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Hilda L. Solis, Secretary of Labor v. Ismael C. Covarrubias

June 21, 2012

HILDA L. SOLIS, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR, PLAINTIFF,
v.
ISMAEL C. COVARRUBIAS, JR., DBA KING CONSTRUCTION; ISMAEL C. COVARRUBIAS, JR., INDIVIDUALLY AND AS MANAGING AGENT OF ISMAEL C. COVARRUBIAS, JR., DBA KING CONSTRUCTION; FREDERICK MENDEZ, INDIVIDUALLY AND AS MANAGING AGENT OF ISMAEL C. COVARRUBIAS, JR. DBA KING CONSTRUCTION, DEFENDANTS.



JS-6

CONSENT JUDGMENT

Plaintiff Hilda L. Solis, Secretary of Labor, United States Department of Labor ("Secretary") and defendants Ismael C. Covarrubias, Jr., DBA King Construction ("King Construction"), Ismael C. Covarrubias, Jr., individually and as managing agent of Ismael C. Covarrubias, Jr., DBA King Construction, and Frederick Mendez, individually and as managing agent of Ismael C. Covarrubias, Jr., DBA King Construction (collectively, "Defendants"), have agreed to resolve the matters in controversy in this civil action and consent to the entry of this Consent Judgment in accordance herewith:

A. The Secretary has filed a Complaint alleging that Defendants violated provisions of Sections 15(a)(2) and 15(a)(5) of the Fair Labor Standards Act of 1938, as amended ("FLSA"), 29 U.S.C. §§ 215(a)(2) and 215(a)(5).

B. Defendants have appeared and (after having been advised by Plaintiff of the right to retain the assistance of defense counsel) acknowledge receipt of a copy of the Secretary's Complaint.

C. Defendants waive issuance and service of process and waive answer and any defenses to the Secretary's Complaint.

D. The Secretary and Defendants waive Findings of Fact and Conclusions of Law, and agree to the entry of this Consent Judgment in settlement of this action, without further contest.

E. Defendants admit that the Court has jurisdiction over the parties and subject matter of this civil action and that venue lies in the Central District of California.

It is therefore, upon motion of the attorneys for the Secretary, and for cause shown,

ORDERED, ADJUDGED, AND DECREED that the Defendants, their officers, agents, servants, and employees and those persons in active concert or participation with them who receive actual notice of this order (by personal service or otherwise) be, and they hereby are, permanently enjoined and restrained from violating the provisions of Sections 15(a)(2) and 15(a)(5) of the FLSA, 29 U.S.C. §§ 215(a)(2) and 215(a)(5), in any of the following manners:

1. Defendants shall not, contrary to FLSA § 6, 29 U.S.C. § 206, pay any employee who in any workweek is engaged in commerce or the production of goods for commerce, within the meaning of the FLSA, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of FLSA § 3(s), wages at a rate less than $7.25 an hour (or less than the applicable minimum rate as may hereafter be established by amendment to the FLSA).

2. Defendants shall not, contrary to FLSA § 7, 29 U.S.C. § 207, employ any employee who in any workweek is engaged in commerce or in the production of goods for commerce, within the meaning of the FLSA, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, within the meaning of FLSA § 3(s), for any workweek longer than 40 hours unless such employee receives compensation for his or her employment in excess of 40 hours in such workweek at a rate not less than one and one-half times the regular rate at which he or she is employed.

3. Defendants shall not fail to make, keep, make available to authorized agents of the Secretary for inspection, transcription, and/or copying, upon their demand for such access, and preserve records of employees and of the wages, hours, and other conditions and practices of employment maintained, as prescribed by regulations issued, and from time to time amended, pursuant to FLSA §§ 11(c) and 15(a)(5), 29 U.S.C. §§ 211(c) and 215(a)(5) and the implementing regulations found in Title 29, Code of Federal Regulations, Part 516.

4. Defendants, jointly and severally, shall not continue to withhold the payment of $348,242.63 in minimum wage and overtime pay hereby found to be due under the FLSA to 29 employees, as a result of their employment by defendants during the period of October 26, 2009 through December 17, 2011 as set forth in the attached Exhibit 1, showing the name of each employee and listing on the same line the gross backwage amount due the employee and the period covered by the Consent Judgment.

5. Defendants shall pay the backwages, plus 1% annual interest on the outstanding balance starting from May 24, 2012 until the backwages required under this Judgment are paid in full, as set forth in paragraph 6 below (and as set forth in attached Exhibit 2). Each payment shall be made by a certified or cashier's check or money order with the firm name and "BWs Interest" written on each, payable to the order of the "Wage & Hour Div., Labor," and delivered to the U.S. Department of ...


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