Gov't Launches Investigation Into Builder Wages
Gov't Launches Investigation Into Builder Wages
The Labor Department is investigating possible minimum wage and overtime violations in the residential construction industry, The New York Times reports. The government is asking numerous builders to produce records on wages and hours of its employees and contractors.
The government has targeted the residential construction industry for its investigation because of its high number of immigrant workers that it employs and after recent investigations have found some construction contractors have been misclassifying workers as independent contractors to get around wage laws, says Nancy J. Leppink, acting director of the department’s wage and hour division.
The Labor Department had uncovered widespread violations last year, which resulted in more than $7 million in fines and involved about 4,000 workers.
The Leading Builders of America, an association of home builders, said in a statement that the government’s inquiry was unwarranted, and that “these demands could require significant resources and thousands of hours of work.”
Source: “U.S. Is Investigating Wages Among Residential Builders,” The New York Times (Sept. 8, 2011)
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