Summary: A paint and specialty coatings company in Nevada engaged in numerous instances of wage theft for years despite a series of punitive actions from federal authorities. The latest judgment against the company illustrates another victory for workers and a sign to employers that wage violations will not go unpunished. If your employer withholds overtime pay or refuses to pay you properly for the hours you work, you need to secure legal assistance immediately. Contact an unpaid overtime attorney for legal help.
A Las Vegas paint and specialty coatings company is among the latest in a long line of businesses investigated for illegal pay practices. The investigation concluded that the company engaged in egregious wage theft and deprived hundreds of workers in multiple states of overtime pay.
A federal court has since required that the company pay the affected workers $3.6 million in back pay, liquidated damages, and other penalties. If you believe your employer is trying to circumvent overtime laws, you need to speak with a seasoned lawyer about the details of your situation as soon as possible.
Workers’ Rights Under the FLSA
Under the Fair Labor Standards Act (FLSA), nonexempt employees must be paid time-and-a-half compensation when they work over 40 hours in a workweek. It is illegal for an employer to withhold overtime pay from workers in this category. A company cannot force its employees to:
- Work off the clock
- Waive their rights to overtime pay
- Otherwise give up the wages they are owed
Workers who sustain financial losses from overtime violations, minimum wage violations, and other forms of wage theft may have a right to file a suit against their employer. Financial recovery can include numerous forms of damages, including double backpay, plus attorneys’ fees.
The origins of this $3.6 million settlement go back to another investigation into the same paint and specialty coatings company. That first investigation was launched in 2013 and concluded with a settlement worth over $47,000 involving 21 workers who had been denied proper overtime wages.
However, the company’s owner was undeterred and continued to engage in outrageous acts of wage theft. This was per the findings of a subsequent investigation several years later.
A $3.6M Settlement for Unpaid Shifts
The second investigation discovered numerous, blatant violations of the FLSA in which the company was engaging regularly. These violations by the company and its owner included:
- Falsifying pay records to avoid paying workers overtime wages
- Omitting certain workers from the company’s payroll records
- Intimidating workers who inquired about these pay practices and sought overtime pay
- Paying straight time for all hours worked even when employees worked more than 40 hours in a workweek
- Forcing workers to volunteer on the weekends and refusing to compensate them for their work
- Creating pay stubs that reflected a lower hourly rate than workers were hired at to avoid paying overtime based on that rate
- Threatening workers about potential immigration consequences and slashing workers’ wages by 30 percent for suspected cooperation with federal authorities
Litigation was ongoing with the company and its owner for a few years and it was determined that the owner/company acted in violation of a court order and continued to intimidate workers who were thought to be working with authorities.
In 2023, a federal court judgment required the owner/company to pay over $3.6 million in damages to 593 employees across four states.
The settlement figure reflected more than $1.8 million in back wages, an equal sum in liquidated damages, $50,000 in civil money penalties, and interest.
Contact an Experienced Attorney for Legal Assistance
Workers entitled to overtime pay under the FLSA are often subjected to a range of violations from employers trying to avoid these obligations. You are legally entitled to claim these wages if your employer withheld the overtime pay you are owed.
A lawyer who knows and understands your rights can fight for maximum financial recovery and hold your employer accountable. Get your free and confidential review today by submitting your details via the chat or intake form.
