Las Vegas Drywall Contractor Pays Over $824K in Back Wages and Damages After Federal Overtime Probe

The U.S. Department of Labor has secured a major win for hundreds of Las Vegas construction workers by recovering $824,276 in unpaid overtime wages and damages from Spectrum Construction LLC, a subcontractor operating across Nevada.

The department’s Wage and Hour Division uncovered systemic violations at Spectrum, where 680 piece-rate and hourly employees — including drywall hangers, painters, and tapers — were denied the legally required time-and-a-half pay for hours worked beyond 40 in a single week. These violations were found to be in breach of the Fair Labor Standards Act (FLSA).

According to investigators, Spectrum not only failed to pay overtime but also misused a practice known as “banking” hours. Hourly painters who worked overtime were promised paid time off later — a method only legal for public sector employers — or were never compensated at all.

“This case highlights the Wage and Hour Division’s commitment to protecting construction workers’ rights to be paid overtime wages,” said Wage and Hour Division District Director Gene Ramos in Las Vegas. “By uncovering and addressing widespread overtime violations at Spectrum Construction, we are ensuring that hundreds of workers receive the wages they rightfully earned. Our enforcement efforts ensure fair competition in the construction industry and send a clear message that employers must comply with federal labor laws.”

Federal labor law mandates that all non-exempt workers receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek, regardless of whether they are paid hourly or on a piece-rate basis. The department emphasized that only government entities may lawfully “bank” overtime hours — and even then, strict limitations apply.

In addition to recovering wages and damages, the department fined Spectrum $10,060 in civil money penalties, citing the willful nature of the violations.

About Spectrum Construction LLC

Established in 2011, Spectrum Construction LLC has operated as a key player in Nevada’s construction sector, offering services in drywall installation, metal stud framing, painting, and acoustical ceiling work for both residential and commercial projects.

Despite its growth, the company’s labor practices came under scrutiny when workers reported inconsistencies in overtime pay. The Department of Labor’s investigation confirmed the violations and acted to ensure that affected employees received their back pay.

Next Steps and Resources

The Wage and Hour Division encourages workers and employers to understand their rights and responsibilities under the law. The agency offers tools and assistance to track pay, including a free Timesheet App available for both iPhone and Android devices.

Workers who suspect they may be owed wages can contact the agency via its toll-free helpline at 866-4US-WAGE (487-9243). A searchable database is also available to help workers determine if they are due back pay collected by the department.

The case underscores the federal government’s broader initiative to combat wage theft in the construction sector and hold employers accountable for exploiting labor through unfair compensation practices.

‍Originally reported by U.S. Department of Labor.