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ESA News Release: [1/25/2006]
Contact Name: Jo Anne Burgoyne
Phone Number: (404) 562-2076
Release Number: 06-0001-ATL

U.S. Labor Department Recovers Over $141,000 in Back Wages For 106 Workers Involved in Hurricane Clean-up Work

BIRMINGHAM, Ala. — The U.S. Labor Department has recovered $141,887 in back wages for 106 employees of KTC Services, following an investigation by the department's Wage and Hour Division under the Service Contract Act and the Contract Work Hours Safety Standards Act.

"As the Gulf Coast rebuilds, we want to make sure that workers receive the pay they deserve and aren't taken advantage of," said Secretary of Labor Elaine L. Chao. "Our wage laws protect all workers, and we have investigative teams on the ground ensuring that those who contribute their labor to the hurricane recovery effort are paid in accordance with these laws."

North Carolina-based KTC Services had a subcontract at the Naval Construction Battalion Center in Gulfport, Miss., to clean up debris caused by Hurricane Katrina. The contract was subject to requirements of federal contracting statutes, but Wage and Hour Division investigators found that the company violated them by failing to pay prevailing wage rates, prevailing fringe benefits and overtime compensation.

Under the Service Contract Act, contractors and subcontractors with federal service contracts over $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality. Contractors in non-compliance may have their contract payments withheld until all workers are paid the prevailing wages and fringe benefits. The Contract Work Hours Safety Standards Act requires that workers employed on certain federally-funded contracts be paid one-and-one-half times the local prevailing wage rate for all hours worked over 40 in a single workweek.

Workers who believe they may not have been paid in accordance with federal wage laws may confidentially contact a Wage and Hour Division investigator by dialing the following number: 1-601-965-4347. For further information about laws administered by the Wage and Hour Division, call the department's toll-free help line at 1-866-4USWAGE (1-866-487-9243) or visit the Wage and Hour Division Web site at www.wagehour.dol.gov, or contact the Gulf Coast district office at 955 22ndSt. N., Suite 656, Birmingham, Ala.; (205) 731-1305.