US Department of Labor announces $57.2M in grants to 12 states to help prepare unemployed, underemployed people for high-quality jobs in expanding industries

Source: US Department of Labor

WASHINGTON – The U.S. Department of Labor today announced the award of more than $57 million in grants to support projects in 12 states that support unemployed and underemployed people to access, return to, or advance in high-quality jobs in infrastructure, environment and climate, the care economy and other critical and growing industries. 

Administered by the department’s Employment and Training Administration, the Quality Jobs, Equity, Strategy and Training Dislocated Worker Grants will focus on individuals whose employment was affected negatively by the pandemic and workers from historically underrepresented and underserved populations. The grants align with the administration’s Investing in America agenda — including historic investments through the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act — and its efforts to drive an equitable economic recovery and align to business and industry demand. 

“Dramatic growth in good jobs is possible and essential to a healthy economy,” said Principal Deputy Assistant Secretary for Employment and Training Brent Parton. “These grants will help train and support dislocated workers so that they get the skills they need to get back into good-paying, family-supporting jobs.”

The department’s 2023 QUEST Disaster Recovery Dislocated Worker Grants to 12 state workforce agencies will serving about 10,500 participants. The recipients are as follows:

Recipient

State

Amount

California Employment Development Department

CA

$3,325,000

Colorado Department of Labor and Employment

CO

$5,000,000

Illinois Department of Commerce

IL

$5,000,000

Kentucky Department of Workforce Development

KY

$5,000,000

Maryland Department of Labor

MD

$3,925,086

Missouri Department of Higher Education and Workforce Development

MO

$5,000,000

Nevada Department of Employment Training and Rehabilitation

NV

$5,000,000

New York State Department of Labor

NY

$5,000,000

Ohio Department of Job and Family Services

OH

$4,999,577

Oregon Higher Education Coordinating Commission

OR

$5,000,000

South Dakota Department of Labor and Regulation

SD

$5,000,000

Tennessee Department of Labor and Workforce Development

TN

$5,000,000

Millersburg contractor faces more than $548K in fines for repeatedly failing to protect roofing employees from exposure to deadly fall hazards

Source: US Department of Labor

MILLERSBURG, OH – On four occasions in less than three months in 2023, U.S. Department of Labor inspectors observed a Millersburg roofing contractor again exposing workers to deadly fall hazards of up to 19 feet at four residential roofing job sites in Canton, Uniontown and Westlake, despite having fall protection equipment available on site. 

Following its March, April and June investigations, the department’s Occupational Safety and Health Administration proposed $548,801 in penalties to JMH Roofing LLC, after identifying eight willful and two repeat violations.  Jonas Hershberger operates JMH Roofing LLC and RAM Roofing LLC. The current citations continue Hershberger’s history of disregard for workplace safety regulations with numerous citations to these two companies since 2018.

“Jonas Hershberger continues his dangerous pattern of ignoring federal safety standards and exposing his workers to potentially serious and fatal injuries,” explained OSHA Area Director Howard Eberts in Cleveland. “JMH Roofing owns fall protection equipment and provides it to its workers, but refuses to require them to use it or cooperate with federal inspectors, who repeatedly inform Hershberger of his obligation to protect his company’s workers on the job.”

OSHA conducted the inspections in 2023 on March 9 and 28 in Uniontown, on April 19 at two sites in Canton, and on June 1 in Westlake.

At all worksites, inspectors observed roofing workers at heights greater than 6 feet without fall protection and lacking eye protection while using pneumatic nail guns. The company also allowed workers to work without properly extended ladders.

The Bureau of Labor Statistics reports that 1,015 construction workers died on the job in 2021, with 379 of those fatalities related to falls from elevation. Exposure to fall hazards makes residential construction work among the most dangerous jobs in construction.

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. 

Department of Labor recovers $22.5M from trustee for stock overpayment by RV rental company’s employee stock ownership plan

Source: US Department of Labor

PHOENIX – The U.S. Department of Labor has recovered $22.5 million from an employee stock ownership plan’s former trustee, Reliance Trust Company for the plan’s overpayment for a recreational vehicle rental company’s stock, after obtaining approval of a consent judgment in the U.S. District Court for Arizona on Aug. 30, 2023.

