hire up to 50 foreign workers on H-2B visas.  The H-2B program allows U.S. employers to bring foreign nationals to the United States to fill temporary nonagricultural jobs when there are not enough U.S. workers who are able, willing or qualified to do the temporary work.  The complaint further alleges that Omnibus Express hired 42 H-2B workers during this period, and in doing so, represented to the DOL and USCIS that there were not enough qualified workers in the United States to fill the 50 bus driver positions.  The complaint seeks an order prohibiting future discrimination by Omnibus Express, civil penalties, back pay for injured parties and injunctive relief. The INA’s anti-discrimination provision prohibits employers from discriminating in hiring against certain workers based on their citizenship status.

“The nation’s current immigration law protects individuals in the United States, such as U.S. citizens, certain lawful permanent residents, refugees and asylees, from unlawful discrimination in hiring based on their citizenship status,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “We are committed to enforcing the INA so that work-authorized individuals have equal access to employment in the United States.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA, which prohibits employers from discriminating against work-authorized individuals on the basis of citizenship status or national origin in hiring, firing, recruitment or referral for a fee.

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."