U.S. Department of Labor Investigation Results in General Contractor Paying $137,237 in Back Overtime Wages to 17 employees

CLARKSTON, MI – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Summit Properties & Development Co. Inc., based in Clarkston, Michigan, will pay a total of $137,237 in back wages and liquidated damages to 17 employees.

WHD investigators determined the general contractor misclassified some employees as independent contractors, and failed to pay them overtime when they worked more than 40 hours in a workweek.

“Wage violations can be avoided when employers understand the requirements under federal law,” said Timolin  Mitchell, Wage and Hour District Director in Detroit. “We encourage employers to contact the Department of Labor by phone, online, in person, or to attend any of our outreach events to learn more about their responsibilities or obtain assistance. The Department offers many tools to help employers comply.”

As a result of this investigation Summit Properties has revised its employee handbook and has agreed to attach information to all future subcontractor agreements to help educate those employers and to ensure employees receive the wages they have rightfully earned.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.