An investigation by the U.S. Department of Labor's Wage and Hour Division resulted in the restoration of $1,979,779 in 401(k) pension benefits to 515 drivers working on U.S. Postal Service contracts for California-based Lange Trucking because of violations of the McNamara-O'Hara Service Contract Act.
The McNamara-O’Hara Service Contract Act is a federal law that requires contractors and subcontractors performing services on prime contracts in excess of $2,500, to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor's collective bargaining agreement
The company, along with its President, William A. Langenhuizen; Vice President, William H. Langenhuizen; Secretary Treasurer, Antoinette Langenhuizen; Vice President, Robert Langehuizen and Vice President of Finance, Lisa Kulak, have been debarred from eligibility for further service contracts with any U.S. government agency for three years for their failure to pay drivers required fringe benefits.
Wage and Hour investigators found that Lange Trucking failed to fully fund the drivers' 401(k) plan, resulting in a violation of the SCA. DOL says it 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.
Hoovestol, which cooperated fully with the Wage and Hour Division during its investigation, says DOL, has also corrected record-keeping procedures, overhauled the plan to ensure timely payments into the plan going forward, posted wage determinations at the work site and made information about the contracts accessible to employees.
Lange Trucking's website says the company, has a fleet of more than 170 tractors and 200 trailers, and has been one of the largest carriers for the U.S. Postal Service.