U.S. Department of Labor Recovers $507,455 for 41 Employees After Investigation Finds Violations by Federal Transportation Contractor

ONTARIO, CA – FLS Transportation Services (USA) Inc. – a logistics company based in Chicago, Illinois, providing transportation services for the U.S. Postal Service (USPS) – has paid $507,455 to 41 employees after the U.S. Department of Labor’s Wage and Hour Division (WHD) found the employer violated federal contract provisions of the McNamara-O’Hara Service Contract Act (SCA).

WHD investigators determined FLS Transportation Services (USA) Inc. - operating as FLS Transportation - violated the SCA when it failed to pay required health and welfare benefits to employees transporting mail between USPS processing and distribution centers in California, Texas and Oklahoma. WHD also found FLS Transportation Services (USA) Inc. failed to pay drivers correct amounts for holiday and vacation time, failed to maintain accurate records of all hours worked, and failed to display the federal SCA poster, as required.

“Employers must comply with all applicable laws to ensure that their employees receive legally required pay and benefits,” said Wage and Hour Division Assistant District Director Ralph Valles, in West Covina. “Employers are urged to call the Department of Labor for assistance, and to use the tools we provide to help them comply with the law.”  

FLS Transportation Services (USA) Inc. cooperated fully with WHD during the investigation, agreed to future compliance, and as a result of the findings developed an internal monitoring plan for SCA compliance.

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