DOL Recovers $2M in Wage & Hour Violations

Across four separate cases, the U.S. Department of Labor (DOL) recovered over $2 million in fines resulting from various wage and hour violations in February 2022. The violations occurred in several industries including agriculture, health care, and federal subcontracting. Undoubtedly, the DOL has publicized these cases as its Wage and Hour Division (WHD) ramps up efforts to protect worker’s wages and entitlements. In fact, the DOL announced on February 1, that they will add 100 investigators to the WHD.

Cracking Down on Wage and Hour Violations

Created in 1938 with the enactment of the Fair Labor Standards Act (FLSA), the WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements under the FLSA. In addition, it administers and enforces specific laws under various acts. These include the:

• Migrant and Seasonal Agricultural Worker Protection Act,
• Employee Polygraph Protection Act,
• Family and Medical Leave Act, and
• several immigration-related statutes.

In order to ensure employers succeed in their compliance efforts, the WHD keeps a team of investigators to support the enforcement of the several labor laws applicable to businesses.

Agricultural Case – $1.3 Million

During a recent investigation, the DOL discovered that a farm operator, Blaine Larsen Farms Inc., failed to pay workers full wages and overtime. Affected employees included both workers with H-2A visas and workers from the U.S. Specifically, the farm operator failed to pay workers time-and-a-half their regular rate for over 40 hours in a workweek under the FLSA. In addition, the investigation uncovered additional violations to various other wage and hour provisions. In sum, the WHD recovered $1,345,960 in back wages, as well as $10,900 in civil money penalties.

Atlanta Health Care Case – $355,000

Meanwhile, the WHD investigated two Atlanta, GA, home health care agencies for reported wage and hour violations. According to the investigation, the two employers failed to pay overtime to a combined 108 workers. Edlyn Healthcare Services Inc. illegally paid straight time for overtime hours worked. Comparatively, Regency Home Care Georgia purposely reduced the hourly pay rate when workers exceeded 40 hours a week. Consequently, the former received fines totaling $228,464 in back wages for 61 workers. Likewise, the WHD ordered the latter to pay $127,084 for 47 workers.

Michigan Health Care Case – $259,000

Similarly, the WHD recently investigated two health care employers in West Michigan. The investigation revealed that workers did not receive full overtime wages for hours worked exceeding 40 a week. First, Dobie Road-Ingham County Medical Care allegedly violated the FLSA’s overtime requirements for healthcare workers by paying overtime after 12 hours instead of 8 hours in a day. Second, Martell & Company Home Care and Assistance LLC paid its employees straight time during overtime hours and did not compensate for travel time between worksites. WHD recovered $235,742 and $23,905, respectively, from the two employers.

Federal Subcontractor Case – $125,000

Finally, an investigation of a federal subcontractor employing plumbers found that the employer paid workers the incorrect prevailing wage rate. Allegedly, the employer, Ja-Ra Inc., operating as AJ Plumbing in Des Moines, IA, paid 34 workers at a pipe layer rate although they had performed plumbing work for a federal project. Accordingly, the WHD determined that the employer violated the FLSA and the Davis Bacon and Related Acts. In summary, the contractor will pay $106,000 in back wages, as well as $19,000 in overtime wages owed to 27 of the 34 workers.