The consent judgment requires Reliance Trust Company to pay more than $20.4 million to workers who participated in the RVR Inc. Employee Stock Ownership Plan to resolve fiduciary breach claims alleged in a lawsuit the department filed. The court also ordered the company to pay a penalty of more than $2 million for its violations of the Employee Retirement Income Security Act.

The lawsuit followed an investigation by the department’s Employee Benefits Security Administration and alleged that Reliance caused the ESOP to overpay when it purchased 100 percent of the shares of RVR Inc. for $105 million in May 2014.

“When a trustee purchases stock on behalf of a retirement plan such as the RVR Employee Stock Ownership Plan, its first responsibility is to make sure that the plan’s participants get a fair deal and don’t pay more than the worth of the stock,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez. “Plan fiduciaries’ duty of loyalty is owed to the plan’s participants, not to sellers looking out for their own bottom line. When fiduciaries cut deals for the financial benefit of sellers at the expense of their employees, the Department of Labor will take appropriate action to ensure that plan participants get full value for their money.“

The lawsuit also alleges ERISA violations by additional fiduciaries of the RVR Employee Stock Ownership Plan and other defendants, including RVR board members Randall Smalley, Robert Smalley Jr. and Eric Bensen for failing to monitor Reliance prudently and allowing the trustee to purchase the stock for more than its fair value. The department’s claims against defendants other than Reliance remain pending. The case is scheduled for trial in January 2024.

“This consent judgement ensures that the rights and benefits of the plan’s participants are protected and shows that we will aggressively pursue appropriate legal action to provide relief to participants who are harmed when fiduciaries fail to follow the law,” said Solicitor of Labor Seema Nanda. “Retirement plan fiduciaries must comply with safeguards in the Employee Retirement Income Security Act that protect workers’ retirement benefits and fulfill their own fiduciary responsibilities.”

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.

Federal investigation following complaint finds Houston-based recycled glass company repeatedly exposed employees to workplace hazards in Midlothian

Source: US Department of Labor

MIDLOTHIAN, TX – A U.S. Department of Labor workplace safety investigation has found that a Houston-based contractor willfully and repeatedly exposed its workers to falls, electrical hazards and amputations.

Following a March 9, 2023, complaint, investigators with the department’s Occupational Safety and Health Administration found nine serious violations, one willful violation and three repeat violations related to the following safety failures:

  • Not having required lockout/tagout procedures in place.
  • Exposing employees to fall hazards.
  • Not enclosing sprocket wheels and chains.
  • Allowing unguarded projecting shaft ends.

OSHA previously inspected the employer in January 2021, March 2021 and May 2021.

The agency has proposed $370,995 in penalties.

Strategic Materials Inc. continues to expose workers to some of general industry’s leading causes of workplace injuries and death,” said OSHA Area Director Timothy Minor in Fort Worth, Texas. “Employers who willfully disregard their responsibility to keep workers safe will be held accountable.”

Based in Houston, Strategic Materials Inc. employs more than 750 workers who supply recycled glass to manufacturers.

The company has 15 business days from receipt of citation 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 about controlling hazardous energy.

Learn more about OSHA.

US Department of Labor, Navient Corp. enter into agreement to resolve allegations of hiring discrimination

Source: US Department of Labor

WILMINGTON, DE  The U.S. Department of Labor has entered into a conciliation agreement with Navient Corp. to resolve alleged hiring discrimination at three of its facilities in Indiana, Pennsylvania and Texas.

Headquartered in Wilmington, Navient services student loans for the U.S. Department of Education. The company’s current student loan contract ends December 2023.

A compliance review by the department’s Office of Federal Contract Compliance Programs found that, from 2017 to 2021, Navient discriminated against 427 Black applicants for customer service positions in Fishers, Indiana, and Wilkes-Barre, Pennsylvania. In addition, the agency’s review identified alleged hiring discrimination against 1,858 Black and white applicants seeking clerical positions in Austin, Texas.

The employer’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin.

Navient Corp. has agreed to pay $700,000 in back wages and interest to resolve the allegations.

