ALPHARETTA, GA — The U.S. Department of Labor and an Alpharetta, Georgia-based furniture installer recently agreed to settlement terms in an unpaid overtime lawsuit to resolve claims that the company failed to properly pay its workers for all their time spent on the job. R.I.O.F Inc. will pay $194,069 in back pay, interest, and liquidated damages to 109 current and former employees for violations of federal wage and labor laws.
An investigation by the Labor Department’s Wage and Hour Division looked into the defendant’s payroll records determined the company intentionally misclassified workers as “independent contractors” to avoid paying these employees overtime pay. Instead of receiving one and a half times their average hourly wage, the workers only received straight pay for working above the 40-hour overtime threshold.
“This employer’s actions led to employees being paid thousands of dollars less than they were owed for the hours they worked,” said Wage and Hour Division District Director Eric Williams. “In addition to hurting workers, this practice creates an economic disadvantage for employers who comply with the law. We encourage all employers to make use of our educational resources to ensure compliance.”
Federal Pay Laws for Independent Contractors
Under the Fair Labor Standards Act (FLSA), businesses may hire individuals who work for themselves as independent contractors but these workers must exercise certain levels of control over their jobs and have their own tools and expertise to complete their tasks. To help both employers and workers understand whether the individual qualifies as an independent contractor, the Internal Revenue Service (IRS) has a 20-factor independent contractor test outlining the expectations for independent contractor status.
While the distinction between an employee and an independent contractor should be simple enough to understand, many unscrupulous companies attempt to skirt federal wage and labor laws by claiming some of their workers are independent contractors. The FLSA gives workers the rights to file unpaid overtime lawsuits against companies and recover lost wages.
Independent Contractor Unpaid Overtime Lawsuits
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.