Three More San Diego-area Customs Warehouses Found Paying Workers in Mexican Pesos at a Rate of $2.50 Per Hour in Violation of the Fair Labor Standards Act.  Federal court orders the customs warehouses to pay almost $2M in back wages, penalties.

Since the investigation of Premar Global Warehouse Logistics in September 2021, Wage and Hour Division investigators of the U.S. Department of Labor (“DOL”) have found three more San Diego-area customs warehouses paying workers in Mexican pesos at an equivalent rate of as little as $2.50 per hour in violation of the Fair Labor Standards Act (“FLSA”).

Based on these investigations, the DOL’s Office of the Solicitor reached consent judgments against the three employers, Columbia Export Group PDSA, OMG Global Logistics and Atlas Freight Forwarding, resulting in the U.S. District Court for the Southern District of California ordering the companies to pay nearly $2 million combined in minimum and overtime back wages to 108 workers.

The companies have also been ordered to pay $56,675 in penalties given their reckless disregard of the FLSA’s minimum wage and overtime requirements.

DOL investigators determined Columbia Export Group PDSA, OMG Global Logistics, and Atlas Freight Forwarding engaged in similar schemes to exploit workers and circumvent the FLSA, including using affiliates in Mexico to pay their employees as if they worked in Mexico, not in the United States.

Findings of the U.S. Department of Labor investigations 

Source: U.S. Department of Labor

Kehoe Law Firm, P.C.