California Drywall Company Pays $944,000 In Back Wages and Damages for Overtime Violations

SAN FRANCISCO, CA – Following a U.S. Department of Labor investigation, a Riverside, California, company has paid $944,000 in back wages and damages to 1,069 employees working as drywall installers and painters. The investigation found that the employees routinely worked more than 40 hours per week without receiving any required overtime pay.

West Coast Drywall and Company Inc., and the Department’s Wage and Hour Division reached a settlement, which was signed by a U.S. District Court judge for the Central District of California. As part of the settlement, the company agreed to pay an additional $50,500 in civil penalties for violations of the Fair Labor Standards Act (FLSA).

“The Wage and Hour Division continues to ensure that employers pay employees properly for all the hours that they work, including overtime when they work more than 40 hours in a week,” said Wage and Hour District Director Danny Pasquil. “This investigation clearly demonstrates the Department’s continued commitment to enforcing a level playing field for all employers.”

The Wage and Hour Division found that the drywall company paid the employees only piece rates when they worked beyond 40 hours in a week. Employees paid on a piece rate are compensated per unit they produce and are eligible for overtime when they work more than 40 hours per week. The investigation also found that the company failed to pay employees for time spent attending required monthly safety meetings, and failed to keep accurate records of work hours, both in violation of FLSA requirements.

Employees and employers with questions about the FLSA or any of the federal wage laws administered by the Division should call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.