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News » US » Alabama contractor fined over pay violations » published 16 May 2018

Alabama contractor fined over pay violations

An investigation by the US Department of Labor has resulted in an Alabama-based drywall and framing contractor being forced to pay US$110,641 in back wages, damages and penalties.

Following the investigation by the Wage & Hour Division (WHD), JPO Contractors Inc will pay US$90,904 in back wages and liquidated damages to 43 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD also assessed the contractor as being liable to pay a civil penalty of US$19,737 for willful and repeat violations.

WHD investigators found the company incorrectly considered laborers to be independent contractors rather than employees. This inaccurate classification resulted in overtime violations when the employer paid employees straight-time rates for overtime hours. The company also failed to maintain required records and to post the current FLSA posters.

“When employers fail to pay employees the wages they have legally earned, they harm employees and gain an unfair advantage over their law-abiding competitors,” said Nettie Lewis of the WHD division district in Nashville. “The Department of Labor will use all the tools at its disposal when employers repeatedly violate the law. We encourage employers to contact us with any questions they may have, and to use the wide variety of tools we offer to help them understand their obligations and to comply with the law.”

The violations occurred while JPO Contractors performed drywall and framing work at Methodist University Hospital in Memphis, Tennessee.


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This article was published on 16 May 2018 (last updated on 16 May 2018).

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