A federal court in Nashville has affirmed the findings of an investigation that determined a Tennessee security and traffic control services provider and its owner misclassified 105 workers as independent contractors, including some who worked as security guards in Puerto Rico after Hurricane Maria, according to the US Department of Labor.
Separately, the department reported an on-site Covid-19 testing provider based in California misclassified 65 employees working in Oklahoma as independent contractors.
Security and traffic control services company to pay $632,463 for IC misclassification
A Hermitage, Tennessee-based security and traffic control services provider and its owner will pay $632,463 in back wages and liquidated damages after misclassifying 105 workers as independent contractors, the DOL announced.
The misclassification also included security guards who worked in Puerto Rico following Hurricane Maria.
An investigation by the department’s Wage and Hour Division found EM Protective Services LLC and its owner, Erik Massikas, failed to pay the workers engaged in security and traffic control work the minimum wage and overtime required by the Fair Labor Standards Act. The company provides work zone traffic control, business security, personal protection and private investigation services.
A trial took place in July 2022, during which the court ordered EM Protective to pay $516,190 in back wages and liquidated damages to employees who worked in Puerto Rico. The court in May 2023 ordered the company to pay a group of guards and traffic control officers employed in the Nashville area an additional $116,273 in back wages and liquidated damages.
Covid-19 testing provider pays $142,360 in IC misclassification case
A California-based on-site Covid-19 testing provider has paid $142,360 in back overtime wages to 65 Oklahoma healthcare workers after misclassifying them as independent contractors, the US Department of Labor announced Thursday.
An investigation by the department’s Wage and Hour Division found Inspire Diagnostics LLC, a subsidiary of healthcare services company Inspire Health Alliance, denied overtime wages, benefits and protections to employees who tested people for coronavirus in tents, hotel rooms and other public spaces at the height of the pandemic. The company also failed to pay the affected employees the additional half-time regular rate of pay for overtime hours worked than required by the Fair Labor Standards Act, according to the department.
Inspire Health Alliance is a managed services company and healthcare industry consultant.
“While misclassification is a common practice in the healthcare industry, employers must understand and comply with the law to make sure workers are paid properly,” said Wage and Hour Division District Director Michael Speer.