Salt Lake City, Utah, drywall company Metal Rock Construction has been ordered to pay $100,000 in back wages and liquidated damages after an investigation by the Department of Labor's Wage and Hour Division, according to a news release from the agency. The U.S. District Court for the District of Utah ordered the company to pay an equal amount for back wages and liquidated damages to 86 employees for violating the overtime provisions of the Fair Labor Standards Act.
Metal Rock Construction's payroll records indicated the drywall company paid its employees a flat rate per job, disregarding the number of hours worked by employees. This practice resulted in overtime violations when employees logged work weeks greater than 40 hours and did not receive overtime pay for the hours worked beyond the standard work week. The company also failed to keep accurate time and payroll records. The Utah Court entered an injunction prohibiting the drywall company from violating the overtime and recordkeeping provisions of the Fair Labor Standards Act.
“Employers have an obligation to pay their employees the wages they have legally earned,” said Donnette Holder, the Wage and Hour Division acting regional administrator in the Southwest. “When employers fail to do so, the Department will use all the tools at our disposal to pursue corrective action, deter future violations, and prevent an employer from gaining an unfair competitive advantage.”
