Walsh v. Gargan Stables Corp. et al

Filing 20

CONSENT JUDGMENT in favor of Martin J. Walsh against Gargan Stables Corp., Danny Gargan: Pursuant to the parties agreement that unpaid overtime back wages are owed and shall be paid to the employees listed on Exhibit A, which is attached to this Co nsent Judgment, in the amount of $66,315.52, plus an equal additional amount of liquidated damages of $66,315.52, and Civil Money Penalties (CMPs) in the amount of $37,368.96 for a total amount of $170,000, it is: ORDERED that Def endants and all persons acting on their behalf are enjoined and restrained from withholding the payment of $66,315.52 in unpaid overtime back wages due Defendants employees listed in Exhibit A. Further, Defendants shall pay a total of $66,3 15.52 in liquidated damages due Defendants employees listed in Exhibit A. Defendants further agree to pay $37,368.96 in CMPs in connection to the May 27, 2020 letter assessing CMPs in full resolution of any obligation to pay CMPs as stated there in. The payments of back wages, liquidated damages, and CMPs shall be made by Defendants in accordance with Paragraph 3 of this Consent Judgment. SEE ATTACHED ORDER FOR FURTHER DETAILS. So Ordered by Judge Denis R. Hurley on 1/7/2022. (Cubano, Jazmin)

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 1 of 28 PageID #: 87

UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NEW YORK

FILED 
CLERK 

11:41 am, Jan 07, 2022

U.S. DISTRICT COURT 
EASTERN DISTRICT OF NEW YORK 
LONG ISLAND OFFICE 

MARTIN J. WALSH,
Secretary of Labor,
United States Department of Labor,
Plaintiff,
v.

Civil Action No. 21-cv-03390

GARGAN STABLES CORP., and DANNY
GARGAN, Individually and as President,
Defendants.

CONSENT JUDGMENT
Plaintiff MARTIN J. WALSH, the Secretary of Labor, has filed his complaint, and
Defendants GARGAN STABLES CORP. (“Corporate Defendant”), and DANNY GARGAN
(together, “Defendants”) appeared by Counsel, waive their answer, and agree to the entry of this
Consent Judgment without contest to fully resolve the claims at issue in this Action.
Defendants acknowledge that they have notice of and understand the provisions of this
Consent Judgment; acknowledge their responsibilities pursuant to this Consent Judgment; and
acknowledge that they may be subject to sanctions in contempt of this Court if they fail to comply
with the provisions of this Consent Judgment.
I.

Defendants submit to the jurisdiction of this Court over them and over the subject
matter of this action. Defendants admit that this Court has the authority to enter and
enforce this Order and that this Court is the most appropriate venue for any enforcement
action that may be required as a result of this Judgment.

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II.

Corporate Defendant admits that from at least December 28, 2017 through at least
February 26, 2020 (“the Relevant Time Period”), it was an employer, within the
meaning of Section 3(d) of the Fair Labor Standards Act of 1938, as amended (29
U.S.C. § 201 et seq.) (“the Act” or “the FLSA”), 29 U.S.C. § 203(d), of groomers and
hotwalkers.

III.

Defendant Danny Gargan admits that during the relevant time period he was an
employer, within the meaning of Section 3(d) of the Act, 29 U.S.C. § 203(d), of the
Corporate Defendant’s groomer and hotwalkers employees.

IV.

The Secretary has alleged that during the relevant time period, Defendants violated
Sections 7, 11(c), 15(a)(2), and 15(a)(5) of the FLSA by failing to pay their groomer
and hotwalker employees in overtime wages for all hours worked, and failing to make,
keep, and preserve adequate and accurate records.

V.

The Secretary has alleged that during the relevant time period, Defendants did not keep
complete and accurate wage and hour records as required by the Act.

VI.

The Secretary has alleged that during the relevant time period, Defendants did not pay
certain groomer and hotwalker employees overtime at one and one-half times the
regular hourly rate for hours in excess of forty per week as required by the Act.

VII.

By letter dated May 27, 2020, the Deputy Administrator of the Wage and Hour Division
of the U.S. Department of Labor (“Administrator”), pursuant to Section 16(e)(2) of the
Act, 29 U.S.C. § 216(e)(2), issued a notice of assessment of FLSA civil money
penalties (“CMPs”).

2

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VIII.

By letter dated May 28, 2020 Defendants’ timely filed with the Administrator an
exception and request for hearing on the determination to assess the CMPs pursuant to
the Act’s implementing regulations at 29 C.F.R. Parts 578 to 580.

IX.

This Consent Judgment resolves all disputes associated with the instant case for the
Relevant Time Period, as well as resolve any dispute regarding the CMPs issued to
Defendants on May 27, 2020 arising out of Wage and Hour Division inspection number
1868162.

X.

Having resolved all disputes in connection to the CMPs issued to Defendants on May
27, 2020, Defendants withdraw their May 28, 2020 exception and agree to pay the
CMPs consistent with this Consent Judgment.
It is, therefore, upon motion of the attorneys for Plaintiff and for cause shown ORDERED
that:
1.

Defendants, their officers, employees, agents, and all persons acting or claiming to act
in Defendants’ behalf and interest, be, and hereby are, permanently enjoined and
restrained from violating the provisions of Sections 6, 7, 11(c), 15(a)(2), 15(a)(3), and
15(a)(5) of the Fair Labor Standards Act of 1938, as amended (29 U.S.C. § 201 et seq.)
(“the Act”), in any of the following manners:
a. Defendants shall not, contrary to Section 6 of the Act, pay to any of their
employees who in any workweek are engaged in commerce or in the production
of goods for commerce, or employed in an enterprise engaged in commerce or
in the production of goods for commerce, within the meaning of the Act, wages
at rates less than those which are now, or which may in the future become,
applicable under Section 6 of the Act.

