US Labor agency orders payment to 614 ‘shortchanged’ construction workers

Construction workers walk towards a site. (Image: Adobe Stock)

Incorporated in 2014, Colvin is a drywall and plastering services company for residential and commercial clients.

Entered in the US District Court for the District of Nevada, the judgment follows an investigation by the department’s Wage and Hour Division Las Vegas District Office that determined Colvin attempted to avoid paying overtime wages by failing to combine all hours worked by employees. The regional Office of the Solicitor in San Francisco obtained the judgment in court.

“While workers often averaged 55 hours per week, investigators found the employer failed to pay workers the required overtime rate of one and one-half times the regular rate of pay for all hours over 40 in a workweek, a violation of the Fair Labor Standards Act,” explained the DOL.

DOL said the back wages amount to $275,000. The agency is collecting an additional $270,000 in liquidated damage. Colvin will also be levied a $10,000 fine, the DOL said.

The judgment also ordered Colvin to make process changes at the company, including:

• Accurately recording all hours worked by employees, their rates of pay for each hour, their total straight-time weekly earnings and premium pay for overtime hours worked.
• Implementing a timekeeping system that permits employees, as opposed to supervisors, to track their individual work hours daily.
• Maintaining all time, piece-rate and payroll records for a period of not less than three years.

Las Vegas Wage and Hour Division District Director Gene Ramos, said, “Employers can’t dodge paying overtime by wilfully ignoring the number of hours their employees work. The results of our investigation brought this employer into compliance, levelled the playing field and recovered workers’ wages.”