News Release

OPA News Release: [08/25/2004]
Contact Name: Dolline Hatchett
Phone Number: (202) 693-4676

Janitorial Firm Pays $1.9 Million in Back Wages for Overtime

U.S. Department of Labor Reaches Agreement with Contractor for Target Stores

SAN FRANCISCO—Global Building Services Inc., headquartered in Newhall, Calif., has agreed to pay $1.9 million in back wages to 775 employees following an investigation by the U.S. Department of Labor and the California Division of Labor Standards Enforcement. The investigation found that employees were not paid overtime as required by federal law. The affected workers provided janitorial services to Target stores located throughout California as well as in parts of Arizona, Nevada and Texas and New Mexico.

“Both this investigation and our new Overtime Security rules reflect our commitment to protecting the overtime rights of workers,” said Secretary of Labor Elaine L. Chao. “In this case, Global Building Services employees weren’t receiving their rightful overtime pay, and this Administration took action and restored $1.9 million in back wages to 775 employees. Workers’ overtime rights are further strengthened by our new Overtime Security rules, which increase protections for millions of workers by updating and clarifying the old regulations.”

The investigation of Global Building Services by the Department’s Wage and Hour Division revealed that workers were paid a fixed hourly wage, usually in cash, for all hours worked. The affected employees, most of whom are Hispanic, typically worked eight hours per day, six or seven days per week. The Fair Labor Standards Act (FLSA) requires that employees be paid one-and-one-half times their regular rate of pay for work hours in excess of 40 per week.

The terms of the settlement are outlined in a consent judgment entered with the U.S. District Court of Central California on August 24. The back wages compensate employees for work performed prior to February 11, 2003. Global Building Services cooperated with the investigation and has agreed to comply with federal wage and hour laws in the future.

Throughout the investigation, the Wage and Hour Division worked with the California Department of Industrial Relations and its Employment Development Department to ensure compliance with state wage laws, workers’ compensation and unemployment insurance programs. Of the 775 employees receiving back wages, more than 600 live in California.

The Wage and Hour Division and the California Department of Labor Standards Enforcement are partners in the new EMPLEO alliance to educate workers and employers on workplace rights and responsibilities. The alliance, which includes other federal and state agencies, local business and community organizations, and the consulates of Mexico, El Salvador, Guatemala, Honduras, Nicaragua and Costa Rica, has established a toll-free help line (1-877-552-9832) to provide information about workplace laws to Spanish speaking workers and employers.

For more information about the FLSA, call the East Los Angeles Wage and Hour office at (626) 966-0478 or the Department of Labor’s toll-free help line at 1-866-4US WAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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(Chao vs. Global Building Services, Inc., Civil Action File No.: CV04-6904 TJH (RZx)

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