The Fair Labor Standards Act (FLSA) establishes provisions concerning wages, and employers are expected to follow these regulations. When companies fail to do so, they may face legal action by their employees. A company in based in Carrollton, Georgia recently had to pay $226,000 in back wages to contractors they hired, which included overtime pay and regular wages.
According to reports, the Southeastern Painting Contractors, Inc. falsely classified the 67 workers as independent contractors. The workers were hired to work at federally funded school construction sites in the western part of our state. Reports indicate that they received a lower rate of pay than their contracts specified. Additionally, they never received overtime pay.
The Department of Labor found the company in violation of several FLSA provisions regarding wages and record-keeping. Southeastern Painting Contractors reportedly also committed additional offenses, but no further details were given. The company stated that they would comply with federal regulations in the future, and they paid out the amount they owed in back wages to the contracted workers.
The FLSA is meant to protect employees and ensure that they receive the pay that they are entitled to. However, it also exists to offer guidelines for employers to follow, which can help them avoid litigation. Any employee who feels that he or she was not paid enough regular wages or overtime pay may wish to explore what options are available under Georgia law. Additionally, companies that believe they have been unjustly accused of violating FLSA regulations have the right to defend themselves from such allegations.
Source: Athens Banner-Herald, “West Georgia company pays $226k in back wages,” March 4, 2013