Construction subcontractor faces legal challenge over employee pay

Time and attendance issues are driving a lawsuit against a subcontractor involved in rebuilding the boardwalk of a New Jersey town. The private employer had accepted work from the firm in charge of the project, which stems from a contract with municipal government.

More than 75 workers are involved in the suit, which claims full pay and overtime were withheld, according to local news source Daily Record. The legal action involves the New Jersey Prevailing Wage Act, a piece of legislation focused on enforcing correct wages and payment for those engaged in public works projects, as well as the federal Fair Labor Standards Act for overtime pay.

Under the FLSA, employees working on an hourly basis must be paid one-and-one-half times their regular rate when they work more than 40 hours in a given week. The group of workers has not yet put forth a total amount they felt they are due, although the amount will include back pay, damages and interest.

A municipal administrator pointed out that the New Jersey Department of Labor had checked submitted payroll records and found no irregularities.

Using employee management software makes record keeping simpler and more thorough, allowing employers to easily track hours worked and wages earned.


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