U.S. Labor Department Recovers Nearly $1 Million in Back Wages for 

Hurricane Katrina Workers 

L & R Security Inc., headquartered in New Orleans, 

LA and HKA Enterprises 

Inc., headquartered in 

Duncan, SC have agreed 

to pay a total of $941,537 

in back wages to 382 current and former security 

guards and debris removal workers. An investigation by the U.S. 

Department of Labor’s 

Wage and Hour Division 

found that these workers were not properly 

paid in the wake of Hurricane Katrina as required 

by the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA) 

and the Contract Work 

Hours Safety Standards 

Act (CWHSSA). Both 

(See BACK WAGES, pg. 3) 

DOL Awards RI Workers Over 

$1.2 Million in Assistance Grant 

Court Orders Business to Pay 

Over $4.5 Million in Back Wages 

Consent Order Restores $3.5 

Million to Union Benefit Plans 

DOL Awards $10.1 Million in 

Training Grants 

Over 16,000 Veterans Benefit 

from $27 Million in DOL Grants 

Secretary Chao addresses the annual Fraternal Order of Police National Convention in Louisville, Kentucky. (DOL Photo) 

ment’s commitment to 

protecting the rights of 

returning police officers as 

they return stateside from 

serving in the military. 

“Strong traditions of military service and law enforcement exist in many 

(See FOP, pg. 3)

In remarks before the 

Fraternal Order of Police’s 

National Convention in 

Louisville, Kentucky, Secretary of Labor Elaine. L 

Chao praised the officers 

for bringing security and 

stability to communities 

and for serving as front 

line defenders of freedom. 

“As law enforcement officers, you know firsthand 

how important security 

and stability are because 

you fight the battle to 

preserve them every day. 

You are the guarantors, 

the front line defenders, 

who make our way of life 

possible. You safeguard 

our homes and communities, keep the peace and 

help defend our country 

from outsiders who want 

to do us harm,” said Secretary Chao. 

The Secretary highlighted 

the positive working relationship that the Department of Labor and the 

Fraternal Order of Police 

(FOP) have shared during 

the Administration of 

President George W. 

Bush. The Secretary 

stressed the DepartU.S. Labor Secretary Elaine L. Chao Addresses National Police Convention 

Inside this issue: 

2 

2 

2 

4 

5 

5 

The Labor Community’s Source for Department of Labor News 

The Labor Advocate The Labor Advocate

DOL Releases $44.1 Million for 

Trade Adjustment Assistance 

Secretary Chao Pays Tribute to 

Houston Port Workers 

6 

Volume 3, Issue 2 Volume 3, Issue 2

Autumn / Winter Autumn / Winter Autumn / Winter 

Strong Economic News 

* Unemployment was 4.7% in October, 1 point below the average of the 

1990s. 

* Payroll employment has risen for a 

record 50 straight months. More than 

8 million jobs have been created during this period. 

* Professional and business services 

added 65,000 jobs in October, while 

private education and health services 

added 43,000. 

* The economy has now experienced 

6 straight years of growth with real 

GDP having increased at a 2.8% annualized rate. 

* Workers' real (inflation-adjusted) 

wages and benefits have risen over the 

past year. 

* After-tax per capita income is up 

12.7% since January 2001. 

* Annualized productivity growth has 

averaged 2.5% over the past 6 years. 
“The Labor Community’s Source for Department of Labor News” 

The United States Department 

of Labor provided a grant of 

$1,224,099, with $685,497 released initially, to assist approximately 246 Rhode Island 

workers who have been dislocated as a result of layoffs at 

the Brooks Eckerd corporate offices located in Warwick, R.I. 

"This $1.2 million grant will provide these Rhode Island workers 

with skills training and other employment services to help them 

find and succeed in new jobs," 

said U.S. Secretary of Labor 

Elaine L. Chao. 

The grant, awarded to the Rhode 

Island Department of Labor and 

Training, will provide workers with 

a full array of employment services, including assessment, basic 

skills development, and career 

and occupational skills training. 

On June 5, 2007, Brooks Eckerd 

announced the company would 

begin layoffs in August 2007 that 

are expected to continue through 

May 2008. The Rhode Island Department of Labor and Training 

conducted Rapid Response sessions for employees on June 6 & 7 

to inform workers of the assistance available to them through 

the public workforce system. 

independent, court-appointed fiduciaries. The order replaces all 

but two of the plans' trustees, and 

permanently bars them and the 

former plan administrator from 

serving as fiduciaries or service 

providers to any such plans. It 

A consent order resolving a U.S. 

