US Department of Labor recovers $1.7M in back wages, fringe benefits for 81 employees wrongly classified by defense contractor in 21 states
DETROIT– A South Carolina-based contractor that processes identification cards for members of the armed forces, their families, retirees, government contractors and civilians has paid $1,705,441 in back wages and fringe benefits to 81 employees after the company violated the requirements of the McNamara-O’Hara Service Contract Act.
A U.S. Department of Labor Wage and Hour Division investigation found D2 Government Solutions LLC – formerly operating as Onvoi LLC – failed to pay required fringe benefits to employees working on this contract.
The investigation revealed that the employer erroneously paid employees as word processors when they should have been classified as ID clerks, which require a higher rate of pay. Investigators found that a vague position description in the contract lead to an unintentional classification error that affected employees at 30 U.S. Department of Defense locations in 21 states.
“D2 Government Solutions cooperated throughout the course of the investigation and agreed to audit its pay practices and contracts quickly to ensure compliance with the law and to pay employees all back wages and benefits found due by Wage and Hour Division investigators,” explained Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago.
Wage and Hour Division Acting Administrator Jessica Looman affirmed, “Enforcement of prevailing wage laws protects the wages of hard-working, middle-class American workers. The division is committed to ensuring that employees are paid the wages they have rightfully earned and that Federal contractors are aware of specific wage and benefit requirements and are complying with the law.”
For more information about the SCA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.