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US Department of Labor Finds Honolulu Contractor Failed to Pay Correct Wages, Fringe Benefits to 46 Employees on Federally Funded Projects

Posted by National Alliance for Fair Contracting on

Agency: Wage and Hour Division
Date: August 2, 2022
Release Number: 22-1586-SAN

Investigation recovers $156K in back wages, benefits for Tunista Services LLC’s workers

HONOLULU – A U.S. Department of Labor investigation has recovered $156,837 in back wages from a Honolulu contractor who paid 46 workers lower wages than the law allows for the type of work they performed under federal contracts awarded by U.S. Marine Corps, Navy, Army and Coast Guard in Hawaii.

The department’s Wage and Hour Division determined that Tunista Services LLC failed to pay truck drivers, material handling laborers, warehouse specialists, forklift operators, service order dispatchers, janitors and other workers the correct wage rates set by federal law for their services. Instead, the employer paid several workers lower hourly rates than required for their occupations, in violation of the McNamara-O’Hara Service Contract Act.

Tunista Services also violated the provisions in the act – which governs employee pay standards for contractors and subcontractors on federally funded contracts – when they failed to provide the required health benefits, sick leave pay, holiday pay and vacation pay.

In addition, the employer violated the Contract Work Hours and Safety Standards Act, which requires overtime pay for hours over 40 in a workweek. The employer based its overtime calculations on the lower, incorrect wage rate and failed to pay the full overtime due.

The $156,837 recovery includes $84,995 for paying incorrect occupational wages, $56,596 for underpayment of fringe benefits, $14,791 reimbursement for unpaid sick leave and $455 in overtime pay for the affected workers.

“Federal contractors who fail to pay correct wages and fringe benefits shortchange workers, reduce their labor costs illegally and gain unfair advantage over their law-abiding competitors,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “We strongly encourage all federal contractors to review their own pay practices and ensure they comply with the law.”

Learn more about the division, including its search tool to learn if you are owed back wages collected by the division. For confidential compliance assistance about the Service Contract Act and the Contract Work Hours and Safety Standards Act, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.

(See Article)

US Department of Labor Proposes Rule to Provide Workers on Federal Service Contracts Right of First Refusal of Employment

Posted by National Alliance for Fair Contracting on

Agency: Wage and Hour Division
Date: July 14, 2022
Release Number 22:-1338-NAT

Implements Executive Order 14055 to promote retention of qualified workers

WASHINGTON – The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on July 15, 2022, to implement the requirements of Executive Order 14055, “Nondisplacement of Qualified Workers Under Service Contracts.” The proposal would benefit workers who perform work on service contracts by generally requiring that they receive an offer of employment from a successor contractor to a position for which they are qualified.

EO 14055 requires that contractors and subcontractors performing work on covered federal service contracts (i.e., most SCA-covered contracts over $250,000), must, in good faith, offer service employees employed under the predecessor contract a right of first refusal of employment on the successor contract. By doing so, the order seeks to prevent displacement of skilled workers in the federal services workforce. The proposed rule would establish standards and procedures for implementing and enforcing the nondisplacement protections under the order.

The department anticipates the proposed rule would if finalized provide economic benefits and enhanced efficiency in covered contracts by promoting the retention of experienced workers, thereby reducing the disruption in the delivery of services during the transfer of covered federal service contracts, maintaining physical and information security, and providing the federal government with an experienced and well-trained work force familiar with government personnel, facilities and requirements.

Specifically, the NPRM proposes to do the following:

  • Establish standards and procedures for implementing and enforcing Executive Order 14055.
  • Specify contracting agency and contractor obligations, respectively, under the Executive Order.
  • Establish an investigation process that protects workers from displacement and is familiar to federal contractors.
  • Identify sanctions and remedies that may be imposed by the department under the Executive Order.

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US Department of Labor Launches Android Timesheet App for Workers, Employers to Record Work Hours, Overtime, Breaks; Compute Wages

Posted by National Alliance for Fair Contracting on

Agency: Wage and Hour Division
Date: June 30, 2022
Release Number: 22-1336

Empowers workers, provides valuable resource for employers

WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division and Office of the Chief Information Officer today launched an app for use on Android devices that helps track work hours, break time, overtime hours and calculates wages due. The department previously launched the iOS version of the division’s Timesheet App.

