Former USProtect workers to get millions in back pay
by MBJ Staff
Published: November 29,2011
SILVER SPRINGS, Md. — The U.S. Bankruptcy Court for the District of Maryland has approved a global settlement that allows the U.S. Department of Labor to recover $7,968,744 in back wages, fringe benefits and 401(k) plan assets for more than 2,000 security guards formerly employed by USProtect Corp., a defunct Silver Spring company that provided security services for federal buildings across the country.
The decision resolves the Labor Department’s actions against the company related to violations of the McNamara O’Hara Service Contract Act and the Employee Retirement Income Security Act.
Investigations were conducted by the department’s Wage and Hour Division and its Employee Benefits Security Administration when the company could not meet its payroll. Investigators found that the company failed to pay hundreds of employees for their last 2 1/2 weeks of work, and many employees were not paid the prevailing wage for their geographic areas or fringe benefits. The company also failed to remit employee salary deferral contributions to their 401(k) plan accounts.
The settlement between the federal government and a bankruptcy trustee allows for a total recovery of $7,968,744, of which $6,951,977 was recovered for the employees’ wages and cash fringe benefits. The remaining $1,016,767 was recovered for the employees’ 401(k) accounts.
USProtect Corp. was contracted to provide security services for the Social Security Administration, U.S. Department of Justice, U.S. Army, U.S. Air Force, U.S. Department of Homeland Security, Court Services and Offender Supervision Agency for the District of Columbia, Naval Facilities Engineering Command and the District of Columbia Superior Court. Contracts covered services provided in Mississippi, California, Delaware, the District of Columbia, Louisiana, Maryland, Missouri, New Jersey, Oklahoma, Pennsylvania, Texas and the Virgin Islands.
To sign up for Mississippi Business Daily Updates, click here.
One Response to “Former USProtect workers to get millions in back pay”
Top Posts & Pages
- BILL CRAWFORD: Dan Jones not the angel he is portrayed to be
- DAVID DALLAS — Just how long can Dan stand?
- Cal-Maine income skyrockets as prices rise and costs shrink
- The Dan Jones-IHL saga: Is this the story that started it all?
- Analysis: Closed meetings can feed false public impressions
- Lawmakers move on bonds despite complaints from colleges and universities
- Business groups file briefs in support of Kemper coal plant rehearing
- Grain scandal takes its toll on Delta farmers
- DAVID DALLAS — From Dan and Dixie with love