Arizona Drywall and Painting Companies Ordered to Pay $7.45 Million for Overtime Violations

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

1. Apodaca Wall Systems Inc. – Phoenix-based drywall and interior painting company.

2. Empire Wall Systems Inc. – Phoenix-based drywall and interior painting company.

3. Arnold Apodaca – Owner.

4. Michael Apodaca – Owner’s son and co-owner.

5. 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:

1. An injunction that forbids future labor law violations

2. Back payment of overtime wage totaling $3,725,000

3. Payment of liquidated damages totaling $3,725,000

4. 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.

Overtime Pay Violations Allegations: Rocket Mortgage's $3.5 Million Settlement

When facing improper overtime payment practice allegations, Rocket Mortgage resolved the class-action lawsuit with a settlement agreement. Mortgage bankers claimed the company miscalculated their regular pay rates, leading to inadequate overtime compensation. The $3.5 million agreement underlines the critical importance of precise compliance with the Fair Labor Standards Act (FLSA) and wage calculation accuracy.

The Case: Gilburd (etc.) v. Rocket Mortgage, LLC

The Court: U.S. District Court of Arizona

The Case No.: 2:23-cv-00010-CDB

The Plaintiff: Gilburd (etc.) v. Rocket Mortgage, LLC

Current and former mortgage bankers allege that the defendant, Rocket Mortgage, failed to pay accurate overtime wages. According to the plaintiffs, the employer systematically failed to provide accurate overtime compensation and incorrectly calculated their regular rate of pay by excluding incentives and bonuses that should be factored into the equation. As a result, mortgage bankers were allegedly underpaid significantly.

The Defendant: Gilburd v. Rocket Mortgage, LLC

The defendant, Rocket Mortgage, LLC, is a leading mortgage lending company. The company faced numerous labor law violation allegations when a group of current and former mortgage bankers filed an employment law complaint. According to the plaintiffs, the company had improper overtime pay practices and inaccurate methods of calculating regular pay rates (for use in overtime pay rate calculations). Despite agreeing to settle for $3.5 million, Rocket Mortgage denied all allegations of wrongdoing and maintained that the settlement implied no admission of liability.

The Case: Gilburd (etc.) v. Rocket Mortgage, LLC

The plaintiff filed the original complaint against Rocket Mortgage LLC in 2023. The plaintiffs alleged that the company's practice of excluding alternate forms of payment from the regular pay rate calculations resulted in improperly low overtime pay rates. Both parties entered a mediated settlement agreement in April 2024 to resolve the dispute.

How Essential are Accurate Pay Rate Calculations?

Accurate pay rate calculations and overtime pay rate calculations are essential. Miscalculations can lead to costly lawsuits or settlements, and regulatory compliance is increasingly scrutinized. Employers who create standard payroll practices and systems that accurately reflect labor law and comply with regulations experience a healthier workforce with improved morale. Companies that actively review and update their standard payroll practices can remain compliant despite regulatory changes.

If you need to discuss filing a wage and hour complaint, contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced and knowledgeable employment law attorneys are ready to assist you at one of their various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Staples Settles $38 Million Class Action Over Assistant Manager Overtime Pay

In a significant resolution to longstanding labor disputes, Staples Inc. agreed to a $38 million settlement in a class action lawsuit alleging the misclassification of assistant managers as exempt from overtime pay. The case, filed in the Superior Court of the State of California in the County of Orange, underscores the importance of proper employee classification under the Fair Labor Standards Act (FLSA).

The Case: Williams v. Staples Inc.

The Court: Superior Court of the State of California, County of Orange

The Case No.: 816121

The Plaintiff: Williams v. Staples Inc.

The plaintiffs, led by Williams, comprised a group of current and former assistant managers employed by Staples in California. They alleged that Staples misclassified them as exempt employees, denying them overtime wages, meal and rest breaks, and other protections afforded to non-exempt workers under California labor laws.

The Defendant: Williams v. Staples Inc.

Staples is a popular, and well-known big box store. When Williams filed his complaint, the prominent office supply retailer faced allegations that their classification practices violated state labor laws. Williams accused the company of implementing a standard practice and policy that misclassified Staples store assistant managers with the purpose of avoiding payment of overtime wages and providing benefits that would be required for non-exempt employees.

The Case: Williams v. Staples

Williams' claims were centered around the allegation that assistant managers working for the big box office supply retailer were systematically misclassified, which resulted in the loss of overtime pay, and the denial of of duty meal periods and rest breaks as required by labor law. The plaintiffs filed suit seeking compensation for the alleged violation, and the case was eventually resolved with a $38 million settlement agreement. The agreement was designed to compensate affected employees and rectify the issues created by Staples' worker classification practices.

What Constitutes Employee Misclassification in California?