The Timesheet App allows workers to ensure all their hours of work are recorded, including those hours when they telework, travel, perform pre- or post-shift work, or log-in while on-call. Workers can maintain a record of their work hours on the app to ensure their pay records are correct or to use if a pay dispute arises.

For employers, the app helps ensure that up-to-date timekeeping information is easily accessible in one location on their mobile device. Whether employees are paid hourly, by salary or by the piece, employers and employees can use this app to enter all relevant data and calculate the wages due. The app also performs detailed earnings calculations, enabling users to select from several pay frequency options depending on that day’s work. The app also allows extended commenting capabilities, facilitating more effective communication between employees in the field and their employers.

“By empowering workers with our Timesheet App, we are helping to prevent wage and hour violations before they occur,” said Acting Administrator of the Wage and Hour Division Jessica Looman. “This app allows workers – particularly those who may be vulnerable to wage theft – to track their hours and earnings and obtain help when they need it.”

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Notice of Proposed Revision to the Davis-Bacon Survey Collection

Posted by National Alliance for Fair Contracting on

Today, June 10, 2022, the Wage and Hour Division (WHD) submitted to the Office of the Federal Register for publication a notice of proposed revision to the information collection titled “Report of Construction Contractor’s Wage Rates.” WHD is proposing changes to the WD-10 form to improve the overall efficiency of the Davis-Bacon and Related Acts (DBRA) survey process. The proposed changes aim to streamline the collection of data required for the survey and make the collection less burdensome for respondents. The proposed revision rearranges questions and data requests to enable respondents to quickly gather and report information.

WHD is also proposing to add a new WD-10A collection instrument, which is a companion form to the revised WD-10 form. This new form will primarily be used pre-survey to identify potential respondents that performed construction work within the survey period in the survey area so that the Department can more effectively solicit survey participation.

There are 71 DBRA laws applicable to federal and federally assisted construction projects that require the payment of locally prevailing wage rates to approximately 1.2 million U.S. construction workers. The requirements currently apply to approximately $217 billion in federal and federally assisted spending on construction each year.

The DBRA requirements also protect workers under the unprecedented federal investments in infrastructure across the country. These projects involve clean energy, power and water infrastructure improvements, legacy pollution remediation, and renovation to the nation’s broadband and transportation infrastructures.

WHD encourages interested parties to submit comments on this proposal. Interested parties will have 60 days to submit their comments following notice in the Federal Register. Please submit comments by email to WHDPRAComments@dol.gov or by mail to the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210.

For more information on WHD’s proposed revision, please visit the U.S. Department of Labor’s website. A complete listing of the proposed changes to the information collection is posted at https://www.dol.gov/agencies/whd/government-contracts/construction/surveys/wd10pra.

US Department of Labor Recovers $348k in Back Wages, Liquidated Damages for 144 Arizona Construction Workers Willfully Denied Overtime Pay

Posted by National Alliance for Fair Contracting on

VW Connect assessed $48K in penalties for intentional violations

Agency: Wage and Hour Division
Date: June 9, 2022
Release Number: 22-1136-SAN

PHOENIX – A federal investigation has recovered $348,380 in back wages and liquidated damages for 144 underpaid workers of an Arizona construction employer who failed to pay their overtime wages.

The U.S. Department of Labor’s Wage and Hour Division determined that VW Dig LLC – operating as VW Connect – automatically deducted 30-minute meal break periods every day even when employees worked through these periods, a violation of the Fair Labor Standards Act. The employer also failed to pay all hours worked due to improper recordkeeping that resulted in work hours often missing from payroll.

The investigation found the employer owed workers $174,190 in overtime wages earned for hours worked over 40 in a workweek. In addition to back wages and an equal amount of damages, the department assessed VW Connect with $47,926 in penalties for the willful nature of the violations.

“Manipulating timesheets to avoid paying a worker’s full earnings illegally denies them the wages on which they depend to care for themselves and their families. It also deprives them the dignity they are due,” said Wage and Hour Division District Director Eric Murray in Phoenix. “The outcome of this investigation shows that employers who violate the law can face costly consequences in the form of damages and penalties.”

