Medical laboratory to pay more than $67K in back wages and damages to 28 employees after US Labor Department investigation

Employer name: Ecco Lab Group Co. doing business as Eccolab Group  

Investigation site: 2801 W. Waters Ave., Suite B-1, Tampa, Florida 33614

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Tampa District Office, found that Eccolab violated the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. The employer misclassified phlebotomists serving numerous healthcare clients as independent contractors rather than employees.  As a result, the employer paid the phlebotomists a flat rate regardless of the number of hours they worked. This practice denied workers overtime compensation when they worked beyond 40 in a work week, which the FLSA requires for employees.  Additionally, Eccolab did not pay new employees any wages until they completed a four to–six week training period, denying them the federal minimum wage of $7.25 per hour.

Resolution: Eccolab will pay back wages of $33,699 and an additional, equal amount in liquidated damages totaling $67,398 to 28 employees. The firm also signed an agreement with the department which requires them to provide employees the Wage and Hour Division fact sheet describing the anti-retaliation provisions of the FLSA along with their back wage checks.

The Wage and Hour Division is working with the IRS and many states to combat employee misclassification and to ensure that workers get the wages, benefits, and protections to which they are entitled. We have entered into partnerships with 28 states to work together on this issue in a variety of ways – through, for example, information sharing and coordinated enforcement.  Florida is one of those states.

Quote: “By misclassifying these employees as independent contractors, Eccolab denied them access to critical benefits and protections to which they are legally entitled, such as the minimum wage, overtime pay, and family and medical leave. We are seeing more employers use this unlawful practice to avoid paying required overtime and minimum wages and associated payroll costs, and it has to stop,” said James Schmidt, the Wage and Hour Division’s district director in Tampa. “This practice hurts workers and their families, and it deprives federal and state governments of tax revenues, state unemployment insurance premiums and workers’ compensation funds, which hurts the whole economy. This investigation is typical of those we refer to our partner agencies for investigation under their laws as well, to fully address these types of violations.”

Background: Eccolab Group is a full-service anatomic and clinical pathology lab that provides clinical tests and services to skilled nursing facilities, assisted living facilities, long term and intermediate care facility providers as well as physician offices. Incorporated in 2001, Eccolab conducts business at its Miami headquarters and at laboratory testing facilities in Florida and elsewhere.

Information: More information regarding the Department of Labor’s initiative to combat the misclassification of employees as independent contractors  can be found at http://www.dol.gov/whd/workers/Misclassification/index.htm The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates of pay for hours worked beyond 40 per week. Employers are prohibited from retaliating against workers who exercise their rights under the law.

For more information about the FLSA and wage laws or to file a complaint, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243); the Tampa District Office at 813-626-1177 or visit http://www.dol.gov/whd/.