Department of Labor lawsuit 

places control of five employee 

benefit plans sponsored by Local 

38 of the United Association of 

Plumbers, Pipefitters and Journeymen of San Francisco with 

also requires payment of $3.5 

million to the union's pension plan 

from the defendants' fiduciary liability insurer, and additional 

money may be paid from the expected sale of the Konocti Harbor 

(See Benefits Security, Pg. 4) 

Consent Order Restores $3.5 Million, Appoints Independent Fiduciaries and Replaces Most Trustees 

of Plumbers Local 38 Employee Benefit Plans 

for nearly 400 workers." 

Investigators from the Labor Department's Wage and Hour Division found that Southern California Maid Services and Carpet 

Cleaning misclassified the home 

and carpet cleaners as independent contractors, resulting in minimum wage and overtime violations. The company also failed to 

keep accurate records of the employees and the hours that they 

worked. 

The FLSA requires that covered 

employees be paid at least the 

federal minimum wage and receive overtime at one and onehalf times their regular rates of 

pay for hours worked beyond 40 

per week. Employers must also 

maintain accurate time and payroll records. 

The East Los Angeles District Office Wage and Hour Division 

learned of the employer's practices through participation in the 

Employment Education and Outreach (EMPLEO) partnership. EMPLEO is an alliance of organizations and government agencies 

that assist Spanish-speaking 

workers and employers with 

work-related concerns. EMPLEO 

has a local, toll-free helpline: 

(877) 55-AYUDA (552-9832). 

Volunteers help refer callers to 

the appropriate EMPLEO partner 

for assistance. 

The Mexican Consulate of Los Angeles, a member of EMPLEO, provided assistance in locating Spanish-speaking witnesses to pursue 

this litigation. 

Court Orders Southern California Home Cleaning Business to Pay More Than $4.5 Million in Back 

Wages and Liquidated Damages 

A U.S. district court judge has 

ordered Gardena, Calif.-based 

Southern California Maid Services and Carpet Cleaning to 

pay $3,467,789 in back wages, 

plus $1,058,973 in liquidated 

damages, to 385 current and 

former low-wage domestic 

workers. This action resolves a 

lawsuit filed by the U.S. Department of Labor alleging that the 

workers were misclassified as 

independent contractors in violation of the Federal Fair Labor 

Standards Act (FLSA). 

"One of the highest priorities of 

this department is making sure 

workers are paid all of the 

wages they have earned," said 

U.S. Secretary of Labor Elaine L. 

Chao. "In this case, we are recovering more than $4.5 million 

U.S. Department of Labor Announces Grant Exceeding $1.2 Million to Assist Rhode Island Workers 

Page 2 
“The Labor Community’s Source for Department of Labor News” 

companies were subcontractors 

to the prime contractor, CH2M 

Hill of Englewood, CO. 

“The Department has made a 

concerted effort to ensure that 

workers involved in Hurricane 

Katrina recovery and cleanup 

know their rights and are paid 

all the wages they are owed,” 

said U.S. Secretary of Labor 

Elaine L. Chao. “In this case, 

almost $1 million in back wages 

will be paid to nearly 400 workers.” 

L & R Security provided armed 

security at Federal Emergency 

Management Agency (FEMA) 

trailer sites in New Orleans. The 

Wage and Hour Division determined that the company, from 

August 2005 to July 2006, paid 

straight time for overtime hours 

worked by guards on both federal and non-federal contract 

jobs in violation of the CWHSSA 

and the FLSA. The subcontractor also failed to pay the required prevailing wage rate and 

fringe benefits required by the 

SCA. L & R Security agreed to 

pay $185,385 in back wages to 

239 workers. Additionally, the 

Department has assessed a civil 

money penalty of $37,620 for 

repeating similar past violations. 

The investigation of HKA Enterprises Inc., which provided debris 

removal monitoring in New Orleans under a separate FEMA contract after Hurricane Katrina, covered the period from Oct. 8, 

2005, to Dec. 3, 2005. The Wage 

and Hour Division determined that 

the company paid workers 

straight time for hours worked in 

excess of 40 per week in violation 

of the FLSA. HKA Enterprises has 

agreed to pay $756,152 in back 

overtime wages to 143 workers. 

