The U.S. Department of Labor (DOL) recently concluded an investigation into a landscaping company, uncovering multiple violations of employment laws. As a small or midsize business owner, it is essential to understand the consequences of non-compliance with labor regulations.
In this case, the landscaping company was found to have violated the federal H-2B worker program and the Fair Labor Standards Act, resulting in significant financial penalties.
Landscaping business violated the federal H-2B worker program and the Fair Labor Standards Act
The H-2B Worker Program allows businesses to employ temporary visa workers for a limited period. However, the landscaping company failed to fulfill the program’s requirements and the obligations outlined in the Fair Labor Standards Act. Investigators from the DOL’s Wage and Hour Division discovered that certain H-2B workers were not paid the appropriate overtime rate for hours worked beyond 40 hours per week, a clear violation of the law. Furthermore, the company did not maintain accurate records of the hours worked by salaried non-exempt employees.
To rectify the violations, the DOL recovered $61,215 in back wages and an equal amount in liquidated damages for six workers affected by the Fair Labor Standards Act violations. Additionally, the investigation revealed further violations of the H-2B provisions in the Immigration and Nationality Act. The landscaping company was found to have engaged in preferential treatment, resulting in the recovery of $138,763 in back wages for 13 workers. The company also paid masons and pavers less than the offered wage rate, leading to $503,704 in back wages for 47 workers.
Furthermore, the landscaping company committed various other infractions, including placing workers in unapproved job classifications, making impermissible deductions from workers’ wages, failing to cover inbound and outbound travel costs, neglecting required recruitment activities, and not retaining necessary documents. As a result of these violations, the DOL assessed civil money penalties of $5,694 under the Fair Labor Standards Act and $117,949 under the H-2B program, which the company promptly paid.
Wage and Hour District Director Carlos Matos in Boston emphasized the vulnerability of H-2B program workers to wage shortages and rights violations. He underscored the importance of employers complying with the law to avoid being barred from the program. Employers who engage H-2B program workers must be diligent in following the rules and regulations established by the DOL to ensure the fair treatment of these employees.
In order to ensure future compliance with H-2B regulations, the landscaping company entered into a settlement agreement that includes enhanced compliance provisions. The company is now required to hire a compliance monitor approved by the Wage and Hour Division. The monitor will provide reports to the division, assessing the landscaping company’s adherence to applicable laws.
As a small or midsize business owner, it is crucial to stay informed about labor laws and regulations that pertain to your operations. Non-compliance can lead to severe financial penalties and reputational damage. Make sure to familiarize yourself with the requirements of employment programs, such as the H-2B worker program, and the Fair Labor Standards Act. Establish proper record-keeping practices and ensure that all employees receive fair wages and benefits as mandated by law.
Conclusion
By maintaining compliance with employment laws, you can protect your business from potential legal issues and demonstrate your commitment to fair and ethical employment practices. Consult legal professionals or labor experts to ensure that you are operating within the bounds of the law. Investing in compliance measures now will save you from costly penalties and legal disputes in the future, ultimately safeguarding the longevity and success of your business.