U.S. Department of Labor issued the following announcement on March 3.
After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), D & V Painting Services – based in Houston, Texas – has paid $67,363 in back wages for violating the overtime requirements of the Fair Labor Standards Act (FLSA).
WHD found D & V Painting Services misclassified employees as independent contractors. As a result, the employer violated the FLSA when it failed to pay those employees overtime when they worked more than 40 hours in a workweek. The law requires employers to pay time-and-one-half an employee’s regular rate of pay for hours the employee works over 40. Additionally, the employer failed to maintain complete and accurate pay and time records as required by law.
“Misclassifying employees as independent contractors can result in employers paying workers less than they have legally earned, and can create an economic disadvantage for employers that play by the rules,” said Wage and Hour Division District Director Robin Mallett, in Houston, Texas. “This case should serve as a learning opportunity for other employers to review their pay practices to ensure they comply with federal law.”