Galveston, Texas-based Morgan Roofing will pay $101,832 in back wages to 28 employees for violating the Fair Labor Standards Act's (FLSA) overtime requirements, according to an announcement from the U.S. Department of Labor.
Investigators from the Department of Labor's Wage and Hour Division found the roofing contractor misclassified its employees as independent contractors and paid them flat rates, without regard to the number of hours worked. This resulted in violations when employees who worked more than 40 hours in a workweek were not paid overtime. Morgan Roofing also failed to adhere to federal laws requiring time-and-one-half pay for any hours worked beyond 40 in a standard workweek, instead paying employees straight time for all hours worked. The roofing contractor also violated FLSA recordkeeping provisions by failing to keep time and payroll records.
“This employer denied these employees the wages they rightfully and legally earned,” said Wage and Hour Division Houston, Texas, district director Robin Mallett. “Employers are responsible for paying employees for all the hours they work, and for tracking those hours accurately to determine when overtime is due. Simply labeling someone as an independent contractor does not absolve the employer of this responsibility. This investigation should remind all employers to examine their pay practices to ensure they comply with the law.”