In This Issue:
- Misclassifying Employees Results in $101,000 in Back Wages Charged to Local Business......................Page 1
- Should Courts Use Varying Standards for Sexual Harassment Claims Based on Industry?.....................Page 2
- Meet Our Blog.............Page 4
- Excerpt from Misclassifying Employees Results in $101,000 in Back Wages Charged to Local Business:
Last week, the Department of Labor Wage Hour Division found that a Woodbridge, Virginia construction company misclassified employees as contractors and failed to pay overtime in violation of the Fair Labor Standards Act (“FLSA”). According to a press release issued by the Department of Labor (“DOL”), employees of A&M Drywall were paid on a piece-rate basis. The company classified certain workers as independent contractors and failed to pay an overtime premium for hours worked in excess of 40 per week. These errors resulted in the company agreeing to pay $101,007 in back wages to 120 employees.
In its press release, the DOL expressed concern that employee misclassification is an “alarming trend” particularly in industries employing low-wage, unskilled workers. In light of the DOL concerns, businesses in these industries would be advised to evaluate their practices in determining whether a worker is an independent contractor or employee.
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