Legal Alert - Multi-Agency Investigation Successfully Targets Arizona and Utah Construction Companies’ Misclassification of Employees


by Jennifer R. Phillips and William R. Hayden

Sixteen Arizona and Utah companies accused of misclassifying more than 1,000 construction workers agreed to pay $700,000 in back wages and penalties after a multi-year, multi-agency investigation led to consent judgments, which were recently approved by the federal district courts of Arizona and Utah. This latest win by the U.S. Department of Labor (DOL) and other enforcement agencies underscores the need for companies to carefully evaluate the classification of their production workers, particularly if the workers are classified as “member/owners” of limited liability companies.

[Read the full alert.]