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Secretary of Labor Thomas E. Perez
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News Release

WHD News Release: [05/03/2011]
Contact Name: John M. Chavez
Phone Number: (617) 565-2075
Release Number: 11-0631-BOS

US Labor Department recovers nearly $2.9 million in back wages for more than 500 contract employees of Stanley Associates and subcontractors

BOSTON The U.S. Department of Labor has recovered nearly $2.9 million in back wages for more than 500 employees of Stanley Associates Inc. and several subcontractors at various locations in St. Albans and Essex Junction, Vt.

The subcontractors joining Stanley Associates Inc. as parties to this settlement include Choctaw Archiving, Federal Working Group Inc., Northrop Grumman Technical Services Inc., P/Strada LLC, SPS Consulting LLC, TAD PGS Inc., TDB Communications Inc. and Westaff. The companies employed workers under a contract for the U.S. Department of Homeland Security's U.S. Citizenship and Immigration Services Vermont Service Center.

Stanley Associates and its subcontractors employed workers at the Vermont Service Center under a service contract subject to the McNamara-O'Hara Service Contract Act's prevailing wage provisions, as well as the overtime requirements of the Fair Labor Standards Act. An investigation by the department's Wage and Hour Division found that the employers had improperly classified several hundred of their employees, as the actual duties and nature of work being performed did not match the proper SCA classifications listed in the contract's wage determination. As a result, these workers were paid less than the prevailing wage rates guaranteed them under the terms of the federally-funded contract and many were denied proper overtime compensation in violation of the FLSA.

"The Labor Department is committed to ensuring that taxpayer dollars are being used properly and workers on publicly funded projects are paid their full wages," said Secretary of Labor Hilda L. Solis. "I am pleased that these workers will be appropriately compensated for the work they performed for Stanley Associates and its subcontractors. The laws governing prevailing wages on federal contracts provide important protections for workers, and the Labor Department will continue to ensure companies performing work for the federal government are held to these standards."

The employers have agreed to pay a total of $2,898,214 in back wages and have committed to ensure in the future that employees are correctly classified and compensated for all hours they work, in accordance with the SCA and the FLSA.

The SCA requires contractors and subcontractors performing on federal service contracts in excess of $2,500 to pay service employees no less than the wage rates and fringe benefits found prevailing in the locality for the classification of work that they perform. The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular hourly rates for every hour they work beyond 40 per week.

For more information about the provisions of both laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the agency's website at http://www.dol.gov/whd/.