SAN DIEGO, CALIFORNIA – Since 2021, the U.S. Department of Labor has noted a concerning rise in wage theft by warehouse and logistics companies operating near the Mexico border.
This troubling trend has been confirmed through three recent investigations in San Diego, resulting in a wage recovery of nearly $840,000 for 32 employees. In some instances, workers were paid less than $3 per hour.
The Wage and Hour Division determined that Ruffo de Alba Forwarders LP, SAI Logistics Exports Inc., and Moving Technologies of America Inc. willfully violated several provisions of the Fair Labor Standards Act (FLSA).
These companies paid their workers less than the minimum wage and failed to adequately compensate for overtime hours.
Ruffo de Alba Forwarders LP, a cross-border logistics and transportation company, did not pay the federal minimum wage of $7.25 per hour and denied overtime pay to workers who crossed the border for work. In some cases, employees received the equivalent of $3.27 per hour in Mexican pesos.
As a result, the department obtained a consent judgment in the U.S. District Court for the Southern District of California, ordering the company and its owner, Andrés Ruffo, to pay $222,899 in back wages and an equal amount in damages, totaling $445,798.
Additionally, the company must pay $8,645 in penalties and hire an independent entity to conduct annual FLSA training.
SAI Logistics Exports Inc., specializing in cross-border freight transportation, also failed to meet federal minimum wage and overtime pay requirements.
Mexican workers received as little as $3.86 per hour in Mexican pesos. A consent judgment required SAI and its agents to pay $318,249 in back wages, damages to 13 workers, and $8,645 in penalties. The company must also hire an independent entity to provide annual FLSA training.
Moving Technologies of America Inc., a subsidiary of Vadeto Group LLC, paid its employees in Mexican pesos, with some workers receiving as little as $2.77 per hour.
The department’s investigation resulted in the recovery of $75,132, including back wages and damages for five employees, and a $3,324 penalty. Previously, in 2020, the division recovered $12,225 for four workers from this company for failing to pay required overtime.
The U.S. Department of Labor is committed to protecting the labor rights of all workers in the country, particularly those in the warehouse and logistics industry along the southern border.
Marc Pilotin, Regional Solicitor of Labor in San Francisco, emphasized the department’s ongoing efforts to ensure compliance with federal minimum wage and overtime guarantees.
To address these violations, the department has closely collaborated with the Consulate General of Mexico in San Diego.
Min Park-Chung, District Director of the Wage and Hour Division, urged companies along the border to respect U.S. labor laws and warned of the consequences of exploiting Mexican workers with illegal wages.
The Consul General of Mexico in San Diego, Alicia G. Kerber-Palma, urged workers to report any labor abuses without fear of retaliation. Employees can contact the consulate for additional support, consular protection, or legal advice by calling 619-231-3847 or emailing [email protected].
