Labor & Employment Law Daily Wrap Up, DOL NEWS—Employers pay $2M to settle OT, tip, other reported FLSA violations; $56K OSHA penalty follows worker’s death, (Sep 10, 2025)

By Pamela Wolf, J.D.

A roofing contractor (that paid the bulk of the wage-hour recovery), restaurant, and tree service contractor resolved wage-hour violations found by DOL investigators.

The DOL announced its recovery of $2,050,985 in back wages and damages for 185 workers in California and Colorado to resolve reported overtime, tip, and other FLSA violations. The Wage and Hour Division (WHD) also assessed $56,314 in penalties against the California employer to resolve willful violations. Following a worker’s death while operating a woodchipper, a Florida employer will pay $16,550 in penalties to resolve an OSHA violation for exposing workers to crushed-by hazards.

Failed to pay overtime wages. Pursuant to a consent decree, Northern California Nail Co. Inc must pay $1,943,685 in back wages and damages to 158 workers after the WHD found the Northern California-based roofing contractor failed to pay required overtime rates to workers. The company and its owners violated the FLSA when they failed to pay the required rate of time-and-one-half their regular rate of pay for all hours worked over 40 in a workweek, the DOL said. The employer also failed to keep accurate time records, resulting in FLSA recordkeeping violations. Northern California Nail Co. also violated the FLSA when it failed to keep accurate time records.

The WHD assessed $56,314 in penalties to resolve the company’s willful violations.

Headquartered in Livermore, Northern California Nail performs roofing services in Arizona, California, Nevada, Oregon, and Washington.

Improperly calculated OT, kept tips. Kaimook Inc., dba Pearl of Siam, is paying $107,300 in back wages to resolve allegations that the Aurora, Colorado-based Thai restaurant denied 27 employees overtime pay and kept some of their tips. WHD investigators determined that the employer violated the FLSA when it calculated overtime on a pay-period basis and failed to pay workers overtime premiums based on each standalone 40-hour workweek. Investigators also found the employer kept some of the workers’ tips.

“No employee should be denied overtime pay or have employers take portions of their hard-earned tips,” said WHD District Director David Skinner in Denver. “The Fair Labor Standards Act mandates premium pay for overtime hours worked by non-exempt employees, and prohibits employers, managers, and supervisors from keeping any portion of other employees’ tips for themselves for any purpose.”

Cited for crushed-by hazards following fatality. After an employee suffered fatal injuries while operating a woodchipper at a Boynton Beach, Florida, worksite in January 2025, OSHA investigators cited Carlton’s Tree Service Inc. with a serious violation for exposing workers to crushed-by hazards. To address the violation, the Port Saint Lucie tree service contractor will pay $16,550 in penalties and take actions to amend the hazard.

Companies: Northern California Nail Co. Inc.; Kaimook Inc.; Pearl of Siam; Carlton’s Tree Service Inc.

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