DOL investigators discovered a Detroit area staffing agency misclassified manufacturing workers as independent contractors.
The misclassification by the agency, LTL Staffing and Business Solutions, violated the Fair Labor Standards Act.
As a result, 653 workers were denied overtime wages.
Additionally, the misclassified employees were denied benefits and inherited the employer’s tax burden.
The employees worked directly at Challenge Manufacturing plants, primarily as welders, forklift drivers and machine operators.
Federal wage investigators recovered $352,347 in back overtime wages.
Determining factors for an employee include: working for someone else’s business, typically working for one employer, and using an employer’s equipment.