Aug. 25—The U.S. Department of Labor has alleged that a federal contractor hired to complete renovations at the Frederick National Laboratory for Cancer Research at Fort Detrick failed to pay workers properly.

The department obtained a temporary restraining order and preliminary injunction to prohibit JAG Contractors and its owners from "retaliating against former and current employees who cooperate with an investigation by the department's Wage and Hour Division," according to a U.S. Department of Labor news release issued Tuesday.

JAG Contractors, based in Alexandria, Virginia, is owned by Jose Guzman, the release said.

The division's probe began in February.

JAG was contracted to build two federally funded projects in Maryland — the cancer lab at Fort Detrick and the Centers for Medicare and Medicaid Services site in Windsor Mill.

"JAG Contractors, [Inc.] was a second-tier contractor to Leidos Biomedical Research, which currently holds the contract to operate the Frederick National Laboratory for Cancer Research," Mary Ellen M. Hackett, a spokesperson for the national lab, wrote in an email Wednesday. "In its management of a building refurbishment, Leidos Biomedical hired a construction contractor, which, in turn, retained JAG for interior renovations, such as drywall and acoustic ceiling work."

Attempts by the News-Post to reach Guzman by phone Tuesday were unsuccessful.

His attorney, Bryan Short, wrote in an email Thursday that they believe the Department of Labor (DOL) has "mischaracterized" the court proceedings in its press release.

"We will ask the court to cause the DOL to correct the erroneous statements in their press release. JAG Contractors, Inc. denies the allegations made by the DOL and will mount a rigorous defense as it believes that the allegations made by the DOL are without merit," Short wrote.

The company and its owners "failed to pay workers on the projects all wages as required for all hours worked in violation of the Davis-Bacon Act and the Fair Labor Standards Act," according to investigators, the release said.

The division further alleges JAG either terminated or reassigned employees who complained to management about their pay or who cooperated with the investigation. JAG allegedly tried to obstruct the investigation by "falsifying documents, making intimidating statements about workers' immigration status, and directing employees not to report to work on the day investigators interviewed employees," according to the release.

The department, in court documents, sought an order to permanently prevent JAG and its owners from further retaliation or other activity that would violate the Fair Labor Standards Act.

An online court document filed Wednesday stated the parties have until the close of business Aug. 29 to file objections.

"Workers have the legal right to question their employer's pay practices, submit a complaint and to take part in a federal investigation without fear of reprisal," Wage and Hour Division District Director Alfonso J. Gristina in Wilkes-Barre, Pennsylvania, said in the release. "When there are doubts about an employer's compliance with federal wage and hour laws, we will intervene to ensure that employers respect their workers and their rights."

According to the release, by court order, JAG and its owner "cannot retaliate or discriminate against any current or former employee who files a complaint, sets any FLSA proceeding in motion, or who testifies or is waiting to testify in any proceeding. The employer must also post and provide employees with a notice of their FLSA rights."

"Workers must be able to come forward and share their concerns about their pay without fearing that their employers will take actions against them," Regional Solicitor Oscar L. Hampton III in Philadelphia said in the release. "The Department of Labor's ability to investigate and enforce federal wage and hours depends on the willingness of workers to speak freely. We will take swift action against those employers who seek to prevent and punish employees who exercise their rights."

The division's district office in Wilkes-Barre, Pennsylvania conducted the original investigation. The department's regional Office of the Solicitor in Philadelphia is litigating the case.

Follow Mary Grace Keller on Twitter: @MaryGraceKeller

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