After an investigation by the U.S. Department of Labor's Wage and Hour Division, Memphis, Tenn.-based Mahaffey Tent and Awning Co. Inc., which operates under Mahaffey Fabric Structures, has paid $133,285 in back wages and fringe benefits to 28 current and former workers employees.
According to the investigation, the company failed to uphold requirements of the McNamara-O'Hara Service Contract Act and the Contract Work Hours and Safety Standards Act.
"Taxpayers have a right to expect that federal contractors who are paid with tax dollars will comply with the law," says Cynthia Watson, regional administrator of the Wage and Hour Division in the Southwest. "The Labor Department will not allow companies to abuse that trust. We will continue to use all enforcement tools available to ensure that employees are paid what they have rightfully earned and to ensure a level playing field for employers. Companies who play by the rules must not be placed at a disadvantage to those who do not."
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The investigation, which was conducted by the division's New Orleans District Office, specifically found that Mahaffey Fabric Structures violated the SCA after it did not pay employees working at Fort Polk in Vernon Parris the correct prevailing wage rates as well as fringe benefits mandated for the categories of work performed. Furthermore, the investigation discovered that some employees were misclassified as laborers as opposed to general maintenance workers or forklift operators. Both require higher rates of payment. Mahaffey Fabric Structures violated CWHSSA after it did not pay employees time and one-half of the required prevailing rates of pay for hours worked beyond 40 in a workweek.
Moving forward, Mahaffey Fabric Structures has agreed to comply fully with the SCA and CWHSSA, and back wages have now been completely paid.
As part of SCA, contractors and subcontractors in federal service contracts exceeding $2,500 are required to pay their service workers at least the wages and fringe benefits prevailing in the locality. CWHSSA mandates that employees receive payment of time and one-half of basic rates of pay for all hours worked over 40 in a week. Primary contractors are to ensure subcontractors are fully informed of labor laws requirements of federal government contracts.
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