An Oakland trucking company has restored roughly $2 million in 401(k) pension benefits it improperly withheld from drivers, according to a release from the U.S. Department of Labor.
The company, Lange Trucking Inc., had 515 drivers working on U.S. Postal Service contracts, and was accused of violating the McNamara-O’Hara Service Contract Act (SCA).
Investigators found that Lange Trucking failed to fully fund the drivers’ pension plan, a violation of the SCA. According to the release, Lange Trucking paid $500,000 of the unpaid benefits.
Hoovestol Inc., an Eagan, Minn.-based company that acquired Lange after the violations, voluntarily agreed to fund the remaining $1.48 million in benefits.
The Labor Department also said Hoovestol “cooperated fully” with the Wage and Hour Division during its investigation, and has also corrected record-keeping procedures, overhauled the plan to ensure timely payments into the plan going forward, posted wage determinations at the work site, and made information about the contracts accessible to employees.
Lange trucking and its president, William A. Langenhuizen; vice president, William H. Langenhuizen; secretary treasurer, Antoinette Langenhuizen; vice president, Robert Langehuizen; and vice president of finance, Lisa Kulak, have been debarred from eligibility for further service contracts with any U.S. government agency for three years for their failure to pay drivers required fringe benefits. This disbarment does not apply to Hoovestol, according to a Labor Department spokesman.
According to the department, the SCA applies to every contract entered into by the United States or the District of Columbia, and requires that contractors and subcontractors performing services on covered federal contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality.
The investigation was conducted by the division’s district office in San Francisco. For more information about the SCA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or its San Francisco office at 415-625-7720. Information is also available here.
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