3

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b. Defendants shall not, contrary to Section 7 of the Act, employ any of their
employees in any workweek for workweeks longer than the hours now, or
which in the future become, applicable under Sections 7 and 15(a)(2) of the Act,
unless the employees receive compensation for their employment in excess of
the prescribed hours at rates not less than one and one-half times the employees’
regular rates, as required by Section 7 of the Act.
c. Defendants shall make, keep, and preserve adequate records of their employees
and of the wages, hours, and other conditions and practices of employment
maintained by them as prescribed by the Regulations issued pursuant to Section
11(c) of the Act and found at 29 C.F.R. Part 516.
d. Defendants shall not discharge or take any retaliatory action against any
employee, including soliciting the repayment of overtime compensation paid to
any employee under this Consent Judgment or otherwise, because the employee
engaged in or is believed to have engaged in any of the following activities:
i. Discloses, protests, or threatens to disclose or protest, to a supervisor,
Defendants’ Compliance Monitor, or to a public agency, any activity,
policy or practice of the employer or another employer, with whom
there is a business relationship, that the employee reasonably believes
is in violation of the Act or a rule or regulation promulgated pursuant to
the Act;
ii. Provides information to, or testifies before, any public agency or entity
conducting an investigation, hearing or inquiry into any alleged
violation of the Act, or a rule or regulation promulgated pursuant to the

4

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Act, by the employer or another employer with whom there is a business
relationship; or
iii. Objects to, or refuses to participate in any activity, policy or practice
which the employee reasonably believes is in violation of the Act, or a
rule or regulation promulgated pursuant to the Act.
e. Defendants, along with their officers, agents, and managers, shall not tell any
of their employees not to speak to representatives of the United States
Department of Labor (“U.S. Department of Labor”), or tell any of their
employees to provide untruthful information to the U.S. Department of Labor
regarding the terms or conditions of their employment, or otherwise obstruct or
interfere with any investigative activities of the U.S. Department of Labor.
2. Pursuant to the parties’ agreement that unpaid overtime back wages are owed and shall
be paid to the employees listed on Exhibit A, which is attached to this Consent
Judgment, in the amount of $66,315.52, plus an equal additional amount of liquidated
damages of $66,315.52, and Civil Money Penalties (“CMPs”) in the amount of
$37,368.96 for a total amount of $170,000, it is:
ORDERED that Defendants and all persons acting on their behalf are enjoined and
restrained from withholding the payment of $66,315.52 in unpaid overtime back wages
due Defendants’ employees listed in Exhibit A. Further, Defendants shall pay a total of
$66,315.52 in liquidated damages due Defendants’ employees listed in Exhibit A.
Defendants further agree to pay $37,368.96 in CMPs in connection to the May 27, 2020
letter assessing CMPs in full resolution of any obligation to pay CMPs as stated therein.
The payments of back wages, liquidated damages, and CMPs shall be made by

5

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Defendants in accordance with Paragraph 3 of this Consent Judgment.
3. The provisions of this Consent Judgment relative to back wages payments, liquidated
damages payments, and CMPs payment shall be deemed satisfied, when Defendants
fully comply with the terms of payment set forth below:
a. Within 60 days after issuance of an order entering this Consent Judgment,
Defendants shall make a payment of $132,631.04, representing the combined
back wages and liquidated damages due to current and former employees, as
follows:
i. Go to https://pay.gov/public/form/start/77689032, select “Continue to
Form” and complete the required fields.
1. The “BW Case Number” is Case No. 1868162.
2. The “Date of Assessment” is the date of the Judgment.
b. Within 60 days after issuance of an order entering this Consent Judgment,
Defendants shall make a payment of $37,368.96, representing the amount owed
in CMPs, as follows:
i. Go to https://pay.gov/public/form/start/77734139, select “Continue to
Form” and complete the required fields.
1. The “CMP Case Number” is Case No. 1868162.
2. The “Date of Assessment” is the date of the Judgment.
c. Within 30 days after issuance of an order entering this Consent Judgment,
Defendant shall provide the Secretary with a spreadsheet detailing for each
current and former employee listed on Exhibit A the following information, to
the extent such information is in Defendants’ custody or possession: (i) full

6

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name, (ii) social security number, if such is available, (iii) last known address,
(iv) last known telephone number, (v) last known e-mail address, (vi) gross
back pay amount, (vii) net back pay amount, (viii) federal, state and local
withholdings from gross overtime back wages, (ix) any other legal deductions
and (x) liquidated damages payment amount.
d. In the event Defendants fail to make a payment within ten days of a due date
set forth in Paragraphs 3.a. and 3.b. of this Consent Judgment, then Defendants
consent to the entry of a Writ of Execution, pursuant to Federal Rule of Civil
Procedure 69, to enforce the monetary terms of this Consent Judgment. The
Secretary may seek such a writ at any time after any such failure to make
payment and may represent in filing for such a writ that Defendants consent to
its issuance. Upon request from the Secretary after such failure to make
payment, Defendants agree to furnish a complete and accurate list of their real,
personal, and business property with an estimated value of $2,000.00 or more
and the locations of such property for purposes of the Secretary seeking a Writ
of Execution in accordance with this Paragraph of the Consent Judgment.
4. The Secretary shall distribute the back wages and liquidated damages to the former and
current employees, or to their estates, as set forth in Exhibit A. Any amounts of unpaid
back wages and liquidated damages not distributed within a period of three years from the
date of receipt shall, pursuant to section 16(c) of the Act, be covered into the Treasury of
the United States as miscellaneous receipts. Defendants remain responsible for paying the
employers’ share of any applicable taxes to the appropriate local, state, and federal revenue
authorities.

7

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5. Defendants will work in good faith with the Secretary to identify three dates on which
representatives of the Secretary may enter Defendants’ premises to distribute back wage
and liquidated damages checks to Defendants’ employees. Defendants will, starting at least
seven days before each such agreed upon date alert the employees who are entitled back
wages and liquidated damages under this Consent Judgment of the date, time, and purpose
of visits from the Secretary’s representatives.
6. Defendants, and anyone acting on their behalf, shall not in any way directly or indirectly,
demand, require or accept any of the back wages or liquidated damages from any person
listed on Exhibit A. Defendants, and anyone acting on their behalf, shall not threaten or
imply that adverse action will be taken against any person because of his or her receipt of
funds due under the provisions of this Consent Judgment or the Act. Violation of this
Section may subject Defendants to equitable and legal damages, including punitive
damages and civil contempt.
7. Within 21days after the issuance of an order entering this Consent Judgment, Defendants
shall display in conspicuous places throughout each of their establishments for their
employees’ viewing the poster “Employee Rights Under the Fair Labor Standards Act”
(attached hereto as Exhibit B) in Spanish and English issued by, and available on the
website

of,

the

U.S.

