A Wayne County security company is feeling the weight of justice after a federal court ordered it to cough up over $150K in back wages and damages to its workforce. Koda Group Inc. and its head honcho Timothy Gilbert must pony up exactly $151,208 as ruled by U.S. District Judge Matthew Leitman. This sum represents $75,604 in back wages and an identical amount in liquidated damages, shelled out to 64 security guards who were shortchanged, according to an announcement by the U.S. Department of Labor's Wage and Hour Division.
The guard's pay dispute made it to the U.S. District Court for the Eastern District of Michigan after a wage and hour probe by the DOL identified Fair Labor Standards Act (FLSA) violations by Koda Group. "Koda Group created schedules for its security guards who performed work necessary for their employer’s business; assigned them work tasks and required them to follow detailed policies and procedures. These factors are among those that define them as employees and not independent contractors in control of their own work schedules and jobs," told Timolin Mitchell, Wage and Hour District Director in Detroit. The investigation found that the firm didn't just misclassify guards as independent contractors, but also jipped them by paying a flat rate regardless of overtime hours and skipped on posting FLSA notices.
The security company has agreed to rectify its practices, vowing to pay back wages in monthly installments through November 1, 2024, and to implement federal wage protections and accurate payroll recordkeeping for all its employees. Details of the settlement were outlined on ClickOnDetroit, stating Koda Group's commitment to adjust its policies to comply with federal labor standards earnestly.
For employees nationwide uncertain about their wages or employers seeking to avoid missteps, the DOL's Wage and Hour Division remains a go-to resource. The agency's statement encourages individuals to reach out via a toll-free helpline (866-4US-WAGE) and even mention an app available in iOS and Android versions, offering tools to track work hours and pay accurately. The case, officially titled United States Department of Labor v. Koda Group Inc., case number 2:23-cv-13183-MFL-DRG, has laid down a clear marker: when it comes to fair labor compensation, cutting corners won't cut it.
