MT Transportation & Logistics Services Inc., a Bay Shore, N.Y.-based trucking company that was under contract with the U.S. Postal Service, will pay $1.8 million in back wages for more than 500 of its employees
, according to a new agreement with the U.S. Department of Labor.

U.S. Department of Labor has also debarred the company and its officers from receiving future government contracts for three years.

Under the federal McNamara-O'Hara Service Contract Act, contractors and subcontractors performing on federal service contracts in excess of $2,500 are required to pay service employees no less than the wage rates and fringe benefits found prevailing in the locality for the classification of work that they perform. The department's Wage and Hour Division cited the company and the company's officers for failing to pay their service employees the legally required hourly rates and fringe benefits.

"The laws governing prevailing wages and benefits on federal contracts grant clear protections to workers, and the Labor Department will continue to ensure that companies awarded federal contracts are following the rules," said Secretary of Labor Hilda L. Solis.

In an administrative complaint, the Wage and Hour Division named as respondents the company, Anthony Alvarez as president, Andrew Meyers as vice president of sales, Della Herzog as vice president of finance and Terri Chester as controller/general manager. After the complaint was filed, the respondents agreed to pay a total of $1.83 million in back wages and interest for the period from Dec. 1, 2005, to Dec. 31, 2008.