Federal Judge Orders Tennessee Construction Company to Pay Back Workers

Federal Judge Orders Tennessee Construction Company to Pay Back Workers

MEMPHIS, TN — A federal judge for the U.S. District Court for the Western District of Tennessee recently ordered a Memphis-based construction company to pay back wages to dozens of current and former workers who were underpaid by the defendant. As part of the order, Capital Construction Inc. must pay a combined $188,244 in back wages and liquidated damages to 37 employees for violating the overtime and record keeping provisions of the Fair Labor Standards Act (FLSA).

An investigation by the Labor Department’s Wage and Hour Division determined that Capital Construction broke the law when it failed to pay workers one and a half times their average hourly rate of pay for overtime hours. The government alleged that Capital Construction improperly classified some of its workers as overtime exempt independent contractors and made improper overtime payments as a result.

Capital Construction would pay the workers in question with checks or direct deposit for the workers’ first 40 hours of work on the job but would then pay out any remaining hours in cash but only for straight time. Other workers were paid entirely in cash or were denied their premium overtime pay all together. These infractions also constituted violations of the FLSA’s recordkeeping provisions that require companies to accurately document all the hours worked by their employees.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “The resolution of this case demonstrates our commitment to those workers, and to providing employers the tools they need to comply with the law. Our work levels the playing field for employers who play by the rules.”

Sadly, this type of wage theft is extremely common in the construction industry and works only to suppress worker pay for the benefit of the company’s bottom line. Construction workers who believe they may be victims of wage theft should strongly consider speaking to an experienced unpaid overtime attorney about their case.

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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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