The United States Department of Labor announced a recovery for workers at a company that helps contractors manage their equipment.
LIVONIA, MI – By misclassifying 60 employees as independent contractors, a Detroit-area employer denied them their full wages and benefits and important protections under federal law – a situation now remedied by a U.S. Department of Labor investigation.
The department’s Wage and Hour Division found Vision Link International LLC misclassified workers as independent contractors at its Livonia facility. The employer provides fleet productivity services to clients in the metro Detroit area.
Investigators determined that Vision Link violated the Fair Labor Standards Act when it failed to pay overtime at time and one-half employee’s rate of pay to hourly employees who worked more than 40 hours per week. The employer also failed to keep accurate time and payroll records, issued 1099 forms to the workers and failed to withhold the required payroll and income taxes.
The division’s investigation has recovered $61,555 in overtime back wages for the employees who inspect and pack parts for Vision Link’s clients.
“When employers misclassify their employees as independent contractors, they deny them the wages and benefits they are due such as a minimum wage, overtime pay, and protections under the Family and Medical Leave Act. Misclassification may also result in a higher tax burden on the employee and a reduced social security benefit,” said Wage and Hour District Director Timolin Mitchell in Detroit. “Regrettably, this violation has become all too common. The Wage and Hour Division offers online tools to help employers understand the law and encourages them to contact the division with questions.”