🗞️ Phoenix Roofing Contractor Settles Major Overtime Wage Violations
A federal court ordered Phoenix-based Collum Roofing Inc. to pay $147,708 in back wages and liquidated damages to 61 workers after a DOL investigation found the company willfully violated federal overtime laws by paying piece rates without proper overtime compensation from 2021 through 2024.
The U.S. Department of Labor's Wage and Hour Division successfully obtained a consent judgment against Collum Roofing Inc. and its operators Robert and Michael Collum for systematic violations of the Fair Labor Standards Act. The investigation revealed that the Phoenix-based roofing contractor failed to pay workers the legally required time-and-a-half their regular rate of pay for hours worked beyond 40 in a workweek, spanning a three-year period from May 7, 2021, through April 26, 2024.
The company's pay structure combined both hourly rates for some jobs and piece rates for others, resulting in straight-time compensation for all hours worked regardless of total weekly hours. Critically, the employer failed to maintain proper time records for work performed under the piece-rate system, which federal law requires to accurately calculate minimum wage and overtime compliance. This recordkeeping failure made it impossible to verify whether workers received appropriate compensation for their labor.
The investigation determined these violations were willful, meaning the employer knowingly disregarded overtime requirements under the FLSA. Due to this willful nature, the Wage and Hour Division assessed an additional $12,320 civil money penalty beyond the back wages and liquidated damages. The July 11, 2025, judgment from the U.S. District Court for the District of Arizona represents part of a broader pattern of overtime violations in the roofing industry, where piece-rate payment systems are common but frequently misapplied in violation of federal wage laws.
Assistant District Director Mitchell Wood emphasized that employers who deny workers their required wages face accountability, noting that Collum Roofing's violations were particularly serious given the company's awareness of overtime requirements. This case joins numerous similar violations found across the roofing industry, where contractors often mistakenly believe that piece-rate compensation exempts them from overtime obligations.
Key Points
- Violation Period: May 7, 2021 through April 26, 2024
- Total Recovery: $147,708 in back wages and liquidated damages for 61 affected roofers
- Civil Penalty: Additional $12,320 assessed for willful violations
- Payment Structure Issue: Company paid combination of hourly and piece rates but failed to calculate overtime at time-and-a-half
- Recordkeeping Failure: Employer did not maintain required time records for piece-rate work
- Willful Violation: Court found employer knowingly violated FLSA overtime provisions
- Industry Pattern: Roofing contractors frequently violate overtime laws due to misunderstanding piece-rate payment requirements
Primary Source Author: U.S. Department of Labor Wage and Hour Division
Primary Source: Federal court orders Arizona roofing contractor to pay wages, damages to 61 workers denied overtime wages
Primary Source Link: https://www.dol.gov/newsroom/releases/whd/whd20260108-0
