Tennessee-Based Corrections Company Pays More Than $8 Million In Back Wages And Benefits

Aug 20, 2014

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The Tennessee-based Corrections Corporation of America is paying back wages and benefits 362 current and former employees of the California City Correctional Center.

The U.S. Department of Labor reports that over a five-year period, CCA paid employees at the 30 to 40 percent less than they were supposed to be paid. The company paid back more than $8 million in back wages and benefits due under contract. Some employees received more than $30,000 in back wages and holiday pay, overtime, and benefits in that settlement.

The Labor Department investigation also found the company didn’t make required contributions to health and life insurance or retirement accounts and violated record-keeping requirements under the Fair Labor Standards Act.

CCA has been forced to settle labor and wage disputes in Kentucky, Kansas, and Idaho, as well.

CCA is the largest private prison company and the fifth-largest prison system in the U.S., housing nearly 80,000 inmates at 60 detention centers in 20 states.