Department

of

Labor

(currently

available

at

https://www.dol.gov/agencies/whd/posters). Within 21 days after the issuance of an order
entering this Consent Judgment, Defendants shall also display in conspicuous places
throughout each of their establishments for their employees’ viewing the factsheet
“Overtime Pay Requirements of the FLSA,” (attached hereto as Exhibit C) in Spanish and
English issued by, and available on the website of, the U.S. Department of Labor. (currently

8

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available

at

https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs23.pdf;

https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs23span.pdf). Defendants
shall maintain these postings or any updates thereto permanently.
8. Within 21 days after issuance of an order entering this Consent Judgment, Defendants shall
display in conspicuous places throughout each of their establishments for their employees’
viewing the “Notice of Employees” document (attached hereto as Exhibit D) in Spanish
and English. Defendants shall maintain these postings for at least 180 days after posting.
9. Defendants shall distribute Spanish and English copies of the flyer entitled “Employee
Rights under the Fair Labor Standards Act,” the factsheet entitled “Overtime Pay
Requirements of the FLSA,” and the “Notice to Employees” to each current employee
within 30 days after the date of entry of this Consent Judgment. Thereafter, Defendants
shall provide the current versions (as issued and updated by the U.S. Department of Labor
and currently available on the Department’s website at the links referenced in the Section)
of the “Employee Rights under the Fair Labor Standards Act” poster and the “Overtime
Pay Requirements of the FLSA” factsheet to any new employee who is hired by Defendants
within three years following entry of this Consent Judgment, at the time of the employee’s
hire.
10. Defendants shall implement the following provisions to ensure their compliance with the
Act:
a. Compliance Monitor. As further set forth below, and for at least three years
following the entry of this Consent Judgment, Defendants shall engage (at their
own expense) a human resources professional, law firm, or other person/entity
(hereinafter referred to as the “Compliance Monitor”) with demonstrable and

9

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bona fide credentials, knowledge, and experience in the requirements of the Fair
Labor Standards Act, including but not limited to the Act’s requirement that
non-exempt employees, are paid premium pay, at a rate of time and one-half
their regular rate, for the hours they work in excess of 40 in a workweek, and
the Act’s requirement that employers maintain accurate hours of their
employees’ work.
i. Within 45 days of the entry of this Consent Judgment, Defendants shall
engage the services of the Compliance Monitor.
ii. The Compliance Monitor shall review Defendants’ pay and record
keeping practices to ensure compliance with the Act, and make
recommendations to Defendants to the extent the Compliance Monitor
determines any of Defendants’ pay or recordkeeping practices are not
in compliance with the Act’s requirements.
iii. For a minimum of three years following the entry of this Judgment,
Defendants will consult with the Compliance Monitor when making any
changes to their timekeeping or pay practices.
iv. Defendants will ensure that the Compliance Monitor has access to
Defendants’ time and pay records and timekeeping systems. Defendants
will also ensure that the Compliance Monitor has the opportunity to
observe the work hours of, and conduct interviews of, Defendants’
employees as the Compliance Monitor deems necessary. Defendants
shall not take any retaliatory action against any employee on account of

10

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the employee’s actual or perceived disclosure to, or cooperation with,
the Compliance Monitor.
b. Timekeeping and Payroll. In consultation with the Compliance Monitor,
Defendants shall implement and utilize an electronic timekeeping system of
Defendants’ choice, in connection to their operations located at the Belmont
Race Track in Elmont, New York (“Belmont”), to ensure that all hours worked
by all non-exempt employees at the Belmont location are recorded accurately.
At all Defendants’ locations outside of Belmont, Defendants, in consultation
with the Compliance Monitor, will implement and utilize a timekeeping system
of Defendants’ choice, electronic or otherwise, to ensure that all hours worked
by all non-exempt employees at each such location are recorded accurately.
i. Defendants shall complete implementation of the timekeeping systems
within 60 days after the date of entry of this Consent Judgment.
ii. Within 30 days after the installation of the timekeeping system or 14
days after employees’ arrival at their place of employment, whichever
is later, and in consultation with the Compliance Monitor, Defendants
at their expense will provide training for all employees on the proper
use of the timekeeping system in languages understandable to the
employees (including but not limited to English and Spanish) and will
pay employees for that training time in compliance with the Act.
iii. Defendants shall not edit or alter employees’ hours worked in the
timekeeping system in any way that does not accurately reflect
employees’ actual hours worked.

11

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iv. Defendants shall not request, require, or otherwise cause employees to
perform work “off the books.” Defendants understand and agree that
non-exempt employees’ work performed for “extra tasks” (e.g.,
laundry; holding horses for a blacksmith or veterinarian, or during
machine therapy; unloading hay; schooling a horse by taking it between
the saddling paddock and the barn; feeding or watering horses; and
related to races, including but not limited to walking horses to and from
the racetrack) is compensable time that must be recorded in the
timekeeping system or otherwise accurately recorded consistent with
Paragraph 8(b) of this Consent Judgment and the Act.
v. If employees perform any work for Defendants not recorded in the
timekeeping system, Defendants shall ensure (pursuant to practices
devised in consultation with the Compliance Monitor) that such time,
including daily start and end times, is recorded in accordance with the
Act and 29 C.F.R. Part 516, and is compensated by Defendants in
accordance with the Act.
vi. In the event that the electronic timekeeping system Defendants use at
applicable locations is temporarily nonoperational, or that employees
perform work for Defendants at locations where no timekeeping system
is installed (e.g., during employee travel), in consultation with the
Compliance Monitor, Defendants shall use other means for keeping
accurate records of all hours worked by their employees in accordance
with the Act and 29 C.F.R. Part 516.

