Willcox company to payout nearly 1 Million to workers

A Willcox company will pay nearly 1 million dollars to workers in a settlement announced today by the U.S. Department of Labor.

An investigation into Eurofresh Inc. company practices found various violations related to hiring temporary, non-immigrant foreign farm workers under the H-2A temporary worker program. "The back wage payments for these workers are the result of significant effort to ensure all workers are treated properly when employers participate in this temporary worker program," said Secretary of Labor Hilda L. Solis. "Employers who participate in the H-2A program should make certain that their workers are treated fairly. It's not only the right thing to do, it's the law."

The agreement settles claims for back wages and interest that arose from the Labor Department's investigation and follows proceedings resulting from a Chapter 11 bankruptcy filing by Eurofresh last April.

Eurofresh paid $550,000 to the U.S. Department of Labor last week after establishing the effective date for its bankruptcy plan as Nov. 18.

The balance will be paid in two subsequent payments due in September 2010 and 2011, bringing the total amount, including a $12,500 civil money penalty, to $949,960. This total includes $245,482 which is equal to five percent of the $4,909,644 unsecured back wages determined owed during the Labor Department's investigation.

This is the same percentage Eurofresh will pay all unsecured creditors under its Chapter 11 reorganization plan.

The Labor Department will distribute back wage payments to 587 eligible workers.