The U.S. Department of Labor has recovered over $1.4 million for 36 Mexican engineers working in San Diego for a subsidiary of General Dynamics Corp., a major defense contractor. The engineers were paid in Mexican pesos below the federal minimum wage, violating the Fair Labor Standards Act.

The Wage and Hour Division found 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 workers installed power plants, engines, machinery, completed structures, and finished interiors on ships for the U.S. Navy.

Investigators discovered that NASSCO paid these engineers at the Mexican pay rate for an average of 42 hours or more per week. They also found that travel expenses and lodging costs were wrongly considered as wages and that accurate time records were not maintained. NASSCO owed $719,135 in unpaid minimum wages and overtime plus an equal amount in damages.

"General Dynamics NASSCO brought these skilled workers from Mexico to San Diego to build vessels for the U.S. Navy but failed to comply with federal wage regulations protecting anyone working in the U.S.," said Min Park-Chung, district director of the Wage and Hour Division in San Diego. "The Wage and Hour Division works closely with the Consulate General of Mexico in San Diego to educate Mexican citizens about their rights as workers in the U.S."

In addition to paying back wages and damages, NASSCO signed a compliance agreement prohibiting future violations of federal labor law and requiring training for employees managing foreign nonimmigrant visa workers. Employees must be informed about their rights under FLSA.

The L-1B visa program allows employers to transfer professional employees with specialized knowledge from foreign offices to U.S. offices.

NASSCO is based in San Diego with shipyards in Norfolk, Virginia; Bremerton, Washington; and Mayport in Jacksonville, Florida. Its parent company, General Dynamics, is an aerospace and defense contractor employing over 100,000 people worldwide with revenues of $42.3 billion in 2023.

For more information about the Wage and Hour Division or if you believe you are owed back wages collected by the division or wish to file a complaint online, call their toll-free helpline at 866-4US-WAGE (487-9243). The department can communicate with callers in over 200 languages.

Download the new timesheet app for iOS and Android devices available now in English and Spanish to ensure accurate hours and pay.