The U.S. Department of Labor recovered about $1.1 million from a pair of San Diego companies that underpaid 50 Mexican nationals, with some wages as low as $2.43 per hour.
Freig Carillo Forwarding Inc. and ACV Logistics Inc. used affiliates to pay the workers in pesos through direct deposit on a weekly basis, according to a March 20 news release. Since 2021, DOL recovered more than $2.2 million from San Diego companies for these types of labor practices.
“The department’s ongoing work in this industry along the Southern border puts other U.S. employers on notice that we will not tolerate these kinds of exploitive labor practices,” Solicitor of Labor Seema Nanda said in the release. “An employee’s citizenship has no bearing on whether the Fair Labor Standards Act’s protections apply to them. We will continue to combat wage theft aggressively on behalf of all workers covered by the statute.”
The recovery stems from the U.S. District Court for the Southern District of California entering a consent judgement and order March 9, where Freig Carillo Forward Inc. and owner Javier Martin Freig Carillo need to pay $1 million in back pay and damages to 35 employees, the release reported. It added $400,000 must be paid within 15 days in monthly installments of $16,928 over the course of three years.
They also needs to pay $26,215 in civil money penalties due to violating the Fair Labor Standards Act, according to the release. The companies need to change their payroll practices and record keeping to be in compliance with FLSA and also provide information in the language of the workers.
The investigation found Freig Carillo Forwarding denied minimum wage and overtime to Mexican workers in their warehouses in San Diego, the release said. They paid workers wages as low as $3.24 and usually paid workers in pesos for work weeks averaging about 45 hours at rates between $180 and $200 per week. This was between December 2019 and December 2021.
Investigators also found ACV Logistics Inc. was paying as little as $2.43 per hour between April 7, 2020 and April 6, 2022. The employer and owner Armando Carillo, have a settlement to pay $70,104 in back wages and liquidated damages to 15 Mexican workers. They also assessed the employer in $12,105 in civil money penalties.
The division, as well as the Consulate General of Mexico in San Diego are working to make sure Mexican nationals are aware of their labor rights as U.S. employees, the release reported. This includes their right to report the labor violations and not be given threats or be intimidated. This is regardless of the worker’s immigration status, and the division works to have them speak confidentially with callers in more than 200 languages.
