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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 11-230-ATL (76)


March 2, 2011


Michael D’Aquino - Michael Wald


(404) 562-2076 - (404) 562-2078

US Labor Department recovers $64,700 for 37 employees of Miami property management company performing under federal contracts

MIAMI -- The U.S. Department of Labor has recovered $64,733 for 37 employees of P.K. Management Group in Miami after an investigator from the department’s Wage and Hour Division found violations of federal labor laws.

“When companies hold federal contracts, they are obligated to pay their employees as required under applicable federal labor laws,” said Will Garnitz, the Wage and Hour Division’s district director in Miami. “These laws were passed to protect employees of companies that benefit from federal contracts, and the Labor Department is committed to enforcing these rules.”

The property management company manages and renovates projects under contract to the U.S. Department of Housing and Urban Development. A total of $63,947 was paid to 36 employees, as the company misapplied a “commercial” services exemption allowed under the McNamara-O’Hara Service Contract Act that was not applicable in this case. The company also failed to correctly provide health and welfare fringe benefits to employees, and neglected to maintain a record of hours for its field employees. An additional employee is receiving $786 in back overtime payments because he was not paid the overtime premium due when he worked in excess of 40 hours in a week, as required by the Contract Work Hours and Safety Standards Act.

The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing services on federal contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates contained in a predecessor contractor’s collective bargaining agreement.

The Contract Work Hours and Safety Standards Act applies to contractors and subcontractors with federal service contracts, and federally-funded and assisted construction contracts over $100,000. Covered contracts include those entered into by the U.S.; any agency, instrumentality or territory of the U.S.; or the District of Columbia.

For more information on this investigation or about federal labor laws, contact the Wage and Hour Division’s Miami District Office at 305-598-6607 or call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at


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