Category: labor

Source: US Department of Labor

HONOLULU – The U.S. Department of Labor has recovered $693,100 in back wages and damages after its investigations determined a Georgia-based prime contractor schemed to deny payment of overtime wages to 110 construction workers from 12 states employed on several hotel renovation projects in Honolulu between 2019 and 2022.

Investigators with the department’s Wage and Hour Division found S&A Industries Inc. of Suwanee, Georgia paid the affected workers straight-time rates for all hours worked, and used a series of illegal payment arrangements to avoid paying overtime wages for hours over 40 in a workweek. The workers were employed by seven subcontractors to complete various renovation projects at Hilton and Marriott resorts.

The division determined S&A violated the Fair Labor Standards Act by failing to pay overtime for hours over 40 in workweek to people employed on its projects. The contractor used various pay schemes with their subcontractors that resulted in artificially lower wage rates being paid to workers.

In addition to recovering $346,550 in back wages and an equal amount in liquidated damages, the department assessed S&A Industries with $40,000 in civil money penalties for its repeated and willful FLSA violations. Wages and damages recovered range from $1,207 to $28,177 per worker.

“Our investigation found a blatant and prolonged effort by S&A Industries and their subcontractors to deprive 110 construction workers of their hard-earned overtime wages,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Employers can’t establish separate agreements with workers that don’t meet at least the legal standards for wage payments, especially regarding overtime pay for hours worked over 40 in a workweek.”

“Construction cost savings on resort renovation projects can’t be taken out of the workers’ pockets,” Trotter added. “Overtime earned should be overtime paid.”

The investigation included a review of pay practices by six Georgia subcontractors including ESL Remodeling Corp., Pure Painting Inc. in Lawrenceville; A&A Floors and Counters Hotel Services LLC and PJ Tile Marble LLC in Marietta; Gerb-One Industries LLC in Conyers; and Dynasty Industries Inc. in Stone Mountain. The seventh contractor is Merced Renovations LLC in Manvel, Texas.

Founded by company President Daoud Shakkour and Executive Vice President Ahmed Aboneaaj, S&A Industries Inc. is a prime construction contractor specializing in hotel and resort renovation. Its projects include properties in Arizona, California, Colorado, Florida, Georgia, Kentucky, Louisiana, Maryland, Massachusetts, Missouri and South Carolina.

In fiscal year 2022, the division recovered more than $32.9 million in back wages for 17,127 construction industry workers. The division completed more than 2,200 investigations in FY22 in the construction industry and by wages recovered, the industry ranks first among the low wage, high violation industries investigated by the division.  

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the division’s toll-free helpline confidentially at 866-4US-WAGE (487-9243). The department can speak with callers in more than 200 languages, regardless of where they are from.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s new Timesheet App for Android and iOS devices – free and now available in English and Spanish – to ensure hours and pay are accurate.

Source: US Department of Labor

TRENTON, MO – On March 27, 2023, an 18-year-old employee of a Missouri contractor was applying sealant to a commercial building’s roof when he fell more than 22 feet and suffered serious injuries that left him in a coma for five days before dying.

After the tragic fall, the employer — Troyer Constructors LLP, operating as Troyer Roofing & Coatings — allowed a foreman and another worker to continue working without fall protection until they finished their shift. In addition, inspectors with the U.S. Department of Labor’s Occupational Safety and Health Administration learned the Jamesport employer had fall protection available but allowed employees to decide if they wanted to use it.

“Troyer Roofing & Coatings could have prevented this young worker’s death by requiring their employees to use fall protection equipment. Disturbingly, the employer allowed other workers to go back to work on the same roof without fall protection,” said OSHA Area Director Karena Lorek in Kansas City, Missouri. “Employers have an obligation to comply with requirements that are designed to prevent tragedies such as this from occurring.”

OSHA investigators determined that, in addition to not ensuring that employees used fall protection, the contractor failed to train them on how to use it. Investigators also found Troyer Roofing did not train employees on proper forklift operations, failed to provide workers with face and eye protection, and did not have a written hazard communication program for sealants and other chemicals the employer used.

