Small and midsize business owners must be vigilant in ensuring compliance with employment laws to avoid penalties and legal repercussions. Failure to adhere to regulations can result in significant financial losses and damage to the reputation of the business.

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Construction Company Fails To Pay Employees Time and A-Half

A recent case investigated by the DOL serves as a stark reminder of the consequences of violating labor laws. A construction and concrete company found themselves facing penalties for violating the Fair Labor Standards Act (FLSA).

The investigation, conducted by the local area office of the Wage and Hour Division, revealed that these contractors failed to pay employees the required overtime rates for hours worked beyond 40 in a workweek. Additionally, they neglected to maintain accurate records of employees’ hours, further violating FLSA regulations.

In a consent judgment and order, the defendants were required to pay a total of $108,088, covering back wages and liquidated damages for 47 affected workers. Furthermore, they were penalized an additional $35,567 due to the willful and repeat nature of the violations.

What Businesses Can Learn

The court’s ruling also prohibits the defendants from engaging in future FLSA violations, including overtime, recordkeeping, and retaliation issues. They are mandated to cooperate with any future investigations conducted by the DOL.

Donald Epifano, District Director of the Wage and Hour Division, emphasized the importance of ensuring that employees receive their rightful wages. He highlighted the department’s commitment to protecting workers’ rights and encouraged employees to report any wage violations.

Maia Fisher, Regional Solicitor of Labor, reiterated the DOL’s dedication to enforcing federal labor laws. She emphasized that employers who deny workers their lawful wages will face legal action.

Small and midsize business owners must prioritize compliance with employment laws to avoid the severe consequences of non-compliance. Ensuring fair treatment of employees not only protects the business from penalties but also fosters a positive work environment and enhances its reputation within the community.

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