Taking Care of HR Business
        A blog from the attorneys of Verrill

        FLSA Construction Basics: Build a Solid Foundation with Proper Classification

        by Tawny L. Alvarez on August 3, 2016

        New England Company & Affiliate Pay $2.6 Million in Back Wages

        Over the past few years we have discussed the importance of proper classification of workers and the ever-increasing number of DOL audits and wage and hour lawsuits that are stemming from improper classification of the workforce. Yesterday, the Department of Labor announced that it reached a consent judgment with Force Corp. and its contractor AB Construction Group Inc. in which the companies will pay 478 workers $2.6 million in back wages, penalties, and damages as a result of the misclassification of employees as independent contractors. The consent judgment includes payment of approximately $2.4 million in wages and liquidated damages as well as $262,900 in civil penalties. The approximately $2.4 million is the DOL’s largest FLSA wage recovery in Massachusetts since 2009.

        In this situation, AB Construction provided labor on sites and a separate entity, Force Corp., controlled payroll activities. The DOL reported in a statement that of the 478 workers, nearly all of them were misclassified as independent contractors and a group of the individuals were still owed wages from a time in which they had previously been characterized as an employee.

        Under the federal standard, the DOL (and courts) will look at a number of factors to determine whether an individual is properly characterized as an independent contractor including:

        • Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
        • Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how the individual is paid, whether expenses are reimbursed, who provides tools/supplies)
        • Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

        Additionally, it is important to review state-specific requirements in determining whether classification is proper. Maine’s standard is available here,  and Massachusetts’ standard is available here. For further information on other state’s standards or for further information on proper classification of employees, contact a member of Verrill Dana’s Labor & Employment Practice Group.

        Taking Care of HR Business

        Human resource professionals, supervisors, and company executives are constantly confronted with a changing legal landscape. Verrill’s Taking Care of HR Business blog is designed to keep you informed about the latest and most significant legal developments that affect employers.

        Key Contacts

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Published Works

        Four Verrill Attorneys Co-Author Massachusetts Trends and Developments Chapter for Chambers and Partners Child Relocation 2026 Guide

        Verrill attorneys Mary H. Schmidt, Rachel A. Deering, Hannah R. Zukoff, and Mariah G. Tappan co-authored the “Trends and Developments” chapter...
        Blog

        A New Protected Class in Maine: Holders of Final Protection Orders

        In the lead-up to Domestic Violence Awareness Month in October, employers may be taking a closer look at how their policies and practices respond to...
        Alerts and Newsletters

        Verrill Secures SJC Victory for Boston Legacy FC in White Stadium Litigation

        Verrill has secured a significant appellate victory for Boston Legacy FC in the litigation challenging the redevelopment of White Stadium in...
        Blog

        Hurry Up and Wait

        This is the third in a series of Verrill blog posts on Maine’s packaging extended producer responsibility (“EPR”) law[1]. In July we reported...
        Media Mentions

        Robert Keach Discusses First Brands Chapter 11 Case in Law360

        Verrill attorney Robert Keach was recently quoted in a Law360 article examining the rejection of First Brands Group's Chapter 11 plan and the...
        Media Mentions

        Cybersecurity and AI Governance: Scott Anderson Featured in Massachusetts Lawyers Weekly

        Verrill Managing Partner Scott Anderson was recently featured in Massachusetts Lawyers Weekly discussing how law firms can build attorney buy-in for...
        Blog

        Section 530A Account Update: ERISA Status of Trump Accounts

        The Department of Labor has issued important guidance addressing whether employer programs that permit contributions to Section 530A accounts (and...
        Press Releases

        97 Verrill Attorneys Recognized by Best Lawyers® 2027, Including Four Named Lawyers of the Year

        AUGUSTA, Maine, BANGOR, Maine, BOSTON, Mass., PORTLAND, Maine, and WESTPORT, Conn., (August 20, 2026) – Verrill is proud to announce that 97...
        Alerts and Newsletters

        SEC’s Proposed “Reg Crypto”: What Founders Need to Know

        Startup founders and emerging-growth companies have a number of options for raising capital under the federal securities laws, including Regulation D...
        Blog

        After 45 Years, the IRS Speaks on DCAP Nondiscrimination Testing – And It’s Good News

        Employers that provide a Dependent Care Assistance Program will be pleased to learn that for the first time in 45 years, the IRS has issued guidance...
        Media Mentions

        U.S. Courts Highlights Annabel Rodriguez’s Journey from Fellow to Mentor

        Verrill attorney Annabel Rodriguez was featured in a recent U.S. Courts article titled “From Fellows to Mentors: Alumni Share Lasting Lessons from...
        Media Mentions

        Robert Keach Discusses Bankruptcy Auction Strategy in Law360

        Verrill attorney Robert Keach spoke with Law360 article examining the complex bankruptcy auction process that resulted in the sale of 23 summer...