The settlement with Navient Corp. reflects our commitment to preventing hiring discrimination and holding federal contractors accountable when they fail to meet the requirements of the law, said Office of Federal Contract Compliance Programs Mid-Atlantic Regional Director Samuel B. Maiden in Philadelphia.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. As amended, these laws make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. Learn more about OFCCP, or call OFCCP’s toll-free helpline at 800-397-6251.

If you think you or someone you know may be the applicants eligible for back pay or job opportunities from this settlement, please use the OFCCP Class Member Locator

US Department of Labor proposes revised procedures for civil penalty assessments to better protect longshore, harbor workers, employers

Source: US Department of Labor

WASHINGTON – The U.S. Department of Labor today announced a notice of proposed rulemaking to revise current procedures for imposing and appealing civil money penalties established by the Longshore and Harbor Workers’ Compensation Act.

The act protects workers disabled by on-the-job injuries that occur in U.S. waters or in areas used for loading, unloading, repairing or building vessels by providing for compensation, medical care and occupational rehabilitation services. The law also provides for payment of survivor benefits to dependents in the event a worker’s injuries cause or contribute to their death.

The proposed rulemaking by the department’s Office of Workers’ Compensation Programs focuses on the process used to assess civil penalties to entities that fail to report worker injuries accurately and timely. The changes will help clarify the process, provide individualized failure notices and allow additional opportunities to contest penalties.

The proposal also enhances procedures for contesting OWCP’s penalty determinations by protecting the rights of employers and insurance carriers to challenge agency actions before final penalties are set, ensuring transparency and fairness in the enforcement process. In addition, the changes will establish clear guidelines for penalty assessments to improve OWCP’s ability to enforce penalties that can withstand legal challenges.

The department encourages the public and other stakeholders to submit written comments as part of the rulemaking process. Comments must be submitted by Nov. 13, 2023.

Read the notice of proposed rulemaking in the Federal Register.

Learn more about OWCP.

US Department of Labor announces proposed new rule to strengthen protections for temporary farm workers

Source: US Department of Labor

WASHINGTON – The U.S. Department of Labor today proposed a new rule that would strengthen protections for farm workers in the H-2A program and help prevent abuses that undermine wages and standards for all agricultural workers.

The proposed rule would add new protections for worker self-advocacy, better protect workers against retaliation, make foreign labor recruitment more transparent and enhance the department’s enforcement. This proposal builds on a final rule the department published in October 2022 that modernized key aspects of the H-2A program.

“Farm workers are vital to our farmers, our food supply and our communities,” said Acting Secretary Julie Su. “This proposed rule would strengthen protections for H-2A farm workers who are particularly vulnerable to labor abuses, empower them to advocate for fair treatment and ensure that their employment does not depress labor standards and undercut domestic farm workers. The administration is committed to protecting all workers, and this proposal would significantly advance that effort.”

The proposed rule includes:

