In June of 2022, Freeman Security Services, Incorporated and its primary owner, Darren Freeman, were ordered by a federal judge to pay nearly $118,000 in back wages to guards who were misclassified as independent contractors.
Over multiple years, the company stole the wages and benefits of dozens of workers.
Former Employers Sounded the Alarm in 2017
The allegations against Freeman Security Services go back more than a decade. In 2017, a former employee filed a lawsuit against the company and its owner on behalf of himself and others, claiming a violation of the Fair Labor Standards Act.
The lawsuit alleged that from 2014 to 2016, the plaintiff worked for Freeman but was treated as an independent contractor instead of an employee. The suit also claimed the company failed to pay the mandatory time-and-a-half of the plaintiff’s regular rate when working more than 40 hours a week.
Freeman Security Services and Owner Required to Pay Stolen Wages
In addition to private lawsuits filed against the company, legal action was also initiated by the Wage and Hour Division of the United States Department of Labor. This action sought to recover back wages and liquidated damages on behalf of 76 workers at Freeman Security Services who were misclassified as independent contractors.
The court entered a consent judgment on June 29, 2022. A consent judgment is a final order of the court issued with the agreement of all parties. It usually involves a settlement of all claims. Under the terms of the judgment, the company and its primary owner must pay $117,880 in back wages and liquidated damages.
Liquidated damages are a punitive award designed to deter companies from committing wage theft. They generally involve doubling the amount of back pay owed to a worker. In this case, half of the award was for back pay, and the other half was for liquidated damages.
The company’s unlawful acts allegedly went beyond refusing to pay overtime. The company also committed pay theft by violating minimum wage laws and refusing to provide final checks to workers leaving the company.
Why Misclassification Matters
This is an important victory for the affected workers and anyone incorrectly classified as an independent contractor. Employees enjoy more protections, especially when it comes to overtime pay. When employees work more than 40 hours per week, each hour after their 40th earns time-and-a-half, meaning 1.5 times their usual pay. If they normally make $20 per hour, their overtime compensation is $30.
Another factor to consider is that contractors are excluded from workers’ compensation protections in most states. A workplace injury could prevent them from getting coverage for their medical costs.
Talk to an Attorney About Workers Misclassified as Independent Contractors
If you are a worker who was misclassified as an independent contractor, now is the time to seek legal counsel. The right attorney can help you get the most out of your claim for unpaid overtime, including back pay and liquidated damages. To learn more about your options, use our online chat feature or submit a free and confidential case review form.
