UNITED STATES DEPARTMENT OF LABOR
OFFICE OF ADMINISTRATIVE LAW JUDGES
800 K STREET, NW, SUITE 400N
WASHINGTON, DC 20001-8002
Date Issued: November 19, 1997
Case No.: 97-SCA-22
In the Matter of:
TEMPORARY EMPLOYMENT SERVICES
and HARRY STEPHENSON,
Respondents
Before: JOHN M. VITTONE
Chief Administrative Law Judge
DECISION AND ORDER
This case arises under the McNamara-O'Hara
Service Contract Act of 1965 (SCA), as amended, 41 U.S.C. §
351 etseq. and the regulations thereunder at 29
C.F.R. Parts 4, 6 and 18.
On July 14, 1997, the United States Department
of Labor (DOL) filed a Complaint against Temporary Employment
Services and Harry Stephenson (Respondents) with this Office. In
the Complaint, DOL alleged that Respondents breached a contract
with the United States Government and violated the aforementioned
Act and regulations. Due to the failure of Respondents to answer
the Complaint, on September 26, 1997, this Office issued an Order
to Show Cause. Therein, Respondents were ordered to explain why
a default judgment should not be entered in this matter and why
the materials facts should not be adopted as my findings of
facts. To date, Respondents have failed to answer the Complaint
and the Order to Show Cause.
The regulations at 29 C.F.R. § 6.16
provide that the:
Failure to file an answer shall constitute
grounds for waiver of hearing and entry of a
default judgment unless respondent shows good
cause for such failure to file. In preparing
the decision of default judgment the Adminis-
trative Law Judge shall adopt as findings of
fact the material facts alleged in the complaint
and shall order the appropriate relief and/or sanctions.
After reviewing the record and considering
Respondents' failure to participate in this matter, I hereby
ORDER that a Judgment by Default be entered against Respondents.
I adopt the following findings as set forth in the Complaint.
The United States Government awarded Respondents contract number
N00244-95-C-8038. Under the contract, Respondents were engaged
in the business as a telephone operator and receptionist services
contractor. The contract was in excess of $2,500 and is subject
to and contain the representations and stipulations required by
the SCA and the regulations thereunder.
During the period required for the performance
of the contract, Respondents failed and refused to pay service
employees, who were employed to perform the work, the minimum
monetary wages, fringe benefits, and overtime as required by the
aforesaid contract, the SCA, and the applicable regulations. As
a result of the violations, Respondents have become liable for
,883.28 for the underpayment of compensation due to the employees listed in Schedule A. The record shows that the Contracting
Agency, United States Navy, withheld ,883.28 from Respondents
during this proceeding. Therefore, the United States Navy is
hereby ORDERED to release the aforementioned funds to DOL. DOL
will then disburse the funds to Respondents' employees listed in
Schedule A.
For the foregoing reasons, Respondents have
become subject to the Section 5(a) of the SCA [41 U.S.C. §
354(a)], whereby said Respondents and any firm, corporation,
partnership, or association in which they have a substantial
interest may be denied the award of any contract with the United
States until three years have elapsed from the date of publication by the Comptroller General's ineligibility list containing
the names of Respondents as having been found to have violated
the SCA.
