From Staffing Industry Analysts — The United States Department of Labor reported companies that had to pay hundreds of thousands of dollars in back pay and overtime violations for workers who were classified as employees and should have been paid as employees. The DOL has focused on worker misclassification to ensure that workers receive the benefit of labor laws including laws governing minimum wage, overtime, and workers compensation. The Staffing Industry Analysts story states:
“Continuing its focus on independent contractor misclassification, the US Department of Labor’s Wage and Hour Division announced this week and last several companies that are being required to pay hundreds of thousands in back pay for IC misclassification and overtime violations.
The US District Court in Nevada ordered Las Vegas-based telemarketing company Intelliconnect to pay $280,000 in minimum wage and overtime back wages and an equal amount in liquidated damages to 398 employees for misclassifying its telemarketers as independent contractors from January 2010 through December 2012, which denied them minimum wage and overtime wages. Investigators found the employer paid the telemarketers based on a percentage of individual sales, resulting in many of them working for days and weeks for little or no pay, according to the department….”
Read the full story at IC misclassification finds result in hundreds of thousands in back wages.