The U.S. Department of Labor has ordered Lange Trucking Inc., of Oakland, California, to restore $1,979,779 in 401(k) pension benefits to 515 drivers.
Lange Trucking Inc. is contracted with the U.S. Postal Service. Lange Trucking allegedly violated the McNamara-O’Hara Service Contract Act (SCA).
“The SCA requires contractors and subcontractors performing services on covered federal or District of Columbia contracts in excess of $2,500 to pay service employees in various classes no less than the monetary wage rates and to furnish fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor’s collective bargaining agreement. Safety and health standards also apply to such contracts,” the Department of Labor states.
The Department of Labor has stripped the company and it’s President, William A. Langenhuizen; Vice President, William H. Langenhuizen; Secretary Treasurer, Antoinette Langenhuizen; Vice President, Robert Langehuizen; and Vice President of Finance, Lisa Kulak of eligibility for government contracts.
“Contractors that do business with the federal government have an obligation to abide by the law and pay their employees the required contractual rates and benefits,” said U.S. Secretary of Labor Thomas E. Perez. “Restoring the pension benefits of these workers and debarring this employer illustrate the department’s commitment to vigorous enforcement of government contracting laws and helps level the playing field for law-abiding employers.”
Wage and Hour investigators found that Lange Trucking did not fully fund the drivers’ 410(k)s. By failing to do so, the company directly violated SCA.
“Wage and Hour has investigated the company several times in the past. Lange Trucking paid $500,000 of the unpaid benefits while Hoovestol Inc., which is based in Eagan, Minn., acquired the company subsequent to the violations and voluntarily agreed to fund the remaining $1.48 million in benefits,” the Department of Labor stated.
The Department of Labor stated that Hoovestol fully cooperated with the investigation and has since taken steps to correct the issue.