Wage and Hour Division (WHD)
U.S. Department of Labor
CHICAGO -- The U.S. Department of Labor has filed a legal action with its Office of Administrative Law Judges against Total Enterprise Inc. and company President, Kyong M. Kim and Vice President, Frederick S. Kahl for alleged violations of the prevailing wage and fringe benefits provisions of the Service Contract Act (SCA).
“Government contractors need to know that agreements made on behalf of working Americans must be honored or the Labor Department will take appropriate legal action,” said Secretary of Labor Hilda L. Solis.
Total Enterprise Inc., an Irving, Texas-based company, entered into a contract with the Transportation Security Administration (TSA) in 2006 to provide transportation services for TSA employees from remote parking lots to Chicago O’Hare International Airport.
The department’s Wage and Hour Division’s administrative complaint alleges that the company violated the Service Contract Act when it failed to pay required prevailing wages and fringe benefits to shuttle bus drivers, parking lot attendants and bus dispatchers under the contract. The investigation revealed that at least 120 employees of Total Enterprises Inc. are owed back wages and fringe benefits in an amount which the Department estimates is in excess of $1.5 million and liability continues to accrue.
In addition to back wages and fringe benefits, the department seeks debarment of Total Enterprise Inc. as well as Kim and Kahl as responsible parties under the Act. Debarment would prohibit the company and any responsible parties from further contracting with the federal government for a period of not to exceed three years.
The SCA requires contractors and subcontractors performing services on covered federal contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe benefits found prevailing in the locality they are providing services.
For more information about the SCA, call the Wage and Hour Divisions’ toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.
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