Department of Labor recovers $80K in wages for 55 employees shortchanged by employer contracted for Typhoon Mawar debris removal

Employer:      UMS Heavy Equipment Rental Inc.

                             3415 Maimai Road

                             Chalan Pago, Guam 96910 

Investigation findings: A U.S. Department of Labor Wage and Hour Division investigation found construction subcontractor UMS Heavy Equipment Rental Inc. in violation of federal contract labor laws while under a multi-million federal service contract for management and disposal of debris resulting from Typhoon Mawar on Guam in May 2023. Investigators determined the employer violated federal labor laws by failing to pay $80,346 in minimum and prevailing wages, fringe benefits and overtime. 

Wages Recovered/Damages Assessed:        $48,843 in minimum wages for 43 workers.

                                                                                          $24,764 in fringe benefits for 53 workers.

                                                                                          $6,256 in overtime wages for 25 workers.

                          $483 in prevailing wages for nine workers.

Quote: “By their failure to fully meet the President’s Executive Order minimum wage for workers on federal contracts and underpaying earned health and holiday benefits, UMS Heavy Equipment Rental shortchanged people who worked hard to help Guam recover in the wake of Typhoon Mawar,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Thanks to our investigation, dozens of workers have received the wages and benefits they rightfully earned.” 

Background: UMS Heavy Equipment Rental is a subcontractor to major construction companies needing trucking and heavy equipment services. A 2021 investigation found the employer violated overtime requirements under the Fair Labor Standards Act and recovered $17,308 in back wages for 20 employees and the assessment of $7,250 in penalties. 

Workers can use the division’s Workers Owed Wages search tool to see if they are owed back wages collected by the division. Employers and workers can contact the Wage and Hour Division for assistance at its toll-free number, 1-866-4-US-WAGE. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish.