United States Department of Labor Recovers Back Wages for Misclassified Construction Workers

The United States Department of Labor (DOL) announced that it recovered wages from a construction company that misclassified workers as independent contractors.

Employer:      EAS Homes LLC
9012 Timber St.
Charleston, SC 29406

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found a Charleston commercial construction contractor misclassified some workers as independent contractors. By doing so, EAS Homes failed to pay the additional half-time rate for all hours worked over 40 in a workweek in violation of the Fair Labor Standards Act.

Back wages recovered: The division recovered $37,155 in back wages for 37 workers.

Quote: “Misclassification of workers as independent contractors denies them overtime wages and benefits they legally earned and rightly deserve. In addition, it denies them employer contributions toward their social security benefits,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “It would be wise for employers to review their pay practices and take advantage of the many tools the Wage and Hour Division has to assist them in complying with the law.”

Background: As part of its efforts to address misclassification, the Wage and Hour Division published a final rule, which is effective March 11, 2024, and revises guidance on how to analyze whether a worker is an employee or independent contractor under the FLSA.

Employers and workers alike can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. Learn more about the Wage and Hour Division, including its search tool to learn if you are owed back wages collected by the division. Workers and employers can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App available for free in English or Spanish. 

Source: US Labor Department recovers $37K in back wages for 37 workers denied overtime by Charleston construction contractor | U.S. Department of Labor

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.