The U.S. Department of Labor recently secured a significant judgment against a Virginia concrete contractor, Village Concrete Inc., ordering the company to pay almost $1.2 million in back wages, damages, and penalties. This judgment stems from the Department's investigation, which revealed that Village Concrete had misclassified 29 employees as independent contractors and failed to provide proper overtime pay.
According to Wage and Hour Administrator Jessica Looman, the misclassification of employees has serious consequences, as it denies them essential benefits and protections. Looman emphasized that combatting misclassification is a top priority to safeguard vulnerable workers and their families.
As part of the consent judgment, Village Concrete is required to compensate 81 employees with $563,938 in back wages and an equal amount in liquidated damages. Additionally, the company is prohibited from future violations of the Fair Labor Standards Act and must pay civil money penalties of $67,473 for its willful infractions.
Solicitor of Labor Seema Nanda underscored the Department's commitment to addressing misclassification issues, stating, "We will use all legal tools available to us to hold employers accountable for deliberate and inexcusable attempts to obfuscate the facts, including civil monetary penalties."
Village Concrete Inc., which serves residential and commercial clients in the District of Columbia, Maryland, and Virginia, was found to have falsified records to conceal its violations, including denying employees proper pay for work-related travel and misclassifying salaried workers as exempt from overtime.
The case serves as a reminder of the importance of adhering to labor laws, including the Fair Labor Standards Act, which mandates fair compensation practices for employees. The Department of Labor encourages both employers and workers to utilize its resources, such as the Wage and Hour Division's search tool for back wages and the toll-free helpline for inquiries in over 200 languages.
The judgment against Village Concrete Inc. underscores the Department of Labor's commitment to upholding labor standards and ensuring that workers are fairly compensated for their contributions.
