Labor & Employment Law Daily Wrap Up, DOL NEWS—Back wages, safety citations top latest labor actions, (Jul 29, 2026)

By George Basharis, J.D.

Recent developments span wage-and-hour enforcement, workplace safety, retirement plan litigation, and skilled-trades workforce development.

The U.S. Department of Labor separately announced a series of enforcement, litigation, and workforce development initiatives highlighting the agency’s priorities in wage-and-hour enforcement, workplace safety, employee benefits litigation, and skilled-trades training. The announcements included the recovery of back wages for six California deli workers under the Fair Labor Standards Act (FLSA), proposed OSHA penalties against a Florida roofing contractor for repeated fall protection violations, an appellate filing defending fiduciary discretion under the Employee Retirement Income Security Act (ERISA), and a new partnership with Huntington Ingalls Industries intended to strengthen the nation’s maritime workforce.

Flat rate, no overtime. The Wage and Hour Division recovered $500,256 in back wages for six employees of San Diego-based Chau Deli, which operates as A Chau Sandwich, after concluding that the business violated the FLSA’s minimum wage and overtime requirements. Investigators found that the deli paid workers a flat rate of $100 per day even though they routinely worked 11-hour shifts and averaged approximately 55 hours each week. As a result, the employees’ regular rate of pay fell below the applicable local minimum wage, and they received no overtime premium for hours worked beyond 40 in a workweek.

Following the investigation, each affected employee received approximately $83,000 in back wages. “The Wage and Hour Division remains committed to upholding federal labor law protections for workers supporting themselves and their families,” Wage and Hour Division Administrator Andrew Rogers said. “The division stands ready to assist employers with understanding and complying with the laws we enforce.”

The department encouraged employers to use its compliance assistance resources and reminded businesses that its Payroll Audit Independent Determination program allows employers to self-report and resolve certain minimum wage, overtime, and Family and Medical Leave Act violations. It also encouraged employers and workers to contact the division’s toll-free helpline for compliance assistance.

Repeat fall hazards. The Occupational Safety and Health Administration cited Florida roofing contractor Orchids Builders LLC after investigators found workers repeatedly exposed to fall hazards at residential construction sites in Rockledge, Florida. OSHA proposed $349,754 in penalties, alleging that the company willfully failed to provide fall protection and committed repeated safety violations.

Investigators observed workers exposed to an approximately 10-foot fall hazard while installing roof sheathing at one worksite in January 2026 and later found another employee exposed to a 9-foot fall hazard while installing metal hurricane clips at a second worksite in March 2026. OSHA also alleged that the contractor failed to maintain required fall protection training records, permitted employees to use ladders whose side rails did not extend sufficiently above roof landings, and failed to ensure workers using nail guns wore eye protection.

OSHA issued two willful and four repeat citations. The agency noted that Orchids Builders has been inspected seven times since 2023, with each inspection involving alleged fall protection violations. The employer has 15 business days after receiving the citations to comply, request an informal conference with OSHA’s area director, or contest the findings before the Occupational Safety and Health Review Commission. OSHA also directed employers to its free fall protection guidance and compliance assistance resources.

ERISA forfeitures. In a separate development, the department filed an amicus brief in Stana v. SAS Institute Inc., urging the U.S. Court of Appeals for the Fourth Circuit to affirm dismissal of claims challenging how SAS Institute Inc. used forfeited retirement plan contributions under ERISA. The department maintained that the retirement plan gave the fiduciary discretion to determine how forfeited employer matching contributions would be allocated. The plaintiffs argued that the forfeitures should have been used to pay plan expenses rather than reduce the employer’s future matching contributions.

The department contended that ERISA’s duty of loyalty does not require fiduciaries to choose one permissible use of forfeitures over another when the governing plan expressly grants such discretion. It further argued that requiring employers to use forfeitures exclusively for plan expenses could discourage them from sponsoring retirement plans. Between 2018 and 2023, SAS generally used forfeitures to reduce its matching contributions, although it allocated $222,320 toward plan expenses in 2022. Under the plan, employees who left the company before completing five years of service forfeited their unvested employer matching contributions.

Maritime workforce. The department also announced a workforce development partnership with Huntington Ingalls Industries designed to expand pre-apprenticeship opportunities and strengthen the domestic shipbuilding workforce. The initiative supports the administration’s efforts to expand skilled trades training and rebuild the nation’s maritime industrial base.

Under the proposal, the San Diego Job Corps Center would become a maritime-focused training center dedicated to preparing students for shipbuilding careers. Department officials also are considering incorporating the Los Angeles, Inland Empire, and Long Beach Job Corps Centers into the initiative, with the San Diego facility serving as an advanced training hub for participants from Southern California and elsewhere in the country.

Acting Secretary of Labor Keith Sonderling said the initiative would benefit both workers and employers. “Strengthening our maritime talent pipeline has a two-fold benefit,” Sonderling said. “It gives hope to young men and women enrolled in pre-apprenticeship programs while helping restore America’s maritime workforce and reanimating critical domestic supply chains.” Huntington Ingalls Vice President of Customer Affairs Jim Loeblein said the partnership reflects a shared commitment by industry and government to strengthening the shipbuilding workforce. “This dialogue demonstrates that both industry and government understand the mission, that supporting jobs in the shipbuilding industry is necessary,” Loeblein said. “With the international threats we face today, we must be the best we can be, which is why we at HII support the work of the Department of Labor and Job Corps.”

Department officials met with Huntington Ingalls executives in San Diego on July 22 to discuss the proposal, which advances executive orders promoting registered apprenticeships, strengthening career and technical education, and supporting the nation’s maritime industrial capacity.

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