The Department of Labor (DOL) has recovered nearly $105,000 in overtime back wages for 57 workers who had been misclassified as independent contractors.

The workers were employed by a debris cleanup company in Anahuac. The owner, Cecil Parker Jr., was awarded a contract by Chambers County to perform local debris removal and cleanup services in areas impacted by Hurricane Ike.

Wage and Hour Division (WHD) investigators found that Parker did not own an incorporated business entity and did not have a standing contract with the Federal Emergency Management Agency to perform these services. Following the resolution of this case, Parker acquired three business entities in Dallas: PDQ Construction LLC, PDQ Environmental LLC and Chambers Leasing LLC.

The agency also found that, despite the existence of an FLSA-covered employment relationship, Parker had misclassified debris cleanup workers as independent contractors and paid them “straight time” wages instead of time and one-half their regular rate of pay for hours worked over 40 in a week, as required under the FLSA.

Investigators conducted employee interviews and reviewed payroll documents to determine the amount of back wages due. Parker has paid the back wages and committed to ensuring that all of his employees are properly classified and compensated for their full work periods in accordance with the FLSA.

The investigation was part of a WHD ongoing enforcement initiative in Southeast Texas. As communities in this region recover from Hurricane Ike’s devastation, the division seeks to increase public awareness of federal wage and hour laws, encourage workers to understand and exercise their rights, and strengthen compliance among employers engaged in recovery and rebuilding efforts.