Company learns $62K lesson about classifying workers correctly
Here’s a good reason to make sure your workers are classified correctly: The feds have made it crystal clear they mean to come after any employer they suspect of classifying employees incorrectly.
This security firm just became the latest company to find out how costly misclassification errors can be.
Based on a Department of Labor investigation, Security provider Custom Security Solutions allegedly misclassified 34 security guards as independent contractors and failed to pay them the prevailing minimum wage, as well as overtime payments.
In the end, the company agreed to restore to $62,038 in back wages to the security guards – and maintain future compliance by making sure all of its employees are properly classified moving forward.
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