DURHAM, NC.- He Labor Department of the US recovered more than $1.6 million in back wages and damages for 188 workers who were misclassified as independent contractors thereby being denied minimum wage and overtime by a North Carolina construction service contractor.
The government entity reported that this recovery is in response to a ruling against R&R Construction Maintenance of North Carolina Inc from 2022. The ruling required the company to pay affected employees $838,007 in back wages and an equal amount in damages.
The US District Court action was prompted by the results of an investigation by the Department of Labor’s Wage and Hour Division that found that R&R Construction Maintenance misclassified the employees as independent contractors and failed to pay them hourly wages. extras required for more than 40 hours in a work week, in violation of labor laws.
“Misclassifying employees as independent contractors deprives workers of their full wages, benefits, and job protections and allows their employers to gain an unfair advantage over law-abiding competitors,” explained the regional administrator for the Division of Hours and Wages, Juan Coria, in Atlanta.
“The outcome of this case and the costly consequences suffered by R&R Construction Maintenance should serve as an example for other employers to ensure their employment practices comply with federal law,” the Labor Department statement said.
Based in Durham, R&R Construction Maintenance of North Carolina Inc. provides trash and debris collection services for construction sites.
The Department of Labor has noted that both workers and employers can help ensure accurate hours worked and pay by downloading the free timekeeping app on the Labor Department’s website.
