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DOL in Action
New Jersey Gas Station Attendants to Receive $3 Million
Daniyal Enterprises LLC, owner Waseem Chaudhary, and other companies owned and operated by Chaudhary, have agreed to pay $3 million in overtime back wages and liquidated damages to 417 workers employed at 72 of Chaudhary's New Jersey gas stations after a Wage and Hour Division investigation. "This agreement returns hard-earned wages to workers in one of only two states that still mandates full-service gas pumps," said acting Secretary of Labor Harris. The investigation revealed that employees often worked up to 84 hours per week without receiving overtime pay and many were partly paid off the books in cash. The department also has assessed $91,000 in civil money penalties against this employer because of the repeat and willful nature of the violations. Additionally, the employer has agreed to take proactive measures, including a three-year monitoring program at each gas station, to ensure future Fair Labor Standards Act compliance.
• Read the News Release
Assistance for Laid Off Workers in Kentucky and Massachusetts
National Emergency Grants were announced by the department on March 4 to assist workers and families impacted by layoffs at coal mining companies in eastern Kentucky and more than 360 workers affected by layoffs in Massachusetts. In Kentucky, a $5,192,500 grant was awarded to the Eastern Kentucky Concentrated Employment Program Inc. to provide re-employment services not only for miners who are laid off but for their spouses who have been homemakers and are, due to the loss of wages, seeking to enter the workforce to support their families. A $1,263,339 grant increment was awarded to the Massachusetts Department of Workforce Development to continue training and re-employment services for workers affected by layoffs at 12 companies. "For our nation to sustain a growing economy that creates good, middle class jobs, we must provide access to the training that today's jobs require," said acting Secretary of Labor Harris.
• Read the Kentucky News Release
• Read the Massachusetts News Release
Storm Cleanup Grants for Mississippi and Arkansas
Mississippi and Arkansas were awarded National Emergency Grants on March 4 to assist with storm cleanup efforts. A $2 million grant was received by the Mississippi Department of Employment Security to create temporary jobs that will support cleanup and recovery in the aftermath of recent storms, tornadoes and flooding that struck the state. The Arkansas Department of Workforce Services was awarded a $391,539 grant to assist with clean-up and recovery efforts following severe winter storms in December 2012. This grant will restore public lands and infrastructure by providing temporary work for those in need of employment. Acting Secretary of Labor Harris said, "Investments like this strengthen communities by assisting in their recovery and putting local workers back on the job."
• Read the Mississippi News Release
• Read the Arkansas News Release
Missouri Companies Cited Following Worker's Death at Sewer Project
Coatings Unlimited Inc. in Bridgeton, Mo., has been cited by the Occupational Safety and Health Administration with 14 safety violations from an incident that resulted in a worker's death. The worker was overcome by exposure to methyl ethyl ketone and collapsed inside an 18-foot-deep vault manhole during construction of a sanitary sewer lift station. St. Louis-based KCI Construction Co. Inc., the project's general contractor, was also cited with one serious violation. The willful violations included failing to implement safety precautions and testing for atmospheric conditions prior to and during entry of confined spaces, and failure to control exposure to methyl ethyl ketone through the use of engineering controls, such as ventilation.
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Suit Filed to Restore Funds to Employee Retirement Plan
A lawsuit has been filed by the department to restore $79,761 to the Hico Flex Brass Co. Inc. 401(k) plan. The suit alleges that the company, as well as former vice president Mark Isaacs and president Neil Isaacs, violated the Employee Retirement Income Security Act by failing to distribute plan assets to participants. The suit seeks to require the defendants to restore to the plan any losses, including lost opportunity costs, resulting from the fiduciary breaches they committed or for which they are liable. The suit also seeks to permanently enjoin them from serving as fiduciaries or service providers to any ERISA-covered plan in the future and to have an independent fiduciary appointed to terminate the plan and distribute its assets to eligible participants.
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Union Pacific Railroad Ordered to Pay $309,000 to Conductor
Union Pacific Railroad Co. has been ordered to pay more than $309,000 to a conductor after the Occupational Safety and Health Administration found the railroad company violated the whistleblower protection provisions of the Federal Railroad Safety Act. OSHA determined that the railroad retaliated against the employee in Pocatello, Idaho, for reporting a co-worker's work-related injury. This is OSHA's third finding in 13 months against the company's Pocatello operations. The Omaha, Neb.-based company operates in 23 states and employs more than 40,000 workers nationwide.