The FLSA requires that covered 

employees be paid at least the 

federal minimum wage of $5.85 

per hour for all hours worked, 

plus time and one-half their regular rates of pay for hours worked 

over 40 per week. The minimum 

wage increases to $6.55 per hour 

on July 24, 2008, and to $7.25 

per hour on July 24, 2009. Under 

the law, employers must also 

maintain accurate time and payroll records. 

issues affecting the workplaces 

of police officers. The FOP constructively participated in the 

American families. Often, both 

traditions will be present in the 

same family, and even the same 

individual. This is the case with 

many FOP members. That’s 

why I am pleased that the Department of Labor partners with 

the FOP to support these wonderful traditions of service. The 

Department works with the FOP 

to provide information to FOP 

members returning from active 

duty about their employment 

and re-employment rights,” said 

Secretary Chao. 

The FOP and the Department of 

Labor have worked closely on 

Department’s rulemaking to update the overtime regulations, 

which culminated in the 2004 

rules, for the first time, explicitly 

clarifying that front line police officers are not exempt from overtime protection. In addition, two 

FOP members sit on key advisory 

committees at the Department of 

Labor. 

FOP (Continued from pg. 1)

Back Wages (Continued from pg. 1)

Page 3 

“The Department 

has made a 

concerted effort to 

ensure that workers 

involved in 

Hurricane Katrina 

recovery and 

cleanup know their 

rights and are paid 

all the wages they 

are owed,” said U.S. 

Secretary of Labor 

Elaine L. Chao. 

“You safeguard our 

homes and 

communities, keep 

the peace and help 

defend our country 

from outsiders who 

want to do us 

harm,” said U.S. 

Secretary of Labor 

Elaine L. Chao. 
“The Labor Community’s Source for Department of Labor News” Page 4 

Resort and Spa on Clear Lake in 

Kelseyville, CA. The order resolves the Department’s suit 

against the defendants for allegedly diverting plan assets to 

renovate and operate Konocti 

Harbor. 

"Workers' retirement dreams, 

health and other benefits were 

jeopardized by the gross mismanagement of their benefit 

plans," said Secretary of Labor 

Elaine L. Chao. "This legal action puts the benefit plans under 

new, independent management 

and restores at least $3.5 million to the pension plan." 

The Department's 2004 suit alleged violations of the Employee 

Retirement Income Security Act 

(ERISA) by current and former 

trustees Lawrence J. Mazzola Sr. 

(the business manager and financial secretary-treasurer of 

Local 38), Lawrence Mazzola Jr., 

William B. Fazande, Larry Lee, 

Benefits Security (Continued from pg. 2)

James R. Shugrue, Vohon J. Kazarian, Tom Irvine, Robert E. 

Buckley, Robert Buckley Jr., Art 

Rud, Ron Fahy and Robert Nurisso, former plan administrator 

Frank Sullivan, and Local 38. 

Filed in Federal district court in 

San Francisco, the suit alleged 

that the defendants maintained 

inadequate financial controls, violated plan documents, engaged in 

self-dealing and imprudently 

spent millions to build and maintain facilities at Konocti despite 

the resort's continuing financial 

losses. Local 38 also allegedly 

profited from the interest on a $6 

million loan. 

Under the settlement, a courtappointed independent administrator will oversee the plans and 

implement financial controls to 

prevent future misuse of the 

plans' assets. A second courtappointed fiduciary will have independent and exclusive authority 

over the property sale and, until it 

is sold, management and operation of the resort. The current 

and former trustees no longer 

have any control over Konocti. In 

addition, the order requires all 

pension plan assets to be managed by professional investment 

managers and overseen by an investment monitor. Mazzola Jr. 

and Buckley Jr., who had been 

trustees for fewer years, are permitted to remain as trustees provided they attend training on 

ERISA fiduciary responsibilities. 

The retirement, health, scholarship, apprenticeship and vacation 

and holiday funds cover more 

than 2,000 participants employed 

throughout Northern California. 

This case was investigated by the 

Labor Department's Employee 

Benefits Security Administration 

(EBSA) of the San Francisco Regional Office. 

to protect working men and 

women." 

The Susan Harwood Grants support workplace safety and health 

programs and the development of 

training materials to educate employees in high-hazard industries, 

those with limited English proficiency, those who are hard-toreach, those in industries with 

high fatality rates and small business employers. 

