Independent Contractors: Maid Company to Pay Big for Misclassification

A federal judge has ordered Southern California Maid Services and Carpet Cleaning, based in Gardena, to pay $3,467,789 in back wages, plus $1,058,973 in liquidated damages, to 385 current and former low-wage domestic workers who were misclassified as independent contractors. The court’s action resolves a lawsuit filed against the employer by the U.S. Department of Labor (DOL) alleging violations of the Fair Labor Standards Act.

The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.

The case grew out of an investigation by the DOL’s wage and hour division, which found that the company had misclassified its home and carpet cleaners as independent contractors, resulting in minimum wage and overtime violations. The company also failed to keep accurate records of the employees and the hours that they worked.

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