U.S. Department of Labor Investigation Results in USPS Contractor Paying $108,762 to 46 Employees in Southern California

LOS ANGELES, CA – Rito Alcala, a Littlerock, California, trucking company has paid $108,762 in back wages and benefits to 46 employees after the U.S. Department of Labor Wage and Hour Division (WHD) found the company violated federal contract provisions of the McNamara-O'Hara Service Contract Act (SCA).

WHD investigators determined the employer – operating as Rito Alcala Trucking – violated the SCA by failing to pay the correct prevailing wages and required health and welfare benefits to employees delivering mail for the U.S. Postal Service (USPS) in Los Angeles, Santa Clarita, and San Bernardino.

Investigators found the USPS contractor also failed to pay employees required vacation and holiday rates. In addition, Rito Alcala made illegal deductions from employees' wages by requiring them to pay for oil changes, tire replacements, insurance, registration, and parking, all of which should have been paid for by the employer.

"Federal contractors should not gain an economic advantage by paying employees less than the wages and fringe benefits required on their prevailing wage contracts," said Wage and Hour Division District Director Kimchi Bui, in Los Angeles. "Federal service contracts spell out employers' responsibilities when they bid on these jobs. We encourage all employers to make use of the many tools we provide to help them understand and comply with the law, and to call us for assistance. Violations like these can be avoided."

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.