The U.S. Department of Labor has successfully recovered over $1.4 million in back wages and damages for 36 Mexican engineers employed by a General Dynamics subsidiary in San Diego. These engineers were paid in Mexican pesos below the federal minimum wage, violating the Fair Labor Standards Act.

Investigations by the department’s Wage and Hour Division revealed that National Steel and Shipbuilding Co. (NASSCO), part of General Dynamics' Marine Systems group, used the L-1B visa program to bring workers from Mexicali, Mexico, to San Diego. These engineers were tasked with installing power plants, engines, machinery, completing structures, and finishing ship interiors for the U.S. Navy.

The investigation found that NASSCO paid these engineers at Mexican pay rates for an average workweek exceeding 42 hours without maintaining accurate time records or treating per diem and lodging costs as wages. As a result, NASSCO owed $719,135 in unpaid minimum and overtime wages plus an equal amount in liquidated damages.

“General Dynamics NASSCO brought these specialized workers from Mexico to San Diego to build vessels for the U.S. Navy but failed to follow the federal wage regulations that protect anyone working in the U.S.,” said Wage and Hour Division District Director Min Park-Chung.

In response to these findings, NASSCO signed an enhanced compliance agreement prohibiting future violations of federal labor laws and requiring training for employees who manage foreign workers with non-immigrant visas. They are also required to inform employees about their rights under FLSA and the Walsh-Healey Public Contracts Act.

NASSCO operates shipyards across several locations including Norfolk, Virginia; Bremerton, Washington; Mayport in Jacksonville, Florida; with its headquarters located in San Diego. Its parent company General Dynamics is a major aerospace and defense contractor employing over 100,000 people globally with revenue of $42.3 billion reported in 2023.

For more information on worker rights or assistance with potential back wages issues, individuals can contact the Wage and Hour Division's helpline or use their online resources including a new Timesheet App available for iOS and Android devices.