SCOTTSDALE, AZ — An Arizona construction company recently agreed to a settlement with the Department of Labor to resolve claims that the company violated various provisions of federal labor and wage laws, including failure to pay overtime wages. As part of the agreement, Scottsdale-based MNI Enterprises Inc. will pay a combined $214,392 in back wages and damages to 145 current and former workers as well as an additional $25,608 in penalties because of the willful and repeated nature of the violations found.
An investigation by the Labor Department’s Wage and Hour Division found that MNI Enterprises routinely failed to pay its workers one and a half times their average hourly rate of pay for overtime wages, a violation of the Fair Labor Standards Act (FLSA). The defendant paid some of its construction workers on a piecemeal rate, meaning they were compensated based on a fixed rate for each unit produced or task accomplished.
“Paying employees on a piece-rate basis does not automatically make them exempt from overtime,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “This agreement helps stop non-compliant employers from gaining an unfair competitive advantage over those that strive to abide by the law. We urge all employers to reach out to us for compliance assistance.”
Some employers choose to compensate workers on a piecemeal rate as motivation for the employee to perform his or her job more efficiently, which can help the businesses bottom line. However, employers must still pay these workers one and a half times their average hourly rate when working more than 40 hours in a week.
Often times, unscrupulous construction companies and other businesses are fully aware of their obligation to pay overtime to piecemeal rate workers under the FLSA but choose not to comply with the law and instead rely on the trust of their workers. When companies do break the provisions of the FLSA, wage theft victims may be entitled to back pay with interest, liquidated damages equal to back pay, and attorneys fees to cover the cost of litigation.
Construction Worker Unpaid Overtime Lawsuit
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.