Labor Dept. Recoups $53K from Misclassifying Cleaner

Employer: Finichel LLC, operating as Finichel Cleaning Services

Investigation site: 801 Mohawk Drive

West Columbia, SC 29169

Investigation findings: Investigators with the U.S. Department of Labor’s Wage and Hour Division found a South Carolina cleaning services provider misclassified 59 workers as independent contractors, resulting in the company paying employees straight-time rates for all hours worked over 40 instead of the time-and-a-half premium for overtime hours as required by the Fair Labor Standards Act. The employer also failed to keep records of the amount of time worked by employees as required by law.

Back wages and liquidated damages recovered: $53,044 for 59 workers.

Quote: “Misclassifying employees as independent contractors undermines workers’ rights,” said Wage and Hour Division District Director Jamie Benefiel in Columbia, South Carolina. “If workers are misclassified as independent contractors, they don’t get paid overtime or have access to employer-provided health and retirement benefits. They also don’t have access to family and medical leave.”

“If workers or employers need help understanding this, they should reach out to the U.S. Department of Labor or go to our website and get the information they need,” Benefiel added.

Background: Finichel Cleaning Services is a residential and commercial cleaning service that serves the Columbia area and employs approximately 40 workers.

Public Release.