Wage and Hour Division (WHD)

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DUNCANVILLE, Texas -- Texwood Industries, doing business as Quality Cabinets and Masco Corp. in Duncanville, has paid $50,708 in overtime back wages, resolving a lawsuit by the U.S. Department of Labor. An investigation by the department’s Wage and Hour Division had found that 111 former and current cabinet installers were not properly paid over a two-year period.

“Employees are entitled to be paid their full wages for all hours worked,” said Cynthia Watson, the Wage and Hour Division’s regional administrator for the Southwest. “In this case, the employer considered cabinet installers to be independent contractors when, in fact, they were employees and due overtime compensation.”

In September 2005, the Labor Department filed suit against the company. The investigation had determined that Texwood Industries violated the Fair Labor Standards Act (FLSA) by failing to properly pay employees overtime wages and maintain required recordkeeping. Back wage amounts continued to increase until the employer agreed to come into compliance.

The FLSA requires that covered employees be paid at least the federal minimum wage (now $5.85) for all hours worked, plus time and one-half their regular rates of pay for hours worked over 40 per week. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. Under the law, employers must also maintain accurate time and payroll records.

For purposes of the FLSA, there are a number of factors for determining whether an individual is an independent contractor or an employee. In this case, the Wage and Hour Division found that the company’s workers did not meet the legal criteria for independent contractor status.

The Wage and Hour Division concluded 31,987 compliance actions and recovered more than $171 million in back wages for more than 246,000 employees in fiscal year 2006. Back-wage collections last year represent a 30 percent increase over back wages collected in fiscal year 2001. The number of workers receiving back wages has increased by 14 percent since fiscal year 2001.

For more information about the FLSA, call the Wage and Hour Division’s Dallas District Office at (817) 861-2150 or (817) 261-4371 (metro toll-free number), or the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.