The Department of Labor has secured a court ruling requiring a contractor to compensate nearly $1.2 million in wages, damages, and penalties for engaging in unlawful employment practices.

Village Concrete Inc. has been found to have misclassified 29 of its employees as independent contractors, resulting in the denial of proper overtime pay and other benefits. The U.S. Department of Labor has obtained a consent judgment in federal court ordering the Virginia-based concrete contractor to pay nearly $1.2 million in back wages, damages, and penalties.

The investigation by the department’s Wage and Hour Division revealed that Village Concrete Inc. had misclassified its employees as independent contractors, denying them access to critical benefits and protections such as overtime pay, minimum wage, and family and medical leave. The company also falsified records to make it appear that they had paid workers overtime, wrongly categorized salaried employees as exempt from overtime, and failed to keep accurate records of hours worked and compensation paid.

Wage and Hour Administrator Jessica Looman stated that misclassification is a serious issue that denies vulnerable workers and their families the protections they are entitled to. The division will continue to prioritize combatting misclassification to protect workers.

The consent judgment requires Village Concrete Inc. to pay 81 employees a total of $563,938 in back wages and an equal amount in liquidated damages. The company is also barred from future Fair Labor Standards Act violations and must pay civil money penalties of $67,473 for willful violations. Solicitor of Labor Seema Nanda emphasized that the Solicitor’s Office will use all available tools to address misclassification, including civil monetary penalties, to hold employers accountable for their actions.

Village Concrete Inc. is a contractor that serves residential and commercial customers in the District of Columbia, Maryland, and Virginia. The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage and overtime pay for hours worked over 40 in a workweek. It also prohibits the misclassification of employees as independent contractors.

To learn more about the Wage and Hour Division and to check if you may be owed back wages, visit their website. Employers and workers can also call the division’s toll-free helpline at 1-866-4US-WAGE for assistance.  

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