Touch of Grace Services LLC denies workers’ full wages, benefits, protections
PANAMA CITY BEACH, FL – The U.S. Department of Labor has recovered $503,053 in back wages and liquidated damages for 227 workers of a Panama City Beach hotel staffing agency that denied them full wages and benefits when the employer misclassified them as independent contractors.
The department’s Wage and Hour Division found that the misclassification by Touch of Grace Services LLC – which provides hotel workers to several Panama City Beach hotels – led the agency to pay the workers straight-time rates for all hours worked, including hours over 40 in a workweek. In doing so, the staffing agency did not pay the additional half-time rate for overtime as the Fair Labor Standards Act requires.
Investigators also determined that Touch of Grace failed to keep accurate records of the hours worked and correct wages paid to some employees.
“Federal labor law includes strict criteria for classifying workers as independent contractors. Misclassified workers are illegally denied their full pay, benefits and legal protections,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “We encourage employers to use the resources the Wage and Hour Division offers to understand proper pay practices and avoid the costly consequences of violations.”
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