Empire Janitorial Sales and Services Inc. has paid $277,565 in overtime back wages to 233 current and former janitorial service workers employed by Acadian Payroll Services LLC, the U.S. Department of Labor reported March 25. The investigation found that employees were wrongfully classified as independent contractors and paid an hourly wage with no overtime wages of time and one-half their regular rate of pay for hours worked more than 40 in a week.

Additionally, Acadian Payroll Services did not establish a seven-day workweek and failed to maintain proper records of weekly hours worked by its employees, according to the Department of Labor.

Empire Janitorial Sales and Services and Acadian Payroll Services shared joint employer responsibilities. Both companies agreed to future compliance with the Fair Labor Standards Act; however, full payment of back wages was made by Metairie, La.-based Empire Janitorial Sales and Services, which cooperated with the investigation.

“Misclassified independent contractors could be re-classified employees of two or more entities for the purposes of some laws, but not for the purposes of others,” says Eric Rumbaugh, a partner with law firm Michael Best and Friedrich LLC. “Courts sometimes find joint liability between two or more entities in FLSA cases if each entity qualifies as an “employer” under the applicable test.” 

“We are pleased that the employer agreed to reclassify janitorial staff as employees, establish a seven-day workweek and to compensate workers properly when they work overtime,” said Cynthia Watson, the Wage and Hour Division’s regional administrator for the Southwest. “Misclassified workers are often denied access to basic benefits and protections under the FLSA, such as the Family and Medical Leave Act, overtime, minimum wage and unemployment insurance, to which they are entitled.”