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Large Homebuilders Probed By Labor Department Over Wage and Overtime Issues

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The U.S. Department of Labor is investigating whether or not some large building operations are complying with wage and hour laws. Under Labor Secretary Hilda Solis, the agency has hired 300 investigators to investigate allegations of unpaid work, minimum wage violations and lack of overtime pay.

Builders involved in the investigation include PulteGroup Inc., D.R. Horton Inc., KB Home and Lennar Corp. The Associated Press reported that one letter sent by the agency said the investigation is to ensure employees who work at home construction sites are being paid according to the Fair Labor Standards Act, which defines the requirements for pay and work rules employers are to follow.

Investigators are seeking records including time sheets, payroll documentation, and Social Security records. Officials say that wage theft is prevalent among immigrants who fear for their immigration status and speak little English.

The League Builders of America issued a statement that called the agency requests “overbroad” and said the Labor Department is seeking information that is unrelated. “These demands could require significant resources and thousands of hours of work,” the statement said. The department s inquiry is especially troubling given that no issues have been identified to warrant an investigation.”

Labor Department spokesperson Carl Fillichio said “We are actively looking at those industries that employ the most vulnerable workers and that engage in business practices, such as misclassifying employees as independent contractors, that result in violations of minimum-wage and overtime laws,” the Boston Globe reported. disclaimer: This article: Large Homebuilders Probed By Labor Department Over Wage and Overtime Issues was posted on Friday, September 9th, 2011 at 6:58 pm at and is filed under Employment Lawsuits.

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