North Carolina remodeling contractor pays $100K in back wages after US Department of Labor investigation finds overtime violations

HIGHLANDS, NC – A federal investigation of a Highlands granite and cabinet remodeling contractor’s pay practices found the employer misclassified workers as independent contractors and failed to pay overtime when they worked more than 40 hours in a workweek.

The U.S. Department of Labor’s Wage and Hour Division found Black Rock Granite and Cabinetry Ltd. paid workers straight time rates for all the hours they worked and did not pay overtime as the law requires. In addition, the employer violated federal child labor laws by allowing a minor, under the age of 16, to work more than the three hours a day and 18 hours per week while school was in session. Black Rock’s actions violated both the overtime and child labor provisions of the Fair Labor Standards Act.

The division recovered $100,504 in back wages for eight employees.

“Misclassifying employees as independent contractors is a serious and costly problem. This practice denies workers the wages – including proper overtime compensation – that they rightfully earned under the law,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “This investigation should remind all employers to review their pay practices to ensure that they are in compliance with applicable laws and to contact us if they have questions.”

For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. 

Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.

Read this news release En Español.