FOR MORE INFORMATION CONTACT: Amy Susan 573-751-1518
FOR IMMEDIATE RELEASE: August 5, 2011
Franklin Co Contractor Found Not Paying Workers
Owed $24K to 10 Workers
St. Louis, Mo— The Missouri Labor Department’ Division of Labor Standards (DLS) conducted an investigation finding a Franklin County company, Spray Services, Inc, in violation of the state’s prevailing wage law for not paying its workers the correct overtime rate.
Investigator Kurt Klinghammer received a complaint regarding a general contractor hired to complete the lead abatement for a St. Louis public school. Because it was a project benefiting the public and paid for wholly or partially out of public funds, the project is a public works project requiring employers to pay their employees the prevailing wage rates.
State law also requires employers to pay overtime when employees work more than 40 hours in a seven day work week. Contractors on this public works project were required to pay workers time and one-half for hours worked outside a regular workday. After interviewing witnesses and reviewing payroll, Klinghammer concluded that Spray Services, Inc, did not pay time and half to 10 workers for overtime. This is the first time Spray Services, Inc, has been found in violation of the prevailing wage law.
“We learned of this activity from another area contractor who was also found violating the law.” says Department Director Larry Rebman. “This case is a classic example of employers cheating the system in the community. When one employer was discovered, he did not want to be at an economic disadvantage and so he turned in his competitor. The prevailing wage law ensures that the work on public projects maintains the local wage and tax base.”
The DLS investigates all wage complaints and has more than a 90 percent success rate of recovering owed wages. Due to the state’s involvement, Spray Services, Inc, paid the full amount of restitution to 10 workers in the sum of $24,172.41. The checks range from $1,131.80 to $3,374.82 and have been distributed to the workers.
The Department of Labor’s Division of Labor Standards (DLS) is charged with administering the state’s wage and hour laws, child labor laws, and workplace safety laws and programs. In 2011, the DLS received 358 wage complaints, issued 124 wage violations, and recovered $473,967 in owed wages.
To file a wage a complaint, visit www.labor.mo.gov/DLS/General/complaints.asp or call 573-751-3403.
421 East Dunklin Street, P.O. Box 504, Jefferson City, MO 65102-0504
Phone: 573-751-7500 Fax: 573-751-6552