Department of Labor recovers nearly $85K in owed wages for 32 mobile home transportation drivers, laborers misclassified as independent contractors

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Department of Labor recovers nearly $85K in owed wages for 32 mobile home transportation drivers, laborers misclassified as independent contractors

Paredes Inc. failed to pay overtime wages, keep required records

Employer name:Paredes Inc., operating as Superior Service

Investigation sites:75 Garrett Trail

Maxwell, TX 78656

Investigation findings: The U.S. Department of Labor's Wage and Hour Divisionfound Paredes Inc. - a mobile home transportation company operating as Superior Service - misclassified 32 laborers and drivers as independent contractors when, in fact, the division determined they are employees. Drivers moved mobile homes from the local pickup location to locations in Texas, while the laborers took care of all electrical, foundation, plumbing and other requirements to complete mobile home installations. Investigators found Paredes violated federal lawby failing to pay the required time and one-half its employees' hourly wages for hours over 40 per workweek, and by not keeping federally required records.

In January 2024, the department published a final rule, effective March 11, revising the department's guidance on how to determine who is an employee and who is an independent contractor under the Fair Labor Standards Act. Learn more about the final rule.

Back wages recovered: $84,740 in owed wages.

Quote: "Misclassifying employees as independent contractors deprives workers of their full wages, benefits and employment protections and allows their employers to gain an unfair advantage over law-abiding competitors," said Acting District Director Rosalinda Huffman in Austin, Texas. "Employers who wrongly believe they can abuse employees' rights to be paid all of their hard-earned wages will find the consequences for violating the law can be costly."

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