Construction company to pay $21K in back wages to 19 employees after US Labor Department investigation

Employer name: Environmental Painting Alternatives Inc.     

Investigation site: 1130 S. Rio Grande Ave.
Orlando, Florida 32805        

Investigation findings: Investigators from the U.S. Department of Labor’s Wage and Hour Division, Jacksonville District Office, found that Environmental Painting Alternatives – a commercial and residential painting and pressure-washing company – violated the overtime and recordkeeping provisions of the Fair Labor Standards Act.

The investigation revealed that Environmental Painting Alternatives jointly employed the workers in question with Caceres Custom Services LLC, which provided the contractor with most of its painters on an ongoing basis. As a result, both employers could be held liable for the violations disclosed. The employers misclassified workers who were, in fact, employees as independent contractors. This practice led to overtime violations when the employers paid only straight time rates to employees who worked more than 40 hours in a work week.

The employers also failed to maintain legally required time and payroll records, and failed to have a Family Medical Leave Act policy in place or to display the required poster in the workplace.

Resolution: Environmental Painting Alternatives Inc. will pay 19 employees $21,423 in unpaid overtime wages.

Quote: “The workers in this case fell victim to an all-too-common scenario – employers misclassifying employees as independent contractors,” said Daniel White, district director for the Wage and Hour Division in Jacksonville. “We are committed to routing out and eliminating this practice, in which workers are typically denied overtime, unemployment insurance, workers compensation and a host of other benefits that come with their rightful status as employees. Contractors who play by the rules must not find themselves at a competitive disadvantage to those who attempt to skirt the law for their own financial gain.”

Background: Environmental Painting Alternatives provided painting services to facilities in Orlando, Kissimmee and Miami including Walt Disney World’s Magic Kingdom, Fort Wilderness, Universal Studios, Marriott Hotel locations and the Hard Rock Stadium, formerly known as Miami Dolphin’s Stadium.

Information: The division has agreements with 35 states, including Florida, to combat misclassification of employees as independent contractors to ensure workers’ get the wages, benefits and protections to which they are entitled. The violations in this case are typical of those referred to other agencies, including the IRS, and the State of Florida Department of Revenue under this agreement.

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 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 Jacksonville District Office at 904-359-9292 or visit http://www.dol.gov/whd/.