U.S. Department of Labor Investigation Results in Two Louisiana Parking Companies Paying $329,553 in Back Wages, Damages and Penalties

NEW ORLEANS, LA – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Parking Management Services Inc. and Valet Management Services Inc. – valet parking companies based in New Orleans, Louisiana – have paid $97,869 in back wages and an equal amount in liquidated damages to 811 employees for violations of the Fair Labor Standards Act's (FLSA) overtime requirements. WHD also assessed the companies $133,815 in civil money penalties due to the repeat nature of the violations.

WHD investigated the companies' operations in 15 states and found violations of the FLSA overtime provisions when the employers failed to include money that employees earned from commissions, bonuses, and incentive pay in the calculation to determine their overtime. Excluding these amounts resulted in overtime rates lower than those the workers had legally earned. Additional violations occurred when the employer based overtime for tipped employees on their direct cash wages rather than the full federal minimum wage of $7.25 per hour, as the law requires. The employers also violated FLSA recordkeeping provisions by failing to keep accurate records of all the hours that employees worked. Previous investigations of these employers, as recently as 2016, also disclosed overtime violations.

"Employers must pay their employees all the wages they have legally earned for all the hours they have worked, including workers who depend on the tips provided by customers in recognition of the services they provide," said Wage and Hour Division District Director Troy Mouton, in New Orleans. "We encourage all employers to make use of the many tools the Department provides to help them understand and comply with the law and to contact us for assistance. Violations like these can be avoided."

In addition to paying back wages and liquidated damages to affected employees, the employers agreed to provide FLSA training to payroll and human resources staff as well as employees, and  to conduct periodic audits to confirm compliance with FLSA requirements.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.