News Brief
US Department of Labor finds drywall company denied 55 Houston workers overtime, benefits by misclassifying them as independent contractors
Employer name: Omega Drywall Company Inc.
Investigation site: 3010 Eula Morgan Road
Katy, TX 77493
Investigation findings: The U.S. Department of Labor’s Wage and Hour Division found the employer, a drywall business, misclassified employees as independent contractors and paid straight time, a day rate and a piece rate for all hours worked and failed to pay overtime for hours over 40 in a workweek, in violation of the Fair Labor Standards Act. The division also discovered the employer had limited records, was missing time records and failed to have a complete set of employee addresses, also FLSA violations.
Back wages recovered: $55,039 in back wages to 55 workers
Quote: “Omega Drywall exploited vulnerable workers – and harmed them and their families – for their own financial gain by misclassifying them as independent contractors and denying them overtime pay and other essential benefits,” said Wage Hour District Director Robin Mallett in Houston. “We will hold employers accountable to prevent them from taking advantage of workers and gaining an unfair competitive advantage over other employers.”
