The U.S. Department of Labor has successfully recovered $824,276 in back wages and damages for 680 employees of Spectrum Construction LLC, a Las Vegas-based drywall subcontractor. The company was found to have violated federal law by not paying overtime to its piece-rate and hourly workers.
An investigation conducted by the department's Wage and Hour Division revealed that Spectrum Construction did not pay time-and-a-half for hours worked over 40 in a workweek as mandated by the Fair Labor Standards Act (FLSA). Instead, the company paid piece rates without an overtime premium and "banked" overtime hours for hourly painters, compensating them later with days off at straight time or not compensating them at all.
"This case highlights the Wage and Hour Division’s commitment to protecting construction workers’ rights to be paid overtime wages," stated Gene Ramos, Wage and Hour Division District Director in Las Vegas. "By uncovering and addressing widespread overtime violations at Spectrum Construction, we are ensuring that hundreds of workers receive the wages they rightfully earned. Our enforcement efforts ensure fair competition in the construction industry and send a clear message that employers must comply with federal labor laws."
Under FLSA regulations, non-exempt employees must receive an overtime premium for hours worked beyond 40 each week. Only public employers such as state and local governments can bank overtime hours under specific rules.
Additionally, Spectrum Construction was fined $10,060 in civil money penalties due to the willful nature of these violations.
Spectrum Construction LLC has been operating since 2011 as a contractor specializing in drywall, metal stud framing, acoustical installation, and painting services for both residential and commercial buildings across Nevada.
For more information about the Wage and Hour Division or to inquire about owed back wages collected by the division, individuals can contact their toll-free helpline at 866-4US-WAGE (487-9243). A free Timesheet App is also available for iPhone and Android devices to help track hours and pay.
