Two Companies Must Pay Workers $1 Million in Overtime

September 20th, 2007 Posted by Amelia

Two federal subcontractors must pay workers almost $1 million in back wages after a recent investigation by the U.S. Department of Labor’s Wage and Hour Division.

The two firms, with headquarters in Duncan, South Carolina and New Orleans, Louisiana, were subcontractors of CH2M Hill of Englewood, Colorado. L&R Security Inc. and HKA Enterprises Inc. have agreed to pay $941,537 in back pay to 382 current and former employees. The wages go to people employed as security guards and debris removal workers in the wake of Hurricane Katrina.

The investigation showed that both companies failed to pay overtime when employees worked more than 40 hours per week. Under the Fair Labor Standards Act or FLSA, employees must be paid 1.5 times their usual hourly rate when they work more than 40 hours in a single week.

The U.S. Department of Labor also found that the two companies violated the Davis Bacon Acts and the CWHSSA by failing to pay the prevailing wage and provide prevailing fringe benefits to workers, as required of federal contractors.

“The department has made a concerted effort to ensure that workers involved in Hurricane Katrina recovery and cleanup know their rights and are paid all the wages they are owed,” said U.S. Secretary of Labor Elaine L. Chao. “In this case, almost $1 million in back wages will be paid to nearly 400 workers.”

L&R Security, Inc. provided armed security guards at the Federal Emergency Management Agency trailer sites in New Orleans in the wake of Hurricane Katrina. The New Orleans-based company has agreed to pay $185,385 in back wages to 239 workers. In addition, the company will pay a penalty of $37,620 for repeat violations. According to sources, this is not the first time that the company has violated the federal minimum wage laws.

HKA Enterprises of Duncan, South Carolina provided staff to monitor the removal of debris in New Orleans under a FEMA contract held by CH2M Hill from early October to early December 2005. HKA Enterprises has agreed to  pay $756,152 in unpaid overtime to 143 workers.  HKA has 11 U.S. offices reaching from Michigan to Florida. The company’s website says that it provides technical, administrative, specialty craft and skilled labor resources on a contract basis.

A U.S. Department of Labor task force uncovered a number of wage abuses and violations in the wake of Hurricanes Katrina and Rita. The task force uncovered a number of violations, some from companies involving workers nationwide.

This is just the most recent in a series of minimum wage violations uncovered by the U.S. Department of Labor’s Wage and Hour Division.

In August, five jointly-operated restaurants in Long Island, New York were ordered to pay almost $1 million to 191 low-wage workers. The employees had been forced to work long hours for wages less than the minimum wage, without overtime pay.  The court ordered that if the employers did not pay up, their restaurants could be sold and the proceeds used to pay the employees.

In early July, the U.S. Department of Labor forced 107 subcontractors of KBR, Inc. of Virginia to pay some $1.5 million in back wages and benefits for up to 2,600 workers who participated in the Hurricane Katrina recovery project. The construction workers were involved in repairs to the Naval Construction Battalion Center in Gulfport Mississippi or the Naval Air Station/Joint Reserve Base in Belle Chasse, Louisiana. The U.S. Department of Labor is still searching for some of the workers involved in that case. Anyone who believes that they are owed back wages for these projects can contact the nearest U.S. Department of Labor office. The average payment per worker in that case was $616.

The U. S. Department of Labor Wage and Hour Division collected more than $171 in back wages for some 246,000 employees in 2006. Thos wages were a result of 31,987 “compliance actions” in 2006.

 

No Comments >> Posted in Davis-Bacon,Employment Laws,Federal Labor Laws,Federal Minimum Wage,Labor and Employment,Louisiana,Overtime,Regulations,Wage and Hour,Walsh-Healey

Walsh-Healy Act Poster*

November 6th, 2006 Posted by Mark

We all know what the Walsh-Healy Act Poster* is for, right? If not, there might not be need for you to give yourself with 50 flogs from your nearest employment law manual. No, you might not know about the Walsh-Healy Act Poster* because it might not have anything to do with your particular business or employees.

Then again, it doesn’t hurt to make sure you don’t need to know about the Walsh-Healy Act Poster*. So let’s review. The Walsh-Healy Act Poster* is for any employers who are doing contract work under the Walsh-Healey Public Contracts Act. This law requires contractors who are doing manufacturing or production of materials, supplies, equipment, or any other article to the United States government or Washington D.C. to pay their employees for all contracts that come in over $10,000.

The Walsh-Healy Act Poster* goes on to detail how this payment amount for government contractors must take into account the federal minimum wage laws and overtime laws for all worked time and effort, especially that over 40 hours per week. This law is doubly enforced by the general standards on the books under the watch of the Employment Standard Administration’s WHD, or Wage and Hour Division, which is all part of the Department of Labor.

When it comes to fringe benefits and safety and health issues, the Walsh-Healy Act Poster* covers that as well. The Walsh-Healy Act Poster* says that certain service contracts might require the payment of fringe benefits, though supply contracts do not require fringe benefits to employees.

The Walsh-Healy Act Poster* also covers the fact that work done in such federal contract settings must be done in a sanitary and safe manner and location, and that nothing hazardous or dangerous must be present to affect the employees’ safety and health.

So, did you know the Walsh-Healy Act Poster*? If not, should you have?

No Comments >> Posted in Federal Labor Laws,Regulations,Walsh-Healey

Driver Log Books

September 14th, 2006 Posted by Amelia

The US Department of Transportation has recently updated its Hours of Service rules for truckers, making it critical that drivers maintain accurate driver log books.

