DES MOINES, IA – The U.S. Department of Labor filed suit against a federal contractor that failed to ensure its subcontractors paid 3,964 employees as required at 88 Iowa sites, resulting in $3,348,543 in prevailing wage, overtime and fringe benefit back wages due. The employees removed poultry waste potentially infected with avian flu from the sites.
On Jan. 21, 2022, the department filed its complaint with the Office of Administrative Law Judges to recover the unpaid wages. An investigation by the department’s Wage and Hour Division found that prime contractor, Clean Harbors Environmental Services Inc., of Norwell, Massachusetts, failed to audit its 145 subcontractors for compliance with the McNamara-O’Hara Service Contract Act and the Contract Work Hours and Safety Standards Act.
Contractors and subcontractors with federally funded service contracts must pay covered workers weekly, according to the applicable wage determination, and submit certified payroll records to the contracting agency on a weekly basis.
“Vigorous enforcement of prevailing wage laws ensures that responsible contractors can participate in federal contracting, and it protects the wages of hardworking, middle-class workers,” explained Acting Wage and Hour Division Administrator Jessica Looman. “Prime contractors are responsible for their own compliance and for ensuring subcontractors also comply with federal contract labor protections. The Wage and Hour Division remains vigilant in its enforcement to...
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