Federal Judge orders Salt Lake City house flipper to stop falsifying records and interfering with US Labor Department investigation

Date of Action: Sept. 22, 2015

Type of Action: Preliminary Injunction

Names of Defendants: Foreclosure Connection, Inc. and its owner Jason Williams

Court: U.S. District Court for the District of Utah, Central Division, Salt Lake City

Allegations: The U.S. Department of Labor's Wage and Hour Division alleges that Foreclosure Connection, Inc. and its owner, Jason Williams, falsified payroll and earnings documents, threatened workers with termination of employment, coerced workers to provide false information and obstructed federal investigators' efforts to speak with employees. Foreclosure Connection purchases homes, renovates them and offers them for lease or resale at a profit. The workers at issue renovate these properties on behalf of the firm.

Resolution: Judge Dale A. Kimball's order prohibits Foreclosure Connection and Williams from interfering with the Wage and Hour Division's investigation and from retaliating against their workers for participating in the investigation. Furthermore, the defendants are ordered to inform workers of their rights under the Fair Labor Standards Act, including their right to file a complaint with the division or to cooperate in an investigation. Worker rights must be posted in English and Spanish in a conspicuous location, and the division must be provided with information regarding dates of employee hires, terminations and the reasons for terminations dating back to July 7, 2015. Should Foreclosure Connection or Williams violate the preliminary injunction; the division can ask the court to hold them in contempt.

Quote: "No worker should fear for his or her job when they cooperate with federal investigators. Employers who threaten jobs are doing so illegally, and such actions will not be tolerated," said Betty Campbell, acting regional administrator for Wage and Hour Division in the Southwest. "Worker protection and the integrity of our investigation is a priority and we will leverage every resource necessary to ensure this happens."

Information: For more information about federal wage laws, or to file a complaint, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243), or its Salt Lake City District Office at801-524-5706. Information also is available at http://www.dol.gov/whd/.

Docket Number: 2:15-cv-653