Virginia company to pay $1.5M in back wages, fringe benefits to 140 IT professionals to resolve US Labor Department lawsuit
Federal defense contractor incorrectly categorized workers at 100 worksites nationwide
WASHINGTON –
A Chantilly-based technology company contracted to install audio-visual
equipment at government installations nationwide will pay $1.53 million
in back wages and benefits to 140 information technology professionals
in federal consent findings.
The consent findings come in response to a 2015 lawsuit filed by the U.S. Department of Labor against Innovative Technologies Inc. after the department’s Wage and Hour Division identified violations of federal labor laws.
The division found ITI violated the McNamara-O’Hara Service Contract Act of 1965 when it failed to pay legally required prevailing wages, fringe benefits, vacation and holiday wages to its direct employees or to ensure such payment to those employed by 10 of its subcontractors.
The lawsuit was filed based on the division’s investigation, which found ITI:
“In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the wages and fringe benefits required by law,” said Dr. David Weil, administrator of the Wage and Hour Division. “Taxpayers have a right to expect that federal contractors – who are paid with tax dollars – will comply with the law, and the U.S. Department of Labor will not allow companies to abuse that trust. This investigation demonstrates our commitment to ensuring that employees are paid the wages they have rightfully earned and to leveling the playing field among all employers who do business with the government.”
Along with ITI employees, the consent judgement covers employees of the following subcontractors:
The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing wage rates and fringe benefits found in the locality, or the rates contained in a predecessor contractor’s collective bargaining agreement.
The CWHSSA applies to federal service contracts and federal and federally assisted construction contracts over $100,000. These require contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rate of pay for all hours worked over 40 in a workweek.
The consent findings come in response to a 2015 lawsuit filed by the U.S. Department of Labor against Innovative Technologies Inc. after the department’s Wage and Hour Division identified violations of federal labor laws.
The division found ITI violated the McNamara-O’Hara Service Contract Act of 1965 when it failed to pay legally required prevailing wages, fringe benefits, vacation and holiday wages to its direct employees or to ensure such payment to those employed by 10 of its subcontractors.
The lawsuit was filed based on the division’s investigation, which found ITI:
- Incorrectly categorized and paid approximately 127 engineering technicians as lower-paid audio-visual and installation technicians.
- Incorrectly categorized and paid approximately 10 warehouse specialists and supply technicians as lower-paid warehouse assistants.
- Failed to provide legally required fringe benefits to approximately 130 employees.
- Failed to properly provide vacation pay and holiday pay to several employees, including those employed by subcontractors.
“In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the wages and fringe benefits required by law,” said Dr. David Weil, administrator of the Wage and Hour Division. “Taxpayers have a right to expect that federal contractors – who are paid with tax dollars – will comply with the law, and the U.S. Department of Labor will not allow companies to abuse that trust. This investigation demonstrates our commitment to ensuring that employees are paid the wages they have rightfully earned and to leveling the playing field among all employers who do business with the government.”
Along with ITI employees, the consent judgement covers employees of the following subcontractors:
- Ace Contractor, Springfield, Virginia
- AeroTek, Hanover, Maryland
- ALEX, Chantilly, Virginia
- Arrow Technologies, Arrow Technologies, Littleton, Colorado
- AvTek Staffing, Washington, D.C.
- MSI, Centerville, Virginia
- Northern VA Staffing, Bethesda, Maryland
- Quadrant Inc., Reston, Virginia
- Tech USA, Millersville, Maryland
- Volt Technical Resources, Vienna, Virginia
The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing wage rates and fringe benefits found in the locality, or the rates contained in a predecessor contractor’s collective bargaining agreement.
The CWHSSA applies to federal service contracts and federal and federally assisted construction contracts over $100,000. These require contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rate of pay for all hours worked over 40 in a workweek.