Wage and Hour Division (WHD)

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DETROIT --

The U.S. Labor Department today announced that VGA Inc. has paid $87,100 in back wages and fringe benefits to 36 bus drivers and dispatchers who transported patients under a federal contract with the John Dingell VA Medical Center in Detroit.

"The Department of Labor is committed to ensuring that workers are paid all prevailing wages, fringe benefits and overtime pay to which they are entitled under federal labor standards laws," said James Smith, district director of the Wage and Hour Division in Detroit.

The department’s Wage and Hour Division investigated VGA Inc., based in Laurel, Md., under the federal McNamara-O’Hara Service Contract Act (SCA). The investigation disclosed that the company failed to pay prevailing wages and health and welfare benefits to bus drivers and dispatchers. The violations occurred during the period March 2004 through January 2005.

The investigation also disclosed that workers were paid in violation of the Fair Labor Standards Act (FLSA), the federal law that sets standards for the payment of minimum wage and overtime pay. Employees worked more than 40 hours in a week and were not paid overtime pay.

The SCA covers contracts entered into by federal agencies where the principal purpose of the contract is to furnish services in the United States through the use of service employees. It requires that every federal service contract in excess of $2,500 contain a wage determination reflecting locally prevailing wages and fringe benefits, as determined by the Department of Labor.

The FLSA requires covered employees to be paid the minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 per week. Employers must also maintain accurate time and payroll records.

VGA is headquartered at 608 Washington Blvd., Laurel, Md. The firm has a branch office at 14620 8 Mile Rd., Oak Park, Mich.

For more information about requirements under federal labor standards statutes, call the Department of Labor's toll-free help line at 1-866-4USWAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov and at www.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.