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ESA News Release: [03/15/2006]
Contact Name: Rich Kulczewski
Phone Number: (303) 844-1302
Release Number: 06-0148-DEN

Labor Department Files Lawsuit to Recover Over $7.1 Million in Back Wages for 7,171 Security Contract Workers at 39 Airports Nationwide

SALT LAKE CITY — The U.S. Labor Department is seeking to recover more than $7.1 million in back wages for 7,171 employees of Huntleigh USA Corporation following a Service Contract Act (SCA) investigation by the department’s Wage and Hour Division in Salt Lake City, Utah.

“It is appalling that thousands of Americans who answered the call to become airport security personnel in the aftermath of the devastating attacks on 9/11, were not paid all the wages they were due,” said Secretary of Labor Elaine L. Chao. “We will aggressively pursue justice in this case, in the form of $7.1 million in back pay for the 7,171 workers who provided airport security services in the wake of 9/11 and who were not fairly compensated."

The St. Louis-based contractor provided airport security services at 39 airports around the country during 2002. The airports include Cincinnati; Detroit; Newark, N.J.; Houston; Los Angeles; New York LaGuardia; Oakland, Calif.; Rochester, N.Y.; Salt Lake City; Portland, Ore.; Pittsburgh; Anchorage, Alaska; and Des Moines, Iowa.

The company refused to pay the back wages, and the department filed a complaint with its Office of Administrative Law Judges March 14 asking the court to order payment of back wages to the employees. Huntleigh was hired to provide security services after the events of Sept. 11, 2001, until the Transportation Security Administration took over the responsibility using federal employees.

Under the SCA, contractors on federal service contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality. The Labor Department issues wage determinations that list the required SCA wage rate and fringe benefit for each service occupation. These determinations are incorporated into covered federal contracts. Employers must also maintain accurate records of employees’ wages, hours and other conditions of employment.

Questions concerning the status of this investigation can be directed to the Wage and Hour Division in Salt Lake City at (801) 524-5706 (ext. 202).

For more information about the Service Contract Act and other laws administered by the Wage and Hour Division, call the department’s toll-free help line at 1-866-4USWAGE (1-866-487-9243); visit the Internet at www.wagehour.dol.gov and www.dol.gov; or contact the Salt Lake City Wage and Hour Division office located at 150 E. Social Hall Ave., Suite 695, Salt Lake City, Utah 84111; phone: (801) 524-5706.