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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 09-81-KAN

Date: 

Feb. 4, 2009

Contact: 

Jeremy Eggers

Phone: 

303-844-1299

U.S. Labor Department recovers more than $28,000 in back wages for employees of G-2 Commercial Cleaning in Omaha, Neb.


OMAHA, Neb. -- The U.S. Department of Labor’s Wage and Hour Division has recovered $28,249 in back wages for 41 janitorial workers employed by G-2 Commercial Cleaning in Omaha.

An investigation found that the company, by misclassifying its employees as independent contractors, violated the overtime provisions of the Fair Labor Standards Act (FLSA) by not paying time and one-half their regular rate for hours worked beyond 40 in a workweek.

“The misclassification of employee status, as in this case where regular employees were classified as independent contractors, is a common issue among employers, and as such it’s a special emphasis area for the Labor Department,” said Percella Maupins, the Wage and Hour Division’s district director in Des Moines, Iowa. “Employers making employee status determinations are encouraged to contact the division for guidance or if they have any questions.”

The investigation also found that one employee, who failed to submit time sheets for his last two weeks of work, was entitled to minimum wage pay.

The employer quickly came into compliance and agreed to pay the back wages.

The Wage and Hour Division’s Des Moines District Office conducted the investigation.

The FLSA requires covered, nonexempt employees to be paid at least the federal minimum wage of $6.55 per hour for all hours worked, and time and one-half their regular rates of pay for hours worked beyond 40 in a week. Employers must also maintain accurate time and payroll records. For purposes of the FLSA, there are a number of factors for determining whether an individual is an independent contractor or an employee. In this case, the Wage and Hour Division found that the company’s workers did not meet the legal factors for independent contractor status.

For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.