An investigation by the U.S. Department
of Labor's Wage and Hour Division has resulted in the payment of more
than $4.2 million in back wages owed to 603 employees of Hermiston,
Ore.-based EG&G Technical Services for work at the Umatilla
Chemical Depot in Umatilla, Ore.
"Most businesses in this country play by the rules and pay their
employees what they are due under the law. Those businesses deserve a
fair playing field. The U.S. Department of Labor will not hesitate to
take action against employers that violate our laws. I am proud of the
hard work of our investigators in recovering back wages for these
working families," said Secretary of Labor Hilda L. Solis.
The investigation by the Wage and Hour Division's Portland District
Office in Oregon determined the 603 employees involved in maintenance,
munitions, DSA tender, operations, control room and warehouse work were
underpaid for their time in the workplace. In some instances, workers
were not relieved for their lunch time, resulting in inappropriate pay
deductions for lunch breaks that could not be taken. The pay
deficiencies are a violation of the Fair Labor Standards Act and other
federal labor laws. Civil money penalties have been assessed for the
violations.
A related investigation turned up violations at a separate plant in
Arkansas operated by EG&G Technical Services. That investigation
resulted in payment of $1.6 million in back wages for 404 employees.
Under the McNamara-O'Hara Service Contract Act, contractors and
subcontractors performing on federal service contracts in excess of
$2,500 must pay their service workers no less than the wages and fringe
benefits prevailing in the locality. The Contractor and Work Hours
Safety Standards Act requires the payment of time and one-half the
basic rate of pay for all hours worked beyond 40 in a workweek.
Contractors must ensure that their subcontractors are fully informed of
requirements under federal government contract labor laws. Those who
fail to properly compensate their workers are subject to federal
withholding contract clauses that allow the government to withhold
contract payments until all workers are paid the prevailing wages and
fringe benefits.