The U.S. Department of Labor announced this week that it reached an agreement with Lockheed Martin Corp. involving allegations the company violated wage laws while under contract with the U.S. Coast Guard in Petaluma.
Eighteen workers have been paid $201,000 in back wages as a result of the settlement, according to the Department of Labor.
An investigation conducted by the department’s Wage and Hour Division found that Lockheed violated requirements of the federal Service Contract Act by improperly classifying technical instructors and course developers in categories that were not reflective of the duties they performed and paying the workers incorrect prevailing wages.
Susana Blanco, district director for the Wage and Hour Division in San Francisco, said in a statement that government contracts are specific in how employers should determine pay and benefits.
“Government contractors, large and small, should be aware of their obligations under the law,” Blanco said.
According to the Department of Labor, which announced the settlement Tuesday, the SCA requires contractors and subcontractors performing services on covered federal contracts of more than $2,500 to pay their service workers no less than the wages and fringe benefits prevailing in the locality.
Daniel Montes, Bay City News