A subcontractor failed to pay $1 million in overtime compensation to 154 workers in the wake of Hurricane Katrina according to the U.S. Department of Labor’s Wage and House Division.
The DOL’s WHD recently resolved a lawsuit against Houston-based Universal Project Management Inc., (UPM) and Irving-based Fluor Enterprises Inc., who agreed to pay the back wages, but denied liability
Fluor, an engineering and construction firm, secured a contract with the Federal Emergency Management Agency (FEMA) to provide hurricane recovery services. Fluor subcontracted with UPM to inspect temporary housing trailers for displaced residents. A WHD investigation found the companies paid straight time for all hours worked, even though some of the inspectors worked as many as 84 hours in a week.
The DOL filed a consent judgment against Fluor and a default judgment against UPM in U.S. District Court for the Southern District of Texas, Houston Division.
“Workers who help rebuild our communities and secure the safety of local residents following natural disasters should be fairly and legally compensated for the work they perform,” said Secretary of Labor Hilda Solis. “This department is committed to securing their wages and overtime.” (workersxzcompxzkit)
“This is an unfortunate situation where a subcontractor . . . did not act properly as to how they designated their employees or paid them,” Fluor spokesperson Keith Stephens told the Houston Chronicle. “Ultimately, UPM went out of business, and the Department of Labor attempted to hold Fluor Enterprises responsible for UPM’s alleged actions. It is still our position that Fluor Enterprises was improperly brought into this case.”
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-553-6604.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-553-6604.
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