Hinton Investigations Inc., a security company based in New Jersey, has been ordered to pay $132,344 in back wages and damages to 61 employees following a federal investigation.
The U.S. Department of Labor’s Wage and Hour Division revealed that the company misclassified its workers as independent contractors, depriving them of overtime pay in violation of the Fair Labor Standards Act.
The investigation, conducted by the Wage and Hour Division, found that Hinton Investigations had been compensating its employees on an hourly basis but failed to provide any overtime premium for hours worked beyond the 40-hour threshold in a workweek.
By classifying the workers as independent contractors, the company avoided its legal obligation to pay overtime wages.
The misclassification and denial of overtime pay were deemed illegal by the Department of Labor. As a result, Hinton Investigations has been ordered to pay $132,344 in back wages and liquidated damages to the affected employees.
This decision serves as a reminder to employers in the security industry to review their pay practices and ensure compliance with labor laws, as well as proper worker classification.
Wage and Hour Division District Director Paula Ruffin in Mountainside, New Jersey, emphasized the importance of paying overtime wages and proper worker classification, stating, “Not paying overtime to employees when they work more than 40 hours in a week is illegal. Security industry employers should review their pay practices to ensure compliance with the law and workers are properly classified and paid.”
The Department of Labor encourages individuals who suspect they may be owed back wages to reach out to their toll-free helpline at 866-4US-WAGE (487-9243). Furthermore, the Wage and Hour Division provides a search tool for workers to check if they are owed any back wages collected by the division.
The department is committed to assisting workers in more than 200 languages and can be contacted confidentially with any questions or concerns.
To help workers track their hours accurately, the Department of Labor offers a free Android and iOS Timesheet App, which ensures that hours worked and pay are recorded correctly.
This investigation and subsequent enforcement action against Hinton Investigations Inc. highlight the importance of employers adhering to labor laws and ensuring fair treatment and compensation for their workers.
The Department of Labor will continue to monitor and take action against companies that violate employee rights and fail to comply with wage and hour regulations.