$234,311 FINE AGAINST CALIFORNIA SUBCONTRACTOR FOR WAGE AND HOUR VIOLATIONS – LABOR DEPARTMENT


Acclaim Technical Services Inc. in Huntington Beach, California was alleged to have violated the Fair Labor Standards Act by failing to properly pay its workers for all on-call time, resulting in overtime pay violations against workers who were paid less than they were actually owed.  The company was also found to be in violation of federal record-keeping requirements for failing to maintain proper records of the number of hours worked by employees and the compensation they were paid, according to the Department of Labor.


The issue of waiting time or on-call time and whether such time is compensable as hours actually worked, has been addressed by the Department of Labor and numerous courts.  The Labor Department’s position on this issue has been that employees who are temporarily idle while waiting for further work in such a way that they are not able to use the time effectively for their own purposes must still be regarded as working.  In deciding whether time spent “on call” is compensable, DOL and the courts have traditionally used one variation or another of the test of whether an employee is “waiting to be engaged” (non-compensable time) or is “engaged to be waiting” (compensable time).


“Contractors and subcontractors hired to perform services for the U.S. military have a clear obligation to comply thoroughly and consistently with federal law,” stated the Secretary of Labor.

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