Violation of Fair Labor Standards Act Results in Substantial Payments to People Throughout Louisiana, Mississippi and Alabama

DALLAS (Nov. 14, 2014) – The U.S. Department of Labor recently found that a recruiting and staffing agency was in violation of the Fair Labor Standards Act (FLSA). As a result, the agency agreed to pay 1,543 current and former employees a total of more than $1.6 million in back wages, the national law firm of Baron and Budd reports. The department’s investigation found that B & D Contracting Inc. denied overtime compensation through improper recordkeeping and pay practices.

The staffing agency helps find workers to fill several maritime fabrication and oil field positions throughout the Gulf Coast. Positions filled include ship fitters, pipefitters, welders and several others. The Labor Department found that B & D Contracting excluded certain types of wages when calculating overtime premiums, mischaracterizing them as per diem payments. As a result, workers were denied the proper amount of overtime pay.

Labor Department investigators working out of the New Orleans district office of the Wage and Hour Division uncovered the improper payments, and B & D Contracting later agreed to a settlement. The company also agreed to prevent further FLSA violations by setting standards to accurately compensate workers. In addition, B & D Contracting agreed to properly compensate those qualifying for legitimate per diem payments, inform workers regarding their employment conditions and pay, and obtain written statements from employees that they understand the criteria for receiving per diem payments.

In addition, B & D Contracting agreed that it would maintain accurate records showing that employees received legitimate per diem payments that are based on either a reasonable approximation of incurred expenses or on guidelines established by the Internal Revenue Service.

“Regardless of whether a company is a temporary staffing agency or a traditional, full-time employer, it has the responsibility to comply with the FLSA so that workers are paid their appropriate wages,” said Allen Vaught, head of Baron & Budd’s FLSA division. “We firmly believe that per diem schemes and other methods of reducing overtime pay must be eliminated.”

The national law firm of Baron and Budd is dedicated to protecting the rights of employees to not only perform their duties in a safe workplace, but also to earn all overtime wages required by the law. The firm is investigating potential lawsuits including worker misclassification, unpaid overtime and other overtime pay law violations.

If you believe you have not received the proper amount of overtime pay as required by the law, contact Baron and Budd at 866-495-1255 or send an email to info@baronandbudd.com. You will receive a free case evaluation to help you determine whether or not pursuing legal action would be in your best interests.

About Baron & Budd, P.C.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with almost four decades of experience "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on exceptionally large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as PCB contamination in schools, FLSA (overtime) violations, pharmaceutical and medical implant injuries, water contamination, GM ignition problems, California Proposition 65 violations, mortgage and credit card fraud and asbestos-related illnesses such as mesothelioma.