A just-released study by the Senate Health, Education, Labor and Pensions Committee says that as many as 30 percent of companies hit with the biggest fines for labor law violations are federal contractors.
According to the findings by the panel chaired by Sen. Tom Harkin (D-Iowa):
• Eighteen federal contractors were recipients of one of the largest 100 penalties issued by the Occupational Safety and Health Administration (OSHA) of the Department of Labor between 2007 and 2012. Almost half of the total initial penalty dollars assessed for OSHA violations were against companies holding federal contracts in 2012.
• Forty-two American workers died during this period as a result of OSHA violations by companies holding federal contracts in 2012.
• Thirty-two federal contractors received back wage assessments among the largest 100 issued by the Wage and Hour Division of the Department of Labor between 2007 and 2012.
• Thirty-five of these companies violated both wage and safety laws.
• Overall, the 49 federal contractors responsible for large violations of federal labor laws were cited for 1,776 separate violations of these laws and paid $196 million in penalties and assessments. In fiscal year 2012, these same companies were awarded $81 billion in taxpayer dollars.
“These findings are deeply troubling,” Harkin said. “Not only are these contractors violating labor laws time and time again, but our federal contracting system has virtually no reliable tools in place to ensure that these violations of the law are ever considered before a contract is awarded.”