WHISARD Compliance Action Report Conclusions & Recommendations: Hours: 71.75 (b) (7)(E) COV Ent. Viols-Sec. 6 MW, 7 OT & 11 RK. ER misclassified EE's as indep. contractors. ER paid ST for OT causing OT vios. Illegal deductions noted on payroll cause MW vios. Maintained records on bi-weekly basis. ER ATP/ATC. Recommend admin close 06/06/2014 WHI Signature:__________________________________Date:__________________ Reviewed By:____________________________________Date:__________________ Date: 05/11/2020 10:17:29 AM Case ID: 1717784 Page 3 Work at Home Solutions Case ID: 1717784 FLSA Narrative (Tampa District Office) Employer: Work at Home Solutions, LLC Dba: Work at Home Solutions Establishment 8382 Indian Laurel Ln. Address: Brooksville, FL 34613 Mailing Address: Same as above Contact person: Mrs. Melissa Adams, Owner Establishment: (352) 556-6342 FEIN: 45-3344922 (see exhibits C-1, C-2, C-3) Case ID: 1717784 File number: 2014-342-23658 COVERAGE Organization and Ownership Work at Home Solutions, LLC dba Work at Home Solutions is a staffing company that recruits call agents for customer service lines for companies such as (b) (4) . The company was established in Florida in January 2012 under the sole ownership of Mrs. (b) (4) Melissa Adams. Work at Home Solutions has approximately mployees throughout the country. (see (b) (7)(C) exhibit Page 1 Work at Home Solutions Case ID: 1717784 Tampa District Office is the MODO. Prior History There is no history. Employee/Employer Relationship Work at Homes Solutions, LLC is claiming that all virtual call agents are independent contractors. The six relevant factors were used in determining if the call agents' function as independent contractors or as employees. 1. Control: Based on employee statements, the workers indicated that the contracts Work at Home Solutions operates under requires employees to take trainings specific to the company. The employees cannot negotiate their rate of pay and are also required to work a minimum of 15 hours per week to remain employed. 2. Opportunity for profit/loss: The call agents have no opportunity for profit and loss. They are paid a piece rate or hourly rate determined by the contracting companies. The agents do not work for other companies. Though the agents could go to other companies to perform the same work, they are hired solely to answer customer service calls and must be registered with a licensed company to receive any work. 3. Open Market Competition: The agents do not own their own business, have workers compensation, any licenses and do not advertise for themselves. 4. Permanency of the relationship: The agents are required to work 15 hours per week to maintain their employment with Work at Home. If the agents do not work a certain amount of time their contract will be canceled and they will have to repeat the initial training to continue working with Work at Home. 5. Work performed is integral to the employer's business: The employer is in the business of staffing virtual call agents for contracting companies such . The workers (b) (4) stated that they receive inbound calls from leads provided by contracting companies. 6. Investment in facilities and equipment: The agents provide their own telephone and internet lines but the leads are provided by the contracting companies. Page 3 Work at Home Solutions Case ID: 1717784 and WHI (b) (7)(C) represented the Department. At this time, Mrs. Adams agreed to full future compliance with the Act. She explained that violations occurred because she believed all of her employees were bona fide independent contractors and that she was not subject to the requirements of the Act. Mrs. Adams stated that she had consulted with her attorney, Mr. Herb Long, and was told that she could classify the call agents as independent contractors. She then requested that WHI (b) (7)(C) speak with Mr. Long. After attempting to contact Mr. Long, Mrs. Adams notified investigator on May 5, 2014 that Mr. Long will be on vacation until May 15th but had consulted a second attorney. Upon consulting her second attorney, Ms. Adams agreed to pay all back wages due and change the classification of her employees from independent contractors to employees. Ms. Adams agreed to meet all requirements of the Act. A WH-56 was given to Mrs. Adams on May 24, 2014. Ms. Adams took a maternity leave and agreed to issue payments upon returning on July 13, 2014. She will provide proof of payment in the form of WH 58 Receipt Forms or copies of fronts and backs of the canceled checks per the Back Wage Disbursement and Pay Evidence Instructions. Mrs. Melissa Adams agreed for Work at Home Solutions, LLC that they will fully comply with the Act in the future. Specifically, they will: 1. Keep an accurate record of all hours worked for any non-exempt employee for a two-year time period; specifically the all records will be kept on a weekly basis displaying regular and overtime hours work, 2. Pay overtime at the correct rate for all employees; 3. Guarantee at least the full Minimum Wage due for all hours worked on the regular pay date; specifically that deductions will not be made that would bring an employee below minimum wage 4. Continue compliance with Youth Labor Regulations. An initial conference was held via telephone on March 12, 2014 with Mrs. Melissa Adams, employer and Investigator (b) (7)(C) represented the Department of Labor. During this meeting Mrs. Adams was instructed how to locate the Handy Reference Guide on the Wage and Hour homepage. She indicated that the company does not have any current or pending 16(b) actions that she is aware of.  A hard copy of the Handy Reference Guide with all the pertinent SBREFA information was provided to Mrs. Adams at the Page 6 Work at Home Solutions Case ID: 1717784 final conference on May 2, 2014. The potential of Civil Money Penalties for a violation of Sections 6 and 7 were discussed. The employer understood all of the ramifications and agreed to future compliance. Penalties are not recommended because this was the first investigation, errors were not intentional, and the employer immediately made corrections in any area that could be misconstrued as a potential violation. Mrs. Melissa Adams, owner, was advised that the potential of assessment exists even after compliance with the Act is confirmed and that the decision is made at the supervisory level and that they will be advised in writing when a final determination has been made.   The ER was given & we discussed in great detail: HRG, FLSA, 778,785, 541, CL 101, 516, FMLA HRG, I-9 pub & Posters (b) (7)(C) , Investigator May 28, 2014 Tampa District Office Page 7