US government searching wages in home construction

A spokeswoman for the US Department of Labour confirmed an investigation was under way, but said it was the department's policy not to comment on ongoing cases.

Representatives from several top companies in the home building sector PulteGroup Inc, Lennar Corp, D.R. Horton Inc and KB Home were not immediately available for a comment.

Federal officials told the companies in a letter they were launching an investigation under the Fair Labour Standards Act, which governs matters such as overtime pay, the Wall Street Journal reported on Thursday. It said the officials did not allege any specific violations of law.

One letter viewed by the newspaper instructed the home builder to supply the names, addresses, Social Security numbers, pay rates and hours worked for all employees over the past two years, as well as the names of all contractors hired in the past year. Unions have regularly complained about pay and working conditions in the industry, alleging pay scales below minimum wage and a failure to pay overtime.

The Fair Labour law prescribes standards for wages and overtime pay, which affect most private and public employment.

For non-agricultural jobs, the law also restricts the hours children under age 16 can work and forbids the employment of children under age 18 in certain jobs deemed too dangerous.

Copyright Reuters, 2011