The investigation, conducted by the division’s New Orleans District Office, found that employees were wrongfully classified as independent contractors and paid an hourly wage with no overtime wages of time and one-half their regular rate of pay for hours worked over 40 in a workweek. Additionally, Acadian Payroll Services did not establish a seven-day workweek and failed to maintain proper records of weekly hours worked by its employees. Empire Janitorial Sales and Services and Acadian Payroll Services shared joint employer responsibilities. Both companies agreed to future compliance with the FLSA; however, full payment of back wages was made by Metairie-based Empire Janitorial Sales and Services, which cooperated with the investigation.
“We are pleased that the employer agreed to reclassify janitorial staff as employees, establish a seven-day workweek and to compensate workers properly when they work overtime,” said Cynthia Watson, the Wage and Hour Division’s regional administrator for the Southwest. “Misclassified workers are often denied access to basic benefits and protections under the FLSA, such as the Family and Medical Leave Act, overtime, minimum wage and unemployment insurance, to which they are entitled.”
The department 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 improving compliance with federal labor laws.
Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
