NJ Drywall Firm to Pay $725K After Denying 48 Workers Overtime

A New Jersey drywall installation company has been ordered to pay $725,000 in back wages, liquidated damages, and civil penalties following a federal investigation that found 48 workers were systematically denied overtime compensation, the U.S. Department of Labor announced.

The Department's Wage and Hour Division determined that Voorhees-based P & B Partitions Inc. failed to pay employees for time spent waiting before shifts for transportation to job sites — a violation of the Fair Labor Standards Act's overtime provisions. Under federal law, pre-shift activities that benefit an employer, including waiting for employer-arranged transport, constitute compensable work time.

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A consent judgment entered June 26, 2026, in the U.S. District Court for the District of New Jersey requires the company to pay $350,000 in back wages and an equal $350,000 in liquidated damages to affected workers, plus an additional $25,000 in civil monetary penalties. Liquidated damages, which effectively double the back-pay award, are a standard remedy under the FLSA when employers are found in violation.

"Tasks completed to prepare for the job, and in this case, while waiting to get to the worksite, is work that must be compensated," said Wage and Hour Division District Director Charlene Rachor. Regional Solicitor of Labor Jeffrey S. Rogoff added that the case illustrates the financial exposure employers face when they disregard federal wage statutes.

The Labor Department noted that employers can access compliance assistance through the agency's toll-free helpline at 866-4US-WAGE and through its voluntary PAID program, which allows companies to self-report and resolve potential FLSA violations before formal enforcement action is taken. Continue reading at DOL News Releases and Briefs.