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Company must pay $600,000 for underpaying staffing firm workers

January 04, 2019

A staffing client in Pennsylvania must pay in $598,366 in back wages, damages and penalties after underpaying workers, the US Department of Labor reported Thursday.

The consent judgement involves 556 current and former employees and was against Fox Bindery Inc. and its owner Henry Fox. The company is based in Lansdale, Pa.

Fox Bindery brought in temporary workers from staffing firms to fill laborer positions, but knowingly failed to pay the workers for time worked in excess of 40 hours per week, according to the Department of Labor. It also knowingly paid workers less than the minimum wage of $7.25 per hour. The agency said Fox Bindery did not make an effort to determine if the employees were properly paid despite receiving detailed invoices from the staffing firms.

“The use of temporary staffing agencies by Fox Bindery Inc. does not excuse its responsibility to comply with federal wage and hour regulations,” said Wage and Hour District Director James Cain, in Philadelphia.