The U.S. District Court for the Middle District of Florida has issued a ruling in favor of the Department of Labor (DOL) in its enforcement action against Freeman Security Services Inc., a Central Florida-based company specializing in security services, and its owner, Darren Freeman.
In Walsh v. Freeman Sec. Servs., the court found that the company had wrongly labeled at least 76 security guards as independent contractors, leading to the denial of essential wage and hour benefits they were entitled to under the law.
Of particular note is the fact that the company paid these affected security guards regular wages regardless of the actual hours they worked. As a result, the court had mandated the payment of $117,880 in back wages along with liquidated damages.
The Wage and Hour Division of the DOL highlighted that violations related to overtime, minimum wage, and employee misclassification remain significant concerns for the federal agency as it announced this enforcement action.
Lessons Learned from the Case:
- The case underscores the importance of accurately classifying workers as employees or independent contractors.
- The case highlights the significance of providing overtime compensation to eligible employees.
- The award of liquidated damages serves as a reminder that violations of labor laws can result in additional financial penalties beyond back wages. Employers need to prioritize compliance to avoid such consequences.
If you want to know more about overtime regulations, read our guide on Florida Overtime Laws.
