L-3 Communications Vertex Aerospace LLC has agreed to pay back wages to workers employed at Hunter Army Airfield after an investigation by the the U.S. Department of Labor's Wage and Hour Division.
The company, which is based in Madison, Miss., agreed to pay $261,899 in wages owed to 361 workers.
The U.S. Department of Labor's Wage and Hour Division found employees were not being compensated in compliance with the McNamara-O'Hara Service Contract Act, according to a news release.
The DOL's Wage and Hour Division's determined that L-3 Communications Vertex Aerospace incorrectly computed employees' vacation benefits as required by the act, according to the DOL news release.
The law requires that companies use workers' anniversary dates to determine the amounts of vacation benefits due. L-3 Communications Vertex Aerospace had instead used the date of the company's first day of performance on the contract at Hunter Army Airfield to calculate vacation benefits for all employees.
The McNamara-O'Hara Service Contract Act requires the vacations benefits calculation be made using the worker's anniversary date even when he or she worked for a predecessor contractor on the same contract, according to the DOL.
L-3 Communications Vertex Aerospace has agreed to comply fully with the SCA in the future and pay the back wages owed, according to the DOL.