Deer Park construction contractor to pay $682K in back wages to 161 workers after US Labor Department investigation

Employer: Allied Foundation Specialists Inc.

Site: 4906 Luella Ave., Deer Park, Texas

Investigation Findings: A U.S. Department of Labor Wage and Hour Division investigation found Allied Foundation Specialists Inc. violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. 

Investigators found the employer:

• Paid laborers a flat day rate regardless of the number of hours they worked per week, resulting in overtime violations when they worked more than 40 hours per week.  Workers averaged 45 hours per week during five-day workweeks, and 53 hours per week when they worked 6 days.
• Kept a record of the number of days worked by its employees, but failed to keep a record of the number of hours worked, violating the FLSA’s recordkeeping provisions.

The division’s investigation is part of its initiative to improve labor law compliance in the construction industry.

Resolution: Allied Foundation Specialists will pay $682,318 in back wages to 161 employees, keep proper records and comply with all provisions of the FLSA in the future.  

Quote: “Construction workers know the value of hard-earned wages for long, tough days especially under a hot Texas sun,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “This is not the first time we’ve seen construction industry employers illegally paying flat day rates with no overtime pay. The resolution of this case should put other employers on notice if they’re paying their workers in this manner. We are committed to holding employers who violate the law accountable, so that workers are paid what they have earned, and so that employers who play by the rules do not find themselves at a competitive disadvantage.” 

Background:  Allied Foundation employs about 200 workers who perform foundation repair, house leveling, barrier root systems and sewer pipe replacements in the Houston area. This investigation is part of a broader regional enforcement initiative in the state’s construction industry. In 2015, the division recovered more than $460,000 for more than 510 construction industry workers in Texas.

Information: For more information about the FLSA, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.