$1.3 Million in Back Wages from TSA Contractor

 
Thursday, January 13, 2011
 

The U.S. Department of Labor has recovered $1,368,946 in back wages and fringe benefits for 140 employees of Total Enterprise Inc., a bus transportation company, following an investigation by the department's Wage and Hour Division under the Service Contract Act.

Total Enterprise Inc. is an Irving, Texas-based company with offices in Franklin Park, Ill. In 2005, Total Enterprise President Kyong M. Kim and Vice President Frederick G. Kahl entered into a contract with the Transportation Security Administration to provide transportation services for TSA employees from remote parking lots to Chicago O'Hare International Airport.

The Wage and Hour Division investigation determined that Total Enterprise Inc. shuttle bus drivers, parking lot attendants and bus dispatchers were not paid the required prevailing wages and fringe benefits under the contract between Dec. 31, 2005, and Nov. 7, 2009.

The SCA requires contractors and subcontractors performing services on covered federal contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates, and to furnish fringe benefits found, prevailing in the locality where they are providing services.

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