Category Archives: Misclassification

US DOL recovers more than $1 million in back wages and damages for 196 employees of Bowlin Group LLC misclassified as independent contractors

COVINGTON, Ky. — The U.S. Department of Labor has obtained a consent judgment in federal court ordering Bowlin Group LLC and Bowlin Services LLC to pay 196 employees a total of $1,075,000 in back wages and liquidated damages.

 The judgment resolves a Labor Department investigation conducted by the Wage and Hour Division which found that the defendants misclassified 77 employees as independent contractors and violated the Fair Labor Standards Act by denying those workers and others overtime compensation, and failing to maintain accurate payroll records.

 The misclassification of employees as independent contractors cheats workers of wages and benefits to which they would otherwise be entitled to under the law, subsequently hurting our economy. It also leads to unfair competition because businesses that play by the rules operate at a disadvantage to those that don‘t.

 Bowlin Group LLC maintains its principal office in Walton, Ky., and operates five subsidiaries throughout Ohio and Kentucky. One such subsidiary is Bowlin Services LLC, which until May 2012 performed installation services under contract to Insight Communications, a cable, telephone and Internet provider in Kentucky. The employer classified some of its cable installers as employees but misclassified other installers doing the same work as independent contractors.

 All nonexempt employees, regardless of their classification by the employer as either an employee or independent contractor, were paid based upon the pieces of equipment they installed rather than at an hourly rate. They were thereby denied overtime compensation, which should have been time and one-half their regular rates of pay for hours worked beyond 40 in a workweek. Additionally, the employer failed to keep accurate records of the number of hours worked by each installer as well as employees performing fiber optic splicing, and falsified payroll records to minimize the numbers of hours worked.

The misclassification of workers as something other than employees, typically as independent contractors, presents a serious problem for affected employees and employers, and to the economy, Misclassified employees often are denied access to critical benefits and protections to which they are entitled, such as minimum wage and overtime, family and medical leave, and unemployment insurance. Misclassification of workers may also generate losses to the U.S. Treasury, and Social Security and Medicare funds, and to state unemployment insurance and worker compensation funds.

The Department of Labor and the Internal Revenue Service, through an interagency memorandum of understanding, are working together and sharing general information to reduce the incidence of misclassification of employees, reduce the tax gap and improve compliance with federal labor laws.

Memorandums of understanding with the IRS and state government agencies arose as part of the departments Misclassification Initiative, with the goal of preventing, detecting and remedying employee misclassification. In addition, under the terms of the information-sharing agreement, the department may share specific case information with the IRS.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. The FLSA provides that employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages.

Updated by RHR: May 9,2013

If you are a cable installer and would like more information about your possible employment claim, you may:

Call our law office at (954) 946-8130 for a free consultation about your wage concerns.

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Filed under Cable installer, independant contractor, Misclassification, Unpaid Overtime Wages

165 CABLE, TELEPHONE AND INTERNET INSTALLERS, SOME OF WHOM WERE MISCLASSIFIED AS INDEPENDENT CONTRACTORS, SUE EMPLOYER TO RECOVER UNPAID OVERTIME WAGES AND DAMAGES UNDER THE FLSA

March 20, 2012.  US DOL sues Kentucky cable, telephone and Internet installer to recover unpaid overtime wages and damages for 165 employees. Investigations alleged  Bowlin Services LLC and Bowlin Group LLC misclassified employees as independent contractors and falsified payroll records. The U.S. Department of Labor is seeking back wages and liquidated damages for 165 employees of Bowlin Group LLC and Bowlin Services LLC for alleged violations of the federal Fair Labor Standards Act. The department’s suit was filed following investigations by its Wage and Hour Division that found the defendants had misclassified employees as independent contractors, and violated the FLSA by denying overtime compensation and failing to maintain accurate time and payroll records. The department also is requesting a permanent injunction against the companies to prevent future FLSA violations.

Bowlin Group LLC maintains its principal office in Walton and operates five subsidiaries. One of these subsidiaries is Bowlin Services LLC, which performs installation services primarily under contract to Insight Communications, a cable, telephone and Internet provider in Kentucky.

“Our investigators found that 165 hardworking employees – including many who had been misclassified as independent contractors – were required to work long hours but were illegally denied overtime compensation,” said Oliver Peebles III, administrator of the Wage and Hour Division’s Atlanta Regional Office. “Misclassification seriously harms employees by forcing them to shoulder additional costs such as payroll taxes and the full costs of any fringe benefits. This lawsuit puts employers on notice that we will not hesitate to take legal action to enforce the law.”

After conducting employee interviews and reviewing the company’s records, the division found that some installers were classified as employees but other installers, doing the same work, were classified as independent contractors.

