U.S. Department of Labor Investigation Results in Tennessee Construction Company Paying $246,813 in Back Wages and Damages Violations

LAVERGNE, TN – Smart Circle Construction Services – based in La Vergne, Tennessee – will pay $246,813 in back wages and liquidated damages to 17 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined the construction company violated the FLSA's overtime requirements when it inaccurately classified some employees as independent contractors, paying them straight time rates for all the hours that they worked, including hours they worked beyond 40 per workweek.

"It is critical for employers to understand their obligations and responsibilities under the law," said Wage and Hour Division District Director Nettie Lewis, in Nashville, Tennessee. "Simply because a pay practice may appear to be common in a particular industry does not in any way mean that it complies with the law. The U.S. Department of Labor encourages all employers to make use of the many resources Wage and Hour Division offers to understand their responsibilities and how to avoid violations."

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). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.