Employer: Teracom Inc., Saline, Michigan
Investigation Findings: A U.S. Department of Labor Wage and Hour Division investigation found Teracom Inc. misclassified some workers as independent contractors and paid them a day-rate for all hours worked regardless of overtime, failed to pay overtime and denied two employees paychecks for their final workweeks. The employer also did not maintain complete and accurate timekeeping records as required. These actions violated provisions of the Fair Labor Standards Act.
The division found the employer committed similar violations in 2018, leading the division to assess $44,496 in civil money penalties for repeated and willful FLSA violations.
Back wages/damages recovered: $297,137 in back wages for 63 employees
$297,137 in liquidated damages for 63 employees.
Quote: “Employers who misclassify workers as independent contractors deny them their rights as employees to important overtime, benefits and protections. The wage recovery and damages right a wrong this employer knew they were committing as they did in 2018,” said Wage and Hour District Director Timolin Mitchell in Detroit. “Very specific conditions must be met for a work to be classified as an independent contract. In most cases, if you are hired for a job you are an employee, not an independent contractor.”
Background: Headquartered in Saline, Teracom is a construction company that installs underground fiber optics for telephone and internet providers.