All installers, regardless of their classification, were paid based upon the pieces of equipment they installed rather than at an hourly rate. They were thereby denied overtime compensation, which would have been at least one and one-half their regular rates of pay for hours beyond 40 hours in a week.

In addition, the employer failed to keep accurate records of the number of hours worked by each installer and falsified payroll records to minimize the numbers of hours worked. The amount of back wages and damages owed continues to accrue while the employer remains out of compliance with the law.

The solicitor’s Nashville Branch Office filed the lawsuit in the U.S. District Court for the Eastern District of Kentucky, Jury Division, located in Covington.

The misclassification of employees as independent contractors is an alarming trend, particularly in industries that often employ low-wage, vulnerable workers and have a history of significant wage violations. The practice is a serious threat both to employees entitled to good and safe jobs, as well as to employers who obey the law. Too often employees are deprived of overtime and minimum wages, and forced to pay taxes that their employers are legally obligated to pay. Honest employers have a difficult time competing against this practice. The Labor Department is committed to ensuring that employees receive the pay and benefits to which they are legally entitled, and to level the playing field for employers that play by the rules.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records. The FLSA provides that employers who violate the law are liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.

These kinds of lawsuits may also be brought by a private law firm such as the Law Office of Rose H. Robbins and FLSA provides for attorneys fees and costs to be paid by the employer.

Our firm will prosecute class  and collective actions on behalf of aggrieved employees. We will undertake any litigation arising from this investigation on a contingent fee basis. If a lawsuit is filed as a result of this investigation, we will only seek payment of any fees from recovery generated by the lawsuit. This means any fee we receive will be paid by the defendant or out of any settlement or judgment recovered.  Likewise, all costs will be advanced by us. If an action is filed and not successful, you would not be responsible for any of our fees or costs. If you wish to discuss this investigation and any potential legal options you may have, or if you have any questions please contact our law office.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential “contact us” form below which will arrive at our law offices instantly. You may email us too: rose (at) roserobbins.com   If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under Cable installer, Fair Labor Standards Act ["FLSA"], Misclassification, Unpaid Overtime Wages

US Labor Department finds Knoxville, Tenn., misclassfication, security company owes $62,000 in back wages to 34 guards misclassified as independent contractors

Jan. 9, 2012

Custom Security Solutions Inc. has agreed to pay $62,038 in back wages to 34 security guards after an investigation by the U.S. Department of Labor’s Wage and Hour Division found the employees were improperly classified as independent contractors and consequently denied minimum wage and overtime wages due under the Fair Labor Standards Act.

Custom Security Solutions provides guard services for Premium Coal Co. at its mining sites and washing and loadout plants in Anderson, Scott and Campbell counties.

“Increasingly, employers are categorizing their employees as independent contractors to avoid paying them in compliance with the FLSA, as well as other federal, state and local statutes,” said Sandra Sanders, director of the Wage and Hour Division’s Nashville District Office. “Misclassification costs taxpayers millions of dollars each year in uncollected employment taxes, and gives unscrupulous employers an unfair advantage. The Wage and Hour Division is vigorously pursuing corrective action in those situations when workers are, in fact, employees, to ensure that they are paid required wages and level the playing field for employers who play by the rules.”

The division’s investigators determined that the 34 employees were paid a “straight time” rate for all hours worked instead of time and one-half their hourly rates for hours over 40, as required by the FLSA. This practice resulted in the employees being owed $61,937 in overtime back wages. Additionally, one of the employees was not paid the minimum wage of $7.25 per hour for all hours worked, and is also owed $101 in minimum wage payments.

In addition to paying the back wages, the company agreed to maintain future compliance by ensuring employees are properly classified and compensated for all hours worked in accordance with the FLSA.

The misclassification of employees as independent contractors is an alarming trend, particularly in industries that often employ low-wage, vulnerable workers and in which the Wage and Hour Division historically has found significant wage violations. The practice is a serious threat both to employees entitled to good and safe jobs, as well as to employers who obey the law. Misclassified employees often are deprived of overtime and minimum wages, and are forced to pay taxes that their employers are legally obligated to pay. Misclassification also creates a competitive disadvantage for employers who comply with the law.

Under the FLSA, an employment relationship must be distinguished from a strictly contractual one. An employee as distinguished from a person who is engaged in a business of his or her own  is one who, as a matter of economic reality, follows the usual path of an employee and is dependent on the business that he or she serves. For more information, visit http://www.dol.gov/whd/regs/compliance/whdfs13.htm.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their hourly rates of pay for hours worked beyond 40 per week. Additionally, accurate records of employees’ wages, hours and other conditions of employment must be maintained.

