Piece Rate Workers Need To Be Paid At Least Minimum Wage and Overtime

A national food distribution company recently agreed to pay over $136,000 in back wages and liquidated damages to 47 employees after the Department of Labor investigated and found overtime and other Fair Labor Standards Act violations.  The DOL determined that the company misclassified employees as independent contractors and then did not pay the employees at least minimum wages and time and a half overtime wages.  The company paid employees on a piece rate basis and did not make payments based on the hours worked by the employees.  The DOL found that some employees were not compensated at least minimum wages based on the hours that they had actually worked, and also that the company paid the same piece rate basis for overtime hours worked by employees.  Employers are obligated to pay employees at least minimum wages for their hours worked, and many employees are owed time and a half overtime wages for their hours worked over forty in a workweek, sometimes even when the employee is paid on a salary basis.