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May 06, 2011
DOL Recovers $2.9 Million in Back Wages for Workers

The Department of Labor (DOL) has recovered nearly $2.9 million in back wages for more than 500 employees of Stanley Associates Inc. and several of its subcontractors.

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Stanley Associates and its subcontractors employed workers at the Vermont Service Center under a service contract subject to the McNamara-O'Hara Service Contract Act's prevailing wage provisions, as well as Fair Labor Standards Act’s (FLSA) overtime requirements.

Following an investigation by the Wage and Hour Division (WHD), the department reported that the employers had improperly classified several hundred of their employees. As a result, these workers were paid less than the prevailing wage rates guaranteed them under the terms of the federally-funded contract.

In addition, the WHD reported that several workers didn't receive overtime compensation they were entitled to under the FLSA.

The employers have agreed to pay a total of $2,898,214 in back wages and have committed to correctly classifying and compensating employees in accordance with the SCA and the FLSA.

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