U.S. Department of Labor issued the following announcement on June 25.
The U.S. Department of Labor’s Wage and Hour Division has reached a settlement with G-Global – a border warehousing company in Otay Mesa, California – in which the employer will pay 61 Mexican national employees $124,465 after investigators found the company paid the workers below minimum wage in pesos, a violation of the Fair Labor Standards Act (FLSA).
G-Global will pay 59 employees an additional $10,456 for overtime violations at its U.S. facility that warehouses materials before their transport across the border for use in Mexico. The violations result from the employer’s practice of paying workers flat salaries regardless of the number of hours they work per week. When those salaries fail to cover minimum wage for the hours worked, or when employees work more than 40 hours and the employer fails to pay overtime, violations result. Investigators also cited recordkeeping violations when the employer failed to provide pay or time records for the 61 employees working at the facility.
The investigation kicks off a Wage and Hour Division effort to examine compliance at similar operations along the border after determining, through outreach events and in interviews with employees in the past year that G-Global’s practices appear to be widespread in the industry. As part of this effort, Wage and Hour Division officials recently staffed a virtual informational booth and provided technical assistance on the Department’s Payroll Audit Independent Determination (PAID) program at MexPort Trade Show, a major industry event.
Original source can be found here.