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US Army Contractor Workers in CA Paid Over $1M in Back Pay After DOL Investigation

January 28, 2011

In recent a press release that our labor and employment lawyers in Irvine, California have been following, the U.S. Department of Labor (DOL) has recovered $1,060,554 in back pay for employees working for a Southern California U.S. Army contractor from October 2008 to October 2010.

The DOL reportedly performed a wage and hour investigation against CALNET Inc., the primary contractor, and Acclaim Technical Services, Inc. and McNeil Technologies, both subcontractors. The three companies provide the United States Army based at Fort Irwin, California with information, language and intelligence technology services, and allegedly failed to compensate employees properly for "on-call" time.

Investigations by the department determined that the three companies were found to be in violation of the Fair Labor Standards Act (FLSA) by failing to compensate employees for "on-call" time, which resulted in violations of overtime pay. The three companies also reportedly violated the recordkeeping requirements of the FLSA, by failing to keep proper pay records of employees, along with accurate records of the total employee hours worked.

As our Newport Beach labor and employment attorneys have reported in a previous blog, under the FLSA, employees covered by the act are required to be compensated at least $7.25 per hour, the federal minimum wage, for any hour worked, and one and one-half the employee's normal pay rate for any hours worked over 40-hours in a workweek, including bonuses, incentive pay, or commissions.

According to the DOL, under FLSA law, an employee can be compensated for "on-call" time when the "on-call" conditions are restrictive or the calls to work happen so frequently that the worker is unable to use "on-call" time for private or personal purposes effectively.

In cities throughout Orange County, California, contact our employment attorneys at Howard Law, PC today for a free consultation about your wage and hour rights.

US Department of Labor Recovers More than $1 Million in Overtime Wages for Employees of US Army Contractor in Southern California, U.S. Department of Labor Press Release, January 13, 2011

Related Web Resources:

Department of Labor (DOL): Wage and Hour Division (WHD)