Department of Labor recovers over $178K in back wages from Houston construction company
HOUSTON (CBSDFW.COM) — A Houston construction company was ordered to pay $178,358 in back wages owed to 27 employees after a Department of Labor investigation found that they had misclassified the workers as independent contractors and denied them full wages and benefits.
M&M's Welding & Fabricating misclassified workers specializing in constructing steel buildings, according to the department's Wage and Hour Division. The company failed to pay these workers their overtime premium for working over 40 hours in a workweek, paying only straight time.
"M&M's Welding & Fabricating exploited vulnerable workers by misclassifying and denying them the overtime pay they earned," explained Wage and Hour Division District Director Robin Mallett in Houston. "Employers who do this harm workers and their families who depend on their earnings and benefits. They also gain an unfair advantage over their business competitors who abide by the law."
Misclassifying workers as independent contractors is more common than you might think. In fiscal year 2021 alone, the Wage and Hour Division found that over 21,000 workers in the construction industry were owed more than $36 million in back wages.
The division said its investigations commonly find violations related to failure to pay overtime, misclassifying workers as contractors, and not paying them for time spent on work-related travel or pre- and post-shift work.
The division's website offers a search tool for workers who think they might be owed back wages. Workers are protected regardless of immigration status, and the department offers services in over 200 different languages.
