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Cable installers will split $270,000 in back overtime pay

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in Employment Law,Human Resources,Overtime Labor Laws

A Plano cable TV installation company must pay $270,696 in back over­time to 114 workers it incorrectly classified as independent contractors instead of employees. Integral Devel­opment Solutions LLC will make the payments under the terms of a set­tle­ment agreement after the U.S. Depart­ment of Labor (DOL) sued on the workers’ behalf.

The DOL’s Wage and Hour Divi­sion conducted an investigation in which it concluded that Integral had misclassified the employees as independent contractors. The company paid the workers on a piece-work basis—offering a flat rate for every cable installation they completed. But investigators determined that the installers should have been classified as nonexempt employees, entitled to time-and-a-half their regular rate of pay for overtime hours worked.

The federal agency also claimed Integral Development Solutions failed to maintain accurate records of work hours and wages.

The case represents more than just a disagreement over bookkeeping, ­according to Cynthia Watson, the Wage and Hour Division’s Southwest regional administrator. “Misclassifying employees as independent contractors is no mere technical violation,” she said in a statement. “It is an evasive practice that causes hardworking Americans to lose out on wages they rightfully earned and places law-abiding employers at a competitive disadvantage they cannot afford.”

Final note: The Obama administration has made misclassification investigations a priority.

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