US Department of Labor sues PR company for employee misclassification

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Acting Secretary of U.S. Labor Julie A. Su. | https://www.dol.gov/agencies/osec

US Department of Labor sues PR company for employee misclassification

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The U.S. Department of Labor has initiated legal action against Optimus Service Group LLC, a security guard company based in San Juan, Puerto Rico, and its principal Jorge Rivera Berrios. The lawsuit, filed on September 24, 2024, alleges that the company misclassified at least 254 current and former security guards as independent contractors rather than employees. This misclassification allegedly led to the denial of overtime pay and incomplete record-keeping of wages and working conditions.

"Employers should know that the U.S. Department of Labor takes misclassifying employees as independent contractors very seriously," said Regional Solicitor of Labor Jeffrey S. Rogoff in New York. "Attempts to avoid complying with the law will be met with litigation to ensure that workers receive the wages they’re owed."

"This isn’t the first time Jorge Rivera Berrios has misclassified security guards as independent contractors unlawfully. He and his company, Optimus Service Group LLC, must be held accountable for their failure to pay workers their legally earned wages by wrongly classifying hundreds of security guards as independent contractors instead of as employees," stated Wage and Hour Division District Director Jose Vazquez-Fernandez in Guaynabo, Puerto Rico.

Optimus Service Group provides security services across Puerto Rico, including residential communities, cannabis dispensaries, and other commercial entities. Notably, this is not the first legal challenge faced by Berrios; in 2015, he was sued by the department for similar violations involving another security firm he owned. That case concluded with a consent judgment requiring over $166,000 in back wages and damages.

The current lawsuit seeks back wages, liquidated damages, and injunctive relief to prevent further violations. It was filed by the Office of the Solicitor in the U.S. District Court for the District of Puerto Rico under docket number 3:24-cv-1452.

Workers who believe they may be owed back wages can contact the Wage and Hour Division confidentially through their toll-free helpline at 866-4US-WAGE (487-9243). The department offers support in more than 200 languages and provides resources such as a Timesheet App available for iOS and Android devices to help ensure accurate tracking of hours worked.

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