Employer: ELJ Inc.
Investigation site: 133 Batting Cage Trail
Jacksonville, NC 28540
Investigation findings: Investigators with the department’s Wage and Hour Division found the North Carolina general contractor misclassified its employees as independent contractors and paid straight-time rates for all hours worked. By doing so, ELJ Inc. failed to pay employees the additional half time rate of pay for overtime hours over 40 in a workweek, which violated the Fair Labor Standards Act’s overtime requirements. The employer also failed to maintain accurate and complete records with employees’ Social Security numbers, addresses, rates of pay and total earnings.
Back Wages and Liquidated Damages Recovered: $330,367 for 20 workers.
Quote: “Employers who misclassify employees as independent contractors deny them overtime wages and may deny them state-required workers compensation and unemployment insurance protections,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “The Wage and Hour Division is determined to hold employers accountable when they shortchange workers and gain an unfair competitive advantage. We suggest that employers review their pay practices to make sure their practices comply with the law, and to contact us with questions or concerns.”