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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 11-573-SAN (SF-95)

Date: 

April 28, 2011

Contact: 

Deanne Amaden

Phone: 

(415) 625-2630

US Department of Labor recovers nearly $100,000 in back wages for 33 communications workers in California, 9 other states


SAN JOSE, Calif. -- Covad Communications, a San Jose-based telecommunications provider, has paid $99,537 in back wages to 33 field technicians employed by a now-defunct San Leandro contractor following an investigation by the U.S. Department of Labor’s Wage and Hour Division. Before filing for bankruptcy on Dec. 27, 2010, Certified Securities Integrators Inc. missed two payrolls, violating the minimum wage and overtime provisions of the Fair Labor Standards Act.

“In these tough economic times, we want workers to know that bankruptcy does not necessarily mean that they will be left uncompensated for their work,” said George Friday Jr., administrator for the Wage and Hour Division’s Western Regional Office. “Workers should know that they can contact the Wage and Hour Division if this happens to them. We are committed to holding employers accountable for unacceptable wage practices.”

Wage and Hour Division investigators found that the majority of CSI’s business opportunities were provided by Covad Communications, leading to the agency’s determination that Covad was a joint employer despite a contract between the two companies stating that CSI was an independent business.

Following the investigation, Covad Communications chose to pay the technicians the full amount of the missed payrolls, even though only $59,246 was owed to meet federal minimum wage and overtime requirements. Covad also agreed to future compliance with the FLSA.

Eighteen of the technicians worked in the following California cities: Woodland Hills, Sylmar, Yucaipa, San Mateo, Santa Ana, Riverside, Oakland, Sunland, Santa Ana, Altadena, Chula Vista, Newbury Park, Garden Grove, Compton, Los Angeles, San Jose and Pittsburg.

The remaining 15 technicians worked in Colorado Springs, Colo.; Fort Lauderdale and Boynton Beach, Fla.; Chicago Heights and Berwyn, Ill.; Upper Marlboro, Md.; Bethel, Minn.; Elizabeth, N.J.; Brooklyn, N.Y.; Arlington, Missouri City and Garland, Texas; and Falls Church, Va.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.

The case was investigated by the Wage and Hour Division’s San Francisco District Office. For more information about the FLSA, call that office at 415-625-7720 or the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.