U.S. Department of Labor Investigation Results in Alabama Framing Contractor Paying $110,641 in Back Wages, Damages and Penalties

MEMPHIS, TN – After a U.S. Department of Labor Wage and Hour Division (WHD) investigation, JPO Contractors Inc. will pay $90,904 in back wages and liquidated damages to 43 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). WHD also assessed the contractor a civil penalty of $19,737 for willful and repeat violations.

WHD investigators found the Alabama-based drywall and framing company incorrectly considered laborers to be independent contractors rather than employees. This inaccurate classification resulted in overtime violations when the employer paid employees straight-time rates for overtime hours. The company also failed to maintain required records and to post the current FLSA posters.

“When employers fail to pay employees the wages they have legally earned, they harm employees and gain an unfair advantage over their law-abiding competitors. The Department of Labor will use all the tools at its disposal when employers repeatedly violate the law,” said Nettie Lewis, Wage and Hour Division District in Nashville. “We encourage employers to contact us with any questions they may have, and to use the wide variety of tools we offer to help them understand their obligations and to comply with the law.”

The violations occurred while JPO Contractors performed drywall and framing work at Methodist University Hospital in Memphis, Tennessee.

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