Labor Department Orders $840K in Back Wages and Fines for San Diego Logistics Companies

Company CultureHigh Tech / High Touch
Written By Jennifer Joslyn

The Department of Labor just ordered three cross-border logistics companies in San Diego to shell out $840,000 in back wages and fines to warehouse and transportation workers.

Ruffo de Alba Forwarders LP, SAI Logistics Experts Inc., and Moving Technologies of America Inc. were caught underpaying 32 Mexican nationals, with some earning as little as $2.77 per hour. Yikes!

Min Park-Chung from the Wage and Hour Division in San Diego made it clear: exploiting workers with illegally low wages won't fly. The Labor Department is working with the Mexican Consulate to ensure workers know their rights.

The investigations revealed some shady practices. Moving Technologies of America tried to hide workers' real employment status and paid them through another subsidiary in Mexico. Ruffo de Alba Forwarders and SAI Logistics Experts were up to similar tricks, paying workers between $3.27 and $3.86 per hour.

Here's the breakdown:

  • Ruffo de Alba Forwarders: $222,899 in back wages, $445,798 in damages, $8,645 in penalties.

  • SAI Logistics Experts: $318,249 in wages and damages, $8,645 in penalties.

  • Moving Technologies of America: $75,132 for five employees, $3,324 in penalties.

And there's more. NBG Logistics Alliance Inc. is facing a lawsuit for allegedly obstructing an investigation and retaliating against employees. They even tried to hide workers at a fast-food restaurant when investigators showed up!

WHY IS THIS IMPORTANT?

In the logistics world, fair labor practices are a big deal. Staying compliant with labor laws protects your team and your business from hefty fines and legal trouble.

HOT TAKE

This crackdown is a wake-up call for logistics companies to prioritize fair treatment of workers. Ethical practices not only keep you out of legal hot water but also build a stronger, more reputable business. 💪

Read more at Yahoo.

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