A drywall company in Arizona has settled a time and attendance lawsuit related to unpaid overtime. According to a report from The Arizona Republic, at issue was the fact the company placed workers under a Fair Labor Standards Act status that made them exempt from overtime compensation. The report stated that this was done at the behest of another contractor the drywall company was working in partnership with.
FLSA guidelines list several employee status classifications that do not call for overtime payments to be made in excess of the 40 hours that make up a standard workweek. The complaint alleges that the partner company encouraged this behavior as a way to avoid paying workers time-and-one-half for the extra hours worked.
In addition to $44,000 in fines, the company also agreed to pay $600,000 in back overtime wages to the 445 former and current employees affected by this practice. Those involved in the class-action settlement will receive approximately $1,250 each.
The Arizona Republic writes that in an effort to maintain compliance under FLSA standards, the company will hire an outside entity to prevent future employee misclassification from taking place.
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