Price Transfer, FCL Logistics Will Pay $2.4M for Alleged Wage & Hour Violations

California-based contractors for the U.S. Customs and Border Protection (CBP) Price Transfer Inc. and FCL Logistics LLC, are set to pay 959 employees nearly $2.4 million over wage and hour violations, according to the U.S. Department of Labor.

The arrangement comes after an investigation into the contractors by the department’s Wage and Hour Division. Investigators for the WHD found that Price Transfer and FCL Logistics failed to follow essential requirements of the McNamara-O’Hara Service Contract Act (SCA).

According to investigators, the contractors failed to include the required SCA contract clauses and the wage determinations in the contracts they had with their subcontractors for work with the CBP in operating centralized examination stations (the privately operated facilities where Customs inspects cargo).

This led to Price Transfer and FCL Logistics—along with their subcontractors—failing to pay employees the required prevailing wages, as well as failing to pay the health and welfare benefits required under the SCA, the DOL says.

These contractors and subcontractors performing services on prime contracts in excess of $2,500 are required by the SCA to pay service employees no less than the wage rates and fringe benefits of the locality, or the rates in a previous contractor’s collective bargaining agreement, including scheduled increases. The alleged compensation shortages came to a total of $2,350,397.

On top of the SCA violations, the U.S. DOL also found that Price Transfer, FCL Logistics, and their subcontractors failed to pay the required overtime for work on the contracts, violating the Contract Work Hours and Safety Standards Act (CWHSSA) as well. The CWHSSA requires that contractors and subcontractors pay their laborers and mechanics proper overtime for all hours worked over 40 in one workweek.

“No contractor should gain an economic advantage by paying employees below the wages and fringe benefits required when doing business with the federal government,” noted Wage and Hour Division Administrator Cheryl Stanton. “Contractors are required to provide this information to their subcontractors so that all parties know their legal responsibilities, and so that workers are paid what they have legally earned while working on these contracts. We urge all employers to call the U.S. Department of Labor for assistance, and to use the tools we provide to help them comply with the law.”

Filing a California Wage and Hour Lawsuit

A growing number of California workers are coming forward with allegations of their labor rights being violated. Wage and hour lawsuits in California often reach settlement agreements before going to trial at all, sometimes amounting to millions of dollars in compensation.

If you have been affected by violations of federal or state work labor laws—such as violations of the SCA, inadequate overtime pay, inaccurate pay stubs, or others—you may be able to join this class action lawsuit investigation and pursue compensation. Under California law, workers have 2 to 3 years to report these labor law violations, although the earlier a lawsuit is filed, the better.

Filing a lawsuit can be a daunting prospect, especially when some workers may fear that their employer may retaliate against them for bringing up their concerns. However, there are laws in place to protect workers from this kind of retaliation. There may be many other workers in your position who are also being affected by these labor violations, paving the way for a class action lawsuit.

Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now