Louisiana Contractor Pays $495K in Back Wages in Misclassification Case

A southwest Louisiana contractor that provides nondestructive testing in Louisiana, Texas and Florida has paid $495,900 in back wages to 411 workers, the U.S. Department of Labor said.

Versa Integrity Group Inc. of Sulphur erroneously classified wages as per diem payments, causing overtime to be paid at lower rates than federal law requires, a news release said.

“Simply labeling a payment as ‘per diem’ does not necessarily exclude it from the calculation when determining overtime rates,” said Wage and Hour Division District Director Troy Mouton in New Orleans. “This investigation revealed a violation we find in many industries.”

The news release said the overtime was paid to workers who inspect, maintain and repair at industrial refining, chemical and offshore businesses.

Versa is based in Sulphur, Louisiana, and provides non-destructive testing at 22 locations in three states, the statement said.