U.S. Department of Labor Investigation Finds Federal Contractor Violated Prevailing Wage Law at Tyndall Air Force Base

PANAMA CITY, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Coqui Disposal Services LLC – a disposal and janitorial service company and federal contractor at Tyndall Air Force Base in Panama City, Florida, an area significantly affected by Hurricane Michael – has paid $22,335 in back wages to 46 employees for violating requirements of the McNamara-O'Hara Service Contract Act (SCA).  

WHD investigators found that Coqui Disposal Services LLC violated the SCA by failing to pay janitorial employees the increased prevailing wage rates required after the contract renewed for the work they performed. 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. Coqui continued to pay previously applicable rates to workers instead of the increased rates contained in the renewed version of their contract.

"When contractors and subcontractors receive federal funds to provide services for the government, they must comply with all applicable laws, including ensuring employees receive required wages," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "The Division provides a wide variety of compliance assistance tools to help employers understand their responsibilities and employees understand their rights."

For more information about the SCA, and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd. Employers can find additional compliance assistance information on the Wage and Hour Division website.