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TN Court Fines Company $500K for Labor Violations

Thursday, January 17, 2019

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The U.S. District Court of the Middle District of Tennessee has fined a construction business more than $500,000 in regard to violations of the Fair Labor Standards Act.

What Happened

According to the Department of Labor, after an investigation by its Wage and Hour Division, the court ordered Reynolds Baldwin III—doing business as Copperhead Construction LLC and formerly as Sara-Tech LLC—to pay $501,000 in back wages and liquidated damages to 82 employees to resolve violations of the minimum wage, overtime and recordkeeping provisions of FLSA.

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The U.S. District Court of the Middle District of Tennessee has fined a construction business more than $500,000 in regard to violations of the Fair Labor Standards Act.

Additionally, WHD assessed the Spring Hill, Tennessee-based company $29,000 in civil money penalties.

WHD says that investigators found that Baldwin failed to pay employees overtime when they worked more than 40 hours in a workweek. Investigators also found, in some instances, that the company illegally altered time records to record and pay for fewer hours than employees had actually worked.

Baldwin also reportedly failed to maintain accurate records of hours worked and failed to display required posters in the workplace.

"The Wage and Hour Division will use all of the tools at its disposal to ensure workers receive the wages they have legally earned," said Nashville District Director Nettie Lewis.

"This case should remind all employers to ensure their pay practices follow the law, and that we encourage them to contact the Wage and Hour Division with their questions about compliance assistance."

In December 2017, the DOL’s Office of the Solicitor filed a complaint against the construction companies and Baldwin to remedy the violations found in the investigation. Baldwin settled and the parties filed a consent judgment and order that the court approved on Dec. 4, 2018.

In addition to the order to pay the back wages and damages, the court has enjoined Copperhead Construction LLC, Sara-Tech LLC and Baldwin from committing future FLSA violations.

   

Tagged categories: Department of Labor; Finance; Good Technical Practice; North America; Violations

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