Labor & Employment Law Daily Wrap Up, DOL NEWS—WHD nets $801K-plus in back wages for 576 workers affected by FLSA OT violations, (May 30, 2025)

By Pamela Wolf, J.D.

The agency also recovered a $180,000 penalty to resolve litigation after OSHA found an employer failed to address hazards identified following the partial amputation of a worker’s fingers.

In separate developments, the DOL recovered a combined $801,783-plus in back wages and damages for 576 workers at employers in Arizona, Florida, and Kentucky due to reported FLSA overtime violations. One employer also was assessed a $19,782 civil money penalty for a repeat violation. The agency also settled litigation with a New Jersey commercial baker that agreed to pay $180,000 to resolve OSHA citations issued after a worker’s fingers were partially amputated and a follow-up inspection found the same hazards persisted.

Bonuses not factored in OT pay rate. The DOL recovered more than $207,470 in back wages and damages for 157 workers at M.J. Electric LLC, after the Wage and Hour Division (WHD) found that the Michigan-based electrical services contractor violated the FLSA when it failed to pay proper overtime rates to workers at job sites in Arizona and Kentucky. Investigators found that the company did not include non-discretionary bonuses in employees’ regular rate of pay when calculating overtime pay. The investigation initially revealed the overtime violation at the Tennessee Valley Authority’s Paradise Simple Cycle Project in Drakesboro, Kentucky, and was expanded after similar violations were found at an M.J. Electric project in Ehrenberg, Arizona.

The WHD also assessed the company a $19,782 civil money penalty for a repeat FLSA violation. In 2018, the department investigated M.J. Electric and found the company violated federal law by not properly paying overtime on non-discretionary bonuses.

A subsidiary of Quanta Services, M.J. Electric LLC is headquartered in Iron Mountain, Michigan. The contractor provides electrical services such as power line work and power generation throughout the United States.

Rounding method resulted in OT violations. Separately, the DOL recovered $594,313 in back wages and damages for 419 workers at Amtex-NMS Inc., dba Southeast Modular Manufacturing, after a WHD investigation found the Leesburg, Florida-based employer violated the FLSA when it failed to pay workers all of their required overtime wages. WHD investigators determined that the employer’s rounding methods improperly reduced hours that resulted in unpaid overtime for hours worked over 40 per workweek. Investigators also discovered the employer violated recordkeeping requirements by failing to maintain complete and accurate records of workers’ wages and hours.

“Some employers use a pay method referred to as rounding to produce even and balanced calculations of hours worked,” said WHD District Director Vilma Bell in Orlando, Florida. “While it can be a useful tool, it is the responsibility of all employers to ensure the use of rounding in their time systems is balanced and does not always round in the employer’s favor.”

Failed to correct hazards found after fingers partially amputated. Pursuant to a litigation settlement agreement, Valenti’s Bakery LLC, will pay a $180,000 penalty to resolve OSHA citations resulting from the agency’s investigation initiated after an employee suffered partial finger amputations and a follow-up investigation. A May 2024 follow-up investigation at the New Jersey commercial baker’s Paterson facility found previously identified hazards had not been addressed. The agreement affirms the citations issued after the follow-up inspection, which included two willful, one repeat, six serious, and one failure-to-abate citation.

Valenti’s Bakery also agreed to implement enhanced abatement measures, including: establishing an employee-management safety and health committee; retaining a third-party safety consultant to perform regular safety audits; posting safety and health signage and providing appropriate safety training in both English and Spanish; implementing a daily safety checklist and security cameras focused on improving exit route safety; implementing new engineering controls; and performing spot checks to ensure use of proper lockout/tagout procedures.

Companies: M.J. Electric LLC; Amtex-NMS Inc.; Southeast Modular Manufacturing; Valenti’s Bakery LLC

News: AgencyNews WageHour Overtime Safety RemediesDamages