U.S. Department of Labor Investigation Results in Georgia Contractor Being Placed on Ineligible Bidders List

ALBANY, NY – After a U.S. Department of Labor Wage and Hour Division investigation, Georgia contractor Infinite Services and Solutions and its president, Khary Lewis, who provided transportation services for the U.S. Army in New York and Arizona, have been placed on a list of bidders ineligible for federal contracts for a period of three years as a result of violations of the McNamara-O’Hara Service Contract Act (SCA).

Division investigators determined that the Atlanta-based company and its president withheld 401(k) contributions and union dues from employees’ paychecks, then deliberately failed to remit the payments to the plan and to the union while providing transportation services at the U.S. Military Academy at West Point. They also failed to pay out required vacation pay to employees upon termination of the West Point contract. The company and Lewis have since paid $280,740 in back wages and benefits to 67 employees to resolve these violations.

In a separate investigation, Division investigators found that the company and Lewis failed to pay employees required health, paid time off, and other fringe benefits required by the SCA while providing services at the Yuma Proving Ground in Arizona. The contractor will pay $101,147 in back wages to 36 employees to resolve those violations.

“When employers receive federal funds to provide services to the government, they must comply with all applicable laws to ensure that their employees receive legally required pay and benefits,” said Jay Rosenblum, Wage and Hour Division District Director in Albany.

“The U.S. Department of Labor is committed to protecting workers and to ensuring a level playing field for employers,” said Eric Murray, Wage and Hour Division District Director in Phoenix. “Violations can be avoided, and we encourage employers to reach out to the Wage and Hour Division for guidance.”

“The U.S. Department of Labor will pursue appropriate legal measures to help ensure that employers who violate the law do not gain an unfair advantage over those who obey the rules,” said Jeffrey S. Rogoff, Regional Solicitor of Labor in New York.

The New York investigation was conducted by the Division’s Albany District Office and the Arizona investigation by its Phoenix District Office. Trial Attorney Molly Theobald litigated the case on behalf of the New York Solicitor’s Office.

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards Act, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek.

For more information about the SCA and other laws enforced by the Division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.