Federal Investigation: More Than $110,000 Recovered On Behalf Of Misclassified Hotel Workers In New York City
On February 22nd, 2023, the Wage and Hour Division of the Department of Labor (DOL) officially confirmed the recovery of $113,613 back pay and liquidated damages on behalf of at least 71 hotel workers in New York City. The employer—Greenparc Hospitality NY LLC—is a hotel staffing agency that works with hotel properties throughout the region. Here, our Monmouth County wage and hour claims lawyers discuss the enforcement action in more detail and explain the most important things workers should know about employee misclassification.
DOL Enforcement Action: Workers Were Misclassified, Denied Full and Fair Wages
Upon receiving a tip, the Wage and Hour Division of the DOL Greenparc Hospitality NY LLC opened an investigation into the practices of Greenparc Hospitality NY LLC. The DOL determined that the company unlawfully misclassified several dozen hotel workers as independent contractors instead of employees. As a direct consequence of the misclassification, the affected employees were denied overtime pay. They were required to work for straight-time wages despite working overtime hours.
Overtime Pay is Tied Directly to a Worker’s Status as an Employee
Overtime pay is a crucial protection for workers, as it ensures that they are fairly compensated for working long hours. A federal law called the Fair Labor Standards Act (FLSA) guarantees overtime pay to all non-exempt workers in New York. However, overtime pay is not available for independent contractors. Overtime pay is tied directly to a worker’s status as an employee,
The Bottom Line: An employee who is improperly and unlawfully misclassified as an independent contractor could miss out on overtime pay due to them under the law. They could also miss out on other key workplace benefits.
An Employer Does Not Get to “Choose” a Worker’s Classification Status
In New York State, an employer does not have the right to “choose” a worker’s classification status. Instead, the classification of a worker as an employee or independent contractor is determined by the specific nature of their work relationship. Indeed, the New York State Department of Labor has developed a strict test to determine whether a worker is an employee or an independent contractor. The test looks at a variety of factors, including the degree of control the employer has over the worker, the worker’s level of skill and independence, and the extent to which the worker is integrated into the employer’s business. As an employee who was misclassified as an independent contractor, you have the right to take legal action against your employer.
Get Help From Our New York City Wage and Hour Claims Attorney Today
At Poulos LoPiccolo PC, our New York City wage and hour lawyers are standing by, ready to protect your rights. If you believe that you or a loved one was wrongfully misclassified as an independent contractor, we are more than ready to help. Reach out to us by phone or contact us online for your confidential consultation. From our office in Manhattan and our office in Monmouth County, we are well-positioned to represent employees in wage and hour claims in New York and New Jersey.