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Contractor pays $330,367 in IC misclassification case

March 03, 2023

A Jacksonville, North Carolina-based general contractor paid $330,367 in back wages and liquidated damages to 20 workers after misclassifying them as independent contractors, the US Department of Labor announced Tuesday.

An investigation found the company, ELJ Inc., failed to pay employees the additional half-time rate of pay for overtime hours worked, according to the department. The company also failed to maintain accurate and complete records containing employees’ Social Security numbers, addresses, rates of pay and total earnings.

ELJ Inc. provides customized home-building services.

“Employers who misclassify employees as independent contractors deny them overtime wages and may deny them state-required workers compensation and unemployment insurance protections,” Wage and Hour Division District Director Richard Blaylock said.

“The Wage and Hour Division is determined to hold employers accountable when they shortchange workers and gain an unfair competitive advantage. We suggest that employers review their pay practices to make sure their practices comply with the law and to contact us with questions or concerns.”