In fiscal year 2021, the Wage and Hour Division recovered more than $36 million in wages owed to more than 21,000 construction industry workers. The Bureau of Labor Statistics projects more than 220,000 industry workers quit their jobs in April 2022 – the third highest number since 2012 – and 449,000 job openings in the industry, all of which makes for a job market in which employers must compete for workers.

“Employer who don’t pay workers all of the wages they’ve earned are likely to find it increasingly difficult to retain and recruit the people they need,” Murray explained. “Companies that comply with the law by paying full wages and benefits – and treating workers with the dignity and respect they deserve – will have a competitive advantage over those who cheat workers.”

Employers and workers can call the division confidentially with questions regardless of their immigration status. The department can speak with callers in more than 200 languages through the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, and its search tool if you think you may be owed back wages collected by the division.

(See Article)

Davis-Bacon Wage Survey Plan

Posted by National Alliance for Fair Contracting on

USDOL News – April 20, 2022

The U.S. Department of Labor’s Wage and Hour Division announces its Davis-Bacon Wage Survey Plan set to begin in 2022. Construction workers working on Davis-Bacon and related Acts (DBRA) covered contracts must be paid prevailing wages, which are determined by surveys of wages paid on construction projects underway or recently completed within a geographic area.

As the Wage and Hour Division begins its wage survey process, we are reaching out to contractors, contracting agencies, unions, and others in the construction industry to ensure that all stakeholders have an opportunity to participate in the wage survey process.

The division is planning wage rate surveys for Highway construction in:

  • Florida
  • Georgia
  • New Hampshire
  • West Virginia

The division is also planning wage rate surveys for Building construction in:

  • Maine

The division is also planning wage rate surveys for Building, Heavy, Highway, and Residential construction in:

  • Guam

Stakeholders can find the list of 2022 currently planned surveys here, as well as the status of surveys that are currently in progress.

The criteria used to determine areas where a survey should be performed are:

  1. Age of the previous survey
  2. Federal procurement agency plans for construction
  3. Whether stakeholders have requested a new survey of a construction type in a state or locality
  4. Whether public and private data reviews show wages in a locality have sufficiently changed to warrant a new wage determination

The Wage and Hour Division will provide outreach in each survey area to inform stakeholders how to participate in the survey process.

If you have suggestions regarding geographic areas and construction types that you believe should be considered for the 2022 or 2023 Survey Plan, please send your suggestions via email to DB-Wage-Survey-Request@dol.gov.

For more information regarding the Davis-Bacon and related Acts and the Davis-Bacon survey program, please visit the division’s website.

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US Department of Labor Issues Directive Promoting Effective Enforcement to Advance Equal Employment Opportunity, Greater Compliance 

Posted by National Alliance for Fair Contracting on

Agency Office of Federal Contract Compliance Programs
Date March 31, 2022
Release Number 22-587-NAT

‘Effective Compliance Evaluations and Enforcement’ directive updates guidance on the agency’s compliance evaluation policies, expectations for federal contractors

WASHINGTON – The U.S. Department of Labor today announced that its Office of Federal Contract Compliance Programs has issued a directive to promote effective enforcement and greater federal contractor compliance with equal employment opportunity laws.

As part of its enforcement efforts, OFCCP conducts compliance evaluations of federal contractors to identify and remedy systemic barriers to opportunity and promote compliance. The directive issued today – DIR 2022-02: “Effective Compliance Evaluations and Enforcement” – provides updated guidance on the agency’s compliance evaluation policies and expectations for contractors.

The directive will strengthen the agency’s compliance evaluations and reduce delays by promoting the timely exchange of information. It also explains OFCCP’s updated policies regarding its scheduling of contractors for compliance evaluations, including enhancing the agency’s neutral scheduling procedures to reach a broader universe of federal contractors and eliminating scheduling delays.

“The directive we issued today will enhance our ability to use strategic enforcement to help more workers,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang. “By providing transparency and clarity on OFCCP’s policies and expectations, the directive will foster consistent accountability and avoid delay in compliance evaluations. It will also promote a proactive approach to compliance by federal contractors.”

