DoL Reaches $1.9 Million Settlement for Janitorial Backwages

August 26, 2004 ( - The Department of Labor (DoL) has reached a $1.9 million settlement with Global Building Services Inc over allegations the janitorial services company failed to pay workers overtime.

Newhall, California-based Global Building Services agreed to the settlement after an investigation by the DoL’s Wage and Hour Division revealed that workers were paid a fixed hourly wage, usually in cash, for all hours worked. The affected employees, most of whom are Hispanic, typically worked eight hours per day, six or seven days per week. However, they were not paid one-and-one-half times their regular rate of pay for work hours in excess of 40 per week as required by the Fair Labor Standards Act (FLSA), the DoL said in a news release.

The terms of the settlement are outlined in a consent judgment entered with the US District Court of Central California on August 24. The back wages compensate employees for work performed prior to February 11, 2003. The settlement impact 775 Global Building Services employees, more than 600 of which reside in California. The remaining impacted employees reside in parts of Arizona, Nevada, Texas and New Mexico.

Global Building Services, which provides janitorial services to Target stores, cooperated with the investigation and has agreed to comply with federal wage and hour laws in the future, the DoL said.