TULSA, OK – A federal investigation into the pay practices of a Tulsa security company has recovered $103,979, in back wages for 55 current and former employees denied their rights to overtime pay for hours over 40 in a workweek.
The U.S. Department of Labor’s Wage and Hour Division determined that PHD Security Services LLLP employed security guards up to 45 hours per workweek without paying time and one-half the required rate of pay when the law requires. The division learned that the employer misunderstood its obligation and operated under an inaccurate belief about an industry standard and without regard to the Fair Labor Standards Act.
“Employers must understand who is, and who isn’t an employee to avoid misclassifying employees as independent contractors. When a perceived industry standard is contrary to the law, employers must follow the law and correctly pay workers minimum wage and overtime,” explained Wage and Hour District Director Michael Speer in Oklahoma City. “The Wage and Hour Division routinely provides assistance and training to help employers understand and comply with federal labor laws and avoid the costly consequences of violations.”
In fiscal year 2021, the division identified more than $6 million in back wages owed to more than 5,300 guard services workers. In its investigations, the division commonly finds violations related to employers failing to pay overtime when required, misclassifying workers as independent contractors and not paying them for...
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