Business touted in Ducey's speech is chronic wage-law violator, according to feds

During his State of the State address Monday, Gov. Doug Ducey highlighted a business sued by the U.S. Department of Labor for being a "chronic offender" of wage violations.

In a passage spotlighting a man who was released from prison, turned his life around and now trains inmates to become electricians, the governor saluted Toby Thomas, the president of Austin Electric, a private-sector partner in "giving people a fresh start and a real second chance."

MORE:With re-election looming, Ducey sought to make no waves with speech

A gubernatorial spokesman wrote in an email to The Arizona Republic that staffers "were not aware" of the company's run-in with federal labor officials.

A simple Google search of the company name and "Department of Labor" resulted in a 2016 Labor Department news release that said Austin Electric violated wage laws "three times in five years."

The department filed a complaint in U.S. District Court for the District of Arizona against the company and Thomas after wage and hour division investigators found it "willfully and repeatedly" violated the Fair Labor Standards Act's provisions on overtime and record-keeping.

"The latest investigation marks the third time in the past five years the department has found this employer in violation of federal labor laws," the 2016 release said.

Federal officials also alleged the company knowingly provided U.S. officials with falsified records and that managers told electricians who worked between 45 and 70 hours each week to record 40 hours or less on time sheets.

Federal officials sought overtime back wages and an equal amount in liquidated damages for 200 workers and to prevent the company and its owners from violating the act in the future. 

Jose Carnevali, a spokesman for the Labor Department, said he could not "comment or provide information at this time because litigation remains pending."

A representative for the business did not return a call for comment. 

Follow the reporter on Twitter @yvonnewingett and on Facebook. Contact her at yvonne.wingett@arizonarepublic.com and 602-653-6248.

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