HOUSTON – During an investigation, the U.S. Department of Labor’s Wage and Hour Division found a Katy drywall company had denied 55 Houston workers overtime and benefits after misclassifying employees as independent contractors.
The company, Omega Drywall, failed to pay overtime hours over 40 in a workweek, which is in violation of the Fair Labor Standards Act, according to department officials. The division also discovered that the employers had limited records, was missing time records and failed to have a complete set of employee addresses, also FLSA violations.
The total amount of $55,039 in back wages were recovered to the 55 workers, according to the department.
“Omega Drywall exploited vulnerable workers – and harmed them and their families – for their own financial gain by misclassifying them as independent contractors and denying them overtime pay and other essential benefits,” said Wage Hour District Director Robin Mallett in Houston. “We will hold employers accountable to prevent them from taking advantage of workers and gaining an unfair competitive advantage over other employers.”