3 AZ Companies Pay Nearly Quarter Million in Back Wages

Posted by National Alliance for Fair Contracting on

Hundreds of Valley workers are getting paid the money they’ve been waiting for.

Two security service providers and a piping company are paying their workers back more than $220,000, according to the U.S. Department of Labor spokesman Jose Carnevali.

Special Security Force Inc. and United Metro Security Force LLC in Peoria paid $70,633 in back wages to 203 workers and $24,849 in penalties.

An investigation found that workers weren’t getting half-time pay for hours beyond the 40-hour work week and were only being paid for “scheduled” hours instead of hours worked.

Investigators also found the company made improper deductions to cover the costs of uniforms, cleaning fees, security equipment and other miscellaneous items, Carnevali said.

In an unrelated case, Speedy Gonzalez Construction, a contractor specializing in underground piping for electrical services in Glendale, paid $152,615 in back wages to 41 workers. 

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Labor Bureau Recovers Lost Wages

Posted by National Alliance for Fair Contracting on

The Oregon Bureau of Labor and Industries has secured more than $20,000 for 10 workers for a Salem contractor not paid wages to which they were entitled on a Pearl District park project.

The overtime and prevailing wage violations stem from work performed by Salem contractor Green Thumb Landscaping on The Fields Neighborhood Park in Portland’s Pearl District. Green Thumb Landscaping was a subcontractor on the public works project.

During investigation, Green Thumb initially refused to provide investigators with documents necessary to determine the accuracy of the workers’ claims. The bureau subpoenaed Green Thumb to provide it with the material, including payroll records and contact information for potentially affected employees.

The wages recovered represent the latest unlawful practice from the contracting firm. The bureau has secured more than $70,000 in unpaid wages from Green Thumb Landscaping and Maintenance, Green Thumb Yard Maintenance Inc., Green Thumb LLC and Green Thumb and Maintenance Inc. for previous wage and hour violations.

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Taking a Bigger Bite out of Wage Theft in the Garden State

Posted by National Alliance for Fair Contracting on

Two central New Jersey towns are attempting to crack down on employers who illegally withhold wages from workers — tying local business licenses to compliance with state wage laws.

The new rules, adopted by New Brunswick in December and Princeton on Monday, give the towns the ability to refuse to renew the license of businesses that have been found guilty either in court or by the state Department of Labor of wage theft — not paying for all hours worked, not paying at least the minimum wage, or not paying overtime.

Activists who helped craft the local ordinances say they could be a model for other communities and are reaching out to expand the wage-theft provisions to other towns. They also hope the local efforts can spur action on a state bill — A1317 — that would make it easier for workers to file wage-theft claims and would increase penalties on those convicted of wage theft.

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Paul Johnson Drywall Inc. Agrees to Pay $600,000 in Back Wages, Damages and Penalties Following US Labor Department Investigation

Posted by National Alliance for Fair Contracting on
PHOENIX – As a result of a Wage and Hour investigation, Paul Johnson Drywall Inc. severed its relationship with Arizona Tract LLC., a construction labor contractor. Beginning April 2013, Paul Johnson Drywall entered into a contract with Arizona Tract for the provision of drywall labor. Arizona Tract classified former Paul Johnson Drywall workers as “member/owners” instead of employees, which stripped them of basic worker protections afforded to employees.

Today, the U.S. Department of Labor filed a consent judgment in the U.S. District Court for the District of Arizona by which Prescott-based Paul Johnson Drywall Inc., and its owner Robert Cole Johnson, agreed to take concrete steps to ensure that misclassification of its workforce does not occur again and to pay $556,000 in overtime back wages and liquidated damages to at least 445 current and former employees. The employer also agreed to pay $44,000 in civil monetary penalties.

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Garcia Forest Service debarred from federal contracts for 3 years following US Labor Department investigation

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MINNEAPOLIS — A U.S. Labor Department investigation has resulted in the debarment of Garcia Forest Service LLC, and its president, Samuel Garcia, from eligibility for further service contracts with any U.S. government agency for three years. The investigation found that the Rockingham, N.C.-based company violated the McNamara-O’Hara Service Contract Act and the Contract Work Hours and Safety Standards Act by failing to pay fringe benefits, minimum wage, overtime and holiday pay to workers hired for a reforestation project in the Superior National Forest in Minnesota. Administrative Law Judge Kenneth A. Krantz issued the debarment order in Newport News, Va. The consent findings were filed by the department’s Regional Office of the Solicitor in Chicago.

“Contractors that do business with the federal government have an obligation to abide by the law, pay their employees the required contractual rates and benefits, and keep accurate and complete required records,” said Laura A. Fortman, principal deputy administrator of the Wage and Hour Division. “The Service Contract Act requires debarment when violations are found unless the high standard of ‘unusual circumstances’ is met. Debarring this employer illustrates the department’s commitment to vigorous enforcement of government contracting laws and helps level the playing field for law-abiding employers.”

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