Feds cut off future work for North Woods, Minn. contractor — 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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Feds cut off future work for North Woods, Minn. contractor

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in Human Resources,Overtime Labor Laws

Garcia Forest Service finds itself barred from doing any more federal contract work after Uncle Sam found that it was cutting more than trees while performing forestry services in the Superior National Forest in northeastern Minnesota.

The North Carolina company ran into problems when it failed to pay fringe benefits, minimum wage, ­overtime and holiday pay as required by federal contracting laws. U.S. De­part­­ment of Labor Wage and Hour Divi­­sion investigators got onto the trail when Garcia could not produce accurate records of the hours its employees worked. The company primarily used employees who were in the United States under the H2-B visa program.

The company agreed to pay 12 workers $27,489 in back wages. Still poor record-keeping proved to be the timber company’s downfall, as the feds gave the ax to future government contracts.

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