Fatigue and falling asleep at the wheel are the primary causes of trucking accidents. Some studies show that an exhausted driver is as great a risk as a drunk driver. The Hours of Service rules are established to mandate how much rest truckers must have over a specified period, in an effort to avoid fatigue-related accidents. Prior to these changes, the last DOT update to the Hours of Service rules was in 2003.

More workplace fatalities result from motor vehicle accidents than any other cause. Every year, more truckers die than those in any other occupation do. Although some jobs such as firefighter are more dangerous than trucking, the enormous number of truckers on the road means that they have many, many more accidents and fatalities.

For over-the-road truckers hauling property (not passengers), the changes primarily affect truckers whose cabs have a sleeper-berth. Under the new rules, drivers must take 10 hours off duty in each 24-hour period. The change allows drivers to split their sleeping or off-duty time into two blocks, as long as each block is at least 2 hours. This provision allows truckers to sleep for 4 or 5 hours twice a day if they like. It also allows truckers to sleep for 6 hours, and take a 2 or 3 hour nap at another time during the day.

The previous rules dictated that drivers had to take at least 8 consecutive hours in the sleeper-berth, plus 2 consecutive hours off duty (in the sleeper-berth or relaxing elsewhere). The new changes reflect research that shows drivers may actually be more alert with two shorter sleep periods, rather than the traditional 8 hours. The research shows that after 6 to 8 hours of driving, truckers who take a short nap may be more alert than those who sleep for 8 to 10 hours once per day.

No Comments >> Posted in Federal Labor Laws,Regulations,Walsh-Healey

Labor Rights

September 11th, 2006 Posted by Amelia

U.S. Secretary of Labor Elaine Chao wants to send a clear message to employers that violations of labor rights will not be tolerated. “To protect workers engaged in hurricane recovery and rebuilding, last year the department deployed additional investigators to the Gulf Coast region to better ensure that employers fully comply with wage and hour laws,” said US Secretary of Labor Elaine Chao.

Secretary Chao adds, “This legal action is among our many efforts on behalf of these workers who are doing vital work for the Gulf Coast region’s recovery and who deserve and are entitled to receive all the wages they have earned.”

A recent suit filed by the U.S. Labor Department confirms Secretary Chao’s caution against employers who violate labor rights. The suit, to recover over $500,000 in back wages for employees working on the Mississippi Gulf Coast, alleges that the employer committed violations of the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division (WHD) filed the suit against a Houston drywall firm for violating the labor rights of employees. Specifically, the employer misclassified employees as independent contractors, in order to avoid overtime payments mandated under the federal Fair Labor Standards Act (FSLA).

The complaint was filed in U.S. District Court for the Southern District of Texas, Houston Division following an investigation by the department’s Wage and Hour Division (WHD). Back wages are expected to exceed $500,000 for more than 500 construction workers. Also named in the department’s lawsuit are the president of the company and a company vice president.

The drywall company performed on contracts for reconstruction along the Mississippi Gulf Coast. The WHD investigation of the Beau Rivage Hotel and Casino contract in Biloxi, Miss. and other worksites, found that the company owner regularly misclassified employees as independent contractors and failed to pay them the additional half time overtime premium for hours worked over 40 in a workweek. The company also failed to maintain accurate records of employees’ wages and hours of work.

No Comments >> Posted in Davis-Bacon,Federal Labor Laws,Regulations,Walsh-Healey

Overtime Law

September 11th, 2006 Posted by Amelia

A recent suit filed by the U.S. Labor Department sends a clear message to employers that violations of the overtime law will not be tolerated. The suit, to recover over $500,000 in back wages for employees working on the Mississippi Gulf Coast, alleges that the employer committed violations of the Fair Labor Standards Act.

The U.S. Department of Labor’s Wage and Hour Division (WHD) recently sued a Houston drywall firm for violations to the overtime law contained in the Fair Labor Standards Act (FSLA).

“To protect workers engaged in hurricane recovery and rebuilding, last year the department deployed additional investigators to the Gulf Coast region to better ensure that employers fully comply with wage and hour laws,” said US Secretary of Labor Elaine Chao. “This legal action is among our many efforts on behalf of these workers who are doing vital work for the Gulf Coast region’s recovery and who deserve and are entitled to receive all the wages they have earned.”

The employer is accused of violating the Fair Labor Law, including the overtime and recordkeeping provisions of the federal Fair Labor Standards Act (FLSA). Provisions of the Fair Labor Standards Act are enforced by the US Dept. of Labor’s Wage and Hour Division, WHD. Employers should realize that they could be fined up to $7,500 depending upon state, for not displaying the appropriate federal and state labor law posters, including information on the minimum wage.

The complaint was filed in U.S. District Court for the Southern District of Texas, Houston Division following an investigation by the department’s Wage and Hour Division (WHD). Back wages are expected to exceed $500,000 for more than 500 construction workers. Also named in the department’s lawsuit are the president of the company and a company vice president.

The drywall company performed on contracts for reconstruction along the Mississippi Gulf Coast. The WHD investigation of the Beau Rivage Hotel and Casino contract in Biloxi, Miss. and other worksites, found that the company owner regularly misclassified employees as independent contractors and failed to pay them the additional half time overtime premium for hours worked over 40 in a workweek. The company also failed to maintain accurate records of employees’ wages and hours of work.

No Comments >> Posted in Federal Labor Laws,Federal Minimum Wage,Regulations,Walsh-Healey

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