06/26/2024 | Press release | Distributed by Public on 06/26/2024 12:19
News Release
SAN DIEGO, CA - Since 2021, the U.S. Department of Labor has seen a troubling increase in wage theft by customs brokers and freight-forwarding and logistics companies operating near the Mexican border, a trend reflected in three recent investigations in San Diego that recovered nearly $840,000 for 32 employees, some of whom one employer paid less than $3 per hour.
The department's Wage and Hour Division determined that Ruffo de Alba Forwarders LP, SAI Logistics Exports Inc. and Moving Technologies of America Inc. willfully and recklessly shortchanged the affected workers and violated numerous provisions of the Fair Labor Standards Act.
"The U.S. Department of Labor is committed to continuing its years-long effort to bring the customs broker, warehouse and logistics industry into compliance with the federal workplace guarantees of minimum wage and overtime," said Regional Solicitor of Labor Marc Pilotin in San Francisco. "Far too many employees who work in these cross-border operations continue to be cheated out of their lawful wages under U.S. law. The department will do all in its power to protect the rights of all people working in our country."
Specifically, division investigators found violations by each employer as follows:
Since 2021, the department has recovered more than $5 million in back wages and damages for more than 300 workers employed bycustoms warehouse, logistics and freight forwarding employersoperating in the San Diego area.
"Companies along the U.S. southern border that mistakenly believe they can exploit Mexican nationals by paying illegally low wages should take note of the outcome of these investigations," said Wage and Hour Division District Director Min Park-Chung in San Diego. "To root out employers who abuse and exploit workers for profit, the Wage and Hour Division is working closely with the Consulate General of Mexico in San Diego to educate Mexican nationals in the region about their rights as workers, including the right to report labor violations without fear of threats and intimidation."
The Consul General of Mexico in San Diego Alicia G. Kerber-Palma urges workers to contact the consulate at 619-231-3847 or email [email protected] for additional support, consular protection or legal advice.
In a related case, the department's Office of the Solicitor filed a lawsuit against NBG Logistics Alliance Inc. in the Southern District of California on June 21, 2024, after the Wage and Hour Division discovered that the employer ferried employees to a local fast-food restaurant quickly when investigators showed up at an NBG warehouse. The employees were then told to return to Mexico, preventing them from meeting with investigators onsite. The company later fired some of the workers shortly after. The department seeks a preliminary injunction forbidding further retaliation against workers and interference with the investigation.
The division's San Diego District Office investigated these cases, and the Office of the Solicitor in San Francisco negotiated the consent judgments on behalf of the department.
The division enforces the law regardless of a worker's immigration status and can speak confidentially with callers in more than 200 languages. For more information about the FLSA and other laws enforced by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency's free Timesheet Appfor Android and iOS devices, available in English and Spanish, to help track work hours and pay.
This news release is also available in Spanish.