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Arizona contractor ordered to pay $1.7M after wage violation

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Katelyn Walker Mooney Acting Assistant Secretary for Policy | Official Website

The U.S. Department of Labor has secured a judgment from a federal court mandating that an Arizona drywall contractor pay over $1.7 million in back wages and damages to 246 workers. This decision, made by the U.S. District Court for the District of Arizona, comes after an investigation by the department’s Wage and Hour Division revealed that Bean Drywall Inc., a residential drywall contractor, failed to compensate employees with overtime rates as required by the Fair Labor Standards Act.

Eric Murray, Wage and Hour Division District Director in Phoenix, stated, "Bean Drywall used fraudulent practices to disguise the theft of hundreds of thousands of dollars in wages earned by hundreds of employees." He further described the employer's actions as "willful and deceitful acts" meant to hide their behavior.

The judgment requires Bean Drywall to pay $875,000 in back wages and an equal amount in liquidated damages. It also upholds $25,000 in civil money penalties assessed for willful violations and prohibits future FLSA violations by the contractor.

Murray commented on broader industry practices: “Unfortunately, our investigations too often find construction employers engaged in illegal schemes to deny workers their hard-earned wages, obstruct enforcement agencies and gain an unfair advantage over their law-abiding competitors.” Since 2019, millions have been recovered for construction industry workers in Arizona due to such investigations.

For those who believe they may be owed back wages or need assistance filing a complaint, resources are available through the Wage and Hour Division’s helpline at 866-4US-WAGE (487-9243), offering services in more than 200 languages. The division also offers a Timesheet App for iOS and Android devices to help ensure accurate tracking of hours and pay.

Su v. Bean Drywall, Inc., Michael N. Bean, Michael Lee Sell, Heidi McBroom

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