Wednesday, 29 June 2022 12:50

Utah Auto Body Shop Ordered to Pay $47,000 in Back Wages to Employees

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The U.S. Department of Labor’s Wage and Hour Division found Sandpiper Autobody in Pleasant Grove, UT, misclassified 13 technicians as independent contractors, and failed to pay the overtime wages as required by the overtime provisions of the Fair Labor Standards Act.

The employer also failed to keep accurate employee pay and time records, another FLSA violation.


Sandpiper Autobody was ordered by the U.S. Dept. of Labor to pay a total of $47,175 in back wages to 13 workers.


“Illegally paying an employee as an independent contractor strips them of the worker protections and benefits they are due," said Wage and Hour Division District Director Kevin Hunt in Salt Lake City, UT. "By doing so, the employer reduces a misclassified worker’s pay, and denies the worker’s health insurance, worker’s compensation and unemployment insurance. The employee is also burdened by the responsibility of paying employer tax. And in the long run, misclassification may reduce the Social Security benefit the employee receives in retirement.”


Source: U.S. Dept. of Labor Wage and Hour Division