An Alabama trucking company was ordered to pay $112,735 to employees after a federal investigation found them guilty of failing to pay its workers overtime, reports AL.com.
The Department of Labor's Wage and Hour Division found that Fitzhugh Contracting LLC, a logging and trucking contractor, paid 63 workers their regular pay rate, when the Fair Labor Standards Act requires that hourly workers receive their hourly rate plus half for all hours worked past 40.
"Employers need to understand and be aware that it is unlawful to underpay employees, misclassify them as independent contractors, or pay straight time for overtime to increase their profit margin," Frank McGriggs, the Wage and Hour Division's deputy regional administrator in Atlanta, said in a statement. "Other employers who may be paying workers in a similar manner should take note of this investigation and change their practices immediately."
The investigation also found that Fitzhugh misclassified 46 workers as independent contractors, which denied them certain wages and benefits, according to AL.com.
Fitzhugh agreed to pay $56,367 in back wages plus the same amount in damages, bringing the total to $112,735.