12

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vii. Pursuant to practices devised in consultation with the Compliance
Monitor, Defendants shall ensure that they pay wages to non-exempt
employees based on the hours they work during each applicable pay
period, including any applicable overtime premium, in accordance with
the Act and its implementing regulations, including but not limited to
29 C.F.R. Part 775 and Part 778.
11. Defendants neither admit nor deny the allegations of violations set forth in the Complaint.
12. Neither the commencement of this action nor the provisions of this Consent Judgment shall
in any way affect, determine, or prejudice any and all legal rights of any employees of
Defendants not listed on Exhibit A to this Consent Judgment, be they current or former
employees, to file any action against defendants under section 16(b) of the Act or likewise
for any current or former employee listed on Exhibit A of this Consent Judgment to file
any action against Defendants under section 16(b) of the Act for any violations alleged to
have occurred after February 26, 2020.
13. Pursuant to 29 U.S.C. § 216(c), the right provided by 29 U.S.C. § 216(b) to the employees
listed on Exhibit A to this Consent Judgment to bring an action against defendants by or
on behalf of any employee to recover the liability specified in the first sentence of 29 U.S.C.
§ 216(b) and of any employee listed on Exhibit A to become a party plaintiff to any such
action for the time period from December 28, 2017 through February 26, 2020 terminated
upon the filing of the Complaint by the Secretary in this Action. Nothing in this paragraph
is intended to alter the rights of any person as set forth in 29 U.S.C. §§ 216-217.
14. Each party will bear its own fees and other expenses incurred by such party in connection
with any stage of this proceeding.

13

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15. The Court retains jurisdiction over this matter for the purposes of enforcing this Consent
Judgment.

14

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SO ORDERED:
January 7,

DATED:

, 2022

~ New York
Central Islip,

s/ Denis R. Hurley
HONORABLE DENIS R. HURLEY
UNITED STATES DISTRICT JUDGE

Defendants have appeared by the undersigned counsel and hereby consent to the entry of
this Judgment.

BY:
D

GARGAN
GAN STABLES CORP.

BY:

~
AARON SOLOMON, ESQ.
EDWARD GRIMMETT, ESQ.
Kaufman Dolowich Voluck LLP
135 Crossways Park Drive, Suite 201
Woodbury, NY 11797
Phone: [phone]
[e-mail]
Attorney for Defendants

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 16 of 28 PageID #: 102
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15

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 17 of 28 PageID #: 103

Secretary v. Gargan Stables et ano., 21-cv-03390-DRH-JMW
Consent Judgment – Exhibit A
Name
Aguilar, Agustin
Alfaro, Adrian
Alfaro, Lucia
Alfaro, Reynaldo
Alvarez, Elio
Amezcua, Alfonso
Amezcua, Antonio
Amezcua, Jose
Andrade, Fernando
Andrade, Pamela
Carmona, Carlos
Cruz, Carlos
Cruz, Rina
Delgado, Juan
Delgado, Raymond
Diego, Marinero
Fernandez, Ramiro
Fragoso, Melquiades
Garcia, Braulio
Garcia, Ramon
Gonsales, Nanci
Gonzalez, Armando
Guerrero, Miriam
Gutierrez, Maria
Gutierrez, Roxana
Gutierrez, Sergio
Lopez, Victor
Martinez, Maria
Martinez, Miguel
Martinez, Rogelio
Medrano, Jose
Molina, Valdemar
Munoz, Merari
Nava, Raul
Nolasco, Antonio
Olarte, Ruperto
Olivares, Rosario
Ortiz, Jose

Back Wages
Due
$1,064.39
$1,522.33
$561.85
$3,909.34
$3,974.66
$1,197.25
$1,823.17
$2,567.10
$7,209.06
$1,647.27
$47.37
$158.99
$783.99
$2,540.68
$197.71
$48.00
$141.97
$621.71
$714.54
$1,441.78
$1,608.16
$41.22
$480.60
$898.66
$1,360.36
$3,016.42
$1,887.48
$2,763.52
$106.59
$405.85
$6,159.07
$1,071.03
$417.48
$141.75
$44.06
$5,608.10
$315.26
$48.82

Liquidated
Damages Due
$1,064.39
$1,522.33
$561.85
$3,909.34
$3,974.66
$1,197.25
$1,823.17
$2,567.10
$7,209.06
$1,647.27
$47.37
$158.99
$783.99
$2,540.68
$197.71
$48.00
$141.97
$621.71
$714.54
$1,441.78
$1,608.16
$41.22
$480.60
$898.66
$1,360.36
$3,016.42
$1,887.48
$2,763.52
$106.59
$405.85
$6,159.07
$1,071.03
$417.48
$141.75
$44.06
$5,608.10
$315.26
$48.82

Total Amount
Due
$2,128.78
$3,044.66
$1,123.70
$7,818.68
$7,949.32
$2,394.50
$3,646.34
$5,134.20
$14,418.12
$3,294.54
$94.74
$317.98
$1,567.98
$5,081.36
$395.42
$96.00
$283.94
$1,243.42
$1,429.08
$2,883.56
$3,216.32
$82.44
$961.20
$1,797.32
$2,720.72
$6,032.84
$3,774.96
$5,527.04
$213.18
$811.70
$12,318.14
$2,142.06
$834.96
$283.50
$88.12
$11,216.20
$630.52
$97.64

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 18 of 28 PageID #: 104

Palacios, Maria
Pena, Jorge
Perez, Rigoberto
Ramos, Luiz
Ramos, Maria
Rivas, Angel
Rivas, Fabian
Rodriguez, Eduardo
Rodriguez, Wesley
Salazar, Julio
Santos, Marilin
Vasquez, Rommel
Venegas, Erica
Zuhuacaltzi, Daniel
Total Due:

$328.93
$48.06
$1,184.82
$695.89
$410.58
$270.30
$2,077.36
$1,167.63
$309.44
$59.22
$287.39
$139.68
$27.38
$761.25
$66,315.52

$328.93
$48.06
$1,184.82
$695.89
$410.58
$270.30
$2,077.36
$1,167.63
$309.44
$59.22
$287.39
$139.68
$27.38
$761.25
$66,315.52

$657.86
$96.12
$2,369.64
$1,391.78
$821.16
$540.60
$4,154.72
$2,335.26
$618.88
$118.44
$574.78
$279.36
$54.76
$1,522.50
$132,631.04

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 19 of 28 PageID #: 105

Secretary v. Gargan Stables et ano., 21-cv-03390-DRH-JMW
Consent Judgment – Exhibit B

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 20 of 28 PageID #: 106

UNDER THE FAIR LABOR STANDARDS ACT

The law requires employers to display this poster where employees can readily see it.

