Investigations into two businesses in Birmingham and Montgomery were found in violation of federal labor law last week.
According to the U.S. Department of Labor, Jennings Professional Services in Montgomery and Urban Air Trussville in Birmingham each violated the Fair Labor Standards Act. Investigators from the Department of Labor’s Wage and Hour division in Birmingham discovered the violations.
Jennings Professional Services, an in-home day and overnight healthcare business, misclassified 67 employees as independent contractors violating overtime wage standards. The workers, who took care of the sick or elderly, did not receive the half-time overtime rate for hours worked that surpassed the 40 hour workweek. Instead the workers were paid a straight-time rate for all hours worked and the healthcare provider failed to keep accurate pay records.
Investigators recovered $532,842 in back wages and liquidated damages from Jennings Professional Services. Kenneth Stripling, the Wage and Hour Division District Director in Birmingham, commented on why misclassifying employees was a major problem.
“Misclassifying employees as independent contractors is a serious problem that deprives employees of their rightful wages and benefits,” Stripling stated. “The Department of Labor is...
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