A Philadelphia direct mail and printing company and its staffing providers will pay $1.45 million in back wages and damages following a consent judgment in US District Court, the US Department of Labor announced today.

Direct mail processor ICS Corp., staffing provider New Century Integrity Corp., and New Century’s owner Hokkito Teddy agreed to pay 166 workers $725,583 in overtime wages and an equal amount in liquidated damages.

The investigation found ICS, New Century and Teddy employed the workers jointly and are jointly and severally liable for the damages. Investigators also found that Richy Services Inc., a second staffing agency used by ICS, failed to produce time and payroll records.

An investigation of ICS, and the two staffing companies it retained, found violations of the overtime provisions of the Fair Labor Standards Act from April 2012 to April 2014. Violations included paying some workers in cash at straight time rates for all hours instead of paying overtime when employees worked beyond 40 hours in a workweek, according to the Department of Labor. Other employees provided by New Century received checks for their first 40 hours from ICS. New Century then paid these employees in cash for their overtime hours at rates less than their regular pay, the department said.

“Temporary staffing agencies are valuable contributors to our economy,” said Wage and Hour Division Administrator David Weil. “These agencies should not be used by employers to attempt to avoid their obligations under the law. Those who do will be held accountable, as today’s action shows.”

In addition to back wages and damages, the consent judgment requires ICS to appoint a compliance officer to ensure that the company maintains proper records, and pays temporary workers in compliance with the FLSA.

“Companies that use temporary agencies have a responsibility and duty to pay legally required wages,” said Oscar Hampton, the department’s Regional Solicitor in Philadelphia. “ICS violated the law when it failed to pay its workers the wages they earned. The company cheated its employees and sought an unfair business advantage over competitors that abide by the law.”

The case was investigated by the Wage and Hour Division’s Philadelphia District Office and litigated by attorneys in the Philadelphia Regional Solicitors Office.