Employee misclassifications are ongoing issues that have widespread implications. They can wrongfully deny employees the benefits and wages they have rightfully earned, and they can put employers at risk for time and attendance violations or other labor rights issues. For example, the Department of Labor recently investigated H&W Printing Inc., an Atlanta-based firm that prints and produces documents. Investigators allege that they found violations of both the Fair Labor Standards Act (FLSA) and Family Medical and Leave Act (FMLA).

"Far too often, employers misclassify their employees as independent contractors to avoid paying them in compliance with the FLSA, as well as other federal, state and local statutes," said Caryl Stribling, Atlanta's Wage and Hour Division acting district director.

Because the firm misclassified some of its employees as independent contractors during a 90-day trial period, they did not receive minimum wage for all of their hours worked, overtime compensation for employee attendance past 40 hours in a single workweek or approved time off. The DOL considers these to be critical protections and benefits that support positive employment relationships.

To make up for the underpaying in the past, the firm has agreed to provide 69 affected workers with a total of $31,863 in back wages as well as $7,741 for civil money penalties.

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