PORTLAND, Ore. — A federal judge recently ordered an Oregon-based drywall company to pay $285,000 to over 80 current and former workers over allegations that the defendant engaged in systematic violations of federal labor and wage laws, including failure to pay overtime wages. The defendant, Westside Drywall, Inc. has been previously investigated by the Department of Labor’s Wage and Hour division in the past over similar allegations, including a 2010 investigation that yielded a $200,000 judgement to pay back 62 other workers.
The legal action, originally filed in 2015 by the Department’s Solicitor’s Office, looked into claims that the company and its owner engaged in rampant wage theft against its workers from 2012 to 2014. Westside Drywall, Inc. failed to pay its workers one and a half times an individual’s average hourly rate of pay for time spent above the 40-hour overtime threshold.
According to the Labor Department, the workers earned piecemeal wages meaning individual workers were paid per unit produced at the company’s facility but should have earned overtime when working more than 40 hours in a week. Additionally, the law requires these types of workers earn at least the federal or applicable state minimum wage when averaging pay earned over total hours worked in a week.
“The U.S. Department of Labor welcomes this resolution to restore back wages owed to these hard-working employees,” said Wage and Hour Division Director Thomas Silva, in a statement from Portland. “Our goal is to ensure that employers adhere to their responsibilities and to level the playing field in this highly competitive industry.”
While the practice of paying workers piecemeal rate is perfectly legal and pay be the best situation for both employees and employers, many businesses attempt to blur the lines between what is legal and against the law when paying workers. Fortunately, the defendant has also been ordered to implement training for company supervisors to ensure future compliance with the federal Fair Labor Standards Act (FLSA).
Piecemeal Worker Unpaid Overtime Pay Lawsuit
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