Ammunition Manufacturer Tapped for $678,296 for 63 Employees Back Wages, Benefits

Ammunition Manufacturer Tapped for $678,296 for 63 Employees Back Wages, Benefits

Milan, TN – American Ordnance LLC has paid $678,296 in back wages, overtime and fringe benefits to 63 employees after an investigation found the employer violated provisions of the McNamara-O’Hara Service Contract Act (SCA), and the Contract Work Hours and Safety Standards Act (CWHSSA). American Ordnance LLC is an ammunition manufacturer for the U.S. military performing work at the Milan Munitions Plant.

WHD investigators found the manufacturer failed to segregate work subject to SCA requirements performed by its subcontractor, Jabezco Group Inc., and failed to include SCA requirements in their contract. Failure to include those requirements resulted in that subcontractor failing to pay its employees hourly rates that met or exceeded the required rates for each classification of work performed. The subcontractor also subsequently failed to pay proper vacation, holiday and health and welfare benefits as required by the applicable collective bargaining agreements.

Here’s What You Should Know:  Working as a Federal Governmental Contractor is really tough as there are so many laws relating to paying employees.  If you are a governmental contractor and are not certain you are complying with all of the laws, contact the ETC Companies.  We can help. 

The WHD also offers its summary of the various laws and helpful hints here:

Learn from some other recent examples of the DOL moving with force on compliance.

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