Department of Labor Recovers $594,000 for Employees Denied Overtime Pay by Contractor

Workers need to be paid fairly for their work. Not paying them their hourly wage and overtime is illegal and can lead to legal matters.

This recently happened in Florida. The U.S. Department of Labor has recovered $594,313 in back wages and damages for 419 employees following a federal investigation that revealed a Leesburg-based company failed to properly pay overtime wages.

According to the Department’s Wage and Hour Division (WHD), Amtex-NMS Inc., operating as Southeast Modular Manufacturing, violated the Fair Labor Standards Act (FLSA) by not paying workers time-and-a-half for all hours worked beyond 40 in a week. Investigators found that the company’s rounding practices reduced employees’ recorded hours, resulting in unpaid overtime.

The investigation also found that the employer violated federal recordkeeping laws by not maintaining accurate and complete records of employees’ wages and hours.

The Department of Labor emphasized that while rounding systems can simplify timekeeping, employers must ensure they are fair and not used to underpay workers. The agency also encouraged both employees and employers to reach out to their local Wage and Hour Division office for guidance on wage laws and compliance.

Failure to Pay Overtime Wages in Florida

Failing to pay overtime wages in Florida can result in serious legal and financial consequences for employers under both federal and state law.

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive 1.5 times their regular pay rate for all hours worked over 40 in a week. When an employer fails to comply, the U.S. Department of Labor (DOL) or an employee can file a claim or lawsuit to recover unpaid wages. Employers found in violation may be required to pay:

• Back wages for unpaid overtime.
• Liquidated damages, often equal to the unpaid wages, which can double the amount owed.
• Civil monetary penalties for repeated or willful violations.
• Attorney’s fees and court costs, if an employee prevails in a private lawsuit.

While Florida does not have a separate state overtime law, workers in the state are protected by the FLSA. Employers who knowingly falsify time records or deliberately avoid paying overtime can also face criminal penalties or barred government contracts.

In addition to government enforcement, employees may file collective actions if multiple workers were affected. These cases can lead to substantial financial liability and reputational harm for the employer.

Contractors and other employers can reduce risk by being honest and detail-oriented. They should keep accurate time records, train payroll staff, and regularly audit pay practices to ensure compliance with federal law.

Contact Us Today

Florida contractors need to be mindful of wage laws. Not properly paying employees for time worked can lead to lawsuits and judgments.

A Florida contractor representation lawyer from Linkhorst Law Firm can help you understand state and federal laws. We are ready to provide you with representation for your construction dispute.  Schedule a consultation with our office today by filling out the online form or calling 561-626-8880.

Source:

dol.gov/newsroom/releases/whd/whd20250527