The U.S. Department of Labor (DOL) has imposed fines totaling $3.2 million on four Arizona contractors in a bid to protect 890 residential construction workers from illicit pay practices. The DOL's Wage and Hour Division concluded that the companies intentionally violated the overtime and minimum wage provisions of the Fair Labor Standards Act.

Wage and Hour Division District Director Eric Murray 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." He further noted, "These unlawful practices create the false impression that piece-rate workers’ wages comply with the Fair Labor Standards Act when, in fact, these employees are being stripped of their earned wages. The Wage and Hour Division is committed to holding employers accountable and ensuring that they do not obtain an unfair competitive advantage by denying workers their full wages."

According to a DOL news release, Mesa-based 4-E Painting LLC and Liberty Constructors LLC, along with Tempe-based BCK Coatings Inc. and Geronimo Wall Systems LLC were found in violation of overtime pay regulations. The court orders mandate these contractors to distribute more than $3.2 million in back wages and liquidated damages among the affected workers. Additionally, they are required to pay the department $95,402 in penalties for their deliberate and reckless violations.

Regional Solicitor Marc Pilotin in San Francisco said, "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." Pilotin added, "The Solicitor’s Office will continue to obtain court judgments to recover back wages, liquidated damages and penalties against employers who violate the FLSA. Companies can avoid these damages and penalties by paying correctly in the first place."