Georgia Construction Contractor Fined for Denying Overtime Wages to Workers

Employers have come up with many ways to try to avoid their legal duty to provide overtime pay as mandated by the federal Fair Labor Standards Act (FLSA). However, businesses keep engaging in this illegal behavior, including a Georgia construction contractor that learned how serious consequences can ensue when they refuse to pay time-and-a-half.

The U.S Department of Labor (DOL) announced that it recovered nearly $700,000 from S&A Industries Inc. arising out of an investigation involving a long-term company engagement in Hawaii. According to the DOL, more than 100 construction workers were not given overtime pay they had earned while working on hotel renovation projects in Honolulu.

In its press release, the government noted that S&A used various methods to deny the overtime premium that employees are entitled to under FLSA when they work more than 40 hours in a given week. Some of the specific methods that businesses use to avoid compliance with overtime laws including the following: 

• Use of subcontractors — While the workers in question were employed through seven different subcontractors, the government penalized S&A because they were in control of the pay arrangements. 

• Misclassification of employees — As businesses are not required to provide an overtime premium to independent contractors or certain employees, some companies try to claim that their workers are exempt from FLSA rules in that area. If you have been told that you cannot receive time-and-a-half because of the nature of your job and you believe that is incorrect, our firm can advise on whether your position has been misclassified.

• Agreements that obscure hourly pay — Sometimes, construction contractors and other employers attempt to make deals with laborers that might require them to work more than 40 hours in a week without any overtime premium. 

These types of violations can lead to serious sanctions. Due to what a DOL director called “blatant and prolonged” violations of overtime pay laws over a four-year period, S&A was forced to pay $346,550 in back wages, an equal amount in liquidated damages and $40,000 in civil penalties. The largest individual recovery for a worker was more than $28,000.

Even if you only suspect that your right to an overtime premium is being violated, you should speak with The Reddy Law Firm, P.C. in Alpharetta. Attorney K.P. Reddy focuses on helping Georgia employees collect the full amount of pay that they are entitled to under the law. Please call 678-629-3246 or contact us online for a consultation.