Virginia construction company to pay $101,000 for time and attendance violations
The U.S. Department of Labor recently announced A&M Drywall Construction, based out of Woodbridge, Virginia, was not complying with the Fair Labor Standards Act (FLSA), and has agreed to pay 120 employees $101,000 in back wages. According to the investigation, the workers were misclassified as independent contractors instead of employees, even though they did not meet the criteria for the exemption.
As a result, workers who were on site during a project for the U.S. Department of Defense in Quantico, Virginia, did not receive overtime pay (time-and-a-half their regular rate) or benefits that are usually owed to employees.
"Too often, employers are categorizing their employees as independent contractors to avoid paying them in compliance," said Mark Lara, director of the Wage and Hour Division's Baltimore District Office. "Misclassification costs employees and taxpayers millions of dollars each year and gives unscrupulous employers an unfair competitive advantage."
Construction companies are often vulnerable to FLSA violations as the result of misclassifications, since they often bring on workers for separate jobs and pay piecemeal rates. They must make sure the relationships with employees do not conflict with the DOL's expectations as expressed in the FLSA to avoid violations and back pay.
As a result, workers who were on site during a project for the U.S. Department of Defense in Quantico, Virginia, did not receive overtime pay (time-and-a-half their regular rate) or benefits that are usually owed to employees.
"Too often, employers are categorizing their employees as independent contractors to avoid paying them in compliance," said Mark Lara, director of the Wage and Hour Division's Baltimore District Office. "Misclassification costs employees and taxpayers millions of dollars each year and gives unscrupulous employers an unfair competitive advantage."
Construction companies are often vulnerable to FLSA violations as the result of misclassifications, since they often bring on workers for separate jobs and pay piecemeal rates. They must make sure the relationships with employees do not conflict with the DOL's expectations as expressed in the FLSA to avoid violations and back pay.
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