Tempted to ignore an agency inquiry into your pay practices, hoping the problem will just go away? It won’t.
When the U.S. Department of Labor (DOL) filed a complaint on behalf of misclassified workers at Skokie Maid and Cleaning Services, the company failed to file a response of any kind. Now it’s on the hook for more than a half-million dollars following a default judgment for the workers.
According to the DOL’s complaint, Skokie Maid misclassified 75 workers as independent contractors when they were in fact employees. As a result, the workers were not paid for all the hours they worked and didn’t receive overtime pay.
Skokie Maid must pay $250,946 in back minimum wages and overtime compensation, plus an equal amount in liquidated damages, bringing the subtotal to $501,893. Oh, then there’s a civil penalty of $70,125.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Unauthorized overtime is your problem! Take steps to stop it--and punish rule-breakers
- Thinking about shrugging off employee suit? Then think about writing a really big check
- Fancy title doesn't make employee exempt
- Extremely small businesses may be exempt from FLSA