Superior Forestry Case ID: 1563677 FLSA NARRATIVE Superior Forestry Service, Inc. 36462 Hwy 27 No./ P.O. Box 25 Tilly, AR 72679 Phone: 870-496-2442 EIN: 71-0652136 Case ID: 1563677 COVERAGE MODO: Dallas RO is the MODO. Subject is a FLC. MODO instructions are to handle locally and if violations then assess and advise the MODO. See exh. D:1. History: Multiple case history as per MODO. Mainly no violation cases. This file is a DO. 7E investigation and part of the FY2010 Reforestation Initiative of the Jax EX 4 John Foley (East Coast Operations Manager) stipulated that firm's ADV is . FLSA section 3(s)(1) enterprise coverage applies to the firm. Individual coverage also applies to field employees as they are handling trees that are eventually sold for wood and pulp and are sold in interstate commerce Firm employs workers throughout the USA. For subject file the investigation was limited to the activities of a crew of 15 planting pine trees in Northern FL for landowner (AGER) Suwannee River Management District (see related file 1569435). EXEMPTIONS Section 13(a)(1): All employees on the crew are paid either hourly or piece-rate. The firm did not claim any exemptions under section 13(a)(1). Page 1 Superior Forestry Case ID: 1563677 Section 13(a)(6)(A) is not applicable since the firm exceeds 500 man-days of labor for at least one quarter in the preceding calendar year. Section 13(b)(1) does not apply to any employee. Any out of state travel done in vehicles of less than 10,000 pounds and vehicles transporting less than 15 passengers. Section 13(b)(12) is not applicable since reforestation is not considered agriculture under the FLSA. Superior Forestry Service, Inc. Case ID: 1563677 STATUS OF COMPLIANCE This is a Directed investigation and part of the JAX DO Ag Reforestation initiative. Concurrent H-2B, MSPA and OSHA FS investigations were conducted. Section 6: No violations. All employees received at least $10.22/hour and any piece-rate earnings exceeded that amount as well. Section 7: No violations found. Workers rarely exceed 40 hours/week but are paid time and a half if they do. Section 11: No violations. Based on all available evidence the firm keeps all required records and complies with posting requirements. Section 12: No violations. No evidence that employer hires anyone under the age of 18. FMLA: Subject firm does have over 50 employees but field employees are ineligible since they are temporary H-2B workers and never work over 1250 hours in any single calendar year. DISPOSITION Page 2 Superior Forestry Case ID: 1563677 On 3/11/10 WHI 7C held a final conference via telcon with William Ioup (President). Ioup (ER) was advised that investigation covered the No. Florida crew operation only. The FLSA requirements and provisions were reviewed. ER was advised that based on all available information no violations of the FLSA were found. ER promised continued compliance in the future. Publications Provided: FLSA HRG (as per SBRIFA requirements). Recommendations As no violations were substantiated no further action is recommended. Report findings for the JAX DO Ag initiative, and close case administratively. 7C WHI 03/11/10 H-2B NARRATIVE Superior Forestry Service, Inc. 36462 Hwy 27 No./ P.O. Box 25 Tilly, AR 72679 Phone: 870-496-2442 EIN: 71-0652136 Case ID: 1563677 COVERAGE MODO: Dallas RO is the MODO. Subject is a FLC. MODO instructions are to handle locally and Page 3 Superior Forestry Case ID: 1563677 if violations then assess and advise the MODO. See exh. D:1. History: Multiple case history as per MODO. Mainly no violation cases. No H-2B coverage cases. This file is a DO. 7E investigation and part of the FY2010 Reforestation Initiative of the Jax Subject firm is a Farm Labor Contractor since it recruits and employs migrant and seasonal workers to do reforestation work. Workers are recruited from Mexico and Central America and thus are considered migrant workers (away from their permanent place of residence overnight. Subject uses a labor agency Ag-Works, Inc to do paperwork with ETA relating to obtaining H-2B visas for EX 4 forest workers. H-2B provisions apply to the firm. See ETA documents including form 9141 and 9142, exhibits C1-9. ETA Case No: C-09196-45647 ETA Form 9142 (TEC) certified 7/22/09. Number of forestry workers certified: 7C Period of Certification: 10/01/09 to 07/28/10 Firm employs workers throughout the