Arizona drywall contractor to pay fine, back wages for worker misclassification

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More than 445 workers who were stripped of worker protections will receive $556,000 in overtime back wages

June 06, 2014

As a result of a Department of Labor wage and hour investigation, Paul Johnson Drywall Inc., Prescott, Ariz., ended its relationship with Arizona Tract LLC., Phoenix, a construction labor contractor. Arizona Tract classified former Paul Johnson Drywall workers as "member/owners" instead of employees, which stripped them of basic worker protections afforded to employees. Paul Johnson Drywall agreed to ensure misclassification of the company's workforce does not happen again and to pay $556,000 in overtime back wages and liquidated damages to at least 445 current and former employees. It also will pay $44,000 in civil monetary penalties.

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