U.S. Department of Labor Recovers $69,765 for Janitorial Services Company Employees, Bars Company from Federal Contract Work

HARTFORD, CT – Following a U.S. Department of Labor Wage and Hour Division (WHD) investigation, C&W Facility Services Inc. – based in Auburndale, Massachusetts – has paid $69,765 to five employees to resolve multiple McNamara-O'Hara Service Contract Act (SCA) and Fair Labor Standards Act (FLSA) violations by one of its subcontractors.

The U.S. Postal Service (USPS) contracted with C&W Facility Services Inc. to provide janitorial and maintenance services at its Connecticut facilities. C&W Facility Services Inc. subcontracted work to AMV Maintenance LLC – based in Shelton, Connecticut.

An investigation found AMV Maintenance LLC misclassified two employees who performed SCA-covered janitorial work at multiple USPS locations throughout Connecticut as independent contractors, and failed to maintain records of the identities of employees and the dates and locations of work performed. WHD also determined that AMV Maintenance LLC paid some employees flat salaries without regard to the number of hours that they worked. This practice resulted in some employees earning hourly rates that fell well below required SCA prevailing wage rates. AMV Maintenance LLC also failed to pay its SCA-covered employees certain required fringe benefits, holiday pay, or vacation benefits. Finally, the employer violated the SCA and FLSA by failing to pay several employees for their final workweeks.

As a result, the Department has barred AMV Maintenance LLC from future SCA work for three years.

"The U.S. Department of Labor will conduct investigations, assess back wages, and pursue debarment as necessary to ensure that federal contractors and their subcontractors comply with the requirements of the law,"  said the Department's Wage and Hour Division District Director David R. Gerrain in Hartford. "This helps ensure that workers are paid what they have legally earned and also levels the playing field for law-abiding competitors."

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