Former Employees File Class Action Lawsuit Against Delta Sand & Gravel Co. and Babb Construction Co.
Four former employees of Eugene based Delta Sand & Gravel Co. have filed a class action lawsuit against their former employer on behalf of themselves and other current and former employees of Delta and Babb Construction Co. alleging violations of the overtime provisions of the Fair Labor Standards Act, and violations of Oregon Prevailing Wage and Wage and Hour laws.
The lawsuit, filed in the U.S. District Court in Eugene, seeks damages in excess of 3.5 million dollars for alleged repeated and systematic violations of federal and state labor laws. The four-‐count lawsuit alleges a deliberate pattern by Delta and Babb Construction Co. to underpay their employees. The lawsuit also alleges that Delta Sand & Gravel Co., and the closely related Babb Construction Co., engaged in a pattern of unlawful pay practices that resulted in the chronic underpayment of wages to employees of both companies.
Following a 2012 investigation by the Oregon Bureau of Labor and Industries, Delta and Babb paid out over $400,000 to current and former employees for previously earned but unpaid wages. According to the lawsuit, that amount falls far short of what is owed to the employees.
In addition, the Complaint alleges that Delta and Babb took an unlawful fringe benefit credit against wages earned by their employees on prevailing wage projects.