Business & Tech

NJ Company Didn’t Pay Guards Overtime – Now It Owes $132K: Feds

Dozens of security guards who work for an East Orange company were misclassified as independent contractors, federal officials say.

EAST ORANGE, NJ — A security company based in East Orange will have to shell out more than $132,000 after it failed to pay dozens of employees for working overtime, federal officials announced Monday.

The U.S. Department of Labor’s Wage and Hour Division determined that Hinton Investigations Inc. misclassified employees as independent contractors and didn’t pay any overtime premium.

Hinton paid employees on an hourly basis and only straight-time for hours over 40 each workweek. These actions violated the Fair Labor Standards Act, authorities said.

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The agency has since recovered $132,344 in back wages and liquidated damages for the 61 affected security guards, authorities added.

“Not paying overtime to employees when they work more than 40 hours in a week is illegal,” Wage and Hour Division district director Paula Ruffin said.

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“Security industry employers should review their pay practices to ensure compliance with the law and workers are properly classified and paid,” Ruffin said.

Authorities said workers who have questions about the Fair Labor Standards Act can contact the Wage and Hour Division at 1-866-487-9243.

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