5 Million Reasons Why CMs Need to Understand New OSHA Rules

A recent article in ProSales Magazine reviews nearly $5 million in fines and two lawsuits the U.S. Department of Labor is pursuing against eight construction and logistics employers who violated the new employment rules in place:

IN RESPONSE TO THE NEW OVERTIME RULE, EMPLOYERS CAN: A) Pay time-and-a-half for overtime work. B) raise workers' salaries above the new threshold. C) Limit workers's hours to 40 per week. D) Some combination of the above.“The actions come at a time in which the federal government has dramatically increased its attention to overtime rules and the misclassification of workers as independent contractors…through all of 2016, DOL has operated under a new, tougher interpretation of who can be regarded by a company as a subcontractor and who is an employee.”

It’s important for component manufacturers to be familiar with the new overtime rules as they pertain to hourly workers and ensure they have the proper recordkeeping in place in the event of an OSHA inspection. Companies who have already received citations include:

  • National Freight Inc. will pay $1.07 million to 357 dispatchers and yard spotters who wrongly were declared exempt.
  • Force Corp. and AB Construction Group must pay $3.36 million worth of back wages and liquidated damages to 478 people plus $262,900 in civil penalties for violations of federal labor law.
  • Dinh Construction of Riverside, Calif., has paid $65,087 in overtime back wages to 52 workers plus a $4,004 civil penalty for failing to pay time-and-a-half for hours worked beyond a 40-hour week.
  • Unique Custom Exteriors of West Jordan, Utah, paid $31,833 in back wages for unpaid overtime and another $31,833 in liquidated damages to 27 workers.
  • Austin Electric Services firm violated the Fair Labor Standards Act's provisions on overtime and recordkeeping. Roughly 200 employees are affected.
  • DOL suing West Coast Drywall & Co. for wage and hour violations.
  • Uni Floor Inc. of Overland Park, Kan., will pay $79,572 in back wages plus another $79,572 in liquidated damages to 22 workers

Click here to read the full article.


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