Friday, April 19, 2019

McKesson to Pay $1.6M to Correct Pay, Benefits Infractions

Posted By on Fri, Apr 19, 2019 at 10:06 AM

click to enlarge MCKESSON CORP./FACEBOOK
  • McKesson Corp./Facebook

A drug distributor with facilities in Memphis will pay more than $1 million to employees after the company discovered it was not paying the mandated prevailing wage and reported itself to federal authorities, according to the U.S. Department of Labor

McKesson Specialty Distribution, a California-based distributor for a federally funded children’s vaccine program, discovered it was not paying employees the prevailing wage rates mandated by federal law. As wage rates were off, overtime rates were off, too. The company also failed to pay the required fringe benefits to employees working on the federal contract.

McKesson will pay more than $1.6 million in back wages and fringe benefits to 515 employees. The company contacted the U.S. Department of Labor’s Wage and Hour Division after it discovered the issue.
“McKesson Specialty Distribution made every effort to correct violations once they identified their errors,” said Wage and Hour Division District Director Nettie Lewis, based in Nashville. “The U.S. Department of Labor encourages all employers to review their pay practices and contact the Wage and Hour Division for compliance assistance.”

Incorrect pay was given to employees at McKesson’s facilities in Aurora, Colorado, La Vergne, Tennessee, and Memphis.

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