Koda Group Inc. & Owner to Pay Back Wages & Damages

Koda Group Inc. & Owner to Pay Back Wages & Damages

U.S. Department of Labor Recovers $151K in Back Wages and Damages for 64 Guards from Koda Group Inc. at Northville, Michigan Security Company.

NORTHVILLE, MI (STL.News) The U.S. Department of Labor released the following information regarding Koda Group, Inc.:

Employer: Koda Group Inc. – 200 North Center Street, Northville, MI

Actions: Fair Labor Standards Act consent judgment

Court: U.S. District Court for the Eastern District of Michigan

Investigation findings: On February 8, 2024, U.S. District Judge Matthew Leitman of the Eastern District of Michigan entered a consent judgment and order requiring Koda Group Inc. and owner and president Timothy Gilbert to pay a total of $151,208 – $75,604 in back wages and an equal amount in liquidated damages – to 64 security guards.  Filed in conjunction with a complaint, the consent judgment follows an investigation by the U.S. Department of Labor’s Wage and Hour Division alleging FLSA violations.

Specifically, division investigators found the employer, Koda Group, Inc., did the following:

  • Misclassified security guards as independent contractors when they were actually employees.
  • The guards were paid a flat rate for all hours worked and failed to pay time and one-half their hourly rate for hours over 40 in a workweek.
  • Failed to post a notice explaining the FLSA in a conspicuous location.

In addition to agreeing to pay back wages in monthly installments through November 1, 2024, the company agreed to provide all employees with federal wage protections and to maintain accurate payroll records.

Quote: “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 followed 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,” explained Wage and Hour District Director Timolin Mitchell in Detroit.”  “Workers misclassified as independent contractors are denied their protections under the Fair Labor Standards Act, and employers do not pay applicable employment taxes or workers’ compensation on their behalf.”

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