USA. For subject file the investigation was limited to the activities of a crew of 15 planting pine trees in Northern FL for landowner (AGER) Suwannee River Management District (see related file 1569435). EXEMPTIONS No exemptions claimed for subject group of employees. Superior Forestry Service, Inc. Case ID: 1563677 Page 4 Superior Forestry Case ID: 1563677 STATUS OF COMPLIANCE 7E This is a investigation and part of the JAX DO Ag Reforestation initiative. Concurrent MSPA, FLSA and OSHA FS investigations were conducted. No violations of H-2B were found. Note that investigation was done prior to WHI's formal H-2B training and prior to the time WHI's were given complete H-2B training materials. As such, no determination was made regarding potential issues such as pre-filing recruitment, recruitment report or possible displacement/layoffs of U.S. workers. Workers are paid at least the prevailing wage rate of $10.22/hour. There are times they are paid piece rate of $22 per 1000 trees planted. This always exceeds the prevailing wage rate. Prevailing wage rate was disclosed to the workers. The workers were required to pay for their transportation up front but were reimbursed by the company. See exh. D:2-15. Each worker is charged $35/week for use of the company van which is used to transport them between job sites but is also used for workers use including grocery shopping, laundry visits, etc. The deduction is disclosed in the job offer. No recruitment fee issues indicated. DISPOSITION On 3/11/10 WHI held a final conference via telcon on with William Ioup (President). Ioup (ER) was advised that investigation covered the No. Florida crew operation only. The H-2B requirements and provisions were reviewed. In particular the H-2B provisions relating to recruiting, displacement/layoff of U.S. worker, recordkeeping, prevailing wage rates, proper disclosure of deductions, recruitment fee and transportation issues (in particular how they could become FLSA MW violations) were reviewed. ER was advised that firm must pay outbound transportation costs if ER terminates a H-2B worker prior to the end of the authorized period of employment. ER was advised that based on all available information there were no violations found. ER promised continued compliance in the future. Page 5 Superior Forestry Case ID: 1563677 Publications Provided: FLSA HRG (as per SBRIFA requirements). H-2B Fact Sheet #69. Superior Forestry Service, Inc. Case ID: 1563677 Recommendations As no violations were substantiated no further action is recommended. Report findings for the JAX DO Ag initiative, and close case administratively. 7C WHI 03/11/10 OSHA FIELD SANITATION NARRATIVE Superior Forestry Service, Inc. 36462 Hwy 27 No./ P.O. Box 25 Tilly, AR 72679 Phone: 870-496-2442 EIN: 71-0652136 Case ID: 1563677 COVERAGE MODO: Dallas RO is the MODO. Subject is a FLC. MODO instructions are to handle locally and if violations then assess and advise the MODO. See exh. D:1. Page 6 Superior Forestry Case ID: 1563677 History: Multiple case history as per MODO. Mainly no violation cases. This file is a DO. 7E investigation and part of the FY2010 Reforestation Initiative of the Jax Subject firm employs approximately EX 4 forestry workers nationwide doing hand labor planting of pine tree seedlings (reforestation work). OSHA field sanitation standards apply to the firm. For subject file the investigation was limited to the activities of a crew of 15 planting pine trees in Northern FL for landowner (AGER) Suwannee River Management District (see related file 1569435). During the investigation workers were doing reforestation planting of pines near Perry, FL. EXEMPTIONS No exemptions found applicable. STATUS OF COMPLIANCE 7E This is a investigation and part of the JAX DO Ag Reforestation initiative. Concurrent H-2B, FLSA and MSPA investigations were conducted. No violations of the OSHA field sanitation standards were found. At the time of the actual site visit the workers had not started working yet due to subfreezing temperatures. An inspection was conducted of the portable toilet and no issues noted. Interviews indicate that workers always are provided with access to the portable toilet, sufficient drinking water, drinking cups, hand washing water, soap and towels. Superior Forestry Service, Inc. Case ID: 1563677 DISPOSITION Page 7 Superior Forestry Case ID: 1563677 On 3/11/10 WHI held a