The U.S. Labor Department has successfully recovered $596,000 for 31 workers who were denied full wages and fringe benefits due to a kickback scheme orchestrated by a subcontractor. The investigation revealed that the subcontractor manipulated payroll records, diverting payments intended for workers to other parties. This scheme not only violated labor laws but also deprived employees of their rightful earnings. The recovered funds will ensure that the affected workers receive the compensation they are owed. The Labor Department emphasizes its commitment to protecting workers’ rights and holding employers accountable for such fraudulent practices. This case serves as a critical reminder of the importance of transparency and integrity in labor relations and reinforces the federal agency’s ongoing efforts to enforce labor standards and safeguard worker welfare across various industries.
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