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🗞️ Howard & Sons Inc. Wage Compliance Case: Lessons in Direct Employer-Employee Communication

The U.S. Department of Labor's Wage and Hour Division determined that Howard & Sons Inc., a San Bernardino roofing and painting contractor, failed to properly compensate 62 employees for certain work activities. The company will pay $267,177 in back wages and a $53,010 civil penalty.

onthelaborfront

16 Dec 2025 — 5 min read

On December 16, 2025, the Department of Labor announced its findings against Howard & Sons Inc., a California-based roofing and painting contractor operating from offices in San Bernardino and San Diego. The investigation revealed gaps in the company's time-tracking systems that resulted in overtime violations under the Fair Labor Standards Act.

Nature of the Compliance Issues

The investigation identified three specific areas where work time was not properly recorded:

Pre-shift Activities: Employees collected necessary supplies from stores and storage facilities before beginning scheduled work. Under FLSA regulations on hours worked, this preparatory work qualifies as compensable time when it is integral and indispensable to employees' primary job duties.

Post-shift Activities: Workers spent time returning equipment and supplies after completing assigned tasks. These activities fall within the workday definition under federal guidelines and must be counted as hours worked.

Extended and Weekend Hours: The company's existing time-tracking system did not capture work performed beyond scheduled hours and on Saturdays. This record-keeping gap led to overtime calculation errors for employees who exceeded 40 hours in a workweek.

Legal Framework and Employer Obligations

The Fair Labor Standards Act establishes baseline wage and hour standards for employers and employees. Non-exempt employees must receive at least the federal minimum wage for all hours worked and overtime pay at one-and-a-half times their regular rate for hours exceeding 40 in a workweek. The law defines compensable work time broadly, placing responsibility on employers to track and pay for all qualifying activities.

The Portal-to-Portal Act of 1947 clarified that while ordinary commuting is not compensable, preliminary and postliminary activities integral to the principal work must be paid. This distinction helps employers understand which activities require compensation and which fall outside working hours.

The Value of Direct Communication

This case underscores how direct employer-employee relationships benefit both parties when compliance issues arise. Howard & Sons Inc. will now implement improved time-tracking systems that provide workers with accurate compensation while giving the company clear records for payroll management. When employers and employees work together directly to address wage and hour practices, both sides benefit from transparent, efficient resolution.

The Department of Labor's compliance assistance resources are designed to help employers understand their obligations before violations occur. These educational tools allow companies to self-assess their practices and make necessary adjustments, often avoiding the need for formal investigations.

Industry-Wide Patterns and Proactive Solutions

Construction and roofing industry employers face unique challenges in tracking work time, particularly for activities that occur across multiple locations. Recent Department of Labor cases demonstrate this complexity:

A Florida roofing contractor resolved $132,400 in back wages through the PAID program, which allows employers to self-report violations
An Idaho roofing company corrected $48,206 in overtime calculations for 68 employees
A Pennsylvania roofing contractor addressed time-tracking discrepancies totaling $132,000

These cases illustrate a pattern where well-intentioned employers may use inadequate tracking systems rather than deliberately avoiding legal obligations. The solution lies in employer education and better communication protocols between management and workers.

Understanding "Willful" Violations

The Wage and Hour Division assessed a $53,010 civil penalty due to the willful nature of the violations. Under federal penalty guidelines, a violation is considered willful when the employer knew or showed reckless disregard for FLSA requirements. Civil monetary penalties for willful or repeated violations can reach up to $2,515 per violation.

The willfulness determination suggests the company did not adequately investigate its compliance obligations. However, many employers face confusion about the technical requirements of wage and hour law, particularly regarding which preparatory activities qualify as compensable time. This complexity highlights why direct consultation with DOL resources and employment law specialists can prevent costly mistakes.

Practical Compliance Strategies for Employers

This case provides valuable lessons for construction and roofing contractors seeking to maintain compliance while operating efficient businesses:

Invest in Comprehensive Time-Tracking Systems: Modern technology allows employers to track work-related activities accurately, protecting both worker compensation and company records. The Department of Labor offers a free timesheet app for this purpose.

Educate Supervisors and Employees: When both management and workers understand what constitutes compensable time, disputes and violations decrease. Clear policies communicated directly between employers and employees prevent misunderstandings.

Utilize Self-Audit Programs: The DOL's PAID program allows employers to identify and correct violations voluntarily, often resulting in reduced penalties and demonstrating good faith compliance efforts.

Maintain Open Communication Channels: Employers who encourage workers to report time-tracking concerns directly to management can address issues promptly, strengthening the direct employer-employee relationship and avoiding regulatory intervention.

Consult Industry Resources: Trade associations and DOL compliance toolkits provide industry-specific guidance that helps employers navigate complex regulations while maintaining productive workplaces.

Employee Rights and Direct Resolution

Workers deserve accurate compensation for all time worked, and employers benefit from satisfied, productive employees. The FLSA protects both parties by establishing clear standards that prevent wage disputes. When employees have concerns about time-tracking or compensation, addressing these directly with employers often yields faster, more satisfactory results than indirect approaches.

The Wage and Hour Division's worker resources and toll-free helpline at 866-4US-WAGE (487-9243) provide confidential assistance to employees who have questions about their rights. Workers can also use the DOL's back wages search tool to determine if they are owed money from previous investigations.

Path Forward: Collaborative Compliance

The Howard & Sons Inc. case demonstrates that wage and hour violations often result from inadequate systems rather than intentional wrongdoing. The company will now implement improved practices that benefit both its business operations and worker compensation. This outcome reflects the FLSA's purpose: establishing fair labor standards that allow businesses to operate profitably while ensuring workers receive proper pay.

Employers and employees both benefit from compliance with federal wage laws. Clear policies, accurate record-keeping, and direct communication create workplaces where disputes are rare and productivity remains high. By utilizing available resources and maintaining open dialogue, construction and roofing contractors can build strong direct relationships with their workers while meeting all legal obligations.

Key Points

Compliance Issue: Inadequate time-tracking led to uncompensated overtime for pre-shift, post-shift, and extended work hours
Affected Workers: 62 employees in roofing and painting trades received back wages owed
Financial Resolution: $267,177 in back wages plus $53,010 civil penalty
Legal Framework: Fair Labor Standards Act requires compensation for all integral work activities
Prevention Strategy: Employers can avoid violations through DOL's free compliance resources and self-audit programs
Direct Communication Benefits: Employer-employee dialogue on time-tracking prevents disputes and strengthens workplace relationships
Technology Solutions: Modern time-tracking tools help employers maintain accurate records while ensuring proper worker compensation
Industry Education Needed: Construction contractors face unique challenges requiring industry-specific guidance and proactive compliance measures