Malden Business Found Liable In Federal Court For Employee Violations

MALDEN, MA — Gate Solution Systems Inc. was found liable in federal court Tuesday for misclassifying employees as independent contractors.

Gate Solution Systems offers commercial cleaning services to businesses. Along with Healthcare Service Group Inc. of Bensalem, Pennsylvania, Gate Solution Systems is required to pay a total of $2.4 million to compensate in back wages and liquidated damages.

After an investigation, the DOL’s Wage and Hour Division discovered that Gate Solution Systems misclassified housekeepers, laundry workers, and dietary workers as independent contractors. The employees were not paid for working beyond 40 hours per week despite doing so on multiple occasions.

“This case’s outcome should remind employers that the U.S. Department of Labor will take appropriate action, including legal action, to protect workers whose employers deny them proper pay under the Fair Labor Standards Act,” Solicitor of Labor Seema Nanda said. “The Department of Labor will always strive to protect the rights of workers.”