3 Customs Warehouses at San Diego Border Ordered to Pay Over $1.9 Million in Past Pay and Penalties
Three customs warehouses near the San Diego-Tijuana border were ordered to pay more than $1.9 million in past wages and fines after U.S. Labor Department lawyers investigated their employment practices.
According to a news release issued by the US Department of Defense, the companies paid employees who used Tijuana-based affiliates to work from Mexico at their Ote Mesa warehouses, who paid in pesos and $2.50 per hour. Dollar equivalent rate. Labour. This is well below the federal minimum wage of $7.25.
The department also noted that employees were not paid for overtime work.
“Through our enforcement efforts, these San Diego employers have realized they cannot escape federal labor protection because their workers return home across the border at the end of the workday,” said solicitor for Labor Seema Nanda. “We encourage others in this industry to avoid the costly consequences of worker exploitation by paying their workers what they are legally required to do.”
Judge-ordered payments are the result of consent decisions filed in federal court in San Diego.
AGA Investments II Inc., operating as Columbia Export Group, and owner Arturo Ruffo must pay $267,408 in minimum wage and $648,269 in overtime to 60 employees as well as $34,958 in penalties.
OMG Freight Forwarders, OMG Global Logistics and owner Oscar Meyer must pay 31 employees $233,141 in minimum wage and $588,932 in overtime. They will also pay $10,921 as a penalty.
Atlas Freight Forwarding Inc. 13 employees were ordered to pay $111,584 in minimum and overtime back pay and $10,790 in penalties.
AGA Investments II Inc., along with Mexico-based counterpart PDSA, said in a joint statement that they chose to resolve the matter without litigation, but that they “do not believe that citizens of Mexico who are employed by a Mexican entity and cross the border automatically.” from and are essentially covered by US wage and hour laws.”
“AGA is a US-based company that employs only US workers,” the statement said. “The AGA complies with all applicable US laws regarding its employees. The Department of Labor (DOL) investigation targeted Mexican customs inspectors, who are Mexican citizens employed by a Mexico-based company (PDSA), some of whom the AGA said. By inspecting goods located in a U.S. warehouse, Mexican customs laws cross the border to comply with Article 54. DOL began targeting the customs broker industry in 2019. These workers are traditionally paid in accordance with Mexican employment laws. which has been an industry practice for over 40 years.
Oscar Mayer, OMG Freight Forwarders, OMG Global Logistics and Atlas Freight Forwarding Inc. did not respond to requests for comment on the situation.
The consent ruling includes an injunction against future U.S. labor law violations.
The Labor Department noted that there was a similar case against Premar Global Warehouse Logistics in 2021.
The department said it works regularly with the Consulate General of Mexico in San Diego on such issues.
“Paying warehouse workers less than minimum wage and failing to pay overtime is an illegal practice that should never be tolerated,” said Mexico’s Consul General in San Diego, Carlos González Gutierrez. “These matters remind all of us, both workers and employers, that once a worker crosses the Mexico-US border, US labor law applies and will be well enforced.”
He encouraged Mexican workers to contact the consulate if they needed support or legal advice.
