Any company with employees is subject to numerous laws and requirements involving wages and benefits for employees. Some businesses may violate wage laws by accident due to inadequate knowledge of what is required or in an attempt to save some money – often thinking that small violations will go unnoticed. However, any type of violation is a serious matter and one company out of New Jersey has learned the hard way of the serious consequences of failing to abide by wage and benefit requirements.
The Dennis K. Walker Trucking Co. Inc. contracted with the United States Postal Service to provide mail delivery services. The company employed numerous drivers, however, reports indicate that the company was not properly providing the required wages and benefits for employers with federal contracts. Allegations against the company specifically include the following over a two-year period of time:
- Depriving eight drivers of full vacation benefits
- Depriving 10 drivers of required prevailing wages
- Depriving 23 drivers of full health and welfare benefits
In addition to the Fair Labor Standards Act (FLSA) and state wage laws, the Department of Labor enforces many laws that apply to companies that contract with the federal government. These laws ensure that employees working on federal contracts have additional protections regarding wages, overtime, fringe benefits, anti-kickbacks, and more.
The above company was found to have violated the McNamara-O’Hara Service Contract Act and will now have to pay $245,000 in back pay to compensate the employees. The company is also banned from federal contracts for the next three years, which will likely significantly limit its revenue generation.
It is always better to take the time and energy to ensure that you are in full compliance with all applicable laws ahead of time to avoid any allegations or findings of wage violations. Whether or not you contract with the federal government or work solely in the private sector, it is critical to avoid any penalties or liability by abiding by all relevant employment laws.
Call 732 238-8686 today for more information.
At the law office of Bowne Barry & Barry, we understand how complex it can be staying aware of all employment laws and remaining in full compliance. Our attorneys help businesses of all types ensure that they do not face the unnecessary consequences of legal violations. If you would like more information about how we can assist your business, please contact our New Jersey business consulting attorneys today.