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Investigators Find Overtime Violations at Kansas Company
Rice Precision Manufacturing Inc. has agreed to pay 12 workers a total of $92,727 in back wages and liquidated damages following an investigation by the Wage and Hour Division. The investigation found violations of the Fair Labor Standards Act's overtime provisions at the Baldwin City, Kan., parts manufacturing company. The company failed to pay employees overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a week. According to the investigation, the company believed that if workers volunteered for overtime, it was acceptable to pay only the straight time hourly rate for those additional hours.
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Wisconsin Food Plant Added to Severe Violator Program
Richelieu Foods Inc. has been cited by the Occupational Safety and Health Administration with 27 health and safety violations at the company's Beaver Dam, Wis. facility. The violations include two repeat violations involving inadequate energy control procedures. An inspection was opened under OSHA's Site Specific Targeting Program for industries with high injury and illness rates. Proposed fines total $228,900. Because of the hazards and the violations cited, Richelieu Foods has been placed in OSHA's Severe Violator Enforcement Program, which mandates targeted follow-up inspections to ensure compliance with the law.
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Nebraska Processing Plant Faces Penalties on Safety Violations
Nebraska Beef Ltd. has been cited by the Occupational Safety and Health Administration with eight safety violations, including one repeat, for failing to guard open stairs and platforms to prevent a fall hazard at its Omaha beef processing plant. Proposed penalties of $61,084 resulted from an inspection of high-hazard general industry establishments, as identified by injury and illness rates in Nebraska. The repeat violation was for failing to provide standard railings and toe boards on open-sided floors and platforms on a crossover platform in the scale room.
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Georgia Company Pays $226,000 in Back Wage and Damages
Southeastern Painting Contractors Inc., of Carrollton, Ga., has paid $226,111 in back wages and liquidated damages to 67 employees following an investigation by the Wage and Hour Division. The investigation revealed the company violated the Fair Labor Standards Act's minimum wage, overtime and record-keeping provisions, as well as the prevailing wage and fringe benefits requirements of the Davis-Bacon and Related Acts. The employer misclassified employees as independent contractors and failed to pay them overtime compensation. Employees were also classified incorrectly and were paid rates below those required by the contract. Southeastern Painting Contractors worked as a subcontractor under RK Redding Construction Inc., of Bremen, Ga., and Ra-Lin & Associates, of Carrollton on the federally-funded project involving the construction of new schools for Marion, Bartow and Whitfield County school districts in Georgia.
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Ohio Automotive Company Faces Fines for 26 Violations
Mahle Engine Components USA Inc. has been cited by the Occupational Safety and Health Administration with 26 violations. They include eight repeat violations for exposing workers to electrical, lead and machine guarding hazards at its McConnelsville, Ohio, automotive parts manufacturing facility. Proposed fines total $369,000. Two repeat health violations were cited for lead exposure, including failing to record employees' blood lead levels to monitor exposure to lead. The company has been placed in OSHA's Severe Violator Enforcement Program.
• Read the News Release
Construction Workers in Arkansas Receive Back Wages
Structural Systems Inc., doing business as SSI Inc. Design/Build in Fort Smith, Ark., has paid $17,154 in overtime back wages to 12 current and former employees. This action followed an investigation by the Wage and Hour Division that found the company failed to pay employees for time spent traveling between work sites during the workday and for hours worked in the firm's supply yard. The employer also improperly classified office employees as exempt from overtime requirements when, in fact, they were due overtime compensation at time and one-half their regular rates of pay for hours worked beyond 40 in a workweek.
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Pennsylvania Natural Gas Producer Cited After Worker Fatality
Natural gas producer and operator J.R. Resources has been cited by the Occupational Safety and Health Administration for eight safety and health violations at its Ringgold, Pa., gas well site. This action follows an August 2012 worker fatality resulting from a flash fire. Violations include failure to require and provide flame-resistant clothing be worn, fall protection, written hazard communication program and training, properly label tanks and accident prevention.
