Raymondville TX - Management and Training Corp. has paid $485,990 in back wages to 262 current and former security guards after an investigation by the U.S. Department of Labor’s Wage and Hour Division found the employees had not been properly paid, as required under the McNamara-O’Hara Service Contract Act (SCA).

The investigation, covering the two-year period October 1, 2003 to September 30, 2005, determined that Management and Training Corp. failed to pay the correct fringe benefits and failed to pay for meal breaks when employees worked beyond their schedule due to briefings. These additional hours resulted in the non-payment of proper overtime. The company’s contract with the U.S. Marshals Service to provide security guards is subject to the prevailing wage provisions of the SCA and the overtime requirements of the Contract Work Hours and Safety Standards Act (CWHSSA).

Under the SCA, contractors and subcontractors performing on federal services contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality. The CWHSSA requires the payment of time-and-one-half the basic rate of pay for all hours worked more than 40 in a workweek. Contractors must ensure that their subcontractors are fully informed of the requirements under federal government contract labor laws. Contractors that fail to properly compensate their workers are subject to federal withholding contract clauses that allow the government to withhold contract payments until all workers are paid the prevailing wages and fringe benefits.

The company has agreed to future compliance and has paid the back wages in full.

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Further Information:
Management and Training Corp. in Raymondville, Texas, Pays $485,990 in Back Wages to 262 Employees after a U.S. Labor Department Investigation

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