OVERTIME PAY

At least 1½ times the regular rate of pay for all hours worked over 40 in a workweek.

CHILD LABOR

An employee must be at least 16 years old to work in most non-farm jobs and at least 18 to work
in non-farm jobs declared hazardous by the Secretary of Labor. Youths 14 and 15 years old may
work outside school hours in various non-manufacturing, non-mining, non-hazardous jobs with
certain work hours restrictions. Different rules apply in agricultural employment.

TIP CREDIT

Employers of "tipped employees" who meet certain conditions may claim a partial wage credit
based on tips received by their employees. Employers must pay tipped employees a cash wage
of at least $2.13 per hour if they claim a tip credit against their minimum wage obligation. If an
employee's tips combined with the employer's cash wage of at least $2.13 per hour do not equal
the minimum hourly wage, the employer must make up the difference.

NURSING
MOTHERS

The FLSA requires employers to provide reasonable break time for a nursing mother employee
who is subject to the FLSA's overtime requirements in order for the employee to express breast
milk for her nursing child for one year after the child's birth each time such employee has a need
to express breast milk. Employers are also required to provide a place, other than a bathroom,
that is shielded from view and free from intrusion from coworkers and the public, which may be
used by the employee to express breast milk.

ENFORCEMENT

The Department has authority to recover back wages and an equal amount in liquidated damages
in instances of minimum wage, overtime, and other violations. The Department may litigate
and/or recommend criminal prosecution. Employers may be assessed civil money penalties for
each willful or repeated violation of the minimum wage or overtime pay provisions of the law.
Civil money penalties may also be assessed for violations of the FLSA's child labor provisions.
Heightened civil money penalties may be assessed for each child labor violation that results in
the death or serious injury of any minor employee, and such assessments may be doubled when
the violations are determined to be willful or repeated. The law also prohibits retaliating against or
discharging workers who file a complaint or participate in any proceeding under the FLSA.

ADDITIONAL
INFORMATION

• Certain occupations and establishments are exempt from the minimum wage, and/or overtime
pay provisions.
• Special provisions apply to workers in American Samoa, the Commonwealth of the Northern
Mariana Islands, and the Commonwealth of Puerto Rico.
• Some state laws provide greater employee protections; employers must comply with both.
• Some employers incorrectly classify workers as "independent contractors" when they are
actually employees under the FLSA. It is important to know the difference between the two
because employees (unless exempt) are entitled to the FLSA's minimum wage and overtime
pay protections and correctly classified independent contractors are not.
• Certain full-time students, student learners, apprentices, and workers with disabilities may be
paid less than the minimum wage under special certificates issued by the Department of Labor.

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 21 of 28 PageID #: 107

DERECHOS DE LOS TRABAJADORES
BAJO

LA LEY DE NQRMAS JUSTA$ DE JRABAJQ(FLSA-siglaseningles)

La ley exige que los empleadores exhiban este cartel donde sea visible por los empleados.
PAGO POR
SOBRETIEMPO

Por lo menos tiempo y medic (1 ½) de la tasa regular de page por todas las horas trabajadas en exceso de 40
en una semana laboral.

TRABAJO DE
MENORES DE
EDAD

El empleado tiene que tener por lo menos 16 anos para trabajar en la mayorfa de los trabajos no agrfcolas y
por lo menos 18 anos para trabajar en los trabajos no agrfcolas declarados peligrosos por la Secretarfa de
Trabajo. Los menores de 14 y 15 anos pueden trabajar fuera del horario escolar en varias ocupaciones que no
sean de manufactura, de minerfa, y que no sean peligrosas con ciertas restricciones al horario de trabajo. Se
aplican distintos reglamentos al empleo agrfcola.

CREDITO POR
PROPINAS

Los empleadores de "empleados que reciben propinas" que cumplan con ciertas condiciones, pueden
reclamar un credito de salario parcial basado en las propinas recibidas por sus empleados. Los empleadores
les tienen que pagar a los empleados que reciben propinas un salario en efectivo de por lo menos $2.13
por hora si ellos rec Iam an un credito de propinas contra su obligacion de pagar el salario mfnimo. Si las
propinas recibidas por el empleado combinadas con el salario en efectivo de por lo menos $2.13 por hora del
empleador no equivalen al salario mfnimo por hora, el empleador tiene que compensar la diferencia.

MADRES
LACTANTES

La FLSA exige que los empleadores le proporcionen un tiempo de descanso razonable a la empleada que sea
madre lactante y que este sujeta a los requisites de sobretiempo de la FLSA, para que la empleada se extraiga
leche manualmente para su nine lactante por un ano despues del nacimiento del nine, cada vez que dicha
empleada tenga la necesidad de extraerse leche. A los empleadores tambien se les exige que proporcionen
un lugar, que no sea un bane, protegido de la vista de los demas y libre de la intrusion de los companeros de
trabajo y del publico, el cual pueda ser utilizado por la empleada para extraerse leche.

CUMPLIMIENTO

El Departamento tiene la autoridad de recuperar salaries retroactivos y una cantidad igual en danos y
perjuicios en cases de incumplimientos con el salario mfnimo, sobretiempo y otros incumplimientos. El
Departamento puede litigar y/o recomendar un enjuiciamiento criminal. A los empleadores se les pueden
imponer sanciones pecuniarias civiles por cada incumplimiento deliberado o repetido de las disposiciones
de la ley del page del salario mfnimo o de sobretiempo. Tambien se pueden imponer sanciones pecuniarias
civiles por incumplimiento con las disposiciones de la FLSA sobre el trabajo de menores de edad. Ademas,
se pueden imponer sanciones pecuniarias civiles incrementadas por cada incumplimiento con el trabajo de
menores que resulte en la muerte o una lesion seria de un empleado menor de edad, y tales avaluaciones
pueden duplicarse cuando se determina que los incumplimientos fueron deliberados o repetidos. La ley
tambien prohfbe tomar represalias o despedir a los trabajadores que presenten una queja o que participen en
cualquier proceso bajo la FLSA.

