Construction Company Pays Back Wages After DOL Wage and Hour Division Probe

August 10, 2010

As Carson, California wage and hour attorneys, we have been following the recent news release by the U.S. Department of Labor (DOL) that a Texas construction company and subcontractor must pay around $137,000 in back wages to 140 former and current workers, after a DOL investigation found that the company was violating the Fair Labor Standards Act, (FLSA), the Davis-Bacon Act (DBA), and the Contract Work Hours and Safety Standards Act (CWHSSA).

According to the DOL, the construction workers were performing work in Dallas, on the Margaret Hunt Hill bridge project. After an investigation of Williams Brothers Construction, based in Houston, the DOL found that the company neglected to properly compensate overtime hours to workers who were employed on the Texas Department of Transportation contracts that were receiving funding from the federal government. The companies also reportedly failed to pay overtime for safety bonuses, violating the FLSA.

After investigating Cimolai USA and Cosme, the subcontractors, the DOL found that Cimolai neglected to pay two non-exempt salaried employees overtime compensation for over $950 --violating the FLSA. Cosme was found owing 16 workers over $34,000 in overtime back pay. The workers were paid less than the DBA prevailing rates, and reportedly should have been paid time and one-half, as mandated by the CWHSSA.

Workers who are employed on federal contracts, according to the CWHSSA, must receive time and one-half in compensation, if they work any hours beyond a workweek of 40 hours. Workers under the CWHSSA must also receive the designated health and welfare benefits they are entitled to receive. The DBA reportedly requires employers to compensate workers the minimum hourly wage and in addition, a health and welfare benefit amount that is specified in the work contract.

As we have reported in a recent blog, the FLSA requires that employees are paid at least the federal minimum wage for any hours worked, with time and one-half their regular pay rate, including incentive payment, bonuses, and commissions, for all hours that are worked beyond a 40 hours in a workweek. Under the FLSA, employers are also required to keep mandatory time and payroll records that are accurate.

In Orange County, California, Howard Law, PC represents employees in wage and hour lawsuits, who have been wrongfully deprived of wages and are seeking recovery. Let our team of experienced California Labor & Employment Attorneys protect your rights. Contact us today for a free consultation.

Houston-based Construction Company and Subcontractors Pay Nearly $137,000 in Back Wages to 140 Workers After US Labor Department Investigation, US Department of Labor News Release, August 10, 2010

Related Web Resources:

Department of Labor (DOL): Wage and Hour Division (WHD)