HUNTSVILLE, AL — An Alabama security company and two of its subcontractors recently agreed to a settlement with the U.S. Department of Labor to resolve claims that the companies failed to pay their workers for all labor performed, including overtime hours. Under the terms of the agreement, Huntsville-based ManTech International Corp, Systems Development Corp. and Bevilacqua Research Corp., will pay back 236 employees a combined $1,184,722 for violating several federal labor and wage laws.
An investigation by the Labor Department’s Wage and Hour Division determined that the defendants violated the Fair Labor Standards Act (FLSA), Service Contract Act (SCA), and the Contract Work Hours and Safety Standards Act (CWHSSA) when it failed to pay workers proper wages. The Investigation found that the companies violated the SCA by paying employees rates and benefits less than those required by law and violated the CWHSSA by not paying the employees time and one half their regular rates of pay for hours they worked beyond 40 in a workweek.
The two subcontractors, Systems Development Corp. and Bevilacqua Research Corp., also violated the FLSA by failing to pay their workers one and a half times the individual employee’s average hourly rate of pay when working more than 40 hours per week. Furthermore, the subcontractors failed to follow the FLSA’s recordkeeping provisions by providing workers with accurate wage statements detailing all their pay earned and hours worked.
“No contractor should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage contract,” said Kenneth Stripling, Wage and Hour Division District Director in Birmingham. “Not only does this practice undercut what the workers involved are legally owed, it results in unfair competition for contractors who play by the rules.”
The case is a prime example the lengths to which companies will go to increase their profits at the expense of ordinary workers trying to earn a living. Fortunately, the FLSA gives wage theft victims the right to hire private attorneys to file civil claims in federal court and recover back pay and damages.
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