News Release

South Carolina Security Contractor Pays $40,077 in Wages After U.S. Department of Labor Finds Federal Contract Wage and Benefit Violations

COLUMBIA, SC – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Grids Security Services LLC – based in Columbia, South Carolina – has paid $40,077 in back wages to nine employees, for violating requirements of the Fair Labor Standards Act (FLSA), the Contract Work Hours and Safety Standards Act (CWHSSA) and the McNamara-O'Hara Service Contract Act (SCA).

WHD determined that the security guard services contractor violated SCA provisions by failing to pay required vacation, holiday, and health and welfare benefits to employees performing work on a federal contract to provide services to the Federal Emergency Management Agency. Grids Security Services also violated the CWHSSA by paying employees straight-time rates for overtime hours they worked on the contract at joint field office and disaster relief centers operated in Columbia, South Carolina.

Investigators also found the employer violated the FLSA when they failed to total the number of hours employees worked on federal and other contracts each workweek. By doing so, Grids Security paid workers separately for their work on each contract at straight time and failed to pay overtime to employees who worked a total of more than 40 hours. The employer also paid a flat rate to employees who made trips to an ATM on behalf of the company, without regard to the number of hours they worked making those trips, and failed to record that time as work time. Grids Security Services also violated FLSA recordkeeping requirements by failing to keep accurate time and pay records and failing to display the required FLSA poster at its establishment.

"Government contractors must familiarize themselves with all employee pay and benefits requirements, which typically go beyond prevailing hourly wages," said Wage and Hour Division District Director Jamie Benefiel, in Columbia, South Carolina. "The U.S. Department of Labor encourages employers and employees to contact us if they have questions about how workers must be paid for regular and overtime wages, and fringe benefits on federal contracts. They can also consult the numerous resources we offer online to help them understand their responsibilities."

For more information about the FLSA, SCA, CWHSSA, and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. The Division also offers a search tool which allows users to determine if you are owed back wages collected by the Division.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Wage and Hour Division
Date
September 20, 2019
Release Number
19-1581-ATL
Contact: Eric R. Lucero
Phone Number
Contact: Michael D'Aquino
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