Please note: As of January 20, 2017, information in some news releases may be out of date or not reflect current policies.

News Brief

Arizona homebuilder to pay $48K in overtime back wages, damages to 31 employees following US Labor Department investigation

Employer: DCO Custom Builders LLC  

Site: 800 West Shell Drive, Suite H, Nogales, Arizona

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found that DCO Custom Builders misclassified construction workers as independent contractors, failed to keep accurate records of the hours that they worked and paid employees straight time rates for overtime hours worked, in violation of the Fair Labor Standards Act.

Resolution: DCO Custom Builders will pay $24,255 in overtime back wages and an equal, additional amount in damages to 31 employees. The employer has also been assessed a $4,604 civil penalty.   

Quote: “The people who work hard building our homes must be paid every penny they have rightfully earned,” said Eric Murray, director of the Wage and Hour Division’s district office in Phoenix. “Misclassifying workers as independent contractors cheats workers and their families, an employer’s competitors and taxpayers in general. In this case, DCO Custom Builders’ also failed to pay overtime. As this outcome shows, we are committed to protecting the rights of construction workers and will use every tool available to hold employers accountable.” 

Information: The FLSA requires that covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay for hours worked beyond 40 per week. Employers also must maintain accurate time and payroll records, and are prohibited from retaliating against workers who exercise their rights under the law.

For more information about federal wage laws administered by the Wage and Hour Division, or to file a complaint, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All services are free and confidential.  Information also is available at

Read this news release en españól.

Wage and Hour Division
July 25, 2016
Release Number
Contact: Leo Kay
Phone Number
Contact: Jose Carnevali