WHD - Wage and Hour Division

02/20/2024 | Press release | Distributed by Public on 02/20/2024 16:38

US Department of Labor recovers $131K for 110 employees denied overtime, misclassified as independent contractors by Hawaii security services company

Employer:Prior Vision LLC

590 Farrington Highway, Suite 524-445

Kapolei, HI 96707

Investigation findings:TheU.S. Department of Labor's Wage and Hour Divisionfound that Prior Vision misclassified 110 security guards and patrol officers as independent contractors and denied the employees required overtime pay for hours worked beyond 40 in a workweek, a violation of the Fair Labor Standards Act.

Based on an evaluation of the significant factors of an employment relationship, investigators determined the claimed independent contractors were dependent on Prior Vision - not persons engaged in their own businesses.The division also found the employer failed to keep accurate records of all hours worked and wages paid.

Back wages recovered: $65,642 in back wages for 110 employees

$65,642 in liquidated damages for 110 employees

$36,000 in civil money penalties for the reckless nature of the violations.

Quote: "A worker's right to overtime pay for hours worked over 40 in a workweek can't be waived by employers," said Wage and Hour Division District Director Terence Trotter in Honolulu. "Mischaracterizing employees as independent contractors to avoid lawfully required wage standards, social security contributions or state-mandated insurance protections is illegal."

Background: The U.S. Department of Labor announced a final ruleto help employers and workers better understand when a worker qualifies as an employee and when they may be considered an independent contractor under the Fair Labor Standards Act. The rule provides guidance and seeks to combat employee misclassification, a serious problem that impacts workers' rights to minimum wage and overtime pay, facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at large.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. You can find other information on the agency's website if you think you may have been misclassified as an independent contractor, or want to know how to file an online complaint.For confidential compliance assistance, employees and employers can call the agency's toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency's new Timesheet Appfor iOS and Android devices - also available in Spanish - to ensure hours and pay are accurate.