Intentionally misclassifying workers remains a ‘widespread problem,’ says Department of Labor
The U.S. District Court for the Eastern District of Virginia has ruled that a Suffolk construction staffing agency, along with its owner, must pay back wages and liquidated damages to its 208 construction workers for intentionally misclassifying them as independent contractors.
Following an investigation and litigation by the US Department of Labor (DOL), the Reston Contracting LLC and its owner, Bethany B. Resto, are ordered to pay $278,073 to the company’s affected workers, according to DOL’s news release.
“Misclassification by employers is a widespread problem that denies workers’ rights to full wages and other protections and benefits,” said Wage and Hour Division District Director Roberto Melendez in Richmond, VA, according to DOL.
“In this case, Resto Contracting LLC and its owner blatantly disregarded the law and shortchanged more than 200 workers of the hard-earned wages they and their families depend on,” he added.
Reports showed that DOL acted against the construction staffing agency after the government found that the company and its owner employed several workers and then unlawfully misclassified them as independent contractors. These hired workers were employed as finishers, loaders, operators, and carpenters, according to DOL’s news release.
“Resto Contracting and Resto then paid them straight time for all hours, including...
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