Wage and Hour Division (WHD)
U.S. Department of Labor
US Department of Labor obtains judgment debarring 2 security guard companies from federal contracts due to wage violations
Companies also ordered to restore more than $71,000 in back wages to 21 underpaid workers
NEW YORK -- The U.S. Department of Labor has obtained a judgment ordering two Syracuse contractors to pay a total of $71,424 in back wages to 21 employees. The judgment also debars Chester Vinch, doing business as Vinch’s PI & Security, and his son, Peter Vinch, doing business as Partners Training School, from being eligible to apply for federal contracts for three years. The judgment resolves a complaint filed by the Labor Department after an investigation by the Syracuse Area Office of the department’s Wage and Hour Division found violations of the McNamara-O’Hara Service Contract Act.
As subcontractors on a federal contract, the companies provided security guard services to nine properties in Syracuse – collectively known as the Eljay Apartments – that are owned by the U.S. Department of Housing and Urban Development. Wage and Hour Division investigators found that employees were not provided required wages and fringe benefits, and the employers did not create or maintain adequate records of employees’ work hours and rates of pay.
The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits – which include vacation, holidays and health care benefits – found prevailing in the locality.
As a result of the investigation, the department’s regional Office of the Solicitor in New York filed a complaint with the department’s Office of Administrative Law Judges. A trial was held before Judge Ralph A. Romano, whose ruling upheld the Wage and Hour Division’s findings, ordered the payment of back wages and debarred the defendants.
“Employers enter into federal contracts knowing that they are responsible for properly compensating their employees and maintaining accurate time and payroll records. When employers ignore their responsibilities, they not only cheat their own employees, they gain an unfair advantage over those employers who obey the law,” said Catherine Quinn-Kay, the division’s director in Syracuse. “This judgment illustrates that the Labor Department will not hesitate to pursue appropriate legal remedies to ensure the proper treatment of workers and a level playing field for employers.”
For more information about the SCA or other laws enforced by the Wage and Hour Division, call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.
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