ESCONDIDO — An Escondido drywall construction contractor will pay $790,000 in back wages, damages and penalties after it was found the company failed to pay federally required overtime and minimum wage to 580 workers, the U.S. Department of Labor announced this week.
A consent judgment filed in federal court requires Innovative Wall Systems Inc. and its president and CEO to pay the affected employees $385,000 in back wages and an equal amount in liquidated damages. The company must also pay a $20,000 civil penalty.
The Department of Labor said that following a federal investigation, it was found that the company — operating as Alta Drywall — failed to accurately record hours worked and failed to pay the required overtime rate of 1.5 times the regular rate when employees exceeded 40 hours in a workweek.
As a result, the company violated the Fair Labor Standards Act, which establishes requirements for minimum wage and overtime pay, according to the Department of Labor. The court order also requires the company to abstain from any future violations of the FLSA.
