ACTING SECRETARY OF LABOR'S STATEMENT ON THE MINIMUM WAGE

FROM: U.S. DEPATMENT OF LABOR
Statement by acting Secretary of Labor Seth D. Harris on America’s workers earning at or below the federal minimum wage

WASHINGTON — The U.S. Department of Labor's Bureau of Labor Statistics has released a report titled "Characteristics of Minimum Wage Workers: 2012." The report shows that 75.3 million workers in the United States age 16 and over were paid at hourly rates, representing 59 percent of all wage and salary workers. Among those paid by the hour, 1.6 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 2 million had wages below the federal minimum.

The report also shows that nearly one-half of those earning at or below the federal minimum wage is at least 25 years old, and women make up nearly two-thirds of those earning at or below the federal minimum wage. More than a third of those earning at or below the current federal minimum wage is working full-time. Finally, 15 percent of those earning at or below the federal minimum wage is African-American, and one-fifth is Latino or Hispanic.

Acting Secretary of Labor Seth D. Harris has issued the following statement about the report:

"Workers earning the federal minimum wage have not had a raise in nearly four years. As the report makes clear, many are working adults with full-time jobs, and we know that some low-wage workers are holding down more than one job.

"It is an outrage that someone who works full time should have to raise his or her family in poverty. Ensuring hard work is rewarded is the right thing to do for these workers and our economy. That's why the president has called for raising the federal minimum wage to $9.00 per hour by 2015, and indexing it to inflation thereafter. The BLS report looked at only those currently earning at or below the federal minimum wage. According to the White House Council of Economic Advisers, raising the federal minimum wage will result in nearly 15 million low-wage workers getting a raise in their take-home pay. That money will be spent locally at the grocery store, to buy school supplies and clothing for children, to pay rent and utility bills, and in many other ways to support families.

"In fiscal year 2012, the department's Wage and Hour Division found minimum wage violations in more than 12,500 investigations — more than a third of all cases concluded by the agency that fiscal year. These cases resulted in $35.2 million in back minimum wages for more than 107,000 workers, more than twice what we recovered in similar investigations in fiscal year 2009. Unfortunately, our ability to enforce the law and protect our most vulnerable workers will be threatened if Congress fails to act to avert the coming sequester.

"Over the next few weeks, our economy, national security and services that are important to middle-class families will be affected by automatic, arbitrary and irresponsible cuts if Congress fails to act. The president has offered a compromise plan. Congress must act immediately."

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.

U.S. LABOR DEPARTMENT: TEXAS AUTO SALES COMPANY ORDERED TO PAY BACK MINIMUM WAGES

FROM: U.S. DEPARTMENT OF LABOR
El Paso, Texas, auto sales company agrees to pay workers more than $797,000 in back minimum wages following US Department of Labor investigation

Violations found at 8 locations

EL PASO, Texas -- Viva Auto Group has agreed to pay $797,405 in back minimum wages to 480 current and former sales employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division that found violations of the Fair Labor Standards Act at eight of the company’s locations in El Paso.

"Employers need to understand that employees must be paid for all hours worked, which includes paying for required training," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "We are pleased these employees will receive the wages they have rightfully earned."

An investigation by the division’s El Paso Field Office found that Viva Auto Group made illegal deductions from employees’ pay for training, which the employees were required to take, and for fees charged to reward customers for referring family or friends to the establishment. Investigators also found that the company paid employees less than the federal minimum wage of $7.25 an hour and did not pay them for all hours worked. Additionally, required record-keeping was not maintained.

Viva Auto Group sells new and used automobiles. Violations were found at the following locations: Viva Auto Group, Viva Chevrolet and Viva Kia on Montana Street; Viva Dodge on Gateway Boulevard East; Viva Nissan on Zaragoza Road; Viva Mitsubishi and Viva Collision Center on Magruder Street; and Bestway Auto on Airway Boulevard.

The company has agreed to future compliance with the FLSA. Payment of the back wages owed is ongoing.

The FLSA requires that covered, nonexempt 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. Additionally, employers must maintain accurate time and payroll records.

TEMPORARY FOREIGN WORKERS RECEIVE $2.3 MILLION IN BACK WAGES

FROM:  U.S. DEPARTMENT OF LABOR
US Department of Labor reaches agreement resulting in more than $2.3 million in back wages to temporary foreign agricultural workers
Agreement provides record back wage amount for H-2A program, plus $500,000 penalty
SACRAMENTO, Calif. — Yerington, Nev.-based onion grower Peri & Sons has agreed to pay a record total of $2,338,700 in back wages to 1,365 workers, along with a civil money penalty of $500,000, for violations under the H-2A program.
U.S. Department of Labor Administrative Law Judge Steven Berlin in San Francisco signed the order granting the consent findings.

