Julie A. Su Secretary of Labor | Twitter Website
The U.S. Department of Labor has announced that four Arizona contractors have been ordered to pay over $3.2 million in owed wages and damages to a total of 890 workers after investigations revealed violations of labor laws. The contractors involved in the case are 4-E Painting LLC, Liberty Constructors LLC, BCK Coatings Inc., and Geronimo Wall Systems LLC.
According to the department's Wage and Hour Division, the contractors willfully and recklessly shortchanged the affected workers and violated overtime and minimum wage provisions. Eric Murray, the Wage and Hour Division District Director in Phoenix, stated, "Our investigators have found that schemes to pay straight-time for all hours worked and avoid paying required overtime rates at time and one-half are pervasive among employers in Arizona’s construction industry."
The investigations found various violations by each contractor:
- 4-E Painting LLC owed $432,633 in overtime wages and an equal amount in liquidated damages to 158 workers.
- Liberty Constructors LLC owed $401,049 in unpaid wages and $401,049 in liquidated damages to 100 employees.
- Geronimo Wall Systems LLC owed $443,115 in overtime wages and $443,115 in damages to 195 employees.
- BCK Coatings Inc. owed $360,000 in unpaid minimum and overtime wages and an equal amount in liquidated damages to 437 employees.
The contractors were also assessed civil penalties for their violations. Following the investigations, the U.S. District Court for the District of Arizona issued consent judgments requiring the contractors to pay the workers their share of the back wages and damages, as well as penalties for their willful violations.
Regional Solicitor Marc Pilotin in San Francisco noted, "More and more construction companies in Arizona are recognizing piece-rate workers’ right to overtime and are promptly resolving the department’s investigations when they are found to violate this right."
Workers who believe they may be owed wages by these contractors are urged to contact the Wage and Hour Division in Phoenix. The division recovered over $35 million in back wages for more than 17,000 construction industry workers nationwide in fiscal year 2023.
The Department of Labor's efforts to ensure fair pay practices in the construction industry continue, with a focus on holding employers accountable and protecting workers' rights.
