Three San Diego-area companies have been ordered to pay almost $840,000 in back wages after a U.S. Department of Labor probe found employees were paid wages well below the federal minimum, with some receiving less than $3 an hour. According to a FOX 5 San Diego report, Ruffo de Alba Forwarders LP, SAI Logistics Exports Inc., and Moving Technologies of America Inc. were investigated for violating the Fair Labor Standards Act, accusations that included failure to pay the required minimum wage of $7.25 and denying overtime pay to workers.
The investigation, conducted in partnership with the Mexican consulate, identified that Moving Technologies of America Inc., a subsidiary of Vadeto Group LLC, paid its workers as low as $2.77 per hour in Mexican pesos. Furthermore, the other two companies embroiled in similar underpayment practices included Ruffo de Alba Forwarders LP, and SAI Logistics Experts Inc., which compensated workers at rates of $3.27 and $3.86 per hour respectively in Mexican pesos, the U.S. Department of Labor noted.
Marc Pilotin, the Regional Solicitor of Labor in San Francisco, stated, "The U.S. Department of Labor is committed to continuing its years-long effort to bring the customs broker, warehouse and logistics industry into compliance with the federal workplace guarantees of minimum wage and overtime." These sentiments underscore a broader problem as the department has recovered more than $5 million in back wages and damages for over 300 workers in the area since 2021. Min Park-Chung, the Wage and Hour Division District Director in San Diego, warned that companies "that mistakenly believe they can exploit Mexican nationals by paying illegally low wages should take note of the outcome of these investigations," as per the U.S. Department of Labor.
The Consul General of Mexico in San Diego, Alicia G. Kerber-Palma, has urged workers who might have been subjected to these wage violations to reach out to the consulate for support and legal advice. Victims and whistleblowers were reassured of confidential assistance and protection irrespective of their immigration status, and bilingual service is available in more than 200 languages. Kerber-Palma's appeal emphasizes the seriousness with which the U.S. Department of Labor and the Mexican consulate treat these breaches of labor laws and workers' rights.
In a related case, the U.S. Department of Labor filed a lawsuit against NBG Logistics Alliance Inc. for allegedly obstructing the investigation and retaliating against employees.
