SoCal contractor pays $200,000 in back wages to employees — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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SoCal contractor pays $200,000 in back wages to employees

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The U.S. Labor Department announced that a Southern California company paid $200,013 in back wages for unpaid overtime to 231 current and former employees. Memo Scaffolding, which specializes in setting up scaffolding for residential and commercial construction projects, also paid $60,000 in civil penalties following a Labor investigation.

According to the department, Memo Scaffolding failed to pay workers overtime even though some worked in excess of 60 hours a week.

In a statement, George Friday Jr., the western regional administrator for the Labor Department’s Wage and Hour Division, said, “This action reflects the Department of Labor’s commitment to protect overtime rights and ensure that workers receive the wages they have earned. In this case, the low-wage workers were not properly paid for all the hours they worked, and we were able to recover over $200,000 in back wages for them.”

Final note: The federal Labor Department and California’s Division of Labor Standards Enforcement have been aggressively going after employers that shortchange their employees when it comes to paying overtime. Are you certain your hourly employees are properly paid for the time they work? Are you absolutely sure that all your exempt employees are properly classified? If not, a federal or state investigation may be in your future. If in doubt, contact your attorneys now to help you analyze the situation.

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