INFORMACION
ADICIONAL

• Ciertas ocupaciones y ciertos establecimientos estan exentos de las disposiciones del salario mfnimo, y/o
de las disposiciones del page de sobretiempo.
• Se aplican disposiciones especiales a trabajadores de Samoa Americana, del Estado Libre Asociado de las
Islas Marianas del Norte y del Estado Libre Asociado de Puerto Rico.
• Algunas leyes estatales proporcionan protecciones mas amplias a los trabajadores; los empleadores tienen
que cumplir con ambas.
• Algunos empleadores clasifican incorrectamente a sus trabajadores come "contratistas independientes"
cuando en realidad son empleados segun la FLSA. Es importante conocer la diferencia entre los dos porque
los empleados (a menos que esten exentos) tienen derecho a las protecciones del salario mfnimo y del
page de sobretiempo bajo la FLSA y los contratistas correctamente clasificados come independientes no lo
tienen.
• A ciertos estudiantes de tiempo complete, estudiantes alumnos, aprendices, y trabajadores con
discapacidades se les puede pagar menos que el salario mfnimo bajo certificados especiales expedidos por
el Departamento de Trabajo.

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 22 of 28 PageID #: 108

Secretary v. Gargan Stables et ano., 21-cv-03390-DRH-JMW
Consent Judgment – Exhibit C

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 23 of 28 PageID #: 109

U.S. Department of Labor
Wage and Hour Division

:IIIHD
U.S. W.~ge and Hour D ivision

(Revised October 2019)

Fact Sheet #23: Overtime Pay Requirements of the FLSA
This fact sheet provides general info1mation concerning the application of the ove1iime pay provisions of the
FLSA.

Characteristics
An employer who requires or pe1mits an employee to work ove1iime is generally required to pay the employee
premium pay for such ove1iime work.

Requirements
Unless specifically exempted, employees covered by the Act must receive ove1iime pay for hours worked in
excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit
in the Act on the number of hours employees aged 16 and older may work in any workweek. The Act does not
require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, as such.
The Act applies on a workweek basis. An employee's workweek is a fixed and regularly recmTing period of 168
hours -- seven consecutive 24-hour periods. It need not coincide with the calendar week, but may begin on any
day and at any hour of the day. Different workweeks may be established for different employees or groups of
employees. Averaging of hours over two or more weeks is not permitted. Normally, overtime pay earned in a
paii icular workweek must be paid on the regulai· pay day for the pay period in which the wages were eain ed.
The regular rate of pay cannot be less than the minimum wage. The regular rate includes all remuneration for
employment except ce1iain payments excluded by the Act itself. Payments which ai·e not paii of the regulai· rate
include pay for expenses incuned on the employer's behalf, premium payments for ove1 ime work or the trne
i
premiums paid for work on Saturdays, Sundays, and holidays, discretionaiy bonuses, gifts and payments in the
nature of gifts on special occasions, and payments for occasional periods when no work is perfo1med due to
vacation, holidays, or illness.
Eainings may be dete1mined on a piece-rate, salaiy , commission, or some other basis, but in all such cases the
ove1 ime pay due must be computed on the basis of the average hourly rate derived from such eainings. This is
i
calculated by dividing the total pay for employment (except for the statuto1y exclusions noted above) in any
workweek by the total number of hours actually worked.
Where an employee in a single workweek works at two or more different types of work for which different
straight-time rates have been established, the regular rate for that week is the weighted average of such rates.
That is, the earnings from all such rates are added together and this total is then divided by the total number of
hours worked at all jobs. In addition, section 7(g)(2) of the FLSA allows, under specified conditions, the
computation of ove1 ime pay based on one and one-half times the hourly rate in effect when the ove1iime work
i
is perfo1med. The requirements for computing ove1iime pay pursuant to section 7(g)(2) ai·e prescribed in 29
CFR 778.415 through 778.421.

FS 23

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 24 of 28 PageID #: 110
Where non-cash payments are made to employees in the fo1m of goods or facilities, the reasonable cost to the
employer or fair value of such goods or facilities must be included in the regular rate.

Typical Problems
Fixed Sum for Vaiying Amounts of Overtime: A lump sum paid for work perfo1med during overtime hours
with out regai·d to the number of overtime hours worked does not qualify as an overtime premium even though
the amount of money paid is equal to or greater than the sum owed on a per-hour basis. For example, no pa1t of
a flat sum of $180 to employees who work ove1time on Sunday will qualify as an ove1 ime premium, even
t
though the employees' straight-time rate is $12.00 an hour and the employees always work less than 10 hours on
Sunday. Similai·ly, where an agreement provides for 6 hours pay at $13.00 an hour regai·dless of the time
actually spent for work on a job perfo1med during ove1 ime hours, the entire $78.00 must be included in
t
dete1mining the employees' regular rate.
Salaiy for Workweek Exceeding 40 Hours: A fixed salaiy for a regulai· workweek longer than 40 hours does not
dischai·ge FLSA statuto1 obligations. For example, an employee may be hired to work a 45 hour workweek for
y
a weekly salaiy of $405. In this instance the regulai· rate is obtained by dividing the $405 straight-time salaiy by
45 hours, resulting in a regular rate of $9 .00. The employee is then due additional ove1time computed by
multiplying the 5 ove1time hours by one-half the regular rate of pay ($4.50 x 5 = $22.50).
Ove1time Pay May Not Be Waived: The ove1 ime requirement may not be waived by agreement between the
t
employer and employees. An agreement that only 8 hours a day or only 40 hours a week will be counted as
working time also fails the test of FLSA complian ce. An announcement by the employer that no ove1 ime work
t
will be pe1mitted, or that ove1 ime work will not be paid for unless authorized in advance, also will not impair
t
the employee's right to compensation for compensable oveitime hours that ai·e worked.

