The Department of Labor recently recovered $787,548 in total back wages that will be split among 124 employees allegedly hired as independent contractors while working for a Nissan plant in Smyrna, Tennessee. Additionally, the DOL's Wage and Hour Division claimed the business was violating the Davis-Bacon and Related Acts. 

Complete Automation of Lake Orion, Michigan; Jesco Inc. of Fulton, Mississippi; T.W. Frierson Contractor Inc. of Nashville, Tennessee; Electronics Automation Corp. of Columbus, Ohio and Custom Window Covering of Antioch, Tennessee were all named in the investigation for various compliance issues. Some misclassified workers are contractors instead of employees to avoid paying them the wages they were owed for their time and attendance, while others did not keep accurate payroll records or did not meet wage standards for federally funded projects.

The FLSA includes very specific qualifications for independent contractors to prevent businesses from misclassifying bona fide employees and thus failing to pay them the overtime they're due. To determine the depth of relationships between employeers and staff member, the DOL looks at tenure, the amount of control supervisors have over workers and the degree to which each party has invested in the work and tools. 

---

All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.