Wage and Hour Division (WHD)
U.S. Department of Labor
PLANO, Texas -- Integral Development Solutions LLC has agreed to pay $270,696 to 114 cable installers, following an investigation by the U.S. Department of Labor’s Wage and Hour Division, which found that several employees were misclassified as independent contactors and thereby denied compensation for all hours worked in violation of the Fair Labor Standards Act’s overtime and record-keeping provisions. Integral Development Solutions LLC, a Plano-based subcontractor of Time Warner Cable Inc., provides cable installation and activation services to homes throughout Texas.
“Misclassifying employees as independent contractors is no mere technical violation. It is an evasive practice that causes hardworking Americans to lose out on wages they rightfully earned and places law-abiding employers at a competitive disadvantage they cannot afford,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “The Labor Department is committed to protecting workers against exploitation, and we will use all available resources to pursue violators who deny workers their pay.”
An investigation by the Wage and Hour Division’s Dallas District Office found that the company misclassified cable installers as independent contractors and paid them on a piece-rate basis for all hours worked, instead of compensating them for time and one-half their regular rates of pay for all hours worked over 40 in a week. The employer also failed to maintain accurate records of employees’ work hours and wages.
Integral Development Solutions agreed to pay all back wages due the affected employees and has committed to maintaining future compliance with the FLSA. Following this investigation, the company was instructed by Time Warner Cable to reclassify cable installers as FLSA-covered employees and to pay them proper overtime compensation as required under the Act.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers are also required to maintain accurate time and payroll records.
For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its Dallas office at 817-861-2150. Information is also available on the Internet at http://www.dol.gov/whd.
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