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Jan
2013
2

Jacksonville Co. Caught Classifying Painters as Employees on the Weekdays, Contractors on the Weekends

A Jacksonville painting company has been ordered to pay $45,983 in back wages to 26 painters by the U.S. Department of Labor’s Wage and Hour Division after missclassifying its employees as independent contractors.

Clark Cooper Painting, LLC was found to have broken provisions of the Fair Labor Standards Act (FLSA) by keeping inaccurate records as well as denying overtime. According to Michael Young, director of the Wage and Hour Division’s Jacksonville District Office,

“Far too often, employers misclassify their employees as independent contractors to avoid paying them in compliance with the FLSA, as well as other federal, state and local statutes. Misclassification costs taxpayers millions of dollars each year in uncollected employment taxes, and gives unscrupulous employers an unfair advantage. The Wage and Hour Division is vigorously pursuing corrective action in those situations when workers are, in fact, employees, to ensure that they are paid required wages and to level the playing field for employers who play by the rules.”

By labeling the workers as employees from Monday to Friday and then as independent contractors on the weekends, Clark Cooper avoided paying overtime. This misclassification allowed the company to pay “straight time” rates for all hours worked instead of the time and a half necessary to meet FLSA standards.

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