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Skokie firm learns the perils of ignoring the feds

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in Human Resources,Overtime Labor Laws

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.

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