Four Arizona contractors have been ordered to pay wages and damages totaling $3.2 million to 890 workers impacted by violations of federal overtime and minimum-wage provisions.
U.S. Department of Labor investigations determined that 4-E Painting LLC and Liberty Constructors LLC in Mesa and BCK Coatings Inc. and Geronimo Wall Systems LLC in Tempe all willfully and recklessly shortchanged their employees while violating overtime and minimum-wage provisions of the Fair Labor Standards Act.
“Our investigators have found that schemes to pay straight-time for all hours worked and avoid paying required overtime rates at time-and-one-half are pervasive among employers in Arizona’s construction industry,” said Eric Murray, Wage and Hour Division district director in Phoenix. “These unlawful practices create the false impression that piece-rate workers’ wages comply with the Fair Labor Standards Act when, in fact, these employees are being stripped of their earned wages.”
Following investigations into the four companies, the U.S. District Court for the District of Arizona ordered the contractors to pay the workers their share of the $3.2 million in back wages and liquidated damages.
In addition, the four companies were fined a combined total of $95,402 for the violations.
“More and more construction companies in Arizona are recognizing piece-rate workers’ right to overtime and are promptly resolving the department’s investigations when they are found to violate this right,” said Marc Pilotin, U.S. Department of Labor regional solicitor in San Francisco. "The Solicitor's Office will continue to obtain court judgments to recover back wages, liquidated damages, and penalties against employers who violate the FLSA. Companies can avoid these damages and penalties by paying correctly in the first place.”
Below are summary findings of the federal investigations:
