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ESA News Release: [10/16/2006]
Contact Name: Scott Allen
Phone Number: (312) 353-6976
Release Number: 06-1691-CHI

Michigan Security Guard Contractors Agree to Pay Back Wages to 716 Workers After U.S. Department of Labor Investigation

Two Sub-Contractors of RSIG Inc. Owe more than $663,000 in Back Wages

DETROIT — Two sub-contractors of RSIG Inc. a Southfield, Mich., security company, have agreed to pay $663,813 in overtime back wages to 716 Detroit area security guards following investigations by the U.S. Labor Department's Wage and Hour Division.

"This administration is vigorously enforcing the federal overtime law to ensure that workers are paid all the wages they have earned," said Secretary of Labor Elaine L. Chao. "I am pleased that we have recovered $663,813 for the security guards and steps are being taken to make sure they are properly compensated in the future."

WCS & Sons Staffing Services LLC Sterling Heights, Mich., and G.S. Staffing LLC Warren, Mich., were investigated under the Fair Labor Standards Act (FLSA), the federal minimum wage and overtime law. The investigations disclosed that uniformed guards who were providing security services to businesses in the Detroit metro area were not receiving time and one-half for overtime hours. WCS & Sons Staffing Services LLC agreed to pay $234,447 to 303 workers and G.S. Staffing LLC agreed to pay $429,466 to 413 workers.

According to James Smith, district director for the Wage and Hour Division in Detroit, the companies cooperated with the department during the investigations and agreed to pay back wages owed to employees after the Wage and Hour Division explained the requirements of the law. The companies also agreed to fully comply with the law in the future.

The FLSA requires that employers pay covered employees the federal minimum wage for all hours worked and time and one-half the regular rate of pay for hours worked more than 40 in a single week. Employers must also maintain accurate time and payroll records.

For more information about the FLSA, call the Department of Labor's toll-free help line at 1 (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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