US Labor Department finds 16 bulk mail delivery contractors owe more than $500K in back wages, benefits to more than 250 drivers

ST. LOUIS – Their drivers may have delivered the mail through snow, rain, heat and the gloom of night, but 16 mail haulers contracted by the U.S. Postal Service failed to pay full wages and benefits to more than 250 of their drivers in violation of federal law, an investigation by the U.S. Labor Department’s Wage and Hour Division has found.

Investigators determined the companies – operating in the Midwest – owe $538,887 in back wages to 255 drivers after the employers failed to pay them the prevailing wage and provide fringe benefits as required by the McNamara O’Hara Service Contract Act.

 “Companies that enter into federal contracts are made fully aware of their requirement to pay prevailing wages and fringe benefits to employees performing work on those contracts,” said Karen Chaikin, regional administrator for the Wage and Hour Division in Chicago. “When we find that companies fail to meet the requirements of their contracts, the division will continue to use every tool at our disposal to ensure that employers pay workers every penny they have rightfully earned. We will also act so that employers in this industry who play by the rules do not face unfair competition from those who do not.”

Several of the companies also failed to accurately record employee’s work hours and pay for all hours worked. The following is a list of the companies, number of employees affected and total wages owed:

In 2014, the division began an education and enforcement initiative focused on companies that have federal contracts to transport mail. In addition to conducting investigations, the division’s ongoing initiative includes educational outreach events for employers and industry stakeholders to provide compliance assistance and information on legal rights and responsibilities. The initiative also raises awareness among workers, community organizations and others regarding federal wage and hour laws and protections.

“We have provided informational sessions to the Star Route Mail Contractors Association to assist their members with compliance in government contracting,” said Norma Cervi, district director for the Wage and Hour Division in St. Louis, which is conducting the initiative. “The violations disclosed in these cases are far too common. We continue to work diligently to increase understanding and awareness of the laws so workers are paid their hard earned wages.”

Nationwide, in fiscal year 2015 the Wage and Hour Division found more than $35 million in back wages and unpaid fringe benefits for more than 18,000 workers under the McNamara-O’Hara Service Contract Act.

Accessible and searchable information on enforcement activities by the department is available at http://ogesdw.dol.gov/homePage.php.

For more information about the FLSA and other federal labor laws, call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.