Phoenix, Ariz.-based Sierra Verde Plumbing will pay $29,753 in back wages and liquidated damages to six employees after an investigation from the U.S. Department of Labor's Wage and Hour Division. According to a news release from the agency, the Arizona contractor violated overtime and recordkeeping provisions of the Fair Labor Standards Act. The Wage and Hour Division also assessed a $5,184 fine for civil penalties against Sierra Verde Plumbing.
An investigation into the contractor found Sierra Verde Plumbing paid some employees on a piece-rate basis and erroneously classified some employees as independent contractors, failing to pay these employees overtime rates when they worked more than 40 hours a week. The Arizona contractor also failed to maintain and complete an accurate record of the number of hours worked by employees.
"Simply paying employees on a piece-rate or a flat weekly basis does not necessarily exempt them from overtime pay when they work over 40 hours in a week," Wage and Hour Division Phoenix district director Eric Murray said. "Employers must pay their employees all the wages they legally earned."
