An investigation by the US Department of Labor’s Wage and Hour Division found an Arizona Staffing Agency misclassified hundreds of workers as independent contractors rather than employees. The Agency will pay overtime back wages and an equal, additional amount in damages to 275 employees. The employer will also pay a $22,094 civil penalty because of the willful nature of the violations found, the department announced.
The agency has agreed to pay more than $151,000. “Staffing agencies and their employer clients share responsibility to ensure that all employees working on their behalf are paid the wages they are entitled to by law,” said Eric Murray, Director of the Wage and Hour Division in Phoenix. Our agency will do everything in its power to end the willful misclassification of employees as independent contractors.
This practice deprives workers of basic wage and employment rights and allows an employer to illegally spare the costs of full wages, payroll taxes and other employment related expenses.
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Source: 102.5 KNIX