
More than 160 workers at a Philadelphia direct mail and printing company will receive $1.45 million in back wages and damages after a federal investigation found their employer and a staffing agency failed to pay overtime wages.
The U.S. Department of Labor's Wage and
Hour Division conducted an investigation that resulted in a consent
judgment, filed in U.S. District Court for the Eastern District of
Pennsylvania, in which ICS Corp., New Century Integrity Corp. and its
owner Hokkito Teddy agreed to pay 166 workers $725,583 in overtime
wages, and an equal amount in liquidated damages. The investigation
found ICS, New Century and Teddy employed the workers
jointly.
"Temporary staffing agencies are valuable
contributors to our economy," said Wage and Hour Division
Administrator Dr. David Weil. "These agencies should not be used
by employers to attempt to avoid their obligations under the law.
Those who do will be held accountable, as today's action shows."
An
investigation of direct mail processor ICS and two staffing companies
it retained, found significant violations of the Fair Labor Standards
Act. Violations included paying some workers in cash at straight time
rates for all hours instead of paying overtime when employees worked
beyond 40 hours in a workweek. Other employees, provided by New
Century received checks for their first 40 hours from ICS. New
Century then paid these employees in cash for their overtime hours at
rates less than their regular pay. For example, a worker who received
$13 per hour for his first 40 hours received $11 per hour in cash for
overtime hours.
Investigators also found that Richy Services
Inc., a second staffing agency used by ICS, failed to produce time
and payroll records.
In addition to back wages and damages,
the consent judgment requires ICS to appoint a compliance officer to
ensure that the company maintains proper records, and pays temporary
workers in compliance with the FLSA.