CONSTRUCTION FIRMS ORDERED TO PAY $2.4 MILLION IN BACK WAGES

Two entwined Massachusetts companies deliberately misclassified hourly workers as independent contractors

December 06, 2016

The Labor Department said today that Anderson Dos Santos, owner and president of AB Construction Group and Juliano Fernandes, general manager at Force Corporation cheated 478 construction workers out of overtime wages and employment benefits.

The Labor Department said Force prepared and controlled the payroll and payment procedures for both companies. AB Construction was formed to supply Force with labor. The pair used a combination of payroll checks and cash and check payments to pay their employees straight time when overtime pay was required and kept inadequate and inaccurate time and payroll records, in violation of the Fair Labor Standards Act.

“To be cheated out of wages and denied other workplace protections by an employer who deliberately flouts the rules compounds the struggles too many middle-class Americans already face,” U.S. Labor Secretary Thomas E. Perez said in a statement. “Workers who play by the rules deserve nothing less than to be paid what they are owed.”

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Tempe floor contractor forced to pay $100k in back wages

Tempe-based Flooring Demolition Specialists LLC has paid $103,554 in back wages and liquidated damages to 24 employees.

An investigation by the U.S. Department of Labor’s Wage and Hour Division found that the Tempe floor removal contractor willfully violated the overtime and record-keeping provisions of the Fair Labor Standards Act.

The investigation by the division’s Phoenix District Office disclosed that a certain group of employees was paid straight time for all hours worked and did not receive an overtime premium for hours worked beyond 40 per week, as required by FLSA. The Tempe company also failed to pay employees for hours worked while loading company trucks and for travel time to job sites.