labor lawAdivision of labor law center

The U.S. Department of Labor’s Wage and Hour Division is attempting to locate a number of workers who participated in post-Katrina renovations or repairs in Louisiana and Mississippi. The workers are entitled to back pay from sub-contractors on the projects.  The projects involve work done at the Naval Construction Battalion Center in Gulfport or the Naval Air Station/Joint Reserve Base in Belle Chasse, Louisiana. Anyone who believes that they are owed back wages for these projects can contact the nearest U.S. Department of Labor office.

The U.S. Department of Labor’s Wage and Hour Division recently recovered nearly $1.6 million in back wages for workers in Mississippi and Louisiana due to violations of the Davis-Bacon Act and other federal regulations.  The funds will go directly to some 2,600 employees who were involved in the renovation and repair of U.S. naval bases at Gulfport, Mississippi and Belle Chasse, Louisiana in the wake of hurricane Katrina. The awards average about $616 per worker.

Although Mississippi and Louisiana are two of the five U.S. states with no minimum wage, most workers in these states are protected by the federal minimum wage laws.

“This administration is committed to ensuring that workers are paid all the wages they have earned,” said Secretary of Labor Elaine L. Chao. “We have recovered nearly $1.5 million for the workers who’ve been involved in the cleanup and restoration of these naval facilities in the aftermath of Hurricane Katrina damage.”

The workers were employed by 107 different subcontractors all hired by KBR Inc., a company based in Virginia. In every case, the work was performed under a federal contract. Under the terms of most federal contracts, all wages paid must conform to a number of federal standards including the Service Contract Act (SCA), the Contract Work Hours and Safety Standards Act (CWHSSA) and the Davis-Bacon Act (DBA). 

Both the SCA and the Davis-Bacon Act require that subcontractors pay the local prevailing wage rate and benefits on federal service and construction contracts. In addition, the CWHSSA sets standards for overtime pay for workers involved in federal contracts. The U.S. Department of Labor’s Wage and Hour Division found the 107 sub-contractors in violation of all these laws.

After an investigation, the Wage and Hour Division found that 107 different subcontractors involved in the projects had failed to pay required wages and fringe benefits. In some cases, the contractors also neglected to pay overtime when employees worked more than 40 hours per week. The agency determined that 2,623 workers at the Naval Construction Battalion Center in Gulfport and the Naval Air Station/Joint Reserve Base in Belle Chasse were due approximately $1,475,000 in back wages.

KBR Inc.  and many of its subcontractors cooperated with the Labor Department’s investigation to ensure that all employees who were due back wages were compensated. Of the total back wages, the subcontractors paid approximately $670,000 directly to the affected employees. The prime contractor, KBR, paid the balance of $800,000 to the U.S. Department of Labor for disbursement to the remaining workers.

Under a special taskforce created in 2006, the U.S. Department of Labor’s Wage and Hour Division has investigated and prosecuted a number of violations of federal minimum wage laws in the Gulf Coast. These violations occurred as contractors moved into the area to perform work after Hurricane Katrina and Hurricane Rita. The wide-ranging investigations have recovered wages for workers from Florida to Maine.

In one prominent case, a Houston-based tree trimming service was found to have violated federal law by not paying more than $1.8 million in overtime to 2,500 workers. The firm, which specializes in disaster clean-up near power lines, was found to have violated the law in 16 states, including Florida, Texas, Ohio, Arkansas, Maryland, Virginia, Maine, New York, New Jersey, South Carolina, North Carolina, Georgia, Arkansas, Tennessee, Mississippi and Louisiana.

That probe began after a tip from an employee led to the discovery that the firm was violating the minimum wage law in the 16 states. It was also violating the FLSA, or federal Fair Labor Standards Act. The settlement covered the period from August 2004 to August 2006.

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