Construction Industry Wage and Hour Violations: What You Need to Know

The U.S. construction industry is a cornerstone of our economy, employing millions and building the infrastructure we rely on. However, it's also an industry where wage and hour law violations are unfortunately common.

Construction wage and hour laws, primarily governed by the Fair Labor Standards Act (FLSA) at the federal level and by state-specific regulations, are designed to protect workers by ensuring fair compensation for their labor

Common Wage and Hour Violations in the Construction Industry

Wage and hour violations in construction can take various forms, often leading to wage theft for hardworking individuals. Here are some of the most prevalent issues:

1. Unpaid Overtime

Unpaid overtime is arguably the most frequent violation in the construction sector. Many construction workers, often operating under tight deadlines and long shifts, are not properly compensated for hours worked over 40 in a workweek. Under the FLSA, eligible employees must receive at least 1.5 times their regular hourly rate for these overtime hours.

Concrete Example: A construction worker earning $20/hour should be paid $30/hour for every hour worked beyond 40 in a week.

Employers may attempt to avoid overtime payments by:

• "Off-the-clock" work: Pressuring or allowing workers to work before or after their official shift without recording the time.
• Paying the regular rate for all hours, including overtime.
• Improper calculation: Failing to include all forms of compensation (like certain bonuses) when calculating the regular rate for overtime purposes.

2. Worker Misclassification (Employee vs. Independent Contractor)

Misclassification is a tactic some employers use to avoid paying minimum wage, overtime, payroll taxes, and benefits. The IRS and Department of Labor use various factors to determine if a worker is an employee or an independent contractor, focusing on the degree of control the employer has over the worker's tasks and how the work is performed. Generally, if the employer dictates when, where, and how the work is done, the worker is likely an employee.

3. Failure to Pay for All Hours Worked

This violation occurs when construction workers are not compensated for all time spent on work-related activities. This can include:

• Pre- and Post-Shift Work: Time spent preparing equipment, loading/unloading tools, or cleaning up the worksite.
• Travel Time: Time spent traveling between multiple job sites during the workday.
• Mandatory Meetings or Training: Unpaid time spent in required meetings or training sessions.

4. Minimum Wage Violations

While federal minimum wage is $7.25 per hour, many states and cities have higher minimum wage rates. Construction employers must pay at least the highest applicable minimum wage. Violations can occur through:

• Directly paying below the minimum wage.
• Illegal deductions: Deducting costs for tools, uniforms, or transportation that push the worker's net pay below the minimum wage.

Consequences of Wage and Hour Violations

Employers who violate wage and hour laws face serious legal and financial penalties:

• Back Wages: Obligation to pay all unpaid wages to affected employees. Often, employers must pay an additional amount equal to the back wages (double damages), as a form of penalty.
• Legal Fees: Employers will incur substantial legal costs defending against claims.

Addressing Construction Wage and Hour Violations

Construction workers are among the hardest-working professionals and they deserve to be paid fairly for every hour worked. Unfortunately, wage theft, unpaid overtime, and illegal deductions are common in the construction industry. Understanding your rights under wage and hour laws is the first step toward holding employers accountable and getting the pay you’re owed.

If you're a construction worker who hasn’t been paid properly, our employment law firm is here to help. We represent construction workers in wage and hour claims and offer free consultationsto review your case. Contact us today to speak with a construction employment lawyer and fight back against wage violations (800) 483-0998.