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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 10-1131-ATL (490))


Aug. 24, 2010


Michael D’Aquino



L-3 Communications Vertex Aerospace in Jacksonville, Fla., to pay more than $166,000 in back wages following US Labor Department investigation

JACKSONVILLE, Fla. -- L-3 Communications Vertex Aerospace LLC has agreed to pay $166,667 in back wages to 105 of its workers employed at Naval Station Mayport in Jacksonville, Fla.

The payments come after an investigation by the U.S. Department of Labor’s Wage and Hour Division found that employees were not being compensated according to the McNamara-O’Hara Service Contract Act and the Contract Work Hours and Safety Standards Act.

“Government contracts specify in detailed language how pay and benefits are to be determined, and employers are obligated to follow these rules so workers are paid fairly,” said Michael Young, district director of the Wage and Hour Division’s office in Jacksonville.

A Wage and Hour Division investigator found that the company incorrectly computed the amount of health and welfare benefits provided to each employee by averaging the total amount due rather than paying it on an hourly basis, resulting in incorrect payments to individual workers. The company also failed to honor the predecessor’s anniversary date in computing accrued vacation time for employees who had worked on a predecessor contract. In addition, team leads were found to come in 15 minutes early each shift and engage in unrecorded and unpaid off-the-clock duties, in violation of CWHSSA overtime rules. CWHSSA sets rules regarding payment of overtime to workers employed under federally financed and assisted construction and non-construction contracts.

The SCA covers contracts entered into by federal agencies where the principal purpose of the contract is to furnish services in the United States through the use of “service employees.” Federal government contractors and subcontractors performing services on prime contracts in excess of $2,500 are required to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor’s collective bargaining agreement.

L-3 Communications Vertex Aerospace is an aviation and aerospace technical services company, managing and servicing fixed- and rotary-wing aircraft, as well as other equipment, primarily for government customers. The company is based in Madison, Miss.

For more information about this investigation, contact the Wage and Hour Division’s district office in Jacksonville at 904-359-9292. For more information about SCA and CWHSSA, call the department’s Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at


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