Niederland contractors can’t paper over misclassification — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Niederland contractors can’t paper over misclassification

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in Compensation and Benefits,Human Resources

Specialty Painting & Wall Covering and M&S Enterprises, both in Nie­­der­­land, have paid 22 painters and drywall installers $108,783 in overtime back wages following a U.S. Labor Department Wage and Hour Divi­­sion (WHD) investigation.

Investigators found that Specialty paid workers for 40 hours each week. When workers worked more than

40 hours, they received a check from M&S for the extra hours at straight time with no taxes withheld. That effectively deprived the workers of the time and a half pay that the Fair Labor Standards Act requires, WHD determined. M&S workers were also misclassified as independent contractors.

In addition to issuing back pay to the workers, the companies agreed to classify and pay them properly moving forward.

Note: WHD investigators will look at all the facts to determine whether employees are working for one or two employers and whether they are properly classified.

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