US Labor Dept Investigation of Company Working in Ga Leads to $178k in Back Pay

An investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD) has led Red Cedar Enterprises Inc. to pay $178,784 in back wages and fringe benefits to eight employees after the employer violated provisions of the McNamara-O’Hara Service Contract Act (SCA), at a Robins Air Force Base work site in Warner Robins, Georgia.

WHD investigators determined the Miami, Oklahoma-based technical support services company incorrectly classified employees performing technical writer duties as production control clerks and other lower-paid job titles. These erroneous classifications resulted in the employer paying these employees at rates lower than those required by law for the work actually performed. WHD also found that Red Cedar Enterprises failed to pay the required fringe benefit rates to some employees after a contract amendment.

“Contractors that bid on government contracts must be aware of and adhere to all applicable laws when paying their employees,” said Wage and Hour Division District Director Eric Williams, in Atlanta, Georgia. “We provide a number of tools to help employers understand and comply with the labor requirements on government contracts. Our education and enforcement work in this area levels the playing field for all contractors who perform work for the government.”

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor’s collective bargaining agreement.

For more information about the SCA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover FLSA overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.

WHD’s mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation’s workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.