Labor & Employment Law Daily Wrap Up, DOL NEWS—$826K in back wages, damages recovered for 601 workers; $551K grant will support dislocated Massachusetts workers, (Jan 9, 2026)

By Pamela Wolf, J.D.

The American Manufacturing Apprenticeship Incentive also kicked off in Arkansas with a $35.8 million cooperative agreement that gives employers $3,500 for each new apprentice hired.

In separate developments, the DOL announced its recovery of a combined $826,324 in back wages and damages for 601 workers at unrelated employers in California resulting from reported FLSA and Migrant and Seasonal Agricultural Worker Protection Act (MSPA) violations. The employers also were collectively assessed $112,871 in civil penalties related to their violations. The Labor Department in addition awarded $551,195 to Massachusetts to support employment and training services for workers affected by layoffs at a large regional employer, and announced its launch of a $35.8 million cooperative agreement with the Arkansas Department of Commerce, Division of Workforce Services to support the expansion of advanced manufacturing Registered Apprenticeships nationwide.

Migrant seasonal worker violations, deadly crash. Pursuant to a consent judgment, Lion Farms LLC and its owners must pay $39,013 in back wages to 12 employees, and penalties of $89,886, after Wage and Hour Division (WHD) investigators determined the California-based agricultural employer neglected to transport agricultural workers in safe vehicles, related to a deadly crash, a violation of the MSPA. The February 2024 vehicle crash claimed the lives of seven employees and severely injured another. The division found that Lion Farms failed to ensure agricultural workers were transported to and from their field sites in safe vehicles, and was using unlicensed drivers and vehicles without adequate insurance coverage.

The employer also charged workers a transportation fee, which investigators deemed illegal because of the violations associated with the transportation of the workers, and thus owed them back wages. Lion Farms also failed to disclose workers’ permanent addresses and employer identification numbers on wage statements. The consent decree also requires the employer to pay $89,886 in civil money penalties.

Minimum wage, OT infractions resulting from per-unit work. Innovative Wall Systems Inc., dba Alta Drywall, must pay $770,000 in back wages and liquidated damages, pursuant to a consent decree entered after the WHD found the Escondido, California, drywall construction contractor violated the FLSA when it failed to pay minimum wage and overtime to 580 workers. Investigators determined the employer did not accurately keep records of hours worked, including pre- and post-shift work, travel between jobsites, or work performed on Saturdays. The employer also neglected to pay workers the required overtime rate of time-and-one-half for all hours worked over 40. In addition, the employer must pay a $20,000 civil money penalty for the willful nature of the violations.

“Even when employers pay workers on a per-unit basis, they must track the hours those employees work and pay overtime when they exceed 40 hours in a workweek,” said WHD Assistant District Director Ginny Gomez.

OT and tip pool violations. The WHD recovered $17,311 in back wages from Naya Ding Inc., dba Ma’s Kitchen, for nine workers who were reportedly denied proper overtime and earned tips, in violation of the FLSA. Investigators found the Rowland Heights, California, restaurant ran an unlawful tip pool arrangement, directing supervisors to only distribute a portion of earned tips to servers. The owners of the restaurant retained a percentage of the tips. The employer also failed to pay some employees the full, time-and-one-half rate of pay for hours worked over 40 in a workweek, according to the WHD. Further, Ma’s Kitchen violated recordkeeping requirements when it failed to keep accurate time records and payroll records of tips and cash paid to employees. The employer faces a $2,985 civil money penalty for the willful nature of the violations.

Dislocated workers grant. The DOL awarded $551,195 to Massachusetts to support employment and training services for workers affected by layoffs at The L.S. Starrett Co., one of the region’s largest employers. On June 30, 2025, the company laid off 78 manufacturing workers. Based in Athol, the precision measuring tool manufacturer’s downsizing significantly disrupted the northern Massachusetts rural labor market.

Administered by the department’s Employment and Training Administration, this National Dislocated Worker Grant allows the Massachusetts Executive Office of Labor and Workforce Development to provide retraining and skills development services for dislocated workers seeking assistance in Franklin and Worcester counties. Supported by the Workforce Innovation and Opportunity Act of 2014, National Dislocated Worker Grants provide a state or local board with funding for direct services and assistance in areas experiencing a major economic dislocation event that leads to workforce needs exceeding available resources.

Apprenticeship incentive fund launched. The DOL announced the launch of its American Manufacturing Apprenticeship Inventive Fund, designed through a $35.8 million cooperative agreement with Arkansas, to support the expansion of advanced manufacturing Registered Apprenticeships nationwide. The cooperative agreement with the Arkansas Department of Commerce, Division of Workforce Services, will incentivize employers nationwide to develop, expand, or join existing advanced manufacturing Registered Apprenticeship programs through a pay-for-performance model. Through the program, employers will receive $3,500 for each new apprentice hired.

Administered by the ETA, the American Manufacturing Apprenticeship Incentive Fund supports America’s Talent Strategy, as well as several of President Trump’s executive orders related to expanding Registered Apprenticeships. Further information is available here.

“President Trump and his entire administration are fully committed to ushering in a new age of American manufacturing, and that’s why we’re making significant investments in reaching and surpassing his goal of one million active apprentices nationwide,” said Labor Secretary Lori Chavez-DeRemer. “Our work with Arkansas will support manufacturing employers, particularly small- and mid-sized firms, to launch or scale Registered Apprenticeships that meet real-time industry needs for skilled labor.”

Companies: Lion Farms LLC; Innovative Wall Systems Inc.; Alta Drywall; Naya Ding Inc.; Ma’s Kitchen; The L.S. Starrett Co

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