Charleston Contractor Pays $37K in Denied Overtime: Labor Dept

Employer: EAS Homes LLC

9012 Timber St.

Charleston, SC 29406

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found a Charleston commercial construction contractor misclassified some workers as independent contractors. By doing so, EAS Homes failed to pay the additional half-time rate for all hours worked over 40 in a workweek in violation of the Fair Labor Standards Act.

Back wages recovered: The division recovered $37,155 in back wages for 37 workers.

Quote: “Misclassification of workers as independent contractors denies them overtime wages and benefits they legally earned and rightly deserve. In addition, it denies them employer contributions toward their social security benefits,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “It would be wise for employers to review their pay practices and take advantage of the many tools the Wage and Hour Division has to assist them in complying with the law.”

Background: As part of its efforts to address misclassification, the Wage and Hour Division published a final rule, which is effective March 11, 2024, and revises guidance on how to analyze whether a worker is an employee or independent contractor under the FLSA.

Public Release.