Wage and Hour Division (WHD)

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HOUSTON -- IGC Construction Inc. of Houston, Texas, has agreed to pay $130,812 in back wages to 81 current and former laborers after a U.S. Department of Labor investigation found the employees had not been properly paid as required by the Fair Labor Standards Act (FLSA).

“The Department of Labor is committed to enforcing the law to ensure that employees receive the wages they have rightfully earned,” said Cynthia Watson, Wage and Hour regional director in Dallas. “In this case, IGC misclassified laborers as independent contractors, when in fact they were actually employees of the company. This is illegal.”

An investigation by the department’s Wage and Hour Division, covering the two-year period June 29, 2004 to June 28, 2006, determined that IGC Construction, which provides electrical, painting and remodeling services for commercial industries, paid employees straight time for all hours worked.

The FLSA requires employees to be paid the federal minimum wage for all hours worked and, unless exempt, time-and-one-half their regular rate of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

IGC Construction has agreed to future compliance with the FLSA and will pay the back wages in full by December 2006.

For more information about federal overtime laws, call the U.S. Department of Labor’s toll-free help line at 1 (866) 4US-WAGE (487-9243) or contact the Wage and Hour Division’s district office in Houston at (713) 339-5500. 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.