November 22, 2011

Silver Spring, Maryland - The US Department of Labor has obtained $7,968,744 in back wages, fringe benefits and 401(k) plan assets for more than 2, 000 security guards previously employed by US Protect Corporation, a defunct company based in Silver Spring, after the US Bankruptcy Court for the District of Maryland approved a global settlement of the said claims, a statement released in the agency website said.

The statement said the court decision was the result of the Labor Departments actions against the company for violations of the McNamara O’Hara Service Contract Act and the Employee Retirement Income Security Act.

Based on investigations by DOL’s Wage and Hour Division and its Employee Benefits Security Administration, it was found that the company failed to pay hundreds of employees for their last 2 1/2 weeks of work, and many employees were not paid the prevailing wage for their geographic areas or fringe benefits. The company also failed to remit employee salary deferral contributions to their 401(k) plan accounts.

The settlement has a total recovery of about $7,968,744, out of which $6,951,977 was recovered for the employees' wages and cash fringe benefits. The remaining $1,016,767 was recovered for the employees' 401(k) accounts.