The grants support training programs to educate employees on 

targeted topics such as construcThe U.S. Department of Labor's 

Occupational Safety and Health 

Administration (OSHA) awarded 

more than $10.1 million in 

Susan Harwood Training Grants 

to 55 nonprofit organizations for 

safety and health training and 

educational programs. 

"Outreach and education are at 

the heart of our compliance assistance efforts for employers 

and employees," said Assistant 

Secretary of Labor for OSHA 

Edwin G. Foulke Jr. "The Harwood grants will help OSHA expand its educational resources 

tion hazards, general industry 

hazards and other safety and 

health topic areas including pandemic flu and driver safety. 

The training grants are named in 

honor of the late Susan Harwood, 

a former director of the Office of 

Risk Assessment in OSHA's Health 

Standards Directorate, who died 

in 1996. During her 17-year tenure with OSHA, Harwood helped 

develop OSHA standards to protect employees exposed to bloodborne pathogens, cotton dust, 

benzene, formaldehyde, asbestos 

and lead in construction. 

U.S. Labor Department Awards $10.1 Million for Safety and Health Training Grants 
“The Labor Community’s Source for Department of Labor News” Page 5 

Secretary of Labor Elaine L. 

Chao today announced 94 

grants, totaling nearly $27 million, to provide approximately 

17,000 veterans with job training to help them succeed in civilian careers. The grants are 

being awarded under the U.S. 

Department of Labor's Veterans' 

Workforce Investment Program 

(VWIP) and Homeless Veterans 

Reintegration Program (HVRP). 

"These $27 million in grants will 

help more than 16,000 veterans 

access the resources they need 

to find good jobs and build a 

bright future for themselves and 

their families," said Secretary 

Chao. 

Funds are being awarded on a 

competitive basis to state and 

local workforce investment 

boards, local public agencies 

and nonprofit organizations, including faith-based and community organizations. The recipients are familiar with the areas 

and populations to be served 

and have demonstrated that 

they can administer effective 

programs. 

More Than 16,000 Veterans to Benefit from $27 Million in Job Training Grants 

More than $6.7 million will support 12 VWIP grants to help veterans from targeted groups overcome employment barriers and 

ease their transition into nonsubsidized jobs. Through this 

program, veterans receive skills 

assessments, individual job counseling, labor market information, 

classroom or on-the-job training, 

skills upgrading and retraining, 

placement assistance and crucial 

follow-up services. The Labor Department's Veterans' Employment 

and Training Service (VETS) expects these grants to provide 

training for more than 3,800 veterans who may also be eligible for 

services through other Workforce 

Investment Act programs for economically disadvantaged or dislocated workers. 

To assist homeless veterans with 

reintegration into America's workforce, the Labor Department is 

awarding more than $20 million in 

82 HVRP grants. These funds are 

being distributed nationwide 

through 35 newly competed 

grants and 47 current grants receiving second- and third-year 

funding. Homeless veterans may 

receive occupational, classroom 

and on-the-job training, as well as 

job search and placement assistance, including follow-up services. VETS expects these funds 

to help more than 12,600 veterans. HVRP is the only Federal 

program that focuses exclusively 

on employment of veterans who 

are homeless. 

The HVRP grants include two cooperative agreements that will 

assist in developing the HVRP National Technical Assistance Center. The Center will: provide 

technical assistance to current 

grantees, potential applicants and 

the public; gather grantee best 

practices; conduct employmentrelated research on homeless veterans; conduct regional grantee 

training sessions and selfemployment boot camps; and 

perform outreach to the employer 

community to increase job opportunities for veterans. 

Grantees under both programs 

network and coordinate their efforts with various local, state and 

Federal social service providers. 

states will help workers access 

skills training, job search assistance and relocation services to 

build new careers in high growth 

industry sectors," said Secretary 

Chao. 

The funds were drawn from remaining fiscal year 2007 resources which have been maintained in a reserve account set up 

Secretary of Labor Elaine L. 

Chao today announced the release of more than $44 million 

to assist states in providing career training as well as job 

search and relocation assistance 

to U.S. workers who lost their 

jobs for reasons related to 

trade. 

"This $44 million targeted to 15 

in fiscal year 2004 by the U.S. 

