SlideShare a Scribd company logo
Hard to imagine someone contracted with 
our federal government would try to avoid paying 
proper wages. Makes you wonder if someone was 
thinking this issue would either float away or sink 
deep, like a hidden treasure. 
A recent DOL Wage 
and Hour Division 
(WHD) investigation 
proves some things 
cannot be submerged. 
Under a federal contract to restore U.S. Navy and Coast Guard vessels, two companies were hired as subcontractors 
and were included in the federal contract, creating a common ownership between the two companies. 
The investigation revealed that 
some full-time employees were 
considered crew leaders and could 
hire temporary workers as needed. 
Neither company recognized the temporary workers 
as employees, failed to keep thorough records and 
did not pay overtime as required by law. The DOL 
investigation revealed that $720,000 in unpaid 
wages and damages were due to 224 workers. 
copyright 2014

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Poor Recordkeeping Doesn't Float

  • 1. Hard to imagine someone contracted with our federal government would try to avoid paying proper wages. Makes you wonder if someone was thinking this issue would either float away or sink deep, like a hidden treasure. A recent DOL Wage and Hour Division (WHD) investigation proves some things cannot be submerged. Under a federal contract to restore U.S. Navy and Coast Guard vessels, two companies were hired as subcontractors and were included in the federal contract, creating a common ownership between the two companies. The investigation revealed that some full-time employees were considered crew leaders and could hire temporary workers as needed. Neither company recognized the temporary workers as employees, failed to keep thorough records and did not pay overtime as required by law. The DOL investigation revealed that $720,000 in unpaid wages and damages were due to 224 workers. copyright 2014