$1.53 Million in Back Wages and Benefits to Technology Professionals Who Were Not Paid Properly

 
Friday, June 24, 2016
 

A Chantilly-based technology company contracted to install audio-visual equipment at government installations nationwide will pay $1.53 million in back wages and benefits to 140 information technology professionals in federal consent findings.

The consent findings come in response to a 2015 lawsuit filed by the U.S. Department of Labor against Innovative Technologies Inc. after the department’s Wage and Hour Divisionidentified violations of federal labor laws.

The division found ITI violated the McNamara-O’Hara Service Contract Act of 1965 when it failed to pay legally required prevailing wages, fringe benefits, vacation and holiday wages to its direct employees or to ensure such payment to those employed by 10 of its subcontractors.

The lawsuit was filed based on the division’s investigation, which found ITI:

  • Incorrectly categorized and paid approximately 127 engineering technicians as lower-paid audio-visual and installation technicians.
  • Incorrectly categorized and paid approximately 10 warehouse specialists and supply technicians as lower-paid warehouse assistants.
  • Failed to provide legally required fringe benefits to approximately 130 employees.
  • Failed to properly provide vacation pay and holiday pay to several employees, including those employed by subcontractors.

The division also concluded that the contractor failed to pay employees overtime at time and one-half the required prevailing wage rates when they worked over 40 hours in a workweek, in violation of the Contract Work Hours and Safety Standards Act.

The U.S. Department of Defense’s Media Agency awarded a contract to ITI in November 2006, with 155 task orders at 100 locations nationwide.  DMA provides news and information to U.S. forces deployed worldwide through the department’s media outlets, including radio, TV, Internet, print and emerging media technologies.

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the prevailing wage rates and fringe benefits found in the locality, or the rates contained in a predecessor contractor’s collective bargaining agreement.

The CWHSSA applies to federal service contracts and federal and federally assisted construction contracts over $100,000. These require contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rate of pay for all hours worked over 40 in a workweek.

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