Labor Department recovers nearly $16 million in back wages for Afghan refugee project

(CN) — A Florida-based general contractor and its 61 subcontractors must pay nearly $16 million in back wages and benefits to workers who constructed temporary housing and provided services for Afghan refugees in New Jersey.

The U.S. Department of Labor announced Monday that it had recovered the back wages and restored more than 24,700 paid sick leave hours for more than 2,800 workers connected to the project.

“Government contractors must ensure their workers are paid the required wages and fringe benefits they have rightfully earned,” Jessica Looman, the Labor Department’s wage and hour administrator, said in a statement. “These violations are avoidable.”

Monday’s announcement centers on Disaster Management Group LLC, based in Jupiter, Florida, one of the general contractors to construct housing at McGuire Air Force Base outside Trenton, New Jersey.

As part of its withdrawal from Afghanistan in 2021, the U.S. admitted 76,000 Afghan refugees through Operation Allies Welcome. While they were waiting to be resettled, the refugees were housed at military bases in New Jersey, Virginia, Wisconsin, Indiana and Texas.

Contractors from 17 states and Puerto Rico built temporary housing and coordinated delivery of medical, food and translation services at McGuire Air Force between July 2021 and February 2022. Afghans housed at the facility underwent immigration processing and health screening until they could be placed with refugee organizations. The Department of Defense ceased its refugee operations at the base in March 2022.

The Labor Department conducted 75 investigations of Disaster Management and 61 subcontractors and found the companies violated federal law by failing to pay minimum wage rights, provide fringe benefits, pay proper overtime, offer required sick leave and maintain proper records.

The recovered wages range from the subcontractors range from less than $300 to more than $3.8 million.

In addition to paying back wages and benefits, Disaster Management signed a compliance agreement with the Labor Department to monitor its operations.

“Every worker deserves to be paid the full wages to which they are entitled, and this compliance agreement, which recovers millions in wages for hundreds of workers, should serve as notice to other government contractors that the department will utilize its full power to enforce vigorously federal wage laws,” Solicitor of Labor Seema Nanda said in a statement.

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