Where to Obtain Additional Information
For additional information, visit our Wage and Hour Division Website: http://www.wagehour.dol.gov
and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-8664USWAGE (1-866-487-9243).
This publication is for general info1mation and is not to be considered in the same light as official statements of
position contained in the regulations.

U.S. Department of Labor
Frances Perkins Building
200 Constitution A venue, NW
Washington, DC 202 10

1-866-4-USWAGE
TTY: 1-866-487-9243
Contact Us

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 25 of 28 PageID #: 111

Departamento De Trabajo de EEUU
Division de Horns y Salarios

:IIIHD
U.S. W.~ge and Hour D ivision

(Octubre 2007)

Hoja de datos #23: Requisitos para el pago de sobretiempo bajo la Ley de Normas
Razonables de Trabajo
Esta ficha tecnica ofrece infonnaci6n general con respecto a la aplicaci6n de las disposiciones de la Ley de
Nonnas Razonables de Trabajo (FLSA) para el pago de sobretiempo.

Caracteristicas
Un empleador que requiere o pennite que un empleado trnbaje sobretiempo generalmente debe pagar al
emp leado una prima por el trnbajo de sobretiempo.

Requisitos
A menos que esten expresamente exentos, los empleados bajo el alcance de la Ley deben recibir el pago de
sobretiempo a una tasa no inferior a tiempo y medio de la tasa regular de pago del trnbajador por cada horn
trabajada en exceso de 40 en una semana laboral. La Ley no establece limitaciones con respecto al numero de
horns que los empleados mayores de 16 afios pueden trabajar en una seman a laboral. La Ley no requiere el pago
de sobretiempo por trnbajar los sabados, domingos, feriados o dias de descanso como tales.
La Ley se aplica por seman a laboral. La semana laboral de un empelado es un periodo fijo y regulannente
recunente de 168 horns, siete pe1
iodos consecutivos de 24 horns. No es necesario que coincida con una semana
calendario, sino que puede comenzar en cualquier dia ya cualquier horn. Se pueden establecer diferentes
semanas laborales para diferentes empleados o grnpos de empleados. No se pennite un promedio de horns entre
dos o mas semanas. Por lo general, el pago de sobretiempo devengado en una semana en paiiicular debe
realizai·se en el dia de pago habitual para el periodo en el cual fue ganado.
La tasa regulai· de pago no puede ser inferior al sal ai·io minimo. La tasa regulai· incluye toda remuneraci6n por
el empleo, excepto cie1 pagos excluidos por la Ley rnisma. Los pagos que no son paiie de la tasa regular
ios
incluyen el pago de gastos incmTidos en representaci6n del empleador, pagos de primas por sobtretiempo
trabajado o las primas verdaderas pagadas por el trabajo en dias sabados, domingos y feriados, bonos
discrecionales, obsequios y pagos en fonna de obsequio en ocasiones especiales, y pagos por periodos
ocasionales cuando nose realiza trabajo debido a vacaciones, feriados o enfe1m edad.
Las gan ancias pueden dete1minarse en base a destajo o por pieza, salario, c01nisi6n u otros criterios, pero en
todos los casos el pago de sobretiempo adeudado debera computai·se en base a la tasa por horn promedio
derivada de tales ganancias. Esto se calcula dividiendo el pago total por empleo (con la excepci6n de las
exclusiones nombradas por ley mencionadas anterio1mente) en cualquier seman a laboral por el numero total de
horns realmente trabajadas.
Cuando un empleado en una sola semana laboral realiza dos o mas tipos diferentes de trabajo pai·a los cuales se
han establecido diferentes tasas regulares de pago, la tasa regulai· pai·a esa semana se dete1minara calculan do el
promedio de tales tasas. Es decir, las ganan cias de tales tasas se suman y el total se divide por el numero total de
horns trabajadas en todas las funciones. Adicionalmente, el aiiiculo 7(g)(2) de la FLSA pe1mite, bajo cie1
ias
condiciones, el calculo del pago de sobretiempo basado en tiempo y medio de la tasa de pago vigente en el
FS 23-SP

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 26 of 28 PageID #: 112
momento de trnbajarse el sobretiempo. Los requisitos para el calculo del pago de horas extrn segun el ar ticulo
7(g)(2) figuran en 29 CFR 778.415 hasta 778.421.
Cuando se realizan pagos que no sean en efectivo, en fo1ma de mercade1 o servicios, el costo razonable para
ias
el empleador o el valor de tales bienes o servicios debe incluirse en la tasa regular.
Problemas tipicos
Suma fija para cantidades variables de sobretiempo: un monto por trabajo realizado durante las horas de
sobretiempo sin tener en cuenta el numero de horas de sobretiempo trabajadas no se considera una prima de
sobretiempo aunque la cantidad de dinero pagada sea igual o mayor a la suma adeudada basada en la tasa por
hora. Por ejemplo, ninguna parte de un monto de $180 para empleados que trabajan sobretiempo un domingo se
considerani como una prima de sobretiempo, aunque la tasa por hora de los empleados sea de $12.00 la hora y
los empleados siempre trabajen menos de 10 horas el domingo. Del mismo modo, cuando un acuerdo establece
un pago de 6 horas a $13.00 por hora independientemente del tiempo real dedicado al trabajo realizado durante
las horas de sobretiempo, la totalidad de los $78.00 debe incluirse para detenninar la tasa regular de los
empleados.
Salario para la semana laboral que excede las 40 horas: un salario fij o por una semana laboral regular que
exceda las 40 horas no representa una exencion de las obligaciones establecidas en la FLSA. Por ejemplo, un
empleado puede ser contratado para trabajar 45 horas por semana laboral por un salario semanal de $405. En
este caso la tasa regular que se obtiene dividiendo los $405 del salario directo por 45 horas es de $9.00.
Entonces al empleado se le adeuda el pago de sobretiempo adicional calculado multiplican do las 5 horas de
sobretiempo por la mitad de la tasa regular de pago ($4.50 x 5 = $22.50).
Nose puede renunciar al pago de sobretiempo: nose puede renunciar al requisito de sobretiempo por un
acuerdo entre empleador y empleados. Un acuerdo que establezca que solo se computaran como horas
trabajadas 8 horas por dia o solo 40 horas a la semana tampoco cumple con la Ley de No1mas Razonables de
Trabajo. Un anuncio por parte del empleador estableciendo que nose pe1mitira trabajar sobretiempo, o que el
sobretiempo no se pagara a menos que sea autorizado por adelantado, tampoco cercenara el derecho del
trabajador a una retribucion por las horas de sobretiempo trabajadas.
Donde obtener informacion adicional
Para mayor informacion, visite nuestro sitio en la Red de Horas y Salarios: http://www.wagehour.dol.gov
o comuniquese Uamando a nuestro servicio gratuito de informacion y asistencia Horas y Salarios,
disponible de 8 a.m. a 5 p.m. en su zona horaria, 1-866-4USWAGE (1-866-487-9243).
Esta. publicacion tiene por objeto brindar infonnacion general y no debera ser considerada del mismo tenor que
las declaraciones oficiales de postura contenidas en los reglamentos. La presente ficha es paii e de una serie de
fichas tecnicas que presentan los diferentes programas del Depaiiamento de Trabajo de los EE. UU. El objetivo
es brindai· unicamente una descripcion general y no tiene validez juridica.
U.S. Department of Labor
Frances Perkins Building
200 Constitution A venue, NW
Washington, DC 202 10

