In a recent victory for worker rights, the U.S. Department of Labor has seized over $1.4 million in back wages and damages for 36 engineers from Mexico underpaid by National Steel and Shipbuilding Co., a General Dynamics subsidiary. These L-1B visa holders, situated in San Diego, were compensated in pesos at rates beneath federal minimum wage standards, according to the Department's Wage and Hour Division findings.
While these workers dedicated an average of 42 hours each week, or more, to installing essential ship components for the U.S. Navy, their employer, NASSCO, mistakenly considered per diem and lodging expenses as part of their wages and failed to maintain proper time records, according to the U.S Department of Labor. The miscalculations and wage violations amounted to $719,135 in unpaid minimum and overtime wages, with an equivalent sum in liquidated damages owed to the engineers.
The labor infringement occurred despite the highly specialized nature of the engineers' work, which directly contributes to pivotal national defense infrastructure. "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.," Min Park-Chung, San Diego's Wage and Hour Division District Director, pronounced in a statement as per the U.S Department of Labor. Park-Chung emphasized the Division's commitment to educating Mexican nationals on their U.S. employment rights in collaboration with the Consulate General of Mexico in San Diego.
Beyond paying back wages and damages, NASSCO has agreed to an enhanced compliance accord that prevents them from future violations of federal labor laws and necessitates training employees who manage and supervise visa-holding foreign workers. Workers will also receive notice of their rights under the FLSA and the Walsh-Healey Public Contracts Act.
General Dynamics, the parent entity with a workforce exceeding 100,000 globally, accrued $42.3 billion in revenue in the preceding year. Their reach extends beyond San Diego to additional shipyards in Norfolk, Virginia, Bremerton, Washington, and Mayport in Jacksonville, Florida. To assist with compliance or to report any wage-related concerns, individuals can utilize the Wage and Hour Division's online tools or the helpline at 866-4US-WAGE (487-9243), with multilingual support for over 200 languages.
