Dept. of Labor recovers $1.7M for employees wrongly classified by contractor in 21 states, including Pa.


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(WHTM) — The U.S. Department of Labor reported a South Carolina-based contractor has paid over $1.7 million in back wages and fringe benefits to 81 employees in 21 states, including Pennsylvania.

They said the company violated the McNamara-O’Hara Service Contract Act, in which says contractors and subcontractors that perform services on projects in excess of $2,500 have to pay service employees in various classes no less than the wage rates and fringe benefits found in the area.

U.S. Department of Labor Wage and Hour Division found D2 Government Solutions LLC, formerly Onvoi LLC, failed to pay required fringe benefits to employees working on the contract. Their investigation found the employer paid employees as word processors instead of ID clerks, which demands higher wages.

They said the company put a vague position description in the contract, leading to the error that affected employees at 30 U.S. Department of Defense locations in 21 states, including Pennsylvania. They did mention that this was unintentional.

“D2 Government Solutions cooperated throughout the course of the investigation and agreed to audit its pay practices and contracts quickly to ensure compliance with the law and to pay employees all back wages and benefits found due by Wage and Hour Division investigators,” Wage and Hour Division Regional Administrator Michael Lazzeri said in Chicago.

“Enforcement of prevailing wage laws protects the wages of hard-working, middle-class American workers. The division is committed to ensuring that employees are paid the wages they have rightfully earned and that Federal contractors are aware of specific wage and benefit requirements and are complying with the law,” Wage and Hour Division Acting Administrator Jessica Looman said.

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