Utah Drywall Company Ordered to Pay $550,000 for Wage Theft Violations

Judge Orders Utah Drywall Company to Pay Back Workers $550,000 for Wage Theft Violations

SALT LAKE CITY, Utah — A federal judge recently ordered a Utah drywall company to pay back wages to hundreds of current and former workers who claim that the company shorted them on pay and violated various provisions of federal labor and wage laws.

As part of the order, Spanish Fork-based Kyco Services LLC and its owner will pay back a combined $550,000 in back pay with interest and liquidated damages to 267 workers. The judge also ordered Kyco Services to pay an additional $100,000 in civil fines for the company’s intentional violations of the law.

The U.S. Department of Labor filed its unpaid overtime lawsuit against Kyco Services after an investigation by the Department’s Wage and Hour Division determined the company violated the Fair Labor Standards Act (FLSA) when it failed to pay workers one and a half times their average hourly rate of pay.

The investigation determined that while the company paid its workers on a piecemeal rate regardless of how many overtime hours employees worked, Kyco Services systemically falsified its records to conceal its wage theft.

“Not paying construction workers the wages they earned seriously impacts their ability to take care of themselves and their family,” said Wage and Hour Division Administrator in the Southwest, Betty Campbell. “The U.S. Department of Labor remains focused on the American workforce and employers. If violations are found we will pursue corrective action vigorously to ensure accountability, deter future violations, and prevent violators from gaining a competitive advantage. Our work levels the playing field for employers who play by the rules.”

Under the FLSA, companies may pay certain workers on a piecemeal rate based on how many units the individual employee produces. However, the law also holds that workers must earn at least the federal minimum wage or prevailing state minimum wage for all hours worked and employees must earn at least one and a half times their average hourly rate of pay when working more than 40 hours in a week.

Drywall 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 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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