Texas Pipe Company to Pay over $104K in Back Wages for Employee Misclassification
September 10, 2012
As Vincent Howard frequently reports in our Irvine, California employment attorneys blog, employee misclassification is a serious workplace issue, affecting employees, employers and the whole U.S. economy. When employees are misclassified as independent contractors, they are denied access to key protections and benefits, such as minimum wage, overtime payment, unemployment insurance, and family and medical leave.
According to the U.S. Department of Labor (DOL) the misclassification of employees also creates significant losses to the U.S. Treasury and the Medicare and Social Security funds, as well as to the workers' compensation funds and state unemployment insurance. Employers also suffer as a result of employee misclassification, as misclassifying workers creates an uneven playing field for employers who abide by federal law.
In a recent federal employee misclassification investigation that Vincent Howard has been following, the DOL's Wage and Hour Division (WHD) found a Texas-based pipe company responsible for violating the overtime provisions the Fair Labor Standards Act (FLSA) by failing to pay employees properly for all hours worked in a 40-hour work week.
The DOL investigation reportedly found that Pipe Coatings International LLC, (PCI) misclassified 55 former and current shop workers as independent contractors, instead as regular employees, during their first 90 working days with the company. PCI reportedly paid the workers with "straight time" compensation for all hours worked during this work period, instead of the FLSA-required overtime payment, which is one and one-half times their regular pay rates for any hours worked over forty in a week of work.
PCI has reportedly paid $104,760 to the misclassified employees and will stop the misclassification of new employees during the probationary period--by agreeing to classify all workers upon hiring.
The DOL continues to be committed to ensuring that employers properly classify their workers, and that these employees receive their legally entitled right to proper payment and employment benefits.
In Riverside, Irvine, or Santa Ana, California contact Howard Law's managing attorney Vincent Howard to discuss your wage and hour issue in the workplace today.
Pipe company in Beasley, Texas, pays more than $104,000 in overtime back wages following US Labor Department investigation, U.S. Department of Labor, August 23, 2012
Related Web Resources:
Related Blog Posts:
Celine Dion Sued for Employee Misclassification, Wage and Hour Violations, California Employment Lawyers Blog, July 10, 2012
Rite Aid to Pay Over $20M in Class Action Wage and Hour Lawsuit Settlement, California Employment Lawyers Blog, June 19, 2012
Permian Basin Community Centers to Pay Almost $69K for Employee Misclassification Violations, California Employment Lawyers Blog, June 13, 2012
Aspen Power Pays Over $485K in Overtime Back Wages for Employee Misclassification, California Employment Lawyers Blog, June 4, 2012
Wal-Mart To Pay Nearly $5M in Back Wages, Damages for Employee Misclassification, California Employment Lawyers Blog, May 25, 2012
Elevations Shoring to Pay Over $430K for Employee Misclassification, Overtime Violations, California Employment Lawyers Blog, April 30, 2012
Novo Nordisk Sued in Another Employee Misclassification Lawsuit for $70M, California Employment Lawyers Blog, April 10, 2012
DOL Launches Employee Misclassification Initiative in Seattle-based Nail Salons, California Employment Lawyers Blog, March 12, 2012
State of California Signs Agreement with DOL to Reduce Employee Misclassification, California Employment Lawyers Blog, February 20, 2012
Temp Agency to Pay Nearly $250K for Wage and Hour Violations, Employee Misclassification, California Employment Lawyers Blog, February 15, 2012
Novartis To Pay $99M in Employment Misclassification Lawsuit Settlement, California Employment Lawyers Blog, January 26, 2012
DOL Continues to Track Down Federal Wage and Hour Law Violations in the Workplace, California Employment Lawyers Blog, September 8, 2011
CA Drug Sales Reps Sue Novo Nordisk in Class Action Wage and Hour Lawsuit, California Employment Lawyers Blog, July 28, 2011
"White Collar" Exemptions under the FLSA , California Employment Lawyers Blog, November 12, 2010