After U.S. Department of Labor Investigation, Federal Court Orders Arizona Janitorial Company to Pay $384,869 in Back Wages and Civil Penalties

PHOENIX, AZ – Following a U.S. Department of Labor Wage and Hour Division (WHD) investigation, the U.S. District Court for the District of Arizona has ordered Synergy Commercial Service LLC and owner Eduardo Bernal to pay $351,869 in back wages and liquidated damages to 136 employees for minimum wage and overtime violations of the Fair Labor Standards Act (FLSA). The court also ordered the Gilbert-based janitorial company to pay $33,000 in civil money penalties.

WHD investigators found Synergy Commercial Service paid straight time rates for all the hours employees worked, failing to pay overtime when they worked beyond 40 hours per workweek. Investigators also found that the company misclassified employees as independent contractors not subject to FLSA protections, and paid these employees at rates below the federal minimum wage.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they rightfully earn,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “We encourage all employers to use the tools and resources the Wage and Hour Division provides, and to reach out to us for assistance to avoid violations and operate in compliance with the law.”

The judgment also orders the defendants to procure the services of a third party to monitor future compliance, and prohibits them from receiving any amount paid to the employees in connection with the court order.

WHD’s Phoenix District Office conducted the investigation. The Regional Solicitor’s office in San Francisco litigated the case.

For more information about the FLSA and other laws enforced by the Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd; the site includes a search tool to learn whether you may be owed back wages collected by WHD.