Construction Companies Frequently Fail to Pay Laborers Overtime

Laborers for construction companies are frequently paid improperly at the hand of their employers. They are often salaried or paid a day-rate which as argued by a recent lawsuit against Magnetic Contracting Corp. and City Metro Corp., would entitle them to receive overtime pay when working over 40 hours per week. Magnetic Contracting Corp., a commercial and residential construction company operating throughout the greater New York City area, was hit with a class action Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL) lawsuit on Friday, February 10, 2017. Fitapelli & Schaffer, LLP is representing a putative class of laborers that work or have worked for Magnetic Contracting Corp.

Workers of construction companies are frequently paid a day rate or a set weekly salary. If these workers are not being compensated for overtime when working over 40 hours per week at time and a half their regularly hourly rate, they may be owed wages under the NYLL and the FLSA. Workers who are told they will be paid a salary are often mistakenly classified as exempt from receiving overtime.   The positions commonly affected by these violations include: laborers, carpenters, painters, welders, dry-wallers, helpers and other non-exempt workers.

These violations seem to be a constant in the industry as the lawsuit against Magnetic Contracting Corp. alleges that as part of their regular business practice, Defendants intentionally, willfully, and repeatedly engaged in a pattern, practice, and/or policy of violating the FLSA which includes, but is not limited to, willfully failing to pay their employees, the proper premium overtime wages for all hours worked in excess of 40 hours per workweek. Fitapelli & Schaffer, LLP has had much success bringing several cases against construction cases and continues to make the rights of hard working employees a priority including cases against Aki Renovations Group, Inc. and All City Remodeling, Inc. In addition to Magnetic Contracting Corp., the firm is currently also representing classes of laborers that work or have worked for Bentzy’s Construction Inc. and Cross City Construction Corp.

In the Magnetic Contracting Corp. matter, affected employees include any laborers who presently work or have worked for these companies, within the last six years. As can be seen from this lawsuit, the construction industry often violates employees’ rights under the FLSA and NYLL regarding overtime pay. If you or anyone you know work for a construction company that may have an unlawful policy or practice of minimizing labor costs by failing to properly pay you for overtime hours, you may have an overtime claim against your employer. If you believe you have a potential claim, please call the employment lawyers at Fitapelli & Schaffer, LLP at (212) 300-0375 or visit our website at