Drywall Company Pays Back Almost $1 Million in Wages to Workers

Drywall Company Pays Back Almost $1 Million in Wages to Workers

LOS ANGELES, CA — A California drywall company recently agreed to a settlement with the U.S. Department of Labor to pay back over 1,000 current and former workers to resolve claims that the company committed rampant wage theft against the employees. As part of the agreement, Riverside, California-based West Coast Drywall and Company Inc. will pay a combined $944,000 in back wages and damages to 1,069 employees who work as drywall installers and painters.

According to an investigation by the Department of Labor’s Wage and Hour Division, West Coast Drywall and Company failed to pay workers for all their work done, specifically overtime pay at a piecemeal rate. Under the Fair Labor Standards Act (FLSA), employers may pay workers at a piecemeal rate for each unit produced or task performed as opposed to a traditional hourly rate. However, these employees are still entitled to overtime wages when working above the national weekly 40-hour overtime threshold.

To calculate overtime pay for piecemeal workers, the employer must take all of the employee’s earnings and divide by the total hours worked, giving the worker’s average hourly earnings for that particular week. Next, the employer must compensate the employee for the extra half pay for only the overtime hours.

Piecemeal earners only receive the extra half pay for overtime wages because their hourly base pay is accounted for in their piece rate earned. It is also important to note that piecemeal workers do not need to earn a certain rate of pay but must still earn an average of least the federal minimum wage of $7.25 per hour for their regular pay.

“The Wage and Hour Division continues to ensure that employers pay employees properly for all the hours that they work, including overtime when they work more than 40 hours in a week,” said Wage and Hour District Director Danny Pasquil. “This investigation clearly demonstrates the Department’s continued commitment to enforcing a level playing field for all employers.”

Piecemeal Unpaid Overtime Pay Lawsuit

Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel 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.

 

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