Memphis Company to Pay $140,000 in Back Wages and Liquidated Damages After U.S. Department of Labor Finds FLSA Violations

MEMPHIS, TN – The U.S. District Court for the Western District of Tennessee issued a judgment and permanent injunction against Mulrooney Enterprises to pay $140,000 in back wages and liquidated damages for violating the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA).

U.S. Department of Labor Wage and Hour Division investigators found Gregory Edward Mulrooney – doing business as Mulrooney Enterprises, a Memphis construction company – misclassified employees as independent contractors. As a result, Mulrooney failed to pay overtime when employees worked more than 40 hours per work week. Mulrooney also withheld several employees’ last paychecks, resulting in minimum wage violations.

“Monetary judgments such as this one ensure that employees are paid for their work,” said Regional Solicitor Stanley Keen. “The injunction ensures that employers do not derive an unfair advantage over their competitors by violating the law.”

Mulrooney Enterprises agreed to pay owed wages and damages to the 94 affected workers and to comply fully with the FLSA in the future.

The company provides construction services such as clearing, demolition, dirt work, grading, concrete work, and garbage disposal.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd, including a search tool to use if you think you may be owed back wages collected by WHD.