OSHA cited Troyer Roofing & Coatings for one willful violation, three serious violations and one other-than serious violation and proposed penalties of $205,369. The agency cited the company for similar fall protection violations in 2015.

Based in Jamesport, Troyer Constructors LLP is a third-generation, family owned and operated business with more than 20 years of roofing industry expertise. Troyer Roofing & Coatings provides commercial roofing restorations and repairs to customers in north and central Missouri.

OSHA’s stop falls website offers safety information and video presentations in English and Spanish to teach workers about fall hazards and proper safety procedures.

The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

Learn more about OSHA. For small employers, OSHA’s On-Site Consultation Program offers no-cost and confidential occupational safety and health services, with priority given to high-hazard worksites, like construction. Companies interested in the program should contact their local OSHA On-Site Consultation program to discuss details and schedule an on-site safety and health evaluation. Find the On-Site Consultation program nearest you by calling 1-800-321-OSHA (6742) or visiting OSHA’s program website.

Source: US Department of Labor

Employers:    Urgent Dental Center Avon LLC

Actions:          Fair Labor Standards Act consent judgment and order

Courts:           U.S. District Court for the Southern District of Indiana, Indianapolis Division

Investigation findings: On Aug. 22, 2023, Judge Richard L. Young ordered Urgent Dental Center Avon LLC and a human resources manager to pay a terminated employee $12,160 in back wages and liquidated damages and an additional $10,000 in punitive damages.

The judgment resolves a complaint filed by the U.S. Department of Labor on April 25, 2023, after an investigation by the Wage and Hour Division found the Indianapolis company violated the FLSA when they retaliated against an employee who filed a complaint alleging wage violations.

Investigators found that after filing the complaint with the Wage and Hour Division, the employee received an increase in disciplinary write ups, management made negative comments about the employee to other employees, and wrongfully terminated the employee shortly after they filed a complaint with the Wage and Hour Division.  

Quote: “Workers have the right to file complaints without fear of retaliation. The judge found that Urgent Dental Center Avon LLC and a manager there violated an employee’s right to question the employer’s pay practices, and then retaliated against them illegally,” said Wage and Hour District Director Aaron Loomis in Indianapolis. “Every U.S. worker has right to be paid fully for the hours they work and to engage in protected activities.”

Background: Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.

United States Department of Labor v. Urgent Dental Center Avon LLC

Case number 1:23-cv-704

Source: US Department of Labor

GREEN BAY, WI – The U.S. Department of Labor has obtained a federal consent order and judgment against sawmill operator Florence Hardwoods LLC following the death of a child. The order requires the Florence County company to place labels and signage to prevent children under age 18 from using dangerous equipment and entering the company’s sawmill and planer buildings. The company has agreed not to hire anyone under the age of 16 and if the company hires anyone between the ages of 16 and 18 in the future, the company must strictly comply with the requirements for apprentices or student learners and inform the department before hiring them.

The action follows an investigation by the department’s Wage and Hour Division into a 16-year-old worker’s death at the Wisconsin sawmill which led to the department invoking the “hot goods” provision of the Fair Labor Standards Act. The division opened the investigation after the teenager suffered severe injuries on June 29, 2023, at Florence Hardwoods and died two days later.

On Sept. 6, 2023, in the U.S. District Court for the Eastern District of Wisconsin, Green Bay Division, the company agreed to, and was ordered by the court to comply with, federal child labor regulations now and in the future.

“This tragic case illustrates just how vital and urgent it is that the Department of Labor uses every tool at our disposal to combat child labor,” said Acting Secretary of Labor Julie Su. “Any death of a child is too many. That’s why our Wage and Hour Division and Solicitor’s Office took immediate steps to prevent the sale of ‘hot goods’ and to hold the company accountable for allowing children to perform hazardous and, in this case, deadly jobs. Illegal child labor is a stain on this country and will not be tolerated by this administration or this department.”