“We are pleased to have reached this record agreement to pay workers the wages and expenses they are due,” said Secretary of Labor Hilda L. Solis. “In order for the H-2A program to operate as intended, all employers must comply with the law.”
An investigation by the department’s Wage and Hour Division determined that workers employed by Peri & Sons involved in irrigation, as well as harvesting, packing and shipping onions sold in grocery stores nationwide, were not paid properly for work performed. All of the workers came to the U.S. from Mexico under the H-2A temporary agricultural worker visa program. In most cases, their earnings fell below the hourly wage required by the program, as well as below the federal minimum wage of $7.25 per hour for a brief period of time. Investigators also found that workers were not paid for time spent in mandatory pesticide training or reimbursed for subsistence expenses while traveling to and from the U.S. Additionally, their return transportation costs at the end of the contract period were not paid, as was required.

The H-2A temporary agricultural worker program establishes a means for employers who anticipate a shortage of domestic workers to bring nonimmigrant foreign workers to the United States to perform temporary or seasonal agricultural work. The employer must file an application stating that a sufficient number of domestic workers are not available and the employment of these workers will not adversely affect the wages and working conditions of similarly employed workers in the U.S. Employers using the H-2A program must meet a number of specific conditions relating to recruitment, wages, housing, meals and transportation.

COMPANY PAYS PENALTIES FOR VIOLATIONS OF CHILD LABOR RULES

FROM:  DEPARTMENT OF LABOR
Candyopolis assessed $12,000 in penalties for child labor violations, pays more than $6,700 in back wages following US Labor Department investigations

Various FLSA violations found at 13 candy stores in Kansas, Nebraska and Oklahoma
KANSAS CITY, Kan. -- The U.S. Department of Labor has assessed a total of $12,000 in civil money penalties against Candyopolis, a retail confectionary chain in the Midwest, after investigations by the department’s Wage and Hour Division found teens at seven stores were allowed to perform hazardous jobs prohibited by the Fair Labor Standards Act’s child labor provisions. The investigations – conducted at 13 stores in Kansas, Nebraska and Oklahoma – also disclosed violations of the FLSA’s minimum wage, overtime pay and record-keeping requirements, resulting in back wages totaling $6,737.40 recovered for 275 employees.

Investigators found that three stores in Kansas (two in Wichita and one in Manhattan) and four in Oklahoma (two in Oklahoma City, one in Enid and one in Norman) allowed minor employees to load and operate trash and box compactors in violation of the FLSA’s Hazardous Occupations Order No. 12, which generally prohibits workers under 18 from operating, loading or unloading paper balers or trash compactors.
Minimum wage violations were found at all 13 stores, resulting in $2,048 owed to 256 employees. The violations stem from the company requiring each employee to pay $8 for uniform shirts from his or her first paycheck, which caused pay to fall below the federal minimum wage of $7.25 per hour.

Overtime violations were found at 11 stores in all three states, resulting in a total of $4,689.40 owed to 19 employees. These violations were due to Candyopolis incorrectly classifying managers as exempt from the requirements of the FLSA. Consequently, managers were paid a salary without being paid the half-time due on the overtime hours worked.

Finally, the company failed to keep accurate records of time worked by employees at 12 stores in the three states, as required by the FLSA.
The Kansas stores investigated are located in Manhattan, Salina, Topeka and Wichita (two). The Oklahoma stores are located in Enid (two), Lawton, Norman and Oklahoma City (two). Both of the Nebraska stores are in Omaha. All back wages owed have been paid in full.

“Businesses that employ minors are legally and ethically obligated to abide by child labor standards, and to ensure minors are protected on the job,” said Susana Rincon, director of the Wage and Hour Division’s San Francisco District Office. “The penalties imposed as a result of these violations are indicative of the Wage and Hour Division’s efforts to combat systemic violations found in the retail industry. We are committed to educating employers about wage laws and to enforcing them. The division will ensure that workers receive their fair and rightful wages, and that minors are protected in the workplace.”

Candyopolis is operated by Meetha Ventures of Fremont, Calif. The Wage and Hour Division’s district office in Kansas City, Kan., initiated the investigations and the division’s San Francisco District Office became involved when systemic violations were found because it has jurisdiction over the company’s corporate office.

The FLSA establishes a minimum age of 18 for workers in those nonagricultural occupations that the secretary of labor declares to be particularly hazardous for 16- and 17-year-old workers or detrimental to their health or well-being. The FLSA also requires that covered, nonexempt employees be paid at least the federal minimum wage for all hours worked, as well as one and one-half times their regular rates for hours worked over 40 per week. Additionally, accurate records of employees’ wages, hours and other conditions of employment must be maintained.