California Logistics Companies Made To Pay Back Employees for Under Priced Wages

Three logistics companies operating near the U.S.-Mexico border in San Diego have been ordered to pay a total of $840,000 in under priced wages and fines following investigations by the U.S. Department of Labor. The violations, which targeted workers paid well below the federal minimum wage, highlight ongoing issues of wage theft in the cross-border logistics sector.

Overview of Violations

The Department of Labor’s Wage and Hour Division identified significant wage violations at Ruffo de Alba Forwarders LP, SAI Logistics Experts Inc., and Moving Technologies of America Inc. These companies, specializing in customs brokerage and freight forwarding, were found to have underpaid 32 workers, with some employees receiving as little as $2.77 per hour in Mexican pesos, far below the mandated U.S. minimum wage of $7.25 per hour.

Specific Cases of Under Priced Wages

1. Moving Technologies of America Inc.:

   • Paid workers as low as $2.77 per hour.
   • Attempted to classify workers as independent contractors to evade legal obligations.
   • Fined $75,132 in under priced wages and damages, with additional penalties for repeated violations.

2. Ruffo de Alba Forwarders LP:

   • Paid workers $3.27 per hour in Mexican pesos.
   • Ordered to pay $222,899 in under priced wages and $445,798 in damages, plus penalties.

3. SAI Logistics Experts Inc.:

   • Paid workers $3.86 per hour in Mexican pesos.
   • Fined $318,249 in under priced wages, overtime, and damages, with penalties imposed.

Legal Actions and Responses

The Department of Labor’s investigations also revealed attempts by some companies to obstruct justice and retaliate against employees cooperating with authorities. Moving Technologies of America Inc. faced allegations of retaliatory actions against workers who assisted investigators, prompting a cease-and-desist letter and further penalties.

Industry Impact and Regulatory Response

These cases reflect a broader trend of wage theft within the customs brokerage and logistics industry along the southern border. The Department of Labor has recovered over $5 million since 2021 for similar violations affecting more than 300 workers. The agency remains committed to enforcing federal labor laws and protecting workers’ rights, emphasizing cooperation with the Mexican consulate to educate affected workers on their legal protections.

Looking Ahead

As investigations continue and penalties are enforced, these cases underscore the importance of compliance with labor laws to ensure fair treatment of workers in cross-border logistics operations. The Department of Labor encourages affected employees to report violations without fear of retaliation, reinforcing its commitment to upholding workplace standards.