In February 2023, the department announced the creation of an Interagency Task Force to Combat Child Labor Exploitation to better align federal efforts to protect children from exploitative situations in the workplace. Led by the department, the task force includes the departments of Agriculture, Commerce, Education, Health and Human Services, Homeland Security, Justice and State to improve cross-training, outreach, education and health outcomes of children that could be subject to child labor. The administration is using a whole-of-government approach to tackle the issue of child labor abuse and root it out of the country.

In addition to learning of the 16-year-old worker’s death, the division’s investigation found the following:

• Three children, ages 15 to 16, suffered injuries in November 2021, July 2022 and March 2023. One child suffered injuries on two separate occasions.
• Florence Hardwoods employed nine children, ages 14 to 17, to illegally operate machinery, such as a chop saw, rip saw and other automated machines used to process lumber, which federal law considers hazardous occupations for workers under 18.
• The company employed seven children, ages 14- and 15-years-old, to work outside legally permitted hours.

“Florence Hardwoods risked the life of a child by allowing him to operate dangerous equipment in violation of federal child labor laws, and now family, friends and co-workers are left to grieve,” said Solicitor of Labor Seema Nanda. “The Solicitor’s office will use all legal tools available to combat child labor, including placing pressure on supply chains to hold their suppliers accountable.”

“This case underscores the importance and urgency of the administration’s interagency work to combat child labor exploitation. The department’s use of legal tactics in this and other cases like invoking hot goods is one important piece of the puzzle when it comes to rooting out child labor,” Nanda added.

The Fair Labor Standards Act forbids any producer, manufacturer or dealer from shipping or delivering for shipment in interstate commerce hot goods removed from the producing establishment in the 30 days after a child labor violation. Prohibition on shipping hot goods is not limited to employers who initially produce products with child labor. Rather it also applies to any producer, manufacturer or dealer who later receives them.

During its investigation, the division also alerted two of the sawmill’s customers that they possessed goods subject to the hot goods provision. Both customers agreed voluntarily to refrain from shipping or delivering for shipment in interstate commerce the hot goods they received until the legal matter was resolved.

The day after the teen’s death, Florence Hardwoods terminated all employees under age 18 at its facility, and later verified to the court that no one under the age of 18 is now employed by the company. After Florence Hardwoods agreed to pay $190,696 in civil money penalties to resolve its child labor violations and the court executed the order and judgment, the department lifted its objection to shipment of the goods.

“Under the Fair Labor Standards Act, employers are responsible for complying with child labor laws,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “In this case, Florence Hardwoods jeopardized the safety of children by allowing them to operate dangerous equipment, and a teenage boy died. The Wage and Hour Division will continue to hold violators accountable. Let this case be a warning to employers: the department is using all of its resources to combat the illegal employment of children.”

In accepting the court’s judgment, Florence Hardwoods also agreed to the following conditions to prevent future violations of the FLSA’s child labor provisions:

• Placing signage to warn children not to enter the sawmill and planer buildings at its locations.
• Using the division’s Youth Employment Compliance Assistance Toolkit to identify materials for use in training employees, provided in a language understood by workers, and maintaining training logs.
• Auditing machinery and labeling machines with stickers warning that workers must be 18 years of age or older to operate legally.
• Providing employees with fact sheets on child labor.

In fiscal year 2022, division investigators identified child labor violations in 835 cases and assessed employers with more than $4.3 million in penalties.

Learn more about the Wage and Hour Division.

U.S. District Court, Eastern District of Wisconsin, Green Bay, WI

Su v. Florence Hardwoods LLC,

Civil Action No. 23-C-1167

Source: US Department of Labor

WASHINGTON – To support workforce development programs that prepare young people and help them access good-paying careers, the U.S. Department of Labor today announced the award of $14 million in grants to seven organizations in five states to deliver workforce services when youth are out of school.