  • Adding new protections for worker self-advocacy. The proposed rule would improve workers’ ability to advocate for better working conditions by expanding and clarifying existing anti-retaliation protections. The proposed rule would also expand workers’ rights to invite and accept guests – including labor organizations – to employer-provided housing. Additionally, for workers not protected by the National Labor Relations Act, the proposed rule would require employers to provide a list of workers to a requesting labor organization, permit workers to designate a representative to attend any meeting between a worker and the employer where the worker reasonably believes that the meeting may lead to discipline, and prohibits employers from holding captive audience meetings unless the employer provides certain information to ensure that such meetings are not coercive. The proposal would also create greater transparency for workers about their prospective employers’ stance on their right to organize freely and without interference by requiring employers seeking to hire H-2A workers to provide a certification to the Department of Labor that the employer will bargain in good faith over the terms of a proposed labor neutrality agreement with a requesting labor organization or will explain why they will not do so.
  • Clarifying when a termination is “for cause.” The proposed rule would clarify that an employer only terminates a worker “for cause” when the worker either fails to meet pre-specified productivity standards or fails to comply with employer policies after the employer applies a system of progressive discipline. The proposal would establish six conditions to terminate a worker for cause, including that the employee has been informed of, or reasonably should have known, the employer’s policy, rule or productivity standards. Clarifying the meaning of the term “for cause” in existing regulations is important because termination “for cause” generally strips affected workers of their right to be offered work hours of at least three-quarters of the contract period and right to outbound transportation. For U.S. workers, termination “for cause” also strips them of their right to be contacted for employment in the subsequent year.
  • Making foreign labor recruitment more transparent. In line with concerns expressed by workers’ rights and anti-trafficking organizations, the Government Accountability Office and the department’s Office of Inspector General, the department has found that increased transparency is necessary to help protect agricultural workers from predatory practices during the recruitment process. The proposed rule would require employers to provide a copy of all agreements with any agent or recruiter the employer engages in recruiting prospective H-2A workers to the department, regardless of whether the agent is in the U.S. or abroad. The proposed rule would also require employers to identify and disclose the name and location of anyone soliciting H-2A workers on their behalf.
  • Making wages more predictable. The proposed rule would make wages more predictable in the H-2A program by making new wage rates applicable immediately upon their publication in the Federal Register rather than weeks later. This will ensure that agriculture workers are paid the most up-to-date wages as soon as possible. The rule would also require employers who fail to provide adequate notice to workers of a delay in their start date to pay workers the applicable rate for each day that work is delayed for up to 14 days. The proposal would further require enhanced transparency for employers to communicate minimum productivity standards, applicable wage rates, overtime opportunities and delayed start dates to workers.
  • Improving workers’ access to safe transportation, including seat belts. Workers in the H-2A program often travel long distances to and from the worksite in crowded vans and buses, sometimes driven by workers who worked all day, raising grave concerns about transportation safety. The proposed rule would add a seat belt requirement to reduce these hazards. For vehicles that are required by the Department of Transportation to be manufactured with seat belts, the proposed rule would prohibit the use of any employer-provided vehicle to transport H-2A workers unless each occupant is wearing a seat belt before the vehicle is operated, except in specific circumstances.
  • Enhancing enforcement to improve program integrity. The proposed rule would increase the speed with which the debarment of any business that violates H-2A program rules becomes effective by streamlining deadlines for Office of Foreign Labor Certification integrity and Wage and Hour Division enforcement actions. The proposed rule would also make it easier for the workforce system to discontinue necessary recruitment services for employers who have failed to meet program requirements. Finally, the proposed rule would prohibit employers from holding or confiscating a worker’s passport, visa, or other immigration or government identification documents.

Upon publication in the Federal Register, the notice of proposed rulemaking will be open for public comment for 60 days. The department will consider all comments received before publishing a final rule.

Learn more about the proposed rule and instructions for submitting comments.

US Department of Labor, Nielsen Company US reach agreement to resolve alleged race-based hiring discrimination in Dallas, San Antonio

Source: US Department of Labor

DALLAS – The Nielsen Company US LLC, a global marketing research, data analytics and opinion-research company, will pay $570,000 in back wages and interest to resolve allegations of systemic race-based hiring discrimination in Dallas and San Antonio identified by the U.S. Department of Labor.

The payment is part of a conciliation agreement with the department after routine compliance evaluations by the department’s Office of Federal Contract Compliance Programs alleged discrimination in Nielsen’s hiring practices. The employer will pay back wages and interest to 994 job applicants, extend job opportunities to 56 affected applicants, and take steps to ensure its personnel practices — including recordkeeping, internal audits and outreach — meet legal requirements.

The OFCCP preliminary findings allege Nielsen discriminated against Asian, Black, multi-racial and white job applicants when hiring for research interviewer and bilingual research interviewer positions at its Dallas facility from Jan. 1, 2016, through July 31, 2018, and Black and white applicants at its San Antonio facility from May 1, 2018, through March 18, 2020.

“Together, the U.S. Department of Labor and Nielsen Company have resolved the issues raised in our evaluations, and now Nielsen has the policies and procedures in place to comply with federal hiring and employment laws,” said Office of Federal Contract Compliance Programs Acting Director Michele Hodge.

The alleged actions violate Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin.

Nielsen provides marketing research services and public opinion polling data. Nielsen has contracts with numerous federal agencies including the U.S. Departments of Agriculture, Health and Human Services, and the Federal Communications Commission.

