A U.S. Department of Labor investigation found Solid Drywall of Midvale, Utah; failed to keep time and attendance records for employees via a time clock, or time clock system, failed to pay minimum wage and applicable overtime rate to employees and workers misclassified as independent contractors.
Solid Drywall paid workers for up to 80 hours per a semi-monthly pay period policy, but paid a straight time rate in cash or with a prepaid debit card for all overtime hours worked.
The main difference between a biweekly and semimonthly payroll is that biweekly pay happens every two weeks while semimonthly occurs twice per month, such as on the 15th and final day of the month. Both policies require overtime paid on a weekly basis regardless of pay period start date.
These violations according to the U.S. Department of Labor, demonstrate a willful disregard for the departments requirements.
“Construction work is hard enough without worrying about getting paid fairly,” said Betty Campbell, administrator for the DOL Wage and Hour Division.
As the DOL Wage and Hour Division continue to ramp up enforcement it is important to comply with all Fair Labor Standards Act (FLSA) minimum wage, overtime and record-keeping provisions. It is also critical that businesses correctly determine whether the individuals working at there facilities are employees or independent contractors.
The FLSA establishes minimum wage, overtime pay, record keeping, and employment standards affecting employees in the private sector and in Federal, State, and local governments.
The IRS and U.S. DOL provide no cost check lists to assure your employee status is correct and there are many inexpensive employee time clocks and on line time clock systems available to guarantee all minimum wage, overtime and record-keeping provisions are simply met.