Wednesday, September 25, 2019

Three Companies Agree to Pay $630 Thousand to Settle Labor Related Violations

The Labor Department has been busy lately prosecuting companies for discrimination, and failing to pay prevailing wages. Last Monday, the Department rolled out three separate press releases detailing the findings of their investigations.

In the first case, a contractor agreed to pay $350 thousand in back wages to 185 female applicants to settle allegations of hiring discrimination found during a routine investigation by the Department's Office of Federal Contract Compliance Programs (OFCCP). The press release doesn't explain exactly what the contractor did to lead to OFCCP's conclusions other than the firm discriminated against females during the hiring process.

In the second case, an investigation by the Labor Department's Wage and Hour Division (WHD) led to a $40 thousand settlement for violating SCA (Service Contracting Act) prevailing wage requirements. The security contractor failed to pay required vacation, holiday, and health and welfare benefits to employees performing work on a FEMA contract. The contractor also violated FLSA (Fair Labor Standards Act) record keeping requirements.

The third case also investigated by WHD, involved a Navy contractor in Honolulu who "erroneously" classified workers as laborers while they performed the duties of more highly skilled and higher paid positions such as boilermakers and painters. As a result, the company failed to pay employees the correct prevailing wages rates under the Davis-Bacon Act (DBA). The company agreed to pay $239 thousand to 47 employees to settle the allegations.

The Labor Department has a solution to falling afoul of its rules and regulations:
Government contractors must familiarize themselves with all employee pay and benefits requirements. The (Labor Department) encourages employers and employees to contact us if they have questions about how workers must be paid for regular and overtime wages, and fringe benefits on federal contracts. They can also consult the numerous resources we offer online to help them understand their responsibilities.
Ah yes, the old "I'm from the Government and I'm here to help you" line.

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