AZ Contractor Owes $48K After Violating Fair Labor Standards Act

After a two-year federal investigation, Arizona general contracting company DCO Custom Builders was found to have violated the Fair Labor Standards Act and ordered to pay $48,000 in back wages and damages.

According to the U.S. Department of Labor, the contractor incorrectly classified construction workers as independent contractors, did not maintain accurate records of the hours employees worked and paid employees their regular rate when they worked overtime.

Managing owner Daniel Osete had claimed he was unaware of any wrongdoings and did not intentionally violate the Fair Labor Standards Act.

DCO Custom Builders must pay $24,255 in overtime back wages to 31 employees and individual compensation for damages equal to double the amount an employee would receive in back wages. A civil penalty of $4,604 was also ordered as restitution.

(more on the fines levied against DCO Custom Builders...)