Foundation Repair Company Repaid $99,960 in Back Wages and Damages for Misclassifying Employees

Tuesday, June 14, 2016

A U.S. Department of Labor Wage and Hour Division investigation found MMM Foundation Repair violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. Investigators determined the employer misclassified employees as independent contractors, and paid them flat day rates without regard to how many hours they worked.  Violations resulted when these employees worked more than 40 hours in a week and the employer failed to pay them overtime.  MMM Foundation Repair also failed to keep time or payroll records for some employees, as required by FLSA.

MMM Foundation Repair paid $49,980 in back wages and an equal amount in liquidated damages, for a total of $99,960 to 30 employees. The company also agreed to keep proper records and comply with all provisions of the FLSA in the future.  MMM Foundation Repair performs foundation repair, house leveling and concrete work in the Houston area. This investigation is part of a broader regional enforcement initiative in the state’s construction industry.

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