Security Company to Pay $277,306 in Back Wages After U.S. Department of Labor Investigation
LOUISVILLE, KY – American Security Programs Inc., a security service providing armed guards, will pay $277,306 in back wages to 61 employees after a U.S. Department of Labor investigation found the company violated the McNamara-O’Hara Service Contract Act (SCA), the Contract Work Hours and Safety Standard Act (CWHSSA), and the Fair Labor Standards Act (FLSA).
Wage and Hour Division investigators found the company failed to pay employees required prevailing wages and health and welfare benefits for 84 hours of mandatory training. The employer also failed to pay employees for time spent working before and after their scheduled shifts signing in and out for radios and keys needed to perform their duties. As a result, American Security failed to pay employees overtime for hours worked beyond 40 in a workweek. The company also withheld employees’ 401(k) and health benefits contributions intended for the union trust fund, and violated FLSA recordkeeping requirements by failing to maintain accurate time and payroll records.
“When employers receive federal funds to provide services to the government, they must comply with all applicable laws to ensure they pay their employees the required prevailing wages,” said Wage and Hour Division District Director Karen Garnett, in Louisville. “This case’s resolution also helps level the playing field for law-abiding employers.”
Headquartered in Reston, Virginia, American Security Programs provides security guards for the Internal Revenue Service facilities in Covington and Florence, Kentucky.
For more information about the SCA, CWHSSA, FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd, including a search tool to use if you think you may be owed back wages collected by WHD.