Feds order Charlotte company to pay $186,000 in overtime it owes to 181 workers

EDITOR’S NOTE: This story, published Feb. 27, has been updated March 10 with the company’s response.

A south Charlotte company warehouse rack installation company must pay $185,963 in overtime to 181 workers, according to the U.S. Department of Labor.

IPD Company misclassified its employees working as installers as independent contractors and did not pay them time-and-a-half overtime rate for hours over 40 in a work week, an investigation by the Department of Labor’s Wage and Hour Division found. IPD is headquartered at 7808 Pineville-Matthews Road.

The misclassification strips employees of overtime and minimum wage and unpaid leave protections, shortchanges their Social Security benefits and prevents collection of payroll taxes owed to local, state and federal levels, Wage and Hour Division District Director Richard Blaylock in Raleigh said in a statement.

“Employers must understand their obligations and make sure their pay practices comply with federal law or risk costly consequences,” he said.

“IPD would like to make clear that this incident was based on its reasonable reliance on the advice of a professional and not a reflection of how it conducts business or treats its employees as a whole,” attorney Edward Jesson of Jesson & Rains said representing the Charlotte company.

IPD Company installs commercial and industrial rack systems throughout the U.S. and Canada for warehouses and automation systems, according to the company’s website. IPD’s racking and shelving systems are used in several industries, such as food and beverage, retail, agriculture and manufacturing.

The privately held industrial company formed nearly nine years, according to the N.C. Secretary of State website.

Employees with concerns about their wages can call the Charlotte-area Wage and Hour Division office at 704-749-3360.

This story was originally published February 27, 2023 at 11:28 AM.