US Labor Department investigation collects more than $1.3 million in back wages for employees of TSA contractor at Chicago OHare

CHICAGO — The U.S. Department of Labor has recovered $1,368,946 in back wages and fringe benefits for 140 employees of Total Enterprise Inc., a bus transportation company, following an investigation by the department's Wage and Hour Division under the Service Contract Act.

Total Enterprise Inc. is an Irving, Texas-based company with offices in Franklin Park, Ill. In 2005, Total Enterprise President Kyong M. Kim and Vice President Frederick G. Kahl entered into a contract with the Transportation Security Administration to provide transportation services for TSA employees from remote parking lots to Chicago O'Hare International Airport.

The Wage and Hour Division investigation determined that Total Enterprise Inc. shuttle bus drivers, parking lot attendants and bus dispatchers were not paid the required prevailing wages and fringe benefits under the contract between Dec. 31, 2005, and Nov. 7, 2009.

"This action underscores the Labor Department's commitment to ensuring that proper prevailing wages and benefits are paid to the many men and women working on federal contracts," said Secretary of Labor Hilda L.Solis. "It should be a signal to all federal contractors that, when violations are found, this department will take appropriate legal action to ensure workers receive the wages they've worked hard for and deserve."

The back wages and benefits will be paid pursuant to an agreement reached among the Department of Labor in Chicago, Total Enterprise Inc. and the TSA.

The SCA requires contractors and subcontractors performing services on covered federal contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates, and to furnish fringe benefits found, prevailing in the locality where they are providing services.

For more information about the SCA, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd.

Solis v. Total Enterprise Inc. Civil Action No.: 2010 SCA 000004