{"id":20659,"date":"2023-08-12T20:46:56","date_gmt":"2023-08-13T03:46:56","guid":{"rendered":"https:\/\/essential.construction\/news\/contractor-pays-1-6m-following-labor-department-lawsuit\/"},"modified":"2023-08-12T20:46:58","modified_gmt":"2023-08-13T03:46:58","slug":"contractor-pays-1-6m-following-labor-department-lawsuit","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/contractor-pays-1-6m-following-labor-department-lawsuit\/","title":{"rendered":"Contractor pays $1.6M following Labor Department lawsuit"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span><span>R&amp;R Construction Maintenance of North Carolina Inc. has paid $1.6 million in back wages and liquidated damages following a U.S. Department of Labor investigation. The company, which collects garbage and debris post-construction projects, <\/span><\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.dol.gov\/newsroom\/releases\/whd\/whd20230809\" target=\"_blank\"><span><span><span><span><span><span><span><span><span>misclassified 188 employees as independent contractors<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span><span>, according to DOL.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span><span>Namely, R&amp;R Construction Maintenance did not pay workers the required overtime wages for hours over 40 in a workweek, according to the DOL. The company also misapplied the <\/span><\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.dol.gov\/agencies\/whd\/fact-sheets\/19-flsa-motor-carrier\" target=\"_blank\"><span><span><span><span><span><span><span><span><span>motor carrier overtime exemption<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span><span> for two employees and failed to pay another employee for their last day of work.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span><span>The payment is the result of an October 2022 judgment requiring R&amp;R Construction Maintenance to pay the affected employees $838,007 in back wages \u2014 plus an equal amount in liquidated damages.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span><span>The DOL has recently cracked down on wage theft in the construction sector. The Office of Administrative Law Judges ordered that <\/span><\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.dol.gov\/newsroom\/releases\/whd\/whd20230417\" target=\"_blank\"><span><span><span><span><span><span><span><span><span>subcontractor GSI Pool Finishes<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span><span> pay back $317,097 in back wages for three U.S. and 56 Mexican workers in April, for example. The employer illegally paid workers piece rates, as opposed to required offered wage rates.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>In fiscal year 2022 the Wage and Hour Division <\/span><\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.dol.gov\/agencies\/whd\/data\/charts\/low-wage-high-violation-industries\" target=\"_blank\"><span><span><span><span><span><span><span><span><span>recovered $32,913,795 in back wages<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span><span> for 17,127 construction workers. DOL announced in February that it would hire 100 <\/span><\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.hrdive.com\/news\/dol-to-add-100-wage-and-hour-investigators\/618418\/\" target=\"_blank\"><span><span><span><span><span><span><span><span><span>more Wage and Hour Division investigators<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span><span>.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>\u201cMisclassifying employees as independent contractors deprives workers of their full wages, benefits and employment protections, and allows their employers to gain an unfair advantage over law-abiding competitors,\u201d Juan Coria, the WHD regional administrator for Atlanta, said in a statement.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>Coria continued underscoring a point that many regional WHD administrators have made: \u201cThe outcome of this case and the costly consequences that R&amp;R Construction Maintenance suffered should serve as an example to other employers to make certain their employment practices comply with federal law,\u201d Coria said<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/dol-unpaid-wages-construction-north-carolina\/690536\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Dive Brief: R&amp;R Construction Maintenance of North Carolina Inc. has paid $1.6 million in back wages and liquidated damages &#8230; <a title=\"Contractor pays $1.6M following Labor Department lawsuit\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/contractor-pays-1-6m-following-labor-department-lawsuit\/\" aria-label=\"Read more about Contractor pays $1.6M following Labor Department lawsuit\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":20660,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-20659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/20659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=20659"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/20659\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media\/20660"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=20659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=20659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=20659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}