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May 20, 2005
DOL Says Construction Contractor Asked Workers to Donate Overtime

A Guam construction contractor has agreed to pay $210,575 in back wages to 47 employees following an investigation into the firm's overtime and payroll practices.

The U.S. Department of Labor's Wage and Hour Division accused the firm of becoming delinquent on its payroll obligations during November and December of 2004.

The Wage and Hour Division, which examined payroll records between January 1 and December 31, 2004, also said that supervisors at Harmon Corporation asked employees to donate two hours a week of overtime work over a five-month period and failed to pay them for the overtime.

The back wages will go to non-immigrant Filipino workers who were completing a $16 million construction project at the Leo Palace Resort in Yona and beginning work on the Consolidated Transportation Services Inc. (CTSI) warehouse in Tamuning. All of the employees entered Guam under the H-2B visa program, according to the Department of Labor.

The DOL says this is the second time a Wage and Hour Division investigation of Harmon Corporation found violations of the Fair Labor Standards Act (FLSA), assessing a $12,903 civil penalty.

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