1-866-4-USWAGE
TTY: 1-877-889-5627
Comuniguese con nosotros

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 27 of 28 PageID #: 113

Secretary v. Gargan Stables et ano., 21-cv-03390-DRH-JMW
Consent Judgment – Exhibit D
Notice to Employees
Danny Gargan and Gargan Stables Corp. (together, “Defendants”) have settled a lawsuit with the
U.S. Department of Labor and entered into a settlement agreement pertaining to their employees.
The settlement agreement has been approved by a judge. Defendants neither admitted nor denied
the allegations of violations made by the U.S. Department of Labor.
Under the settlement agreement, Defendants will pay the U.S. Department of Labor back wages
for certain current and former employees, including hot walkers and groomers, who worked for
the Defendants December 2017 through February 2020, and the Department of Labor will
distribute the back wages directly to the employees.
You have the right to receive the full amount of any back wages (after taxes) and liquidated
damages you are owed. It is against the law for Defendants or any person acting on their behalf to
ask for this money back or ask you to give up your current or future wages to get money from the
settlement.
You are protected by the Fair Labor Standards Act (FLSA), and it is also against the law for your
employer to fire you, report you to immigration, retaliate against you in any way, or threaten to do
any of these things for accepting settlement money or refusing to return any money paid to you as
part of the settlement with the U.S. Department of Labor. Your employer is also prohibited from
retaliating against you for providing information to the U.S. Department of Labor and/or
complaining about not receiving minimum wage or overtime for the hours that you worked. Your
employer must pay employees for all hours worked, including overtime for all hours worked over
40 in a workweek at a rate of at least 1.5 times the employee’s regular rate of pay.
If you are an employee and are not paid for all of your hours worked, are not paid minimum wage
for all the hours you work, are not paid overtime, if you have been asked to return your settlement
money, if you have been retaliated against, or if you need to update your contact information,
please call the U.S. Department of Labor at [phone]. Your name will be kept confidential
to the maximum extent permitted by law.

Case 2:21-cv-03390-DRH-JMW Document 20 Filed 01/07/22 Page 28 of 28 PageID #: 114

Secretary v. Gargan Stables et ano., 21-cv-03390-DRH-JMW
Consent Judgment – Exhibit D
Aviso a los empleados
Danny Gargan y Gargan Stables Corp. (juntos, los "Demandados") resolvieron una demanda con
el Departamento de Trabajo de EE. UU. y entrarón en un acuerdo de solución con sus empleados.
El acuerdo de solución ha sido aprobado por un juez. Los acusados no admitieron ni negaron las
acusaciones de violaciones hechas por el Departamento de Trabajo de EE. UU.
Según el acuerdo de solución, los Demandados pagarán al Departamento de Trabajo de EE. UU.
los salarios atrasados de ciertos empleados actuales y anteriores, incluidos los caminantes y
peluqueros, que trabajaron para los Demandados desde Diciembre de 2017 hasta Febrero de 2020,
y el Departamento de Trabajo distribuirá los salarios atrasados directamente a los empleados.
Usted tiene derecho a recibir el monto total de los salarios atrasados (después de impuestos) y los
daños liquidados que se le adeuden. Es contra la ley que los Demandados o cualquier persona que
actúe en su nombre soliciten la devolución de este dinero o le pidan que renuncie a su salario actual
o futuro para obtener dinero del acuerdo.
Está protegido por la Ley de Normas Justas de Trabajo (FLSA), y también es contra la ley que su
empleador lo despida, lo informe a inmigración, tome represalias en su contra de cualquier manera
o lo amenace con hacer cualquiera de estas cosas por aceptar un acuerdo de dinero o negarse a
devolver cualquier dinero que se le haya pagado como parte del acuerdo con el Departamento de
Trabajo de EE. UU. Su empleador también tiene prohibido tomar represalias contra usted por
proporcionar información al Departamento de Trabajo de los EE. UU. y/o quejarse por no recibir
el salario mínimo o el sobretiempo por las horas que trabajó. Su empleador debe pagar a los
empleados por todas las horas trabajadas, incluidas sobretiempo, a tiempo y medio de la tasa
regular por todas las horas trabajadas en exceso de 40 horas en una semana laboral.
Si eres un empleado y no se le paga por todas sus horas trabajadas, no se le paga el salario mínimo
por todas las horas que trabaja, no se le pagan horas extras, si se le ha pedido que devuelva el
dinero de su liquidación, si se han tomado represalias contra usted, o si necesita actualizar su
información de contacto, por favor llame al Departamento de Trabajo de EE. UU. al (866) 4879243. Su nombre se mantendrá confidencial en la máxima medida permitida por la ley.