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Wage Violations Found at Three South Carolina Restaurants
Three Hilton Head, S.C., restaurants have agreed to pay six employees $23,155 in back wages following an investigation by the Wage and Hour Division. Investigators found some employees had worked in the restaurant's kitchen and as servers and bussers, but those hours were tracked and paid separately, even when their combined totals exceeded 40 hours in a workweek. The employer similarly failed to combine hours worked at different locations for the same employee during a single workweek, resulting in failure to pay overtime compensation. The employer also failed to maintain accurate records of employees' work hours and wages. The three restaurants are: Alexander's Restaurant Co., doing business as Alexander's; Downtown Hilton Head Inc., doing business as Red Fish; and the Old Oyster Factory Restaurant.
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Nebraska Food Processing Facility Faulted on Machine Guarding
Darling International Inc., which operates as DarPro in Lexington, Neb., has been cited by the Occupational Safety and Health Administration with six safety violations. The violations include failing to properly adjust or provide adequate machine guarding at the company's food byproducts processing facility. Proposed penalties total $91,300. They resulted from a January local emphasis program inspection for high-hazard general industry establishments, as identified by injury and illness rates in Nebraska. A repeat violation was issued for failing to properly adjust work rest and tongue guards on grinding machinery in the company's maintenance shop.
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New York Union President Sentenced to Prison for Embezzlement
John McNamee, former president of the International Alliance of Theatrical Stage Employees Local 829 in New York was recently sentenced to one year and one day of imprisonment, two years of supervised release, and ordered to pay a $25,000 fine for embezzling union funds. On Oct. 16, 2012, McNamee pleaded guilty to one count of embezzlement in the amount of $150,000. The plea came after an investigation by the Office of Labor-Management Standards, which revealed that between January 2004 and February 2011 McNamee used the union credit card to cover personal expenses, including jewelry, clothing, restaurant bills, entertainment tickets and vacations for himself and his family. McNamee made full restitution prior to sentencing.
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North Carolina Agricultural Employer Pays Back Wages and Penalties
J. Roland Wood, the owner of J. Roland Wood Farms Inc. in Benson, N.C., has paid 138 employees $16,870 in back wages and an additional $3,950 in civil penalties following an investigation by the Wage and Hour Division. The investigation found the agricultural employer violated provisions of the Migrant and Seasonal Agricultural Worker Protection Act. The employer failed to pay wages when due; failed to inform migrant workers that rent would be deducted from their wages; failed to disclose employment terms and conditions to workers in a language they could understand at the time of recruitment; and failed to provide required wage statements to workers.
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Lawn Equipment Manufacturer Cited After Worker Suffers Amputation
Agri-Fab Inc. has been cited with three repeat safety violations by the Occupational Safety and Health Administration after receiving a complaint that a worker suffered an amputation injury at the Sullivan, Ill., manufacturing facility. The repeat violations include failing to develop, document and use energy control procedures, provide employee training on energy controls, and require that lockout/tagout devices be attached to energy isolating devices during maintenance operations. The company manufactures attachments for snow removal, lawn and garden equipment. Penalties of $93,500 have been proposed.
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Repeat Safety Violations at Staten Island Pier 1 Store
Pier 1 Imports has been cited by the Occupational Safety and Health Administration for five safety violations — including two repeat — at its Staten Island, N.Y., store. The company faces $45,100 in fines for exposing workers to hazards, including failing to address the lack of clearance and working space in front of electrical panels, maintain an exit route free of obstructions and properly storing materials.
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Surgical Center Faces Fines for Bloodborne Pathogen Hazards
CTO Management LLC, doing business as Health East Ambulatory Surgical Center, has been cited by the Occupational Safety and Health Administration for 10 serious violations involving bloodborne pathogen hazards at its Englewood, N.J. facility. The serious violations include failure to counsel an employee who was stuck with a contaminated needle, test the employee's blood in a timely manner and provide the appropriate medicine to the employee to prevent contracting a potential disease. The company faces $68,000 in fines.
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Safety Violations Found at Illinois Manufacturing Plant
Komatsu America Corp. in Peoria, Ill., has been cited by the Occupational Safety and Health Administration with four safety violations, including two repeat violations, after a worker was injured while testing hydraulic cylinders for leakage. During that process, the hydraulic coupler on the return line of the hoist stand failed and released pressurized hydraulic fluid, which struck the worker. The employee died two days later from injuries sustained at the truck manufacturing plant. Two repeat violations were cited for failing to develop machine-specific energy control procedures and training to ensure workers understood energy control procedures.
• Read the News Release
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