The U.S. Department of Labor has secured a consent judgment requiring two Arizona-based drywall and painting companies to pay $7,450,000 in back wages and damages. The ruling follows an investigation that revealed the companies willfully denied overtime pay to over 1,400 employees.
On January 15, 2025, the U.S. District Court for the District of Arizona ruled against Apodaca Wall Systems Inc. and Empire Wall Systems Inc., owned by Arnold Apodaca and his children Michael and Brittany Apodaca. The investigation found violations of the Fair Labor Standards Act as the companies avoided paying overtime by issuing multiple checks at straight-time rates for all hours worked. Additionally, they used labor brokers to hire workers paid in cash at straight time despite working more than 40 hours weekly.
Furthermore, some workers were paid based on square footage completed rather than hours worked, with crew leads distributing this piece-rate pay without accounting for overtime compensation.
“Apodaca Wall Systems and Empire Wall Systems exploited hundreds of vulnerable workers and intentionally deprived them of hard-earned overtime wages,” stated Wage and Hour Administrator Jessica Looman. She noted that these actions made it harder for employees to support themselves and their families.
The judgment mandates payment of $3,725,000 in back wages plus an equal amount in liquidated damages while permanently prohibiting future FLSA violations by the companies. They are also ordered to pay $125,000 in penalties to the department.
“Piece-rate workers are entitled to premium pay for overtime hours,” said Western Regional Solicitor Marc Pilotin from San Francisco. He emphasized that violating federal law had significant repercussions for these companies.
The Phoenix District Office conducted the investigation with support from the regional Office of the Solicitor in San Francisco.
Over recent years, enforcement efforts in Arizona's construction industry have recovered more than $22 million in unpaid wages and damages for workers.
Based in Phoenix, Apodaca Wall Systems and Empire Wall Systems specialize in interior painting and drywall construction. Notably recognized by Hispanic Business magazine as one of America’s fastest-growing companies, they now face significant legal consequences due to their practices.
Current or former employees can contact the division directly at 602-407-5323 regarding owed back wages from this judgment. Confidential assistance is available through a toll-free helpline at 866-4US-WAGE (487-9243) in over 200 languages.
For more information about wage recovery or filing complaints online, visit the Wage and Hour Division's website. A Timesheet App is available for iOS and Android devices to ensure accurate tracking of work hours and pay.
