Summary: A plastering company that was required to pay out more than $700,000 to workers is one of the latest to have been caught engaging in piece rate pay overtime violations. If your employer uses this system of compensation and you believe they are not paying proper overtime, we can help.
Unlawful pay practices occur across all industries and sectors. Minimum wage violations, failure to pay overtime for eligible employees, and failure to accurately calculate all hours worked are just a few examples. Piece rate workers who are paid based on the number of units they produce are often particularly vulnerable to these and other wage violations.
One recent story of a plastering company that was ordered to pay over $700,000 in back pay to piece rate workers is a prime example of these unlawful behaviors. If you believe that your company is engaging in piece rate pay violations, you should consult with an attorney to discuss your specific situation.
The Story Behind A $700K Payout
A series of investigations subsequently led to a court order that compelled an Arizona plastering company to pay more than $700,000 to workers in a settlement for unlawful pay practices. The story behind this payout goes back to investigations and a lawsuit involving the plastering company’s habit of falsifying wage records and failing to pay proper overtime wages for piece rate workers.
The company paid workers by the yard or by the piece. Piece rate workers are usually paid for completing a specific task or completing a task in a specific time. The issue arose when the company refused to pay piece rate workers overtime and falsified wage records by assigning wages to nonexistent employees so they would not have to pay overtime.
Investigators found that the plastering company regularly engaged in other FLSA violations. These included paying employees straight time for hours worked over 40 in a week (instead of time and a half) and keeping inaccurate pay records.
While an initial investigation back in November 2021 led to a promise from the company to pay hourly wages and overtime owed to affected employees, they instead perpetuated these unlawful activities. The subsequent $700,000 court judgment paid back wages, liquidated damages, and penalties to 470 affected employees.
Top Pay Violations Faced by Piece Rate Workers
Piece rate work is common in a variety of industries, including:
- Contracting
- Manufacturing
- Agriculture
While it is legal to pay workers by the piece, it is against the law for companies to deprive piece rate workers of overtime pay.
Companies that fail to track the number of units produced or set unrealistic production quotas that make it unfeasible to achieve the minimum wage are also committing FLSA violations. An unpaid wage attorney can assist with your claim if you are a piece rate worker and suspect overtime pay violations by your employer.
Reach Out to a Piece Rate Pay Violations Attorney
The Arizona plastering company’s $700,000 payout was a just conclusion to one of many cases that seek to remedy wage and hour violations. Unlawful activities under the piece rate pay system are far too common, whether an employer improperly calculates pay based on the number of units produced or fails to properly account for non-productive time.
If you are experiencing a piece rate violation, you should take care to keep detailed records of your work hours and production numbers. You should also reach out to an attorney who can help you better understand your rights and potential legal options.
For more information, contact us using our online chat or form to request your free and confidential review. We work on a contingency basis, meaning you do not pay unless we win your potential case.
