Labor Department Discovers South Carolina Cleaning Service Misclassified Workers

U.S. Department of Labor (DOL) recovered more than US$53,000 in back wages and damages from a residential and commercial cleaning service in Columbia, South Carolina, that misclassified 59 workers as independent contractors.

Investigators with the DOL’s Wage and Hour Division found Finichel LLC, operating as Finichel Cleaning Services, paid employees straight-time rates for all hours worked over 40 instead of the time-and-a-half premium for overtime hours as required by the Fair Labor Standards Act (FLSA). The employer also failed to keep records of the amount of time worked by employees as required by law. Back wages and liquidated damages recovered: $53,044 for 59 workers.                          

“Misclassifying employees as independent contractors undermines workers’ rights,” said Jamie Benefiel, Wage and Hour Division district director in Columbia, South Carolina. “If workers are misclassified as independent contractors, they don’t get paid overtime or have access to employer-provided health and retirement benefits. They also don’t have access to family and medical leave.”

“If workers or employers need help understanding this, they should reach out to the Department of Labor or go to our website and get the information they need,” Benefiel added.

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 in a workweek.