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US Department of Labor recovers $17K for eight workers after investigation finds Guam federal subcontractor shortchanged workers’ wages, benefits

DEDEDO, GUAM – The U.S. Department of Labor has recovered $17,164 in back wages from a federal subcontractor who denied full wages and benefits to eight workers providing pest control services at U.S. Air Force and Navy installations on Guam.

The department’s Wage and Hour Division found Pacific Pest Control Inc. in Dededo violated the McNamara-O’Hara Service Contract Act for failing to pay affected workers the correct wage rates set by federal law for their services. Instead, the employer paid lower hourly rates than those required for pest controllers and failed to fully provide their health benefits as required.

Investigators also found the employer violated the overtime pay requirements under the Contract Work Hours and Safety Standards Act when they based overtime calculations on the lower, incorrect wage rates.

“Not paying workers their full wages makes it harder for them to make ends meet,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “Doing so also allows employers to improperly reduce labor costs and gain an unfair competitive advantage over businesses that comply with the law.”

“We strongly encourage all employers, including federal contractors and subcontractors, to review their pay practices and ensure they comply with the law,” Trotter added.

During the period of the investigation, Pacific Pest Control Inc. was working as a subcontractor for Defense Base Services Inc., an Anchorage, Alaska, company.

In 2021, the Wage and Hour Division recovered more than $48 million in back wages due to over 21,000 employees working on federal contracts. For confidential compliance assistance about the Service Contract Act and the Contract Work Hours and Safety Standards Act, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243).

The agency encourages workers who think they may be owed back wages to use the Workers Owed Wages search tool. Learn more about the Wage and Hour Division. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.