The U.S. Department of Labor (DOL) and National Labor Relations Board (NLRB) recently reached a settlement with a federal contractor at Fort Belvoir military base regarding employee wages. DOL determined that 70 janitorial staff were not properly paid their hourly rate, overtime and benefits (including holiday pay) based upon the terms of a collective bargaining agreement with a previous contract holder. These employees will share in a $300,000 back pay award. In addition, five janitorial workers who had been laid off by the contractor will have their jobs reinstated as a result of the settlement.
The settlement should serve as an important reminder to contractors to verify that their payroll systems properly determine employees’ compensation and benefits in accordance with collective bargaining agreements, wage orders and state and federal wage and hour obligations.