Holland Acquisition Inc., which operated as Holland Services in Washington, Pennsylvania, will pay $42.3 million in back wages and liquidated damages to 700 workers after misclassifying them as independent contractors, the US Department of Labor announced Friday.
The workers provided services for the oil and gas industry. A DOL investigation found that from Aug. 20, 2012, to April 21, 2019, the company improperly classified abstractors, title examiners and landmen as independent contractors. It also said the company failed to pay overtime and did not keep accurate records of daily and weekly hours the people worked.
“When employers misclassify employees as independent contractors and fail to pay workers their hard-earned wages, we must hold them accountable under the law,” Wage and Hour Acting Administrator Jessica Looman said.
The Department of Labor noted the company, based in Fort Worth, Texas, has filed for bankruptcy and is litigating a case against its former chief operating officer.