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Hutco, Inc., a large industrial services employment agency, has recently been slapped with an order to pay close to $2 million in back wages by the Wage and Hour Division of the U.S. Department of Labor for the agency’s improper practices when it comes to payment and record-keeping regarding their employees. As a result of their shady tactics, their workers were denied their overtime pay which was properly due to them.

The overtime violations of Hutco was found to have been improperly classifying certain wages of the workers as “per diem” payments and did not include these when calculating overtime premiums which results in depriving the employees of their overtime pay for the hours that they work in excess of 40 hours in a week. This improper practice has also lead to violations in terms of the accuracy of the wages paid for the employees and the actual hours that they worked.

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