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G4S PLC

Holston Army Ammunition Plant Back Pay

Date: 11/30/2007 (Date of Ruling)

Misconduct Type: Labor

Enforcement Agency: Labor

Contracting Party: Defense - Army

Court Type: Administrative

Amount: $2,500,000

Disposition: Restitution

Synopsis: About 280 current and former Wackenhut Services Inc. fire and security contract workers at the Holston Army Ammunition Plant (HAAP) in Kingsport, Tennessee were awarded approximately $2.5 million in back pay dating back to 1999. The workers filed a complaint with the Department of Labor alleging their pay and benefits were too low and in violation of the McNamara-O’Hara Service Contract Act of 1965 (SCA), which requires federal contractors and subcontractors to pay service employees no less than the prevailing wage and benefit rates found in the locality. At the time of the decision, the Army stated the back pay award would ultimately be Wackenhut’s responsibility, while Wackenhut claimed that federal procurement regulation allowed it to bill the Army for the back pay.