DOL Will Recover $1.8 Million In Back Wages From USPS Mail Hauling Contractor

January 14, 2010 by · 1 Comment
Filed under: Dept. of Labor, mail delivery, postal, press releases 

The company and its principal officers also will be debarred from receiving future government contracts for a three-year period.

BAY SHORE, N.Y. — The U.S. Department of Labor will recover more than $1.8 million in back wages for more than 500 employees of MT Transportation & Logistics Services Inc., a trucking company based in Bay Shore, under contract with the United States Postal Service (USPS) to haul mail. The company and its principal officers also will be debarred from receiving future government contracts for a three-year period.

USPS mail haul contracts are subject to the prevailing wage and fringe benefits provisions of the federal McNamara-O’Hara Service Contract Act. The McNamara-O’Hara Service Contract Act requires contractors and subcontractors performing on federal service contracts in excess of $2,500 to pay service employees no less than the wage rates and fringe benefits found prevailing in the locality for the classification of work that they perform. The department’s Wage and Hour Division cited the company and the company’s officers for failing to pay their service employees the legally required hourly rates and fringe benefits.

“The laws governing prevailing wages and benefits on federal contracts grant clear protections to workers, and the Labor Department will continue to ensure that companies awarded federal contracts are following the rules,” said Secretary of Labor Hilda L. Solis.

In an administrative complaint filed with the Labor Department’s Office of Administrative Law Judges (ALJ), the Wage and Hour Division named as respondents the company, Anthony Alvarez as president, Andrew Meyers as vice president-sales, Della Herzog as vice president-finance and Terri Chester as controller/general manager. The ALJ approved a consent findings and order to resolve the complainant when the respondents agreed to pay a total of $1,830,800 in back wages and interest for the period from Dec. 1, 2005, to Dec. 31, 2008. The judgment also orders the company and the principal officers to be debarred from future government contracts for three years and to establish a compliance program to ensure future compliance with wage and hour laws.