Alabama trucking company misclassified workers as independent contractors

Employer to pay 63 employees nearly $113K in back wages and damages following Labor Department investigation

Employer name: Fitzhugh Contracting LLC

Investigation site: 30513 Highway 43 South, Gallion, Alabama 36742

Investigation findings: Investigators from the department's Wage and Hour Division found that Fitzhugh Contracting LLC, a logging and trucking contractor, violated the overtime and record-keeping provisions of the Fair Labor Standards Act.The employer paid 63 workers straight time for all hours worked, when the FLSA requires overtime payment of time and a half the employee's rate of pay for all hours worked beyond 40 in a workweek. The employer also misclassified 46 employees as independent contractors, denying them their rightfully earned wages and benefits. The employer did not maintain accurate records of all hours worked.

Resolution: Fitzhugh Contracting has agreed to future compliance with the FLSA and to pay 63 employees $56,367 in back wages plus an equal amount in liquidated damages for a total of $112,735.

Quote: "Employers need to understand and be aware that it is unlawful to underpay employees, misclassify them as independent contractors, or pay straight time for overtime to increase their profit margin," said Frank McGriggs, the Wage and Hour Division's deputy regional administrator in Atlanta. "Other employers who may be paying workers in a similar manner should take note of this investigation and change their practices immediately."