Calexico, California — Federal investigators have recovered more than $1 million for warehouse employees who were underpaid at a cross-border freight operation. The case highlights ongoing concerns about wage theft in industries that rely on vulnerable labor. Authorities say the settlement aims to restore lost earnings and reinforce compliance with U.S. labor laws.
Federal Investigation in Calexico Reveals Wage Theft at Freight Warehouse
The U.S. Department of Labor concluded a federal investigation into Expresso Forwarding Inc. and its affiliate, Agencia Aduanal Esquer Luken S.C., after discovering that 24 warehouse workers were denied lawful wages.
According to investigators, employees crossed from Mexico to work at the company’s Calexico warehouse. They were paid in Mexican pesos at rates as low as $2.03 per hour, well below the U.S. minimum wage.
Authorities also found the workers were not compensated at the legally required overtime rate for hours exceeding 40 per week. Following negotiations with the Department of Labor’s Office of the Solicitor, the company agreed to a $1.08 million settlement covering back wages and damages.
Payments will be made through a plan running from January to December 2026.
Federal Wage Laws and Protections Against Wage Theft
Cases like this illustrate how wage theft can occur when employers fail to follow federal labor standards. Workers performing duties in the United States are generally protected by the Fair Labor Standards Act (FLSA), regardless of where the company is headquartered.
Key protections include:
- Minimum wage requirements: Employees must receive at least the federal minimum wage for all hours worked in the U.S.
- Overtime pay: Workers are typically entitled to 1.5 times their regular pay after 40 hours in a workweek.
- Accurate wage payment practices: Paying workers in foreign currency or through other methods that reduce wages below U.S. standards may violate labor laws.
- Legal remedies for wage theft: Employees may recover unpaid wages, additional damages, and other relief through federal or state enforcement actions.
These safeguards are designed to ensure fair competition among employers and protect workers from unlawful pay practices.
Contact an Employment Lawyer for a Free Case Review
When wage theft happens, workers might feel unsure about how to recover unpaid wages or report violations. An experienced employment lawyer from Labor Law Advocates can review pay records, explain legal rights, and assess whether wage-and-hour laws were broken.
If you believe your employer didn’t pay minimum wage or overtime, getting legal advice can clarify your options. Contact us today for a free consultation to find out how we can help protect your wages.