Department of Labor under the 

Trade Adjustment Assistance 

(TAA) program. The Department 

is releasing the $44 million remaining to 15 states that reported expenditures over 50 percent of available funds in FY 

2007, and requested information 

systems upgrades will go forward 

(See Trade Adjustment, pg. 7) 

U.S. Department of Labor Releases $44.1 Million to States for Trade Adjustment Assistance 
“The Labor Community’s Source for Department of Labor News” Page 6 

On Wednesday, September 5, 

Secretary Elaine L. Chao toured 

and delivered remarks at the 

Port of Houston. The Secretary 

visited the Port of Houston to 

pay tribute to the strong partnerships there between employers, workers and unions. 

As part of the visit, Secretary 

Chao was led on a tour of the 

Port and held a press conference with James T. Edmonds, 

Chairman of the Port of Houston 

Authority, and representatives 

of the West Gulf Maritime Association and the Seafarers International Union. 

The Secretary highlighted the 

working relationship between all 

stakeholders at the Port of 

Houston. “The cooperation and 

Secretary Chao Pays Tribute to Houston Port Workers 

partnership amongst workers, 

employers, unions and associations has made the Port an engine 

of growth and jobs for this community. The Port of Houston generates thousands of jobs and tremendous economic growth for the 

region and the Texas economy. 

During 2006, the Port of Houston 

contributed $117.6 billion to the 

state's economy. This is a tribute 

to the strong partnerships between employers, workers and 

unions at this Port,” Secretary 

Chao said. 

According to the International 

Shipping Federation, over 90 percent of world trade is moved by 

water. U.S. foreign trade has 

grown at more than twice the rate 

of overall U.S economic growth 

over the last 

four years. Exports contributed nearly a 

full percentage 

point to the 4-

percent Gross 

Domestic Product growth in 

the 2nd quarter. 

The waterborne 

segment increased by 58 

percent last 

year. In 2006, 

waterborne 

trade represented 9.7 percent of U.S. 

GDP, up from 

7.4 percent in 

2003 according 

to the Commerce Department’s Bureau 

of Economic Analysis. This is one 

of the reasons why U.S. ports are 

so important to the economy. 

As the former Chairman of the 

Federal Maritime Commission, 

Deputy Secretary of Transportation and the Deputy Maritime Administrator at the Department of 

Transportation, Secretary Chao 

has a longtime interest in the 

health of our maritime industry. During her visit she stressed 

the importance of educating and 

training a maritime workforce. 

“As we look to the future, it is important to ensure that workers 

have the education and training 

they need to access skilled, good 

paying jobs at the Port of Houston, such as harbor pilots, longshoremen and able-bodied seamen,” Secretary Chao said. 

Secretary Chao meets with union and business representatives at the Port of Houston. 

(DOL Photo) 
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“The Labor Community’s Source for Department of Labor News” Page 7 

ministration implemented a system for disbursing allocations using a formula that aligns resources with state training needs. 

Seventy-five percent of available 

TAA funds, or $165 million, is 

awarded annually on October 1. 

Remaining funds are reserved for 

those qualifying states that experience large, unexpected layoffs 

during the year. States must 

spend at least 50 percent of their 

initial allocation or otherwise 

demonstrate need before requesting additional funding from the 

reserve account. 

in Colorado, North Carolina, 

Ohio and West Virginia. Over 

the past four years, nearly $179 

million in leftover funds have 

been released to the states for 

aiding trade-impacted workers. 

Funds will be distributed immediately along with initial payments for fiscal year 2008, 

which began October 1. Congress annually has allocated approximately $220 million for 

TAA training. During fiscal year 

2004, the Labor Department's 

Employment and Training Ad-

"Our commitment to the harder 

hit states will ensure that their 

communities can work with employers and educators to return 

their dislocated workers quickly to 

the workforce," said Assistant 

Secretary of Labor for Employment and Training Emily Stover 

DeRocco. "As our nation’s workers strive to succeed in the competitive global economy, it is important that those facing traderelated job loss have access to 

expanded career opportunities." 

Trade Adjustment (Continued from pg. 5)

Secretary of Labor Elaine L. 

Chao Pays Visit to IUPAT 

Training Center in New Orleans 

On August 21, 2007, Secretary 

of Labor Elaine L. Chao visited 

the International Union of Painters and Allied Trades District 

Council 80 training center in New 

Orleans, LA. 

The Secretary got an up-close 

view of apprentices honing their 

skills in drywall finishing, painting and glazing, among other 

crafts. 

(DOL Photo)