Wage and Hour Division (WHD)

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SAN FRANCISCO -- A Los Angeles-based general building contractor has agreed to pay $385,800 in back wages to 164 employees plus $61,000 in civil money penalties, following an investigation by the U.S. Department of Labor.

Investigators from the department’s Wage and Hour Division found that Pacific Housing Diversified did not pay required overtime pay, prevailing wage rates and/or fringe benefits to the laborers as required by the federal Fair Labor Standards Act (FLSA), the Davis Bacon and Related Acts (DBRA), and the Contract Work Hours and Safety Standards Act (CWHSSA). The company also failed to keep complete records of hours worked. Pacific Housing Diversified specializes in construction of low-income housing throughout Southern California.

“The Department of Labor is committed to the strong enforcement of labor laws,” said George Friday Jr., western regional administrator for the Wage and Hour Division. “In this case the employees were not properly compensated for their hours worked, and I am pleased we were able to recover nearly $386,000 in back wages for them.”

Laborers covered by the FLSA or the CWHSSA overtime provisions must be paid not less than one and one-half times their regular rate of pay for hours worked over 40 in a workweek. Laborers covered by the DBRA must be paid at least the prevailing wage rates and fringe benefits for corresponding classes of laborers employed on similar projects in the area.

The Los Angeles office of the Wage and Hour Division became aware of the employer’s pay practices through the Employment Education and Outreach (EMPLEO) initiative. The EMPLEO partnership assists Spanish-speaking workers and employers with work-related concerns through an alliance of organizations and government agencies. This alliance, which includes the Wage and Hour Division, has established a local toll-free help line, (877) 55-AYUDA, or (877) 552-9832. Callers to the help line are assisted by volunteers who refer them to the appropriate EMPLEO partner for assistance.

For more information about the laws the Wage and Hour Division enforces, call the Los Angeles Wage and Hour office at (213) 894-6375 or the Department of Labor's toll-free help line at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.