By Pacific Island Times News Staff
A Guam company subcontracted by the U.S. Army Corps of Engineers for post-Mawar debris removal has been found to be in violation of federal labor laws, according to the U.S. Department of Labor.
Investigators from the department’s wage and hour division determined that UMS Heavy Equipment Rental Inc. shortchanged its 55 workers, who are owed $80,346 in minimum and prevailing wages, fringe benefits and overtime.
“By their failure to fully meet the president’s executive order minimum wage for workers on federal contracts and underpaying earned health and holiday benefits, UMS Heavy Equipment Rental shortchanged people who worked hard to help Guam recover in the wake of Typhoon Mawar,” said Terence Trotter, district director of Wage and Hour Division in Honolulu. “Thanks to our investigation, dozens of workers have received the wages and benefits they rightfully earned.”
Labor officials said UMS Equipment was focused on debris removal in the northern villages, which were worst hit by Typhoon Mawar in May 2023.
UMS Equipment had a history of labor violations. In 2021, an investigation found that the company violated overtime requirements under the Fair Labor Standards.
The labor department recovered $17,308 in back wages for 20 employees and the assessment of $7,250 in penalties.
The company did not respond to the Pacific Island Times' request for comment.
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