An Arizona contracting company has been fined nearly $350,000 after an investigation by the Wage and Hour Division found it violated overtime-pay regulations in the Fair Labor Standards Act.
VW Dig LLC, doing business as VW Connect, was found to have routinely subtracted 30 minutes each work day for meal breaks, regardless of whether or not the employee took the break, the Department of Labor (DOL) reported June 9. The company, with offices in Phoenix and Tuscon, also failed to pay employees for all hours worked because of "improper recordkeeping," the DOL reports.
“Manipulating timesheets to avoid paying a worker’s full earnings illegally denies them the wages on which they depend to care for themselves and their families," Eric Murray, WHD director in Phoenix, said in the report. "It also deprives them the dignity they are due."
“The outcome of this investigation shows that employers who violate the law can face costly consequences in the form of damages and penalties,” Murray said.
VW Dig LLC was determined to owe $174,190 in overtime wages for hours worked over 40 in a workweek, the DOL reports. "In addition to back wages and an equal amount of damages, the department assessed VW Connect with $47,926 in penalties for the willful nature of the violations," the agency states in the report. The WHD has recovered $348,380 from VW Dig, according to the statement.
The DOL reports WHD collected more than $36 million in wages for 21,000 construction workers in fiscal year 2021. The report states more than 220,000 construction workers left the industry in April of this year, leaving 449,000 job openings and creating a competitive market for employers.
“Employer who don’t pay workers all of the wages they’ve earned are likely to find it increasingly difficult to retain and recruit the people they need,” Murray said in the report. “Companies that comply with the law by paying full wages and benefits – and treating workers with the dignity and respect they deserve – will have a competitive advantage over those who cheat workers.”
