US Department of Labor recovers $185K in overtime back wages owed to 181 workers of North Carolina rack system installation company

Employer:                                   IPD Company Inc., operating as IPD

Investigation site:                  7808 Pineville Matthews Road, Suite 12

                                                          Charlotte, NC 28226

Investigation findings: Investigators with the department’s Wage and Hour Division found a North Carolina commercial and industrial rack installation company misclassified its employees working as installers as independent contractors. By doing so, IPD failed to pay employees the time-and-a-half overtime rate for hours over 40 in a workweek, a Fair Labor Standards Act violation.

Back Wages Recovered: $185,963 for 181 workers.                                        

Quote: “Employers who improperly misclassify employees as independent contractors strip these workers of their overtime and minimum wage and unpaid leave protections, shortchanges their Social Security benefits and prevents collection of payroll taxes owed to local, state and federal levels,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Misclassification is a serious concern and remains a Wage and Hour Division priority. Employers must understand their obligations and make sure their pay practices comply with federal law or risk costly consequences.”

Background: Headquartered in Charlotte, IPD Company Inc. installs commercial and industrial rack systems in the U.S. and Canada.

Learn more about misclassification of employees as independent contractors. Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements.

Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division expert in their state through a list and interactive online map on the agency’s website. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s timesheet app for free, in Spanish and English.  Learn more about Wage and Hour Division.