An investigation by the U.S. Department of Labor's Wage and Hour Division found Burleson, Texas-based Rice Drywall violated the Fair Labor Standards Act, according to a news release from the agency. Rice Drywall has paid $354,763 in back wages to more than 558 employees to resolve overtime violations.
Investigators found the drywall company contracted with several construction and temporary drywall labor providers—RRT Construction, Carreno Interiors, J&R Drywall Services, and JAC Contractor—and misclassified those companies' employees as independent contractors. The practice resulted in overtime violations when employees worked more than the standard 40 hour workweek but were paid only their straight-time hourly rates. The Wage and Hour Division determined Rice Drywall and subcontractors jointly employed the workers. The Texas company also failed to accurately record and maintain records of the hours these employees worked.
“Our investigations frequently find violations that stem from employers improperly classifying employees as independent contractors and then failing to pay them overtime,” said Wage and Hour Division Dallas district director Jesus A. Valdez. “Employers should use the results of this investigation as an opportunity to review their pay practices.”