The US Department of Labor has obtained $151,000 in unpaid wages and compensation for 64 security guards employed by a company in Northville, Michigan.

Employer: Koda Group Inc.
Address: 200 North Center St. Northville, MI

Actions Taken: Consent Judgment for Fair Labor Standards Act Violations

Court: U.S. District Court for the Eastern District of Michigan

Investigation Findings: On February 8, 2024, U.S. District Judge Matthew Leitman of the Eastern District of Michigan issued a consent judgment and order requiring Koda Group Inc. and its owner and president, Timothy Gilbert, to pay a total of $151,208 in back wages and liquidated damages to 64 security guards. This judgment follows an investigation by the U.S. Department of Labor’s Wage and Hour Division, which found that the company had violated the Fair Labor Standards Act (FLSA).

Specifically, the division’s investigators discovered that Koda Group Inc. had committed the following violations:

– Misclassified security guards as independent contractors, when they were actually employees.
– Paid the guards a flat rate for all hours worked, without providing time and a half for hours worked over 40 in a workweek.
– Failed to post a notice explaining the FLSA in a conspicuous location.

In addition to paying back wages in monthly installments through November 1, 2024, the company has also agreed to provide all employees with federal wage protections and maintain accurate payroll records.

Quote from Wage and Hour District Director Timolin Mitchell in Detroit: “Koda Group created schedules for its security guards, assigned them work tasks, and required them to follow detailed policies and procedures. These factors clearly define them as employees, rather than independent contractors in control of their own work schedules and jobs. When workers are misclassified, they are denied their rights under the Fair Labor Standards Act, and employers do not pay applicable employment taxes or workers’ compensation on their behalf.”

Background: To learn more about the Wage and Hour Division, including a search tool for back wages and how to file a complaint online, visit their website. For confidential compliance assistance, both employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of their location. The agency also offers a Timesheet App for iOS and Android devices, available in both English and Spanish, to ensure accurate tracking of hours and pay.

Case Information: United States Department of Labor v. Koda Group Inc.
Case Number: 2:23-cv-13183-MFL-DRG  

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