Boss Watch: 8/30 – 9/6

Illegal activities of Southern Bosses for the weeks between Friday, August 30, and Friday, September 6

Texas Thieves

The U.S. Department of Labor has recovered $103,665 in back wages for 38 workers employed by a Southlake landscaping company that misclassified them as independent contractors and, by doing so, denied them overtime pay.

The department’s Wage and Hour Division determined J.P. Above & Beyond Landscaping’s violations of the Fair Labor Standards Act included failing to pay overtime at time and one-half an employee’s rate of pay for hours over 40 in a workweek and not keeping accurate records.

“Misclassifying employees as independent contractors is a serious problem that deprives workers of their hard-earned wages, benefits and protections,” said Wage and Hour Division District Director Jesus A. Valdez in Dallas. “J.P. Above & Beyond Landscaping has learned there are costly consequences for their violations. We encourage all employers to use our online tools or contact us to better understand laws governing their pay practices.”

Oklahoma Discriminators

AG Equipment Company, a Broken Arrow, Oklahoma compressor packaging manufacturer, violated federal law when it fired 10 employees for failing to receive a COVID-19 vaccination because of their religious beliefs or medical restrictions, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

According to the EEOC’s lawsuit, in the fall of 2021, AG Equipment mandated all employees receive a COVID-19 vaccination and told workers no exceptions would be permitted for any reason. Nonetheless, 10 employees submitted written requests seeking exemptions based on their religious beliefs or medical conditions. The company refused to discuss the employees’ requests or explore possible accommodations, and fired the 10 individuals on Oct. 15, 2021, along with 77 other unvaccinated workers.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act, which prohibit religious and disability-based discrimination. The EEOC filed suit (EEOC v. AG Equipment Company, Case No. 24-cv-00403-CDL) in U.S. District Court for the Northern District of Oklahoma after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

“While the law does not require employers to grant every request for religious or disability accommodation, they generally must do so when accommodation can be provided reasonably and safely,” said Andrea G. Baran, regional attorney for the EEOC’s St. Louis District. “Title VII requires employers to take workers’ religious beliefs seriously and communicate with employees to determine whether effective reasonable accommodations are available.”

David Davis, director of the EEOC’s St. Louis District office, said, “Workers are not required to set aside their religious beliefs when they walk in the door at work. Employers must work with employees when accommodations are requested and explore whether adjustments are possible and reasonable.”

Tennessee Thieves

The U.S. Department of Labor has recovered $31,761 in back wages and damages from a Tennessee operator of assisted living communities that illegally fired one worker for questioning the employer’s pay practices and denied full overtime wages to seven care workers.

The department’s Wage and Hour Division found Family First LLC, owner of Bailey Manor, terminated an employee who questioned the facility’s pay practices. Investigators also determined the employer did not include pay for time spent on-call when calculating overtime wages for seven employees at its Manchester location for hours over 40 in a workweek, a violation of the Fair Labor Standards Act.

“The Wage and Hour Division will not tolerate employers that intimidate or retaliate against workers or deprive them of their legally earned wages,” explained Wage and Hour Division District Director Lisa Kelly in Nashville, Tennessee. “In addition to protecting workers’ wages, federal law forbids employers from taking action against employees because they engage in protected activities, such as asking about their pay, filing a complaint or cooperating with a U.S. Department of Labor investigation.”

The division recovered $30,000 in back wages, liquidated and punitive damages for the employee wrongly terminated and $1,761 in back wages and liquidated damages for seven other employees.

Dishonorable Mentions

  • The EEOC filed suit against the Epiq Food Hall in Eastern Virginia and its successor company after the owner subjected a Black general manager to numerous derogatory racial comments, telling him that he “look[ed] like [he] spoke thug language” and referring to him as the n-word; made frequent disparaging remarks about Black customers and employees—calling them “not smart,” “ignorant,” “ghetto,” and “riff-raff;” and canceled live music and karaoke events that attracted predominately Black patrons. Because of the persistent racism and lack of a complaint procedure or a human resources department, the general manager was forced to resign. 
  • EEOC v. Rivers Edge Enterprises, LLC d/b/a River’s Edge Bar and Grill, Case No.: 8:24-cv-2090 in the U.S. District Court for the Middle District of Florida, Tampa Division. The EEOC filed suit against River’s Edge Bar in Tampa after one of its owners subjected female employees to a sexually hostile work environment. One of the restaurant’s owners, who owns the bar with two of his brothers, openly and on a daily basis, made sexually charged comments, propositioned his female employees to have sex with him, and touched and groped female employees without their consent. The other two owners witnessed the conduct but failed to take action. When a female employee complained about the harassment, she was terminated. “Sexual harassment continues to be a pervasive issue in the restaurant industry,” said Kristen M. Foslid, regional attorney for the EEOC’s Miami District. “Employers who utilize their positions of power to prey on vulnerable restaurant workers will be held accountable under the law.”
  • Last fiscal year, the number of charges the EEOC received involving harassment jumped more than 28% to 31,354, the highest since the agency started monitoring harassment charge numbers in fiscal year 2010. Charges involving retaliation reached more than 46,000, a 31-year high. The EEOC recently issued updated Enforcement Guidance on Harassment in the Workplace with more than 70 concrete examples to help employees and employers identify workplace issues and take action.
  • The U.S. Department of Labor’s Wage and Hour Division found Solid Care Home Health in Carrolton, TX paid 28 non-exempt employees straight time for hours over 40 worked in a workweek, when time and one-half pay was required by the Fair Labor Standards Act. The home healthcare provider also failed to keep proper timekeeping and personnel records. The Division recovered $141k in back wages and damages.