$1.5 Million Paid Out In Federal Contractor Worker Misclassification

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The U.S. Department  of Labor has recovered more than $1.5 million in back wages for 272 employees of SI International SEIT Inc., a contractor for the U.S. Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) Vermont Service Center, at various locations in St. Albans and Essex Junction, Vermont.

SI International SEIT Inc.,  a wholly-owned subsidiary of SI International Inc., employed workers at the Vermont Service Center under federal service contracts subject to the McNamara-O’Hara Service Contract Act’s prevailing wage provisions. Following an investigation, the Labor Department’s Wage and Hour Division cited the company for misclassifying employees and failing to pay them the proper prevailing wage rates for the type of work they were actually performing.

The McNamara-O’Hara Service Contract Act  requires contractors and subcontractors performing on federal service contracts in excess of $2,500 to pay service employees no less than the wage rates and fringe benefits found prevailing in the locality for the classification of work that they perform.

“I am pleased  that these workers finally will be properly compensated for the work they performed for SI International,” said Secretary of Labor Hilda L. Solis. “The laws governing prevailing wages on federal contracts provide important protections for workers, and the Labor Department will continue to ensure companies performing work for the federal government are held to these standards.”

The company  agreed to pay a total of $1,559,978 in back wages to the 272 workers. Payment is to be made by October. 31, 2009, and proof of payment is to be provided to the Wage and Hour Division by November 30, 2009. (workersxzcompxzkit)

For more information  about the provisions of the McNamara-O’Hara Service Contract Act, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243) or visit the Wage and Hour Division’s Web site at http://www.wagehour.dol.gov.

Reposted with Permission  Visit LexisNexis for more information and full reports see; http://law.lexisnexis.com/practiceareas/Workers-Compensation-Law-Blog/workers-compensation-fraud-/Workers-Comp-Fraud-Blotter-1022009—Recent-Arrests-Charges–Convictions

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