MEMPHIS, TN — A federal judge recently ordered a Memphis, Tennessee construction company to pay back dozens of workers the government claims were defrauded out of overtime pay and other wages by the defendant’s intentional misclassification of workers as “independent contractors.” Under the terms of the order, Mulrooney Enterprises will pay 94 affected workers a collective sum of $140,000 in back pay and damages and is further ordered to permanently comply with federal wage and labor laws.
“Monetary judgments such as this one ensure that employees are paid for their work,” said Regional Solicitor Stanley Keen on the Department of Labor’s Wage and Hour Division web page. “The injunction ensures that employers do not derive an unfair advantage over their competitors by violating the law.”
According to the overtime pay lawsuit, filed in U.S, District Court for the Western District of Tennessee, the defendant’s business primarily engaged in construction services such as clearing, demolition, dirt work, grading, concrete work, and garbage disposal when it hired workers as independent contractors to avoid paying overtime. Despite claiming overtime exemptions for employees, the defendants exercised the same level of control and instruction as an employer, a violation of the Fair Labor Standards Act (FLSA).
Defendant Withheld Final Paychecks From Some Workers
In addition to failing to pay overtime when employees worked more than 40 hours a week, the government accused the defendant of violating minimum wage provisions of the FLSA by withholding some of the plaintiffs’ final paychecks. Under the law, employers must compensate workers appropriately for all their hours spent on the job and other work related duties.
Unfortunately, the type of behavior exhibited by the defendant is an all too common occurrence in many industries, particularly construction. Companies often try to increase profits and the bottom line on projects by illegally paying workers as little as possible, stooping as low as to classify these hardworking employees as independent contractors to avoid paying all due wages.
Independent Contractor Unpaid Overtime Lawsuit
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.