The Workforce Pathways for Youth demonstration grants being made to organizations in Arizona, Colorado, Florida, Georgia and Virginia are intended to support recipients’ efforts to supply workforce readiness programming for historically underserved youth from ages 14 to 21 in 21 states and American Samoa.

Organizations will deliver job training and develop summer and year-round workforce pathway opportunities for youth and include strategies such as soft skills development, career exploration, job readiness and industry-based certifications. These strategies may also include proven earn-and-learn models of pre-apprenticeships and Registered Apprenticeships.

The awards reported today follow the department’s announcement of $15 million in available funding and are part of the department’s Youth Employment Works strategy that seeks to deliver a “no-wrong-door” approach for youth to access good jobs. The department’s Employment and Training Administration administers the Workforce Pathways for Youth program.

The department awarded the following Workforce Pathways for Youth grants:

Recipient	City	State	Amount
Arizona Technology Council Foundation	Tempe	AZ	$1,999,819
Junior Achievement USA	Colorado Springs	CO	$1,999,438
National AHEC Organization	Alachua	FL	$1,999,960
AMIkids Inc.	Tampa	FL	$2,000,000
Big Brothers Big Sisters of America	Tampa	FL	$2,000,000
Boys and Girls Clubs of America	Atlanta	GA	$2,000,000
National Recreation and Park Association	Ashburn	VA	$2,000,000
Total			$13,999,217

Source: US Department of Labor

WASHINGTON – The U.S. Department of Labor today announced the award of a $7.5 million, five-year cooperative agreement to continue support for a policy center aimed at boosting disabled youth employment.

Administered by the department’s Office of Disability Employment Policy, the agreement will provide $1.5 million annually for the agency’s Center for Advancing Policy on Employment for Youth. ODEP created the center in 2019 to enhance national, state and local workforce systems, focusing on improved outcomes for youth with disabilities, especially those from underserved communities.

“Expanding employment opportunities for disabled youth is critical to achieving workforce inclusion,” said Assistant Secretary for Disability Employment Policy Taryn M. Williams. “This cooperative agreement will fund research, develop partnerships and share evidence-based best practices to help identify new career pathways and improve transition outcomes for these young people.” 

The center’s development and management will be overseen by the Council of State Governments, a nonpartisan organization that fosters collaboration between elected and appointed officials across the country and the six U.S. territories.

The Center for Advancing Policy on Employment for Youth is a collaboration between ODEP, the Council of State Governments, the K. Lisa Yang and Hock E. Tan Institute on Employment and Disability at Cornell University, San Diego State University Interwork Institute and the National Association of Workforce Development Professionals.

Learn more about ODEP

Source: US Department of Labor

Date of Action:          Aug. 30, 2023

Type of Action:         Employee Retirement Income Security Act complaint filing

Company/Owners:   Virtual Matrix Corp.

Suman Thotakura

Virtual Matrix 401(k) Profit Sharing Plan

Background: The Secretary of Labor filed a lawsuit on Aug. 30, 2023, after the department’s Employee Benefits Security Administration found the Edina, Minnesota, technology consulting company and its CEO Suman Thotakura failed to remit $45,972 in employees’ voluntary salary contributions and $759 in participant loan repayments to the Virtual Matrix 401(k) Profit Sharing Plan from April 1, 2021 to Oct. 31, 2022, a violation of the Employee Retirement Income Security Act.

Resolution: Filed in the U.S. District Court of Minnesota, the complaint seeks to make the plan whole and  permanently ban the company and its CEO from serving or acting as fiduciaries or service providers to any other ERISA-covered employee benefit plan and to remove them from fiduciary positions they now hold.  

Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Learn more about EBSA.

Quote: “Failing to forward voluntary employee contributions to employee retirement plans violates employees’ trust and denies workers the opportunity to earn interest on their investments and prepare for their future,” said Employee Benefits Security Administration Regional Director Mark Underwood in Kansas City, Missouri.

