Supplier of Drywall Workers Costs Client $600,000

Paul Jones Drywall, Inc., an Arizona drywall contractor (PJD) obtained drywall workers from Arizona Tract, LLC, a construction labor contractor (ATL).  ATL classified the workers as “member/owners” instead of as employees, thus disqualifying them from receiving minimum wage and overtime from PJD.  After a DOL investigation finding that at least 445 workers were misclassified, PJD agreed to pay $556,000 in overtime back wages and liquidated damages, together with $44,000 in civil monetary penalties.  No word from the DOL on what penalties or relief was obtained from ATL, the entity alleged to have misclassified the workers in the first place.


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