US Department of Labor recovers more than $1M in back wages, damages for 24 warehouse workers denied minimum wage, overtime pay

News Release

US Department of Labor recovers more than $1M in back wages, damages for 24 warehouse workers denied minimum wage, overtime pay

CALEXICO, CA - The U.S. Department of Labor has reached a settlement agreement with a Calexico-based freight and cargo service company after a federal investigation found the employer denied minimum wage and overtime pay to 24 workers, in violation of the Fair Labor Standards Act.

The agreement follows an investigation by the department's Wage and Hour Divisionthat found Expresso Forwarding Inc. and its affiliate, Agencia Aduanal Esquer Luken S.C., employed customs brokerage warehouse workers who traveled from Mexico to work at the company's U.S. warehouse. The employers paid the workers in Mexican pesos at rates that equaled as little as $2.03 per hour, in violation of federal wage requirements. The investigation also found that workers were not paid required overtime rates for hours worked over 40 in a workweek.

"Employers operating in the U.S. must understand that regardless of where they are headquartered, workers who perform work on this side of the border must be paid in accordance with U.S. labor laws," said Wage and Hour Division Administrator Andrew Rogers. "When a company pays wages in Mexican pesos that fall well below the U.S. minimum wage, it creates an unfair advantage over law-abiding employers and discourages U.S. workers from competing for those jobs. The Department of Labor will continue to use all legal avenues to ensure compliance in this industry."

After negotiations with the Office of the Solicitor, the employer entered a settlement agreement with the department to pay $1.08 million in back wages and damages to the 24 employees and agreed to comply with the FLSA. Expresso Forwarding Inc. agreed to a payment plan scheduled from Jan. 15, 2026, to Dec. 15, 2026.

Over the last five years, the department's Wage and Hour Division has recovered more than $4.8 million in back wages for more than 3,700 warehouse workers.

The FLSA requires that most employees be paid overtimeat time and one-half their regular rate of payfor hours worked over 40 in a workweek.

Employers and workers can call the division with questions and requests for compliance assistanceat its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency's industry-specific compliance assistance toolkitsto learn about their responsibilities under the laws enforced by the division. The agency's PAID programoffers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search toolto use if you think you may be owed back wages collected by the division. Download the agency's free timesheet appfor iOS and Android devices to track hours and pay.

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