The U.S. Department of Labor recently won a victory for workers’ rights when it confiscated more than $1.4 million in back wages and damages for 36 Mexican engineers who were underpaid by General Dynamics subsidiary National Steel and Shipbuilding Co. The Department’s Wage and Hour Division found that these L-1B visa holders, who were located in San Diego, were paid in pesos at rates below federal minimum wage requirements.
According to the US Department of Labor, these workers put in at least 42 hours a week on average to install vital ship components for the US Navy, but their employer, NASSCO, failed to keep accurate time records and miscalculated per diem and lodging costs as part of their pay. The engineers owed $719,135 in unpaid minimum and overtime wages as a result of the computation errors and wage violations, plus an equal amount in liquidated damages.
The extremely specialized nature of the engineers’ employment, which directly supports essential national security infrastructure, did not excuse the labor violation. “General Dynamics NASSCO brought these specialized workers from Mexico to San Diego to build vessels for the U.S. Navy but failed to follow the federal wage regulations that protect anyone working in the U.S.,” stated Min Park-Chung, the district director of San Diego’s Wage and Hour Division, in a statement released by the U.S. Department of Labor. Park-Chung highlighted the Division’s partnership with the Consulate General of Mexico in San Diego to educate Mexican nationals on their work rights in the United States.
In addition to paying back wages and damages, NASSCO has signed an upgraded compliance agreement that forbids them from breaking federal labor laws in the future and requires training staff members who oversee and manage foreign workers with visas. Additionally, workers will be informed of their rights under the Walsh-Healey Public Contracts Act and the FLSA.
The parent company, General Dynamics, which employs more than 100,000 people worldwide, made $42.3 billion last year. In addition to San Diego, they have shipyards in Norfolk, Virginia; Bremerton, Washington; and Jacksonville, Florida’s Mayport. People can use the online resources provided by the Wage and Hour Division or call the helpline at 866-4US-WAGE (487-9243), which is available in more than 200 languages, for assistance with compliance or to report any wage-related issues.
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