MUSKEGON, Mich. (WOOD) — A Muskegon lawn care company will distribute some $38,000 to workers after failing to pay them overtime they were due under federal payroll rules.
The U.S. Department of Labor says it found that H&H Lawn Service and Snowplowing LLC:
- Classified workers as independent contractors rather than employees and therefore didn’t pay them overtime;
- Paid some workers a flat salary regardless of how many hours they worked, so some missed out on overtime;
- Banked some workers’ overtime hours that were paid out as regular hours during later pay cycles;
- Didn’t keep required payroll records.
H&H agreed to pay total of $38,000 in back wages and damages to 11 workers under the terms of a consent agreement, the Department of Labor says.
The company also agreed to abide by the federal Fair Labor Standards Act, specifically notifying employees in writing of an overtime exemption, providing facts sheets to all workers that would explain the difference between an employee and a contractor, and getting a firm to annually audit its payroll practices.