Contractor stiffed workers almost $200k for Hurricane Florence cleanup in NC, feds say
A disaster relief contractor working in North Carolina after Hurricane Florence stiffed employees out of about $185,000 in pay, according to the U.S. Department of Labor.
The company, MLU Services Inc., did not pay overtime to 18 employees, but will now pay them for the back wages, according to federal officials.
Based in Athens, Georgia, the company bills itself as “disaster recovery experts” and responds to hurricanes, wildfires and other natural disasters under state and federal contracts and for private companies, according to MLU Services’ website.
According to the Labor Department, MLU Services also cheated some employees on pay rates required by federal contracting rules.
The company paid its inspectors low rates that were meant for data entry workers and did not give them the required benefits, federal officials said.
“Employers must meet their obligation to pay their employees the wages they have legally earned,” said Richard Blaylock with the U.S. Department of Labor in Raleigh.
“Contractors and subcontractors awarded federal contracts must understand that incorrectly classifying employees can lead to costly violations. The U.S. Department of Labor offers employers a wide variety of tools to help them understand their responsibilities,” he said.
