Arizona Drywall and Painting Companies Ordered to Pay $7.45 Million for Overtime Violations
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Two Phoenix-area construction companies have been ordered to pay more than $7.4 million to cover back wages and damages. The order followed the U.S. Department of Labor investigation that uncovered a deliberate scheme to deny overtime pay to over 1,400 workers. The consent judgment in Julie Su v. Apodaca Wall Systems Inc., Empire Wall Systems Inc., et al marks one of the largest wage theft recoveries in Arizona’s construction industry in recent years.
Case: Su v. Apodaca Wall Systems Incorporated et al
Court: Arizona District Court
Case No.: 2:24-cv-03560
The Plaintiff: Su v. Apodaca Wall Systems Incorporated et al
The plaintiff in the case is Julie Su, Acting U.S. Secretary of Labor (on behalf of the U.S. Department of Labor’s Wage and Hour Division).
The Defendants: Su v. Apodaca Wall Systems Incorporated et al
Apodaca Wall Systems Inc. – Phoenix-based drywall and interior painting company.
Empire Wall Systems Inc. – Phoenix-based drywall and interior painting company.
Arnold Apodaca – Owner.
Michael Apodaca – Owner’s son and co-owner.
Brittany Apodaca – Owner’s daughter and co-owner.
History of the Case: Su v. Apodaca Wall Systems Incorporated et al
According to the Department of Labor, Apodaca Wall Systems and Empire Wall Systems willfully violated the Fair Labor Standards Act (FLSA) by using multiple schemes to avoid paying employees legally required overtime wages:
Paying hourly workers with multiple checks at straight-time rates for all hours worked.
Using labor brokers that helped them hire hourly workers, they paid them in cash at straight time (even if they worked more than 40 hours a week).
Paying piece rates (based on square footage completed) to off-the-books workers without regard for total hours worked. While crew leads received piece-rate pay, they redistributed it (denying overtime compensation)
According to the investigation, these unlawful practices impacted over 1,400 employees, many of whom were vulnerable workers relying on overtime wages to support themselves and their families. The U.S. District Court entered a consent judgment on January 15, 2025, that ordered:
An injunction that forbids future labor law violations
Back payment of overtime wage totaling $3,725,000
Payment of liquidated damages totaling $3,725,000
Civil penalties for willful FLSA violations totaling $125,000
The Main Question in the Case:
The main question the court has to consider in Su v. Apodaca Wall Systems is whether or not the defendants used illegal pay schemes to deny their employees earned overtime wages and intentionally violated federal overtime laws.
Why This Case Matters: Su v. Apodaca Wall Systems Incorporated et al
This case highlights the Department of Labor’s aggressive enforcement in Arizona’s construction sector. In the past five years, federal investigators have recovered over $22 million in unpaid wages and damages for employees across the state.
FAQ: Su v. Apodaca Wall Systems Incorporated et al
Q: What is the Fair Labor Standards Act (FLSA)?
A: The FLSA is a federal law requiring covered employers to pay eligible employees at least the federal minimum wage and overtime pay (time-and-a-half) for all hours worked over 40 in a workweek.
Q: How did the companies try to avoid paying overtime?
A: By splitting pay across multiple checks, paying in cash at straight-time rates, and misclassifying work as piece-rate to avoid tracking overtime hours.
Wage theft and overtime violations can have devastating effects on workers and their families. If you believe your employer's business practices violate labor law, Contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP today. Our California employment law attorneys represent workers statewide, including Los Angeles, San Diego, San Francisco, Sacramento, and Riverside, and we fight to hold employers accountable for violating employee rights.
