Katrina cleanup workers get $1 million in back OT — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Katrina cleanup workers get $1 million in back OT

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The U.S. Department of Labor’s Wage and Hour Division has settled a lawsuit against an Irving-based engineering and construction firm for failing to pay employees assigned to cleanup crews following Hurricane Katrina.

The overtime award to the workers: $1 million. Under a consent judgment, Fluor Enterprises, which was the general contractor on a contract with the Federal Emergency Management Agency following Hurricane Katrina, will pay 154 workers.

The Wage and Hour Division found that both Fluor and Houston-based Universal Project Management, a Fluor subcontractor in charge of inspecting trailers that housed displaced residents, paid only straight time for all hours worked, even those in excess of 40 in one week.

Fluor denied any liability and wrongdoing, but settled anyway.

In a statement, Labor Secretary Hilda Solis said, “Workers who help rebuild our communities and secure the safety of local residents following natural disasters should be fairly and legally compensated for the work they perform.”

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