OFCCP launched the Class Member Locator to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you think you may be a class member who applied between Jan. 1, 2016, through July 31, 2018, at the Nielsen Dallas facility or between May 1, 2018, through March 18, 2020, at the Nielsen San Antonio facility, please call 800-397-6251 or visit the OFCCP website for information about this and other recent OFCCP settlements.

US Department of Labor recovers $47K in back wages, damages for 107 workers after restaurant failed to pay legal minimum wage, overtime

Source: US Department of Labor

Employer:                       Sharky’s Vintage Park LLC

                                             operating as Sharky’s American Grill & Sharky’s Waterfront Grill LLC

Investigation sites:    Corporate headquarters

                                              2605 W Lake Houston Parkway

                                              Kingwood, TX 77339                                

Investigation findings: Investigator with the U.S. Department of Labor’s Wage and Hour Division found minimum wage violations after Sharky’s deducted pay from 66 employees wages for uniforms which caused their pay rate to fall below minimum wage rates for all hours worked. Additionally, the employer failed to pay 81 workers the correct over time rate. The Fair Labor Standards Act requires all nonexempt employees to make at least the federal minimum wage of $7.25 per hour and time-and-a-half their regular rate of pay for hours over 40 a week.

Back Wages and Damages Recovered:       $23,479 in back wages

                                                                        $23,479 in liquidated damages                                               

Quote: “People employed by the restaurant industry often work long hours to support themselves and their families. They have the right to be paid all of their earned wages,” said Wage and Hour Division Acting District Director Nicole Sellers  in Houston. “Companies are obligated to pay employees their full legally earned wages and must understand their legal responsibilities. Trained Wage and Hour professionals are available to assist employers who are unsure of regulations to avoid compliance issues.”

Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers numerous online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements. Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division representative in their state through a list and interactive online map on the agency’s website. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android Timesheet App for free.

Learn more about Wage and Hour Division.

Labor Department obtains judgment to recover $252K in back wages, damages from Norristown restaurant, owners for denying full pay to 21 workers

Source: US Department of Labor

NORRISTOWN, PA A federal court in Pennsylvania has entered a consent judgment ordering a Norristown restaurant and its owners to pay $252,579 in back wages and liquidated damages to 21 employees, an action that follows a federal investigation that found the employers denied proper overtime pay intentionally.

The department’s Wage and Hour Division found College Pizza Inc., operating as Olympia Pizzeria, and owners Dimitrios Efthimiou and Stravos Efthimiou did not pay kitchen workers time and one-half for hours over 40 in a workweek.

Investigators discovered that the employers tried to conceal their violations by paying cash wages to two employees and by not recording their hours worked or amounts paid. They also paid other kitchen staff a portion of their hours on payroll and the remainder in cash, neither of which included required overtime pay, and paid four other kitchen staff straight-time rates for overtime hours.

The division also found Olympia Pizzeria lacked an accurate record of all employees’ hours worked and learned the restaurant violated the Fair Labor Standards Act’s child labor provisions by employing two children too young to work as delivery drivers.

“Olympia Pizzeria denied its workers their rightful wages by not paying them overtime as required by federal law. Unfortunately, this type of violation is common in the food service industry and deprives too many hard-working people of their full pay,” said Wage and Hour Division District Director James Cain in Philadelphia. “Employers have a legal obligation to properly pay their employees, as well as protect the young workers they employ.”

In addition to the back wages and damages, the judgment requires Olympia Pizzeria, Efthimiou and Efthimiou to pay $14,360 in civil money penalties for the willful overtime violations and $4,266 for the child labor violations.

“The U.S. Department of Labor is committed to using all available enforcement tools to ensure that workers are afforded the protections required by the Fair Labor Standards Act,” said Deputy Regional Solicitor of Labor Samantha Thomas in Philadelphia.

The YouthRules! initiative promotes positive and safe work experiences for teens by providing information about protections for young workers to youth, parents, employers and educators. Through this initiative, the U.S. Department of Labor and its partners promote developmental work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law.

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. Employers and workers can call the division confidentially with questions, regardless of where they are from. The department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Download the agency’s new Timesheet App for iOS and Android devices – free and now available in Spanish – to track hours and pay.