Austin painting company pays $182K in overtime back wages following US Labor Department investigation

Employer: Star Finishes LLC
9705 Burnet Rd., # 317
Austin, TX 78758

Site: Austin, Texas

Investigation Findings: U.S. Department of Labor Wage and Hour Division investigators in Austin found Star Finishes LLC violated overtime and recordkeeping provisions of the Fair Labor Standards Act . The employer misclassified employees as independent contractors and subsequently paid them straight time for overtime, without regard to the number of hours they actually worked. Overtime violations resulted when these employees worked more than 40 hours in a workweek yet received no overtime pay. The employer also failed to display required posters informing employees of their rights under federal law.

Resolution: Star Finishes LLC paid $182,472 in overtime back wages to 82 current and former employees and agreed to comply with the FLSA in the future.

Quote: The misclassification of employees as independent contractors is an alarming trend, and a practice we see all too often in the construction industry said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “Misclassified workers are denied fair wages and access to critical benefits and protections that come with their rightful status as employees. Companies that violate the law in these cases also gain an unfair economic advantage over employers who play by the rules.”

Background: Established in 2008, Star Finishes is a commercial painting company in Austin. The company employs approximately 30 employees.

Information: For more information about federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Austin District Office at 512-236-2560. Information is also available at http://www.dol.gov/whd/.