DOL Investigation Recovers $3.5 Million In Back Wages And Benefits For Employees

The Department of Labor (DOL) is reporting that a company, California Cartage Company LLC, which is based in Long Beach, California, will pay $3,573,074 to 1,416 employees after the DOL found the company violated federal contract provisions of the McNamara-O’Hara Service Contract Act (SCA).  Investigators allege that California Cartage Company LLC violated the SCA by failing to pay prevailing wages, and required health and welfare benefits, to employees for work performed at a Centralized Examination Station operated for the U.S. Customs and Border Protection (CBP) at the Port of Los Angeles/Long Beach. Investigators also allege the company failed to apply the SCA clauses and wage determination to contracts for five subcontractors, which resulted in the subcontractors’ failure to pay required prevailing wages and fringe benefits to their employees as well. The contract required certain hourly rates, depending upon the positions workers held, and also required the payment of fringe benefits, holiday, and vacation time.

Read here for more details about this lawsuit.

Helpful Tool For Employers on Pay Equity Compliance

SB 358, California’s Fair Pay Act (Labor Code § 1197.5): requires that men and women receive equal pay for substantially similar work even if they work in different locations. The legislation was passed in 2016. In response to this, in particular to assist with implementation of the new law, the California Commission on the Status of Women and Girls created the California Pay Equity Task Force.  The Task Force has issued extensive guidance for employers including, “Tips for Pay Equity Compliance”, “Step by Step Pay Equity Evaluation”, and “How to Promote Pay Equity Culture.”

Read more about this helpful tool here.


EEOC Releases Preliminary FY 2018 Sexual Harassment Data

The U.S. Equal Employment Opportunity Commission (EEOC) has released its FY 2018 sexual harassment data today – highlighting its work over the past fiscal year to address the pervasive problem of workplace harassment. What You Should Know: EEOC Leads the Way in Preventing Workplace Harassment details the EEOC’s efforts to enforce the law, to educate and train workers and employers, and to share its expertise on new solutions to reduce harassing conduct in the workplace. Based on preliminary data, in FY 2018, the EEOC filed 66 harassment lawsuits, including 41 that included allegations of sexual harassment and recovered nearly $70 million for sexual harassment claims through litigation and administrative enforcement in FY 2018, up from $47.5 million in FY 2017.

For more about the report read here.

Sexual Harassment Case Settles For $3.5 Million

The U.S. District Court has approved a settlement between Alorica, Inc. and the United States Equal Employment Opportunity Commission (EEOC) for $3.5 million to resolve a sexual harassment lawsuit. According to the EEOC, the company subjected male and female customer service employees to harassment, including a sexually hostile work environment, by managers and coworkers. The EEOC also alleged that the onsite human resources staff did not properly address the harassment despite repeated complaints by employees. The $3.5 million will be distributed among the class members from the company’s Fresno and Clovis, California facilities.

Read more about this case here.

New CA Law Requires Women On A Board Of Directors

On September 30, 2018, Governor Brown signed SB 826, which requires that by 2020, a domestic general corporation or foreign corporation that is a publicly held corporation, whose principal executive offices are located in California, must have a minimum of one female on its board of directors. By the end of the 2021 calendar year, the new law requires an increase in the required minimum number to 2 female directors if the corporation has 5 directors or to 3 female directors if the corporation has 6 or more directors. Read more about the new law here.