Contractor can’t plaster over pay violations — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Contractor can’t plaster over pay violations

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in Human Resources,Overtime Labor Laws

A plastering company in Ceres, California has agreed to patch things up with 208 current and former employees following a U.S. Department of Labor Wage and Hour Division (WHD) investigation. The employees of Ace Commercial Plastering will receive $131,953 in back pay, the amount WHD concluded the company had sanded off their paychecks.

Ace’s practice of not paying the prevailing wage and misclassifying employees violated several federal laws, including the Davis-Bacon and Related Acts, the Contract Work Hours and Safety Standards Act and the Fair Labor Stand­­ards Act. WHD found the employer failed to keep proper records of hours worked and did not pay overtime in cases where it was required.

Another layer of issues: Employers such as Ace Commercial Plastering that perform work for the government must know all the applicable contracting regulations. That’s because a government investigation in one area can wind up exposing all sorts of other problems.

Ace apparently misclassified some workers as independent contractors. That means the IRS, as well as state and local taxing authorities, will be looking to see that Ace deducted and remitted the proper payroll taxes for its workers. The money paid to settle this set of violations may be a precursor to another round of payments.

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