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 * US Department of Labor files suit after investigation finds federal
   contractor failed to ensure subcontractors paid $3.3M in wages, fringe
   benefits




News Release


US DEPARTMENT OF LABOR FILES SUIT AFTER INVESTIGATION FINDS FEDERAL CONTRACTOR
FAILED TO ENSURE SUBCONTRACTORS PAID $3.3M IN WAGES, FRINGE BENEFITS

Clean Harbors Environmental held federal contract to remove poultry waste at 88
Iowa sites

DES MOINES, IA – The U.S. Department of Labor filed suit against a federal
contractor that failed to ensure its subcontractors paid 3,964 employees as
required at 88 Iowa sites, resulting in $3,348,543 in prevailing wage, overtime
and fringe benefit back wages due. The employees removed poultry waste
potentially infected with avian flu from the sites.

On Jan. 21, 2022, the department filed its complaint with the Office of
Administrative Law Judges to recover the unpaid wages. An investigation by the
department’s Wage and Hour Division found that prime contractor, Clean Harbors
Environmental Services Inc., of Norwell, Massachusetts, failed to audit its 145
subcontractors for compliance with the McNamara-O’Hara Service Contract Act and
the Contract Work Hours and Safety Standards Act.  

“Vigorous enforcement of prevailing wage laws ensures that responsible
contractors can participate in federal contracting, and it protects the wages of
hardworking, middle-class workers,” explained Acting Wage and Hour Division
Administrator Jessica Looman. “Prime contractors are responsible for their own
compliance and for ensuring subcontractors also comply with federal contract
labor protections. The Wage and Hour Division remains vigilant in its
enforcement to ensure employees are paid in accordance with prevailing wage
laws.”

Investigators found subcontractors on the project violated the SCA and failed to
pay workers according to the applicable wage determination. As a result, they
paid service workers less than the required prevailing wage and fringe benefit
and miscalculated workers’ hourly rate for overtime pay. In some cases,
contractors also failed to pay overtime for all hours worked in excess of 40 per
week, a violation of the CWHSSA.

Founded in 1980, Clean Harbors provides environmental emergency response and
hazardous waste disposal services nationwide.

In 2021, the Wage and Hour Division recovered more than $48 million in back
wages due to over 21,000 employees working on federal contracts. Learn more
about the Wage and Hour Division, including a search tool to use if you think
you are owed back wages collected by the division. Employees and employers can
contact the division’s toll-free helpline at 866-4US-WAGE (487-9243) for
information about federal labor laws and worker protections.

Agency
Wage and Hour Division
Date
January 21, 2022
Release Number
22-9-KAN
Media Contact: Scott Allen
Phone Number
312-353-4727
Email
allen.scott@dol.gov
Media Contact: Rhonda Burke
Phone Number
312-353-4807
Email
burke.rhonda@dol.gov
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More News Releases
PreviousUS Department of Labor recovers $845K in back wages after investigation
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