Monday, October 14, 2019

Contractor Pays Nearly $1 Million in Back Wages for Labor Law Violations

A division of the Labor Department, this time the Wage and Hour Division (WHD), announced the results of its investigation of General Atomics for compliance with Federal labor laws. The company, a California-based contractor providing aircraft systems and services to the Army, agreed to pay nearly $1 million to 1,100 employees for violating the Service Contracting Act (SCA).

According to the Labor Department, General Atomics failed to pay prevailing wages and required health and welfare benefits to employees performing services under several Government contracts. General Atomics paid aircraft mechanics and engineering technicians at hourly rates below the SCA minimums and also failed to pay minimum fringe benefits required by the SCA.

In making the announcement, the Labor Department reminded employers doing business with the Federal Government that they need to understand and abide by all applicable laws and to ensure that employees receive legally required pay and benefits. Easy to say but difficult to implement, we suppose.

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