A Reston, Va., technical and engineering contractor had to pay $268,014 in back wages for 63 workers for failing to pay part of their wages and benefits while working on a Department of Defense project in Havelock.
An investigation by the Wage and Hour Division of the U.S. Department of Labor into company pay records found that Adams Communications and Engineering Technology Inc. failed to pay nearly all of the workers on the contract enough wages to cover the health benefits, according to a July 26 news release.
"Employers awarded federal projects must pay workers all of the wages and benefits they are due, consistent with the terms of the government contract,” Richard Blaylock, Wage and Hour Division district director in Raleigh, N.C., said in the release. "Failure to pay the correct prevailing wage rate for the work performed can be a costly error and lead to additional violations if overtime is required."
The company also reportedly paid some workers at a rate lower than the prevailing wage rate, which is the average wage given to workers doing similar work in a given location, the release reported.
The McNamara-O'Hara Service Contract Act, which regulates compensation practices for contractors and subcontractors working on federally sponsored projects, was broken by the employer in many ways, the release reported. Adams Communications also failed to offer paid sick leave to those working under the contract as required by the Service Contract Act, forcing them to take unpaid time off or spend vacation time instead.