If an employer identifies an employee as an exempt employee or an independent contractor when they are actually a non-exempt employee, it's considered misclassification. An exempt or independent contractor classification excludes workers from wage and hour protections. Misclassified employees may be entitled to recover unpaid wages, overtime, and other benefits.

If you need to discuss filing a wage and hour lawsuit, contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced and knowledgeable employment law attorneys are ready to assist you at one of their various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Staples Faces Labor Law Violation Allegations in Overtime Class Action

An overtime class action lawsuit filed by a former employee alleges Staples failed to compensate nonexempt employees for overtime work. The case highlights ongoing concerns about employee rights and corporate labor practices and leaves Staples under legal scrutiny.

Case: Maraya Lumadue v. Staples, the Office Superstore LLC

Court: US District Court for the Central District of California

Case No.: 2:25-cv-00028

The Plaintiff: Maraya Lumadue v. Staples, the Office Superstore LLC

Maraya Lumadue, a former Staples employee, initiated the overtime class action lawsuit. Lumadue claims that Staples required employees to perform tasks off-the-clock, including assisting customers before clocking in for their shift and undergoing bag checks after clocking out. These practices allegedly led to unpaid overtime and violated California labor laws.

The Defendant: Maraya Lumadue v. Staples

Staples, a major retailer with numerous locations across California, is accused of systemic labor violations. The company allegedly failed to provide proper meal periods and rest breaks. The plaintiff also claims that Staples did not compensate workers for completing mandatory tasks outside of scheduled hours, and neglected to reimburse workers for job-related expenses including uniform maintenance and personal cell phone use.

The Case: Maraya Lumadue v. Staples

The lawsuit addresses alleged widespread labor violations affecting nonexempt Staples employees in California. Key allegations include:

• Requiring employees to work off-the-clock before and after shifts.

• Failing to provide workers with legally mandated meal periods and rest breaks.

• Lack of compensation for time spent on mandatory tasks such as bag checks.

• Failure to reimburse employees for work-related expenses.

• Inaccurate wage statements

If proven, the various allegations represent significant violations of California labor laws.

What Should You Do If You Suspect Labor Law Violations at Your Workplace?

If you believe your employer is not complying with labor laws—such as failing to pay overtime, not providing required breaks, or not reimbursing work-related expenses—it's important to document these instances and consult an experienced employment law attorney.

When you need help protecting your rights in the workplace, contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced and knowledgeable employment law attorneys are ready to assist you at one of their various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Core Analytics Radiology Faces Overtime Pay Violation Allegations

In Lere Garrett v. Core Analytics Radiology (Case No. 24CV103976), a lawsuit filed in the Alameda County Superior Court of California, the plaintiff claims their employer violated California overtime pay laws when they failed to pay overtime wages for hours worked in addition to a full standard work week.

The Case: Lere Garrett v. Core Analytics Radiology

The Court: Superior Court of California for the County of Alameda

The Case No.: 24CV103976

The Plaintiff: Lere Garrett v. Core Analytics Radiology

Plaintiff Lere Garrett, along with other affected employees, contends that Core Analytics Radiology did not pay overtime wages, violating California labor law. According to the plaintiff, employees worked additional hours under the direct control of their employer, but didn't receive overtime wages at the labor law-dictated overtime wage rate. The situation allegedly resulted in a significant amount of unpaid wages.

The Defendant: Lere Garrett v. Core Analytics Radiology

According to their LinkedIn profile, Core Analytics Radiology is an independently owned and operated full-service laboratory and radiology clinic that has provided comprehensive lab services in post-acute care settings, healthcare facilities, and physicians' offices for over a decade. While the case is in the early stages of litigation and the defendant has not yet offered a detailed counterargument, they maintain that their timekeeping and compensation policies and procedures do not violate labor law, and any overtime pay discrepancies must be the result of administrative errors or misinterpretations of employee work schedules.

The Ongoing Case: Garrett v. Core Analytics Radiology

The case was filed in the California Superior Court, serving Alameda County, based on claims that the company systematically undercompensated workers by using inaccurate timekeeping records. The case brings attention to ongoing concerns that California employers often fail to comply with wage and hour laws, and highlights the need for precise timekeeping procedures.

How Could the Case Affect California Workers?

Garrett v. Core Analytics Radiology highlights the essential nature of accurate and precise timekeeping in strict compliance with overtime laws. If the court hands down a favorable ruling for the plaintiff, the case could also set a new precedent for future California wage and hour claims.

If you need to discuss filing a wage and hour complaint, reach out to Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced and knowledgeable employment law attorneys are ready to assist you at one of their various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Do Corporate Pilots Get FLSA Overtime Pay Protections?

A group of corporate pilots recently filed a lawsuit questioning why they were not paid overtime when working more than eight hours in one day or forty hours in one workweek.

