A federal wage enforcement case has resulted in a $725,000 payment order against a New Jersey drywall installation business, highlighting the financial consequences of failing to compensate construction workers for required work-related time.
P & B Partitions Inc. must pay back wages and damages to 48 employees after an investigation by the U.S. Department of Labor’s Wage and Hour Division found that workers were not paid for pre-shift time spent waiting for transportation to jobsites. The department determined that the practice violated overtime provisions of the Fair Labor Standards Act.
The consent judgment and final order was entered on June 26, 2026, in federal district court in New Jersey.
The court order requires P & B Partitions to pay $350,000 in back wages to affected employees, an equal amount in liquidated damages and an additional $25,000 in civil money penalties.
The case underscores that time spent preparing for work or completing required activities before reaching a jobsite may be compensable under federal wage law. Construction employers must assess how pre-shift arrangements, transportation procedures and other work-related activities affect employee hours and overtime calculations.
The Department of Labor said it would continue pursuing enforcement actions to ensure employees receive wages required by law. Employers can contact the Wage and Hour Division for compliance assistance and use its industry-specific toolkits to review their responsibilities under federal wage regulations.
The judgment highlights the importance of accurate timekeeping and payroll practices across construction operations. Contractors that coordinate transportation to jobsites or require employees to complete activities before their shifts should review whether that time must be recorded and paid.
Failure to comply with overtime requirements can expose employers to back-pay obligations, additional damages and civil penalties. Reviewing payroll procedures and seeking compliance guidance can help construction businesses reduce legal exposure while ensuring workers are paid appropriately.
Source: U.S. Department Of Labor.
