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Settlement Means Lockheed Martin Owes $200,000 in Prevailing Wages to 18 Workers


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Lockheed Martin has agreed to a settlement in which it will pay $210,000 in backpay to 18 employees who were not paid the prevailing wage.  The violations occurred between May of 2011 and October of 2012 at the Coast Guard facility near Petaluma, California.  As part of the settlement, Lockheed Martin will retain its training contract with the facility and will not have to admit any wrongdoing.

“The department’s Wage and Hour Division conducted an investigation and determined Lockheed had improperly classified technical instructors/course developers who were working at the Coast Guard training center at Two Rock,” The Press Democrat wrote. “The workers were underpaid as a result of the misclassifications, a violation of the federal Service Contract Act, according to the department.”

Federal contracts in excess of $2,500 require prevailing wages.  In a press release announcing the Department of Labor’s decision in the case, Susana Blanco, District Director for the Wage and Hour Division in San Francisco, said:

“Government contracts specify in detailed language how pay and benefits are to be determined.  Employers must follow these rules, so that workers are paid correctly. Government contractors, large and small, should be aware of their obligations under the law.”

Two Rock is the largest Coast Guard training facility on the West Coast and houses 333 active duty personnel, 154 civilian employees, and 54 private contractors from five companies.  It trains  cooks, medics, storekeepers, yeoman, information technicians, electronics technicians, and operations specialists. 


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