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”
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- TECH 21 — Mississippi's most wanted in technology
- Officials set hunting dates for birds; expands dove season by 20 days
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- Judge expected to rule today on McDaniel's challenge of loss to Cochran
- Mississippi judge dismisses lawsuit seeking to overturn Sen. Cochran's GOP primary win
- Isle of Capri reports decreased in-state revenues; experiencing 'market pressures'
- Circuit clerks question how to get records to McDaniel's trial
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- Chefs John Folse and Rick Tramonto are dotting every ‘i’ and crossing every ‘t’ in the development of Seafood R’evolution, which is set to open in November