Memphis tent and awning company raises payroll practices into compliance

Mahaffey Tent and Awning Co. recently paid 28 employees a total of $133,285 in back wages for prevailing wages and fringe benefits, following an investigation by the Department of Labor's Wage and Hour Division.

The company, which does business as Mahaffey Fabric Structures, was found in violation of the McNamara-O’Hara Service Contract Act and the Contract Work Hours and Safety Standards Act (SCA and CWHSSA), which requires that companies contracted to fulfill federal service contracts over $2,500 must pay employees prevailing wages and fringe benefits that are on par with those in the local community.

In this case, Mahaffey Fabric was allegedly misclassifying individuals as laborers instead of more detailed titles, such as forklift operators or general laborers that were owed higher pay rates. The DOL also claims the company failed to pay employees the proper amounts of overtime for their time and attendance.

It can be difficult for companies to keep accurate accounts of employee attendance when individuals perform work at various job sites. Fortunately, there are now timeclocks that can be transported to each location so employers can account for all hours worked and calculate individuals' correct earnings.