Staffing Industry Analysts reports that a Virginia company paid $743,443 for back wages and damages for misclassifying workers as independent contractors.
A direct mail company in Virginia paid $743,443 in back wages and liquidated damages to 73 employees to resolve violations of overtime and recordkeeping provisions of the Fair Labor Standards Act, the US Department of Labor announced.
An investigation by the US Department of Labor’s Wage and Hour Division found RPG Enterprise LLC, dba Planet Direct Mail, misclassified production employees as independent contractors, and failed to pay them overtime when employees worked more than 40 hours in a workweek. The Manassas, Va., company also failed to maintain records required by law.
The company paid an additional $32,099 in penalties.
“Planet Direct Mail paid some employees the proper wages with overtime, while paying the misclassified independent contractors straight-time for the hours they worked in excess of 40 per week,” said Acting Baltimore Wage and Hour District Director John DuMont.