The U.S. Department of Labor (DOL) recently obtained a judgment against an Arizona drywall contractor in the amount of $1.7 million in back wages and damages. Su v. Bean Drywall, Inc. involved 246 employees who were found to have been denied overtime pay. In addition to the back wages, the employer was assessed $25,000 in penalties for willful Fair Labor Standards Act (FLSA) violations.
The violations involved paying employees straight time plus compensation for each sheet of drywall installed, but the company did not pay overtime for work over 40 hours. The company was ordered to maintain and provide to each employee a record of the precise formula used to calculate how each employee’s weekly pay, including overtime pay, is calculated, and to inform employees of any production (piece rate) compensation included in wage calculations. In addition, supervisors were prohibited from making any alteration to employee time records.
“Unfortunately, our investigations too often find construction employers engaged in illegal schemes to deny workers their hard-earned wages, obstruct enforcement agencies and gain an unfair advantage over their law-abiding competitors,” Wage and Hour Division District Director Eric Murray (Phoenix) said in a DOL news release. “Since 2019, the Wage and Hour Division has recovered millions of dollars in back wages and damages owed to thousands of Arizona’s construction industry workers.”
When an employer has concerns about appropriate wage and hour calculation or receives an allegation, it should take prompt corrective actions. Enterprise and Consulting members should contact an Employers Council attorney immediately to discuss next steps upon discovering wage and hour discrepancies.
Ivy N. Voss is an attorney for Employers Council.