Following a ruling by a federal judge, kgb USA Inc., anindependent provider of directory assistance and enhancedinformation services, is to pay $1.3 million in minimum wagecompensation to 14,568 of its current and former employeesthroughout the country after it violated provisions of the FairLabor Standards Act.

These employees were hired to respond to text messages fromcustomers and worked from home. The company has agreed to theruling, which came following an investigation by the U.S.Department of Labor's Wage and Hour Division. That investigationfound kgb USA had misclassified employees as independentcontractors and paid them a piece rate in accordance to the amountof text messages and inquiries they responded and ignored thenumber of hours worked. FLSA violations came into play when piecerate earnings did not total to at least the federal minimum wage of$7.25 per hour.

"Misclassification of workers as independent contractors is aserious threat to their livelihood,” says acting Secretary of LaborSeth D. Harris. “Misclassifying workers also undercuts responsibleemployers who must compete with unscrupulous employers who do notobey the law. The Department of Labor is committed to ensuring thatemployees are classified properly so that they receive both the paythey rightfully earn and the protections to which they are entitled— including minimum and overtime wages, family and medical leave,and unemployment insurance."