Docket Number: Case No. 1:23-cv-2677

Source: US Department of Labor

WASHINGTON – Acting U.S. Secretary of Labor Julie A. Su issued the following statement on the August 2023 Employment Situation report: 

“Today, the Bureau of Labor Statistics reported that the American economy added 187,000 jobs, an indication that the economy continues its strong and steady growth as we return to normal following the breakneck pace of our rapid recovery. Solid increases in health care and social assistance, along with continued gains in construction and manufacturing, also reflect broad economic growth across different sectors.

“As more people entered the labor market looking for work, the labor force participation rate increased to a post-pandemic recovery high of 62.8 percent. The unemployment rate ticked up slightly to 3.8 percent from 3.5 percent in July because more people saw an opportunity to work, and they started looking for a job. This is another sign of the optimism that people are feeling about this economy—they’re not sitting on the sidelines.

“I’m also excited to announce today that for the first time ever, BLS has started providing monthly disaggregated data for Asian American ethnic groups on key economic metrics, such as unemployment rate, employment-population ratio, and labor force participation rate. Being responsive to this new granular data on Asian Indian, Chinese, Filipino, Japanese, Korean, Vietnamese and other Asian workers is an important step toward rebuilding a more equitable economy and telling a more comprehensive story about the issues facing the diverse groups and communities within the larger AA and NHPI community.”

“As we head into Labor Day weekend, workers across the country have many reasons to celebrate: Bidenomics is working, and the Investing in America agenda is creating good jobs that are building pathways to the middle class for more families in every corner of the country. Over 13.5 million jobs have been added since President Biden took office, and we are moving into a new stage of stable and equitable economic growth that is delivering on the promise of good jobs for all and lowering costs for working families everywhere.” 

Source: US Department of Labor

WASHINGTON – U.S. Acting Secretary of Labor Julie A. Su issued the following statement on Labor Day 2023:

“On Labor Day, we honor the achievements of workers, while re-committing to the work that remains to build an equitable, empowered economy for all. We have a lot to celebrate this year. Since President Biden took office, we’ve added more than 13.5 million jobs to the economy. The unemployment rate has maintained an historically long stretch below 4 percent, and more workers are returning to the workforce.

“We’re investing in America’s workers by expanding access to good jobs with good pay and benefits, all while creating pathways to the middle class. Under President Biden’s Invest in America agenda, workers across the country are delivering new roads, safer bridges, affordable internet, clean drinking water, a cleaner climate, and a manufacturing boom. All of these projects are also an opportunity to make our workforce more accessible for workers who have been left behind in the past while creating good union jobs that support families and communities.

“As we reflect on all we’ve accomplished, we look forward to the work that remains: building equity into everything we do; using all the tools in our toolbox to protect workers’ rights, wages, health and safety; and supporting workers’ right to fight for higher wages and better working conditions.

“I am inspired by the opportunities ahead, and I am committed to working as hard as you are to move our country forward.

“I hope you have a wonderful and safe Labor Day.”

Source: US Department of Labor

WASHINGTON – To help identify and address barriers workers face when accessing state unemployment insurance benefits, the U.S. Department of Labor today announced the award of more than $3 million to the state of Georgia.

Administered by the department’s Employment and Training Administration, equity grants support states’ efforts to remove barriers related to race, age, ethnicity, language proficiency, disability status, geographic location or other issues that make it hard for people to access unemployment insurance benefits.

Funded by the American Rescue Plan Act, the equity grant will enable Georgia to rewrite in plain language its unemployment claim application and related documents in English and other preferred languages. Funds will also be used by the state to establish a mobile unit to reach residents in Georgia in need of unemployment insurance services who have limited or no internet access.

In August 2021, the department notified state workforce agencies of the availability of up to $260 million for projects that promote equitable access to unemployment compensation programs. The State of Georgia submitted its final application before the department’s July 14, 2023, deadline for equity grants. To date, the department has announced more than $219 million in grant awards to 45 states and the District of Columbia.