Mobile technology has changed the way many companies do business - employers have created telecommuting policies that enable people to work from home and even perform duties from across the country. This was the case with kgb USA, a directory assistance and information services provider based in Bethlehem, Pennsylvania. Unfortunately, kgb was applying outdated time and attendance policies to its modern-day workers, the Department of Labor discovered.

The firm was recently ordered to pay 14,568 of its employees a total of $1.3 million to make up for lost wages, which resulted from its failure to comply with the Fair Labor Standards Act (FLSA). It was discovered that kgb was classifying its workers as independent contractors rather than employees, which led to minimum wage and overtime pay violations.

Kgb was allegedly paying its employees on a piecemeal rate for every customer text message they responded to. The company did not keep track of their total employee attendance, and thus, did not notice that workers' wages were falling short of federal minimum wage standards.

"Misclassification of workers as independent contractors is a serious threat to their livelihood. Misclassifying workers also undercuts responsible employers who must compete with unscrupulous employers who do not obey the law," said acting Secretary of Labor Seth Harris.

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