Arizona roofing company ordered to pay back wages and damages for overtime violations

A consent judgment is a court order that records an agreement the parties have already reached to resolve a case. Instead of the judge deciding who is right after a trial, both sides negotiate a settlement, put it in writing, and ask the judge to approve it. Once approved, it becomes a binding, enforceable judgment like any other. Unlike a typical judgment entered after a contested hearing or trial, a consent judgment is based on the parties’ consent, usually contains no findings after an evidentiary dispute, and is generally not appealable except in narrow situations (such as fraud or mutual mistake). In the Collum Roofing case, the Department of Labor and the company (and its operators) agreed to a consent judgment that the court entered on July 11, 2025.

Robert L. Collum and Michael J. Collum are the individual operators of Collum Roofing Inc. The Department of Labor’s complaint and news release identify them as defendants along with the company, and the consent judgment was entered “against Collum Roofing operators Robert and Michael Collum.” That means they were in charge of running the business and its pay practices, and the court held them personally responsible, along with the corporation, for the Fair Labor Standards Act violations and payment of back wages, liquidated damages, and penalties.

Under piece-rate pay, a worker is paid a set amount for each unit of work completed (for example, per roof or per square of shingles) instead of by the hour. The FLSA allows piece-rate pay, but employers still must: (1) ensure total earnings at least equal the minimum wage for all hours worked, and (2) pay overtime for hours over 40 in a workweek. To calculate overtime, the employer must figure the worker’s “regular rate” each week by dividing total piece‑rate earnings by total hours worked, then pay at least an extra one-half of that rate for each hour over 40, on top of the piece earnings. This makes accurate time records essential. If the employer does not track all hours spent on piece‑rate jobs, it cannot properly show that minimum wage and overtime were paid, which is why piece-rate systems make overtime calculations and recordkeeping more complex. In the Collum Roofing case, the company paid both hourly and piece rates but failed to keep time records for the piece‑rate work, preventing proper overtime compliance.

Key FLSA overtime provisions:

• Most covered, non‑exempt employees must receive overtime pay for all hours worked over 40 in a workweek at least at “time and one‑half” (1.5 times) their regular rate of pay.
• The workweek is a fixed 168‑hour period; hours cannot be averaged across multiple weeks, and the law does not require extra pay for weekends or holidays unless total hours exceed 40.
• The regular rate includes most forms of pay; when workers are paid by piece rate, salary, commission, etc., the regular rate is calculated by dividing total earnings in the week by total hours worked.

Key FLSA recordkeeping provisions:

• Covered employers must keep accurate records for each non‑exempt employee, including hours worked each day and week, the basis of pay (hourly, salary, piecework), regular hourly rate, total straight‑time and overtime earnings, all additions/deductions, total wages each pay period, and the date and period of payment.
• Payroll records generally must be retained for at least three years, and records used to compute wages (like time cards and piecework tickets) for at least two years.
• Employers may choose any timekeeping system but it must completely and accurately reflect hours worked.

For FLSA enforcement, a violation is considered “willful” when the employer either knew its conduct was against the law or showed “reckless disregard” for whether it was legal. This standard comes from the Supreme Court’s McLaughlin v. Richland Shoe decision and is written into the Department of Labor’s regulations. Reckless disregard includes situations where an employer should have investigated whether its pay practices complied with the FLSA but failed to do so. When DOL classifies violations as willful, the statute of limitations for back wages expands from two years to three, and the agency can assess higher civil money penalties. In the Collum Roofing case, DOL described the company’s actions as willful and assessed a $12,320 civil money penalty on top of the back wages and liquidated damages.

The Wage and Hour Division offers multiple support and compliance tools for employers, including:

• A toll‑free helpline (1‑866‑4US‑WAGE / 1‑866‑487‑9243) and online inquiry forms to ask questions about pay, hours, and coverage.
• Online compliance‑assistance resources: topic‑specific pages, fact sheets, posters, FAQs, videos, and “elaws” interactive advisors that walk employers through requirements.
• Industry‑specific compliance toolkits (for example, construction, restaurants, FMLA, and other sectors) and training materials.
• The PAID (Payroll Audit Independent Determination) program, which lets eligible employers self‑audit and work with WHD to resolve certain FLSA and FMLA violations.
• A free DOL‑Timesheet mobile app (for iOS and Android) that employees and employers can use to track hours and calculate pay.

Workers can check whether the Wage and Hour Division is holding back wages for them by using the online Workers Owed Wages (WOW) application. The steps are:

1. Go to the WOW page and search for your employer by name.
2. If your employer appears, search for your own name to see whether WHD has wages in your name.
3. If wages are listed, submit your contact information to receive a Back Wage Claim Form (WH‑60), then sign and upload it (with ID) through login.gov so WHD can process payment. If you prefer, you can also call WHD’s helpline for assistance. In the Collum Roofing news release, DOL specifically points readers to a back‑wage search tool like WOW for this purpose.

The PAID (Payroll Audit Independent Determination) program is a voluntary Department of Labor program that lets employers work with the Wage and Hour Division to quickly resolve certain wage‑and‑hour violations and avoid litigation. Under PAID:

• Employers complete required compliance‑assistance training, then conduct an internal self‑audit of their FLSA minimum‑wage, overtime, and (in some cases) FMLA leave practices for the past two years.
• If they find potential violations, they calculate the back wages or other remedies owed, identify affected employees and time periods, and then report this information to WHD with supporting records.
• WHD reviews the submission, may request more information, and if it accepts the case, issues a summary of back wages or remedies due.
• Employers must pay 100% of the back wages and implement any other required remedies within 15 days and provide proof to WHD; employees may choose whether to accept the payments. PAID is designed for employers who want to proactively correct underpayments while working under WHD supervision, rather than waiting for an investigation or facing a lawsuit. The Collum Roofing release lists PAID among the tools DOL encourages employers to use to meet their wage obligations.