Massachusetts Employers Ordered to Pay Over $2.6 Million in Damages, Overtime, and Penalties
Following an investigation by the United State Department of Labor’s Wage and Hour Division, employers Anderson Dos Santos and Juliano Fernandes, along with companies AB Construction Group Inc. and Force Corp. were ordered to pay nearly $2.4 million in liquidated damages and back wages to 478 employees for misclassifying employees as independent contractors so they wouldn’t need to be paid overtime wages or given other benefits they were entitled to under the Fair Labor Standards Act (FLSA).
The New England regional solicitor of the Department of Labor said:
“The misclassification of employees as independent contractors is a serious problem that hurts workers, taxpayers, and the entire economy in multiple ways. It robs employees of their rights to proper wages, safe workplaces, social security payments, and unemployment and workers compensation insurance. It deprives federal and state governments of needed tax revenues. And, it undercuts law-abiding employers who pay their workers legally and play by the rules.”
Along with the nearly $2.4 million in wages and damages, the U.S. District Court for the District of Massachusetts ordered the defendants to:
- Stop misclassifying employees in an attempt to avoid FLSA requirements.
- Create, maintain, and preserve records that accurately track employee working conditions, work hours, and wages.
- Hire one or more independent consultants who can assist in creating a system that guarantees that records and payroll information continues to comply with FLSA standards, and will send quarterly reports to the Wage and Hour Division giving details on any corrective actions or problems.
If you or a loved one was misclassified as an independent contractor by your employer, contact the attorneys at Bailey Peavy Bailey Cowan Heckaman today. Our legal team understands the financial complications behind these types of cases, and are ready to put our knowledge to good use in order to help you get the compensation you deserve. Fill out our online form for a free case consultation, or give us a call at (888) 367-7160 to set up a meeting with one of our lawyers.