final conference via telcon with William Ioup (President). Ioup (ER) was advised that investigation covered the No. Florida crew operation only. The OSHA field sanitation requirements and provisions were reviewed. In particular the requirements to have accessible toilets in proper ratio, plenty of cool drinking water, disposable drinking cups, hand washing water, soap and towels. ER was advised that based on all available information there were no violations found. ER promised continued compliance in the future. Publications Provided: FLSA HRG (as per SBRIFA requirements). Recommendations As no violations were substantiated no further action is recommended. Report findings for the JAX DO Ag initiative, and close case administratively. 7C WHI 03/11/10 MSPA NARRATIVE Superior Forestry Service, Inc. 36462 Hwy 27 No./ P.O. Box 25 Tilly, AR 72679 Phone: 870-496-2442 EIN: 71-0652136 Case ID: 1563677 COVERAGE Page 8 Superior Forestry Case ID: 1563677 MODO: Dallas RO is the MODO. Subject is a FLC. MODO instructions are to handle locally and if violations then assess and advise the MODO. See exh. D:1. History: Multiple case history as per MODO. Mainly no violation cases. This file is a DO. 7E investigation and part of the FY2010 Reforestation Initiative of the Jax Subject firm is a Farm Labor Contractor since it recruits and employs migrant and seasonal workers to do reforestation work. Workers are recruited from Mexico and Central America and thus are considered migrant workers (away from their permanent place of residence overnight). MSPA applies to the firm. Subject uses a labor agency Ag-Works, Inc to do paperwork with ETA relating to obtaining H-2B visas for EX 4 forest workers. See ETA documents including form 9141 and 9142, exhibits C1-9. Superior is also a registered FLC. See copy of FLC registration, exh. C10. Firm employs workers throughout the USA. For subject file the investigation was limited to the activities of a crew of 15 planting pine trees in Northern FL for landowner (AGER) Suwannee River Management District (see related file 1569435). There was a registered FLCE 7E 7C ) supervising and driving and another FLCE transporting the crew in question. See copies of FLCE cards, exh. C10. Workers are paid at least the prevailing wage rate of $10.22/hour. There are times they are paid piece rate of $22 per 1000 trees planted. This always exceeds the prevailing wage rate. Prevailing wage rate was disclosed to the workers. EXEMPTIONS Section 4(a)(1) is not applicable since the farm is not a family business. Superior Forestry Service, Inc. Case ID: 1563677 Page 9 Superior Forestry Case ID: 1563677 Section 4(a)(2) is not applicable since subject firm exceeds 500 man-days of labor for at least one quarter in the preceding calendar year. Section 4(a)(3)(D) is not applicable since subject firm engages in named FLC activities in several states (always exceeding 25 mile radius). STATUS OF COMPLIANCE 7E This is a investigation and part of the JAX DO Ag Reforestation initiative. Concurrent H-2B, FLSA and OSHA FS investigations were conducted. No violations of MSPA were found. Superior was properly registered as an FLC as were FLCE's working for subject. Superior disclosed employment conditions as required, posters were observed, proper time records were maintained, wage statements were provided to ee's. Workers received at least the promised wage and no improper deductions were found. No housing issues as innkeeper exemption applies as workers are staying at motels that are open to the general public with no apparent safety issues or improper charges. DISPOSITION On 3/11/10 WHI held a final conference via telcon with William Ioup (President). Ioup (ER) was advised that investigation covered the No. Florida crew operation only. The MSPA requirements and provisions were reviewed. In particular the MSPA registration, recordkeeping, transportation, housing, disclosure, insurance and posting requirements were reviewed. ER was advised that based on all available information there were no violations found. ER promised continued compliance in the future. Publications Provided: FLSA HRG (as per SBRIFA requirements). Recommendations As no violations were substantiated no further action is recommended. Page 10 Superior Forestry Case ID: 1563677 Report findings for the JAX DO Ag initiative, and close case administratively. 7C WHI 03/11/10 Page 11