Case Details: Kennedy v. Las Vegas Sands Corp., U.S. District Court of Nevada, Case No.: 110 F.4th 1136 (9th Cir. 2024)

The Plaintiff: Kennedy v. Las Vegas Sands Corp.

Sean Kennedy and the other plaintiffs were full-time corporate pilots for Sands from March 27, 2014 through March 27, 2017. During that time they received a salary ($125,000 and $160,000 annually). According to the pilots, they allegedly often worked more than eight hours per day and forty hours per workweek without receiving overtime pay. The group filed claims for unpaid overtime and retaliation under the FLSA (Fair Labor Standard Act).

The Defendant: Kennedy v. Las Vegas Sands Corp.

The defendant, Sands Aviation, LLC, provides aviation services for executives and patrons of Las Vegas Sands Corp. and Las Vegas Sands, LLC.

The Allegations: Kennedy v. Las Vegas Sands Corp.

On March 27, 2017, the Sands pilots filed the overtime lawsuit alleging unpaid overtime (violating 29 U.S.C. § 207(a)) and retaliation (violating 29 U.S.C. § 215(a)(3)).

The Case: Kennedy v. Las Vegas Sands Corp.

After hearing the case during an eight-day bench trial, the district court judge decided in favor of Las Vegas Sands Corp. on the grounds that the pilots qualified as “highly compensated exempt employees” (according to definitions provided by the FLSA)) who primarily performed non-manual labor and regularly made significant discretionary decisions. The district court further noted that even if the pilots were not exempt from overtime based on salary and job duties, waiting time between flights did not constitute “work” requiring overtime payment under FLSA since the pilots could engage freely in personal activities during wait times. The Ninth Circuit affirmed the district court’s judgment on appeal.

If you have questions about filing a California overtime pay lawsuit, contact the knowledgeable employment law attorneys at Blumenthal Nordrehaug Bhowmik DeBlouw LLP. They're ready to assist you in various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.

Fifth Circuit Affirms DOL's Authority to Increase Salary Threshold for Overtime Exemptions

On appeal, the Fifth Circuit Court of Appeals affirmed the Department of Labor's (DOL) authority to raise the overtime exemption salary threshold for overtime exemptions (Mayfield v. United States Dep't of Labor). A significant ruling, the decision could directly impact Fair Labor Standards Act (FLSA) employee protections under the Fair Labor Standards Act (FLSA).

Case Details: Mayfield v. U.S. Department of Labor

Court: United States Court of Appeals, Fifth Circuit

Case Number: 117 F.4th 611 (5th Cir. 2024)

Challenging Overtime Rules & Taking the DOL to Court:

The plaintiffs in the case (Mayfield v. U.S. Department of Labor) case were employers who challenged the Department of Labor's (DOL) authority to establish minimum salary thresholds for executive, administrative, and professional employee overtime exemptions (EAP Exemptions). The plaintiffs are challenging the DOL's regulations, saying the agency went beyond its legal authority and interfered with their business and employment decisions.

Department of Labor Fights to Maintain Worker Protections

The defendant in the case was the U.S. Department of Labor. The federal agency responsible for enforcing labor standards and FLSA protections, the DOL issued regulations updating the minimum salary threshold for overtime exemptions, which would extend overtime protections to more salaried employees, which led the plaintiffs to seek legal clarification defining the extent of the DOL's legal authority.

Battling Over Overtime Pay: How Did the Courts Weigh In?

The key question in Mayfield v. United States Dep't of Labor was whether the DOL had the authority to change the salary levels used to determine which executive, administrative, and professional (EAP) employees are exempt from overtime. The Fifth Circuit Court of Appeals affirmed the DOL's power to set and adjust salary thresholds for overtime exemptions. This ruling upheld the 2019 Minimum Salary Rule, allowing the DOL to increase the minimum salary required for employees to be classified as exempt.

What Makes it a Landmark Decision: Mayfield v. DOL

In a landmark decision, the Fifth Circuit Court upheld the federal government's authority to enforce stricter wage and hour rules. This decision significantly affects overtime pay calculations for many workers. Therefore, employers must stay up-to-date with changing federal rules to avoid lawsuits and ensure fair pay for their employees.

California's Overtime Rules and the Federal Standard

California employers should remember that while the Mayfield decision clarifies the federal government's power to set overtime exemption salary thresholds, California often has stricter wage and hour laws in place. California's minimum salary for exempt employees is typically higher than the federal minimum. As of January 1, 2025, the minimum wage for California's exempt employees is $16.50 (applicable to all employers regardless of size). This means that even if an employee meets the federal salary threshold under the Mayfield ruling, they might still be entitled to overtime pay under California law. Employers in California must always comply with the law that provides the greatest benefit to the employee, which is often California law in this context.

If you have questions about filing a California overtime class action lawsuit, please contact Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Knowledgeable employment law attorneys are ready to assist you in various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.