Our firm will prosecute class  and collective actions on behalf of aggrieved employees. We will undertake any litigation arising from this investigation on a contingent fee basis. If a lawsuit is filed as a result of this investigation, we will only seek payment of any fees from recovery generated by the lawsuit. This means any fee we receive will be paid by the defendant or out of any settlement or judgment recovered.  Likewise, all costs will be advanced by us. If an action is filed and not successful, you would not be responsible for any of our fees or costs. If you wish to discuss this investigation and any potential legal options you may have, or if you have any questions please contact our law office.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential “contact us” form below which will arrive at our law offices instantly. You may email us too: rose (at) roserobbins.com   If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under Misclassification, Security guard

Independent Contractor or Employee? Misclassification does not make it legal!

More and more employers are calling their employees “independent contractors” to avoid paying overtime and taxes. Just because an employer calls you a “subcontractor” doesn’t make it legal. Every case is different, but one factor courts look at is how much control your boss has over your work. If your only job is working for a single boss, and he or she directs your job (hours, schedule, pay, etc.), you may be improperly classified. Many employers misclassify their employees as independent contractors to cheat on their taxes or to avoid paying overtime wages for hours worked over forty in a workweek. If you have concerns about how your boss has classified you, please call us at for a free consultation about your unique situation.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential form below which will arrive at our law offices instantly. You may email us too: rose (at) roserobbins.com   If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under independant contractor, Misclassification, Non-exempt, overtime-wages, Unpaid Overtime Wages

SCHOOL JOBS & FAIR LABOR STANDARDS ACT (FLSA) LIST OF EXEMPT AND NON-EXEMPT POSITIONS

The Fair Labor Standards Act (FLSA) designates some employees who are exempt from the overtime and minimum wage requirements of the FLSA.

A.            There are four (4) main types of FLSA exemptions: executive, administrative, professional employees and “highly compensated” employees (29 Code of Federal Regulations (C.F.R.) part 541)

B.            Exempt employees generally must be paid on a “salaried” or fee basis, earn at least $455 per week, and meet one of the “duties” tests below.

The salary and salary basis requirements of the FLSA, however, do not apply to bona fide teachers.

For computer employees to qualify as exempt employees, they must be compensated either on a salary or fee basis at a rate not less than $455 per week, if compensated on a weekly basis, or at a rate not less than $27.63 per hour, if compensated on an hourly basis.

C.            Employees who are exempt under the executive, administrative or professional exceptions must “primarily” perform executive, administrative or professional duties (i.e., generally at least fifty percent (50%) of the employee’s time). (29 C.F.R. Part 541) “Highly compensated” employees must perform at least one (1) of these duties and meet the salary requirements as indicated below.

1.            Executive employee: Must be paid on a salary or fee basis and primary duty must include: (a) managing the enterprise in which s/he is employed or managing a recognized subdivision or department of the enterprise; AND (b) customary regular direction of two (2) or more other employees AND (c) authority to hire and fire other employees or have hiring and firing recommendations carry significant weight. Superintendents, assistant superintendents, Treasurers/chief school business officials and most directors generally are covered by this exemption.

2.            Administrative employee: In addition to salary requirements, primary duty must include: (a) either performing office or non-manual work directly related to management policies or general operations of the employer OR performing functions in the administration of a school system (or department or subdivision) in work directly related to the academic instruction or training AND (b) work requiring the exercise of discretion and independent judgment with respect to matters of significance. Principals, assistant principals, coordinators, and supervisors generally are covered by this exemption.

3.            Professional employee: In addition to salary requirements, primary duty must include (1) either work requiring knowledge of an advanced type customarily acquired by a long course of specialized study (work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion) OR work requiring invention, imagination or talent in a recognized field or artistic endeavor OR teaching in a school system/educational institution OR work requiring highly specialized computer knowledge (primary duty consist of apply in designing systems, hardware or software.) “Learned professions” such as teaching, psychology, nursing (at the level of R.N. and above), counseling and accounting generally are covered by this exemption.

4.            “Highly Compensated” employee: Employee’s salary is more than $100,000 annually AND employee regularly performs one (1) or more of the exempt duties of an executive, administrative or professional employee AND primary duty is non-manual office work.

D.            If an employee primarily performs non-exempt work, overtime and minimum wage requirements may apply. For example, if the director of maintenance spends most of his/her time doing hands-on maintenance, then s/he is most likely a “non-exempt” employee.

E.            Exempt employees are not covered by FLSA minimum wage and overtime provisions; however, they are covered by equal pay and record-keeping provisions.

F.            FLSA provisions do not apply to the following “non-covered” persons: independent contractors, bona fide volunteers and trainees, such as student teachers.

The following list represents some of the common categories of school district employees under the exemptions as well as a list of common categories of non-exempt employees. Certain positions, such as superintendent, may qualify under more that one (1) category, but are listed under the following categories below to be consistent with school districts in other states.