“OFCCP is committed to regular and open communication with federal contractors to discuss any concerns identified and to facilitate a prompt and successful resolution of compliance reviews,” added Yang.

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U.S. Department of Labor’s Wage and Hour Division publishes NPRM to update the Davis-Bacon and Related Acts

Posted by National Alliance for Fair Contracting on

On March 18, 2022, the Department published a notice of proposed rulemaking (NPRM), Updating the Davis-Bacon and Related Acts Regulations in the Federal Register.

Publication of the NPRM in the Federal Register begins the comment period that will be open for 60 days and closes on May 17, 2022. Anyone who submits a comment (including duplicate comments) should understand and expect that the comment will become a matter of public record and will be posted without change to www.regulations.gov, including any personal information provided.

Submit a Comment

The Wage and Hour Division (WHD) posts comments gathered and submitted by a third-party organization as a group under a single document ID number on www.regulations.gov. All comments must be received by 11:59 p.m. on May 17, 2022, for consideration in this rulemaking; comments received after the comment period closes will not be considered. Comments and data may be submitted online or by mail.

Submit a Comment

Address written submissions to: Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue, N.W., Washington, DC 20210.

For more information on the Notice of Proposed Rulemaking, Updating the Davis-Bacon and Related Acts Regulations, visit www.regulations.gov, contact the Wage and Hour Division or call toll-free 1-866-4US-WAGE.

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USDOL’S Wage and Hour Division Announces Priority of Protecting Workers from Retaliation

Posted by National Alliance for Fair Contracting on

March 16, 2022
JD Supra

On March 10, 2022, the U.S. Department of Labor’s Wage and Hour Division (which enforces the Fair Labor Standards Act, the Family and Medical Leave Act and other federal wage and hour laws) announced that one of its top enforcement priorities is to protect workers from retaliation for exercising their rights. The USDOL launched an anti-retaliation page on its web site and published a Field Assistance Bulletin on the subject of retaliation.

In the Field Assistance Bulletin, the USDOL reiterated that both internal complaints to an employer as well as external complaints to the Wage and Hour Division or to a court are protected activities. An employee is protected from retaliation even if the employee’s internal or external complaint is determined to be without merit. The penalties for unlawful retaliation can include reinstatement (if the employee was discharged), injunctive relief (such as removal of a disciplinary memo from the employee’s file), back pay and an amount equal to the back pay owed as liquidated damages

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Department of Labor plans increase in wage-and-hour team

Posted by National Alliance for Fair Contracting on

By: Mass. Lawyers Weekly Staff
February 22, 2022

The U.S. Department of Labor is seeking to hire 100 investigators in its Wage and Hour Division to step up its enforcement efforts, including the protection of workers’ wages, migrant and seasonal workers, rights to family and medical leave, and prevailing wage requirements for workers on federal contracts.

Investigators’ responsibilities include:

  • Conducting investigations to determine if employers are paying workers and affording them their rights under federal law.
  • Helping ensure that employers who are following the law are not undercut by employers who violate the law.
  • Promoting compliance through outreach and public education initiatives.
  • Supporting efforts to combat worker retaliation and worker misclassification as independent contractors.

“Adding 100 investigators to our team is an important step in the right direction,” said Acting Wage and Hour Administrator Jessica Looman. “We anticipate significantly more hiring activity later in fiscal year 2022. While appropriations will determine our course of action, we are optimistic we will be able to bring new talented professionals onboard to expand our diverse team.”

In fiscal year 2021, the Wage and Hour Division collected $230 million in wages owed to 190,000 workers. Division representatives also conducted 4,700 outreach events to educate employers and workers about their workplace rights and responsibilities.

The uptick in hiring is in sync with the Biden administration’s focus on employees’ rights.

The types of violations the Wage and Hour Division looks out for include failure to follow local, state or federal minimum wage laws; failure to pay overtime; tip theft; failure to allow breaks; and failure to allow unpaid, job-protected leave after having a baby or for a medical condition, which the Family and Medical Leave Act mandates.

These violations disproportionately affect essential workers and immigrant workers, according to the DOL. Industries that tend to have more violations include food service, retail and construction.

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