U.S. Department of Labor Recovers Wages for Louisiana Employees

NEW ORLEANS – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Classic Air Charter LLC – a federal contractor based in Melbourne, Florida – has paid $141,047 in back wages to employees in Louisiana to resolve violations of the McNamara-O’Hara Service Contract Act (SCA) and the Contract Work Hours and Safety Standards Act (CWHSSA).

WHD investigators found Classic Air Charter LLC received a federal contract with the U.S. Immigration and Customs Enforcement (ICE) but failed to include SCA wage requirements in its contract with its subcontractor.  The subcontractor then failed to pay required prevailing wages and fringe benefits to employees providing security services on the contract. Paying rates below those required by the SCA further resulted in the subcontractor paying overtime at rates below those required by law. As the prime contractor on this contract, Classic Air was liable for all the back wages due to employees of the subcontractor.

ICE awarded Classic Air Charter the contract for detainee security services on flights from several U.S. airports.

“Employers who provide services to the federal government must ensure their subcontractors have the information they need to comply with the law,” said Wage and Hour Division District Director Troy Mouton in New Orleans. “When a contractor fails to communicate contractual requirements to its subcontractors, they increase the risk of violating the law and that workers will not receive the pay and benefits they have earned.  Government contractors are welcome to contact any WHD office for additional information on how to comply with the Service Contract Act.”

Categories: Legal, Today’s Business News