Executive Exemption:

Superintendent

Associate/Assistant Superintendent

Directors, Coordinators

Treasurer

Administrative Exemption:

Administrative Assistant

Principals

Assistant Principals

Head Teacher

Curriculum Specialist

Attendance Director

Director/Coordinator of Services

Supervisor of Maintenance

Supervisor of Transportation

Food Services Supervisor

The following positions may appear to be exempt administrative employees; however, under these conditions would be classified as non-exempt: “administrative assistants” (such as the secretary to the Superintendent) who primarily spend their time doing secretarial work, not managerial work; maintenance, transportation, or child nutrition supervisors who primarily perform manual or non-office work.

Professional Exemption:

Librarian

Remedial Specialist

Counselor

Teacher

Dentist

Professional Accountant

Physician

Psychiatrist

Psychologist

Registered Nurse

School Nurse

Attendance Office

Social Worker

Physical/Occupational Therapist

Dental Hygienist

Audiologist

Psychometrist

The following positions may appear to be exempt professional employees; however, under these conditions would be classified as non-exempt: computer personnel who do not (a) perform work requiring highly specialized knowledge in systems analysis, programming, or software engineering; (b) work as a systems analyst, computer programmer, software engineer or similarly skilled worker; and (c) consistently exercise discretion and judgment; or social workers (a) whose college degree is not in social work and (b) who do not perform work that is predominantly intellectual in character and requires the consistent exercise of discretion and judgment.

Non-Exempt Employees:

Aide

Paraprofessionals

Autism Mentor

Accountant/Auditor

Buyer

Braille or Sign Language Specialist

Clerk

Secretary

Receptionist

Computer Technicians

Draftsman

Media Worker

Inventory Supervisor

Accounts Payable Supervisor

Payroll Supervisor

Audio Visual Technician

Maintenance Worker

School Bus Operator/Truck Driver

Heavy Equipment Operator

Cafeteria Worker

Custodians

Groundsman/Watchman

Sanitation Plant Operator

Licensed practical nurses

An employee’s “primary duty” is critical in determining whether the employee is exempt from the requirements of the FLSA. In most cases, the primary duty consumes the majority (over fifty percent (50%) of the employees time. All employees who are determined to be non-exempt must be compensated for all hours worked on behalf of the employer at the Federal minimum wage, and compensated for all hours worked beyond forty (40) in a workweek at time and a half (1 1/2) of their regular rate of pay for that workweek.

Consequently, all hours worked by non-exempt service personnel on behalf of the school system must normally be included in the computation, including the attendance of meetings and workshops, travel between work assignments, extra-curricular and extra-duty assignments, such as extra bus runs, working in an after school program, or coaching, and taking work home in the evenings or on weekends. The employer is responsible for maintaining a weekly record (timesheet) of ALL hours worked by non-exempt employees to ensure that the requirements of the FLSA are followed.

On the other hand, employees who are determined to be exempt from the FLSA, such as teachers, are exempt from all requirements, including minimum wage and overtime, and the employer is not required to maintain a record (timesheet) of hours worked.

In making the determination as to which employees are exempt from the FLSA, one should always keep in mind that FLSA exemptions are subject to the rule of strict construction and are narrowly construed against an employer, which has the burden of proving an exemption. Courts focus on the actual activities of employees in determining their exempt status under the FLSA, and need not rely on resumes and position descriptions that maybe vague or contradictory to the employees’ testimony concerning their day-to-day job activities.

Personnel who are employed by a school district on a temporary, part-time basis and whose “primary duty” for the District meets the “white-collar” exemption tests, such as a certified coach, may be considered to be exempt, since coaches are considered teachers. The salary and salary basis requirements of the FLSA do not apply to bona fide teachers.

Personnel employed on a temporary, part-time basis as athletic trainers, however, are not considered teachers and, therefore, may not meet the “white-collar” exemption tests. The salary and salary basis requirements do apply to athletic trainers, as well as all exempt personnel other than teachers. To be exempt, an employee must be compensated on a salary or fee basis at a rate not less than $455 per week and must meet the other tests described in Section C.3. for a learned professional.

You may contact the Law Offices of Rose H. Robbins for a free consultation to see if you have a case for unpaid overtime or minimum wages by calling (954) 946-8130 or by filling out the confidential form below. If our office decides to accept your case and we enter into a written, signed retainer agreement you will not have to pay anything unless we win your case. Appointments are available at various locations in Palm Beach, Broward and Miami-Dade Counties.

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Filed under Improper classification, Exempt, Non-exempt, FLSA payroll records, Misclassification, Compensable time under FLSA, Aide, Autism Mentor, Accountant/auditor, Clerk, Secretary, Receptionist, Computer technicians, Maintenance worker, School bus operator/truck driver, Cafeteria Worker, Custodians, Heavy equipment operator