The Department of Justice is preparing to file suit against a Nevada manufacturer of air conditioning equipment, saying the company is violating federal laws on wage theft and unfair labor practices.
According to a Justice Department filing, the company, Air-conditioning Solutions Inc., is violating the Fair Labor Standards Act (FLSA) by not paying its air conditioning technicians the minimum wage that is set by the federal government.
The DOJ said that Air-Conditioning Solutions’ air conditioner technician program is “one of the largest and most highly regulated employment programs in the country,” but that it “does not meet minimum wage standards.”
The filing comes as Tesla has been facing increasing pressure from labor unions and other business groups for the company to pay its air conditioners at least $1.25 an hour, and for other issues, including wage theft.
In February, the Consumer Federation of America issued a call to boycott Tesla for paying air conditioning technicians less than the federal minimum wage of $7.25 per hour.
Tesla has denied that it pays workers less than minimum wage.
The company said it has also hired “several thousand” new air condition and other workers in the past two years.
It has said that air condition jobs can pay up to $10 per hour, but some air condition technicians make between $6.50 and $8.50 per hour and are paid overtime.
In an interview with CNNMoney, Elon Musk said the company was not doing any of this intentionally and was simply following a policy set by its union.