Did Innovative Wall Systems Shortchange Workers on Overtime and Travel Time?
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In recent news, the wage and hour enforcement case alleging that Innovative Wall Systems, Inc. engaged in multiple labor law violations came to an end with the Court ruling in favor of the plaintiff.
Case: Lori Chavez-Deremer v. Innovative Wall Systems
Court: U.S. District Court for the Southern District of California
Case No.: 3:25-cv-02240-GPC-DDL (also listed as 3:2025cv02240)
Filed: August 28, 2025
Disposition: Consent Judgment signed September 11, 2025 and filed September 12, 2025
Presiding Judge: Gonzalo P. Curiel
Get to Know the Plaintiff in the Case:
The plaintiff is Lori Chavez-DeRemer, in her official capacity as the U.S. Secretary of Labor, bringing the action under federal enforcement authority of the Fair Labor Standards Act (FLSA). minimum wage, overtime, and recordkeeping violations affecting 580 workers. The case serves as a solid reminder to employers that, even when workers are paid on a per-unit or production basis, accurate time records must be maintained and overtime premiums must be paid when employees exceed 40 hours in a workweek.
Who Was the Defendant in the Case?
The defendant, Innovative Wall Systems, Inc., is a California corporation doing business as Alta Drywall, and Jason Shane Bellamy (identified in public summaries as the company’s president and CEO).
A Brief History of the Case: Lori Chavez-Deremer v. Innovative Wall Systems
The U.S. Department of Labor’s Wage and Hour Division conducted an investigation into Innovative Wall Systems’ timekeeping and pay practices.
Aug. 28, 2025: The Department of Labor filed an enforcement lawsuit against Innovative Wall Systems in the Southern District of California.
Aug. 28, 2025: Notice of settlement was filed (same day complaint was filed).
Sept. 11, 2025: Consent of judgment was signed.
Sept. 12, 2025: Consent of judgment was filed.
The consent judgment imposed injunctive relief (prohibiting future FLSA violations), back wages, liquidated damages, and a civil money penalty.
What Were the Labor Law Violation Allegations?
Federal investigators alleged that Innovative Wall Systems failed to accurately record compensable time, including pre- and post-shift work, travel time (to and from job sites), and Saturday work. The complaint also alleged that the company failed to pay accurate overtime wages and that its problematic timekeeping practices resulted in wage-and-hour violations.
The Outcome of the Wage and Hour Action: Court-Ordered Relief
The consent judgment required the company to pay $790,000 in back wages to affected employees, liquidated damages, and a civil penalty.
Becoming a Landmark Wage-and-Hour Case of 2025
What makes this particular wage and hour case a landmark case of 2025? There are several reasons. First, it was a big case, in terms of the number of affected workers and the reach of the ripples it made in the industry. The alleged violations affected 580 identified workers. Second, the case also serves as an obvious example of how quickly federal enforcement can yield binding injunctive and monetary relief, with the exceedingly rapid progression from filing to settlement. Third, the case’s allegations centered on travel time as “compensable time,” a common sore spot in labor law in the construction industry. And fourth, the fact that a civil money penalty was included underscores that the government did not view this as a minor or technical offense, but a serious one that needed a heavy-handed consequence.
FAQ: Chavez-Deremer v. Innovative Wall Systems
Q: What is “travel time” and when can it be compensable?
A: Certain travel time can be compensable under wage-and-hour law, including (in many settings) travel that occurs during the workday, such as travel between jobsites (depending on the facts and the applicable rules).
Q: What are my rights regarding overtime pay in California?
A: In California, most employees are entitled to receive overtime pay for hours worked over 8 in a day or 40 in a week. Specific exemptions may apply, so it’s essential to consult with an attorney to understand your rights.
Q: How can I determine if I am misclassified as an exempt employee?
A: Misclassification can occur when employers incorrectly classify employees as exempt from overtime. If you believe you should be eligible for overtime pay, consider speaking with an employment attorney who can review your job duties and classification.
Q: What does it mean when a case ends in a “consent judgment”?
A: A consent judgment is basically a settlement that becomes a court order. The parties agree to specific terms, the judge signs off, and those terms are enforceable—so failing to follow them can lead to serious consequences.
Q: Does a consent judgment mean the employer admitted wrongdoing?
A: Not always. Many consent judgments resolve a dispute without a full trial or a formal admission of fault. But the bottom line is the same: once the court enters it, the order is binding.
If you believe you were denied overtime, shorted on travel time or other compensable hours, or paid in a way that did not meet minimum wage and overtime requirements, the wage-and-hour attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help evaluate your potential claims. Contact the firm’s offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago to discuss your options for pursuing unpaid wages and accountability under the law.
