Louisiana shoring company pays workers nearly $431,000 in back wages
Elevations Shoring of Kenner, Louisiana, was recently investigated by the U.S. Department of Labor's Wage and Hour Division in relation to suspected violations of federal standards. The company was subsequently ordered to pay $430,956 in back wages for 186 workers' overtime employee attendance. The agency discovered the employer misclassified employees as independent contractors to avoid paying them time-and-a-half for logged overtime hours.
Additionally, the investigation revealed the company was not keeping accurate payroll records, the statement from the DOL explained. In some instances, workers were misclassified as independent contractors for all of their hours worked, while others were compensated as both employees and contracted workers on two separate payroll records. Elevations Shoring used the dual classification system to avoid paying employees premium rates when they worked more than 40 hours in a workweek.
"Misclassification of employees is unacceptable, and the Labor Department will ensure that every worker is paid the wages he or she is entitled to receive," said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest.
Employers can be sure their practices are in compliance with the Fair Labor Standards Act (FLSA) by learning the guidelines for employee exemptions. They might also consider enlisting the help of a payroll service that understands the guidelines and necessary recordkeeping requirements.
Additionally, the investigation revealed the company was not keeping accurate payroll records, the statement from the DOL explained. In some instances, workers were misclassified as independent contractors for all of their hours worked, while others were compensated as both employees and contracted workers on two separate payroll records. Elevations Shoring used the dual classification system to avoid paying employees premium rates when they worked more than 40 hours in a workweek.
"Misclassification of employees is unacceptable, and the Labor Department will ensure that every worker is paid the wages he or she is entitled to receive," said Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest.
Employers can be sure their practices are in compliance with the Fair Labor Standards Act (FLSA) by learning the guidelines for employee exemptions. They might also consider enlisting the help of a payroll service that understands the guidelines and necessary recordkeeping requirements.
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