Paul Johnson Drywall, Inc. Implements Worker Classification Initiative Developed through Department of Labor Collaboration

Contractor spearheads construction industry FLSA compliance effort with Department of Labor, reclassifying more than 1900 workers as employees.

PHOENIX  (May 19, 2014)— Paul Johnson Drywall, Inc. (PJD) announced that the company is implementing a classification initiative by reactivating 1325 workers as W-2 employees and hiring 627 new employees, a first step in the PJD FLSA compliance program that was developed  in conjunction with the Department of Labor (DOL). PJD and the DOL collaborated to design and implement the construction industry-focused effort, which addresses classification and overtime issues of traditionally piece-rate trades by providing industry best business practices. PJD is implementing its program with a reclassification of all of its independent contractor (1099) crews and individuals in Arizona to W-2 employees, taking the firm from 28 employees to more than 2,000 employees.   

The W-2 classification provides the genesis to capture, monitor and analyze employee piecework, in conjunction with hours and over-time pay. In addition to the reclassification action, PJD entered into engagements with nationally recognized third-party human resources and payroll systems providers, SOI and Prime Net, to further ensure the highest-level of compliance standards are met.  

The DOL is actively working to update and modernize America’s overtime pay system, an effort highlighted earlier this year by President Obama’s Directive Expanding Overtime Pay.  PJD is a top-paying industry piecework contractor in Arizona, typically exceeding prevailing wage in all categories, and initiated this effort with the DOL to review its policies, and assist with establishing industry best-practices. 

“We pride ourselves on having the most professional crews in the state, and welcomed the opportunity to evaluate employment practices with the DOL,” said Cole Johnson, president of PJD.  “Our crews allow us to deliver clients unparalleled on-time delivery in the safest manner, and as a result of these high expectations, we consistently pay our crews the highest wages. We’re excited to be taking our business, as well as our trade and related industry, to the next level,” he added.             

In 2014, PJD expects significant growth over 2013. The reclassification and related program actions position the company to accommodate its expanding business, while simultaneously providing clients with the assurances associated with W-2 employee classification. 

About Paul Johnson Drywall
Established in 1967, PJD is an Arizona-based drywall contractor, and one of the largest in the Southwestern United States with offices in Phoenix, Tucson and Prescott, Arizona. The family-owned business has long-been the drywall contractor of choice for the most prominent home builders in the region, providing high-quality drywall and related services for single-family, multi-family and commercial projects across the region. With safety, efficiency, quality and professionalism as its core values, PJD attracts and maintains the best crews, meets deadlines, and delivers exceptional craftsmanship, which has established the company’s reputation as a leader in the industry. For additional information, visit: www.PaulJohnsonDrywall.com. 

MEDIA CONTACT: Patty Johnson: 602-402-2965 or [email protected]