WASHINGTON — Federal regulators on Tuesday announced a settlement with a company that made false claims about its ability to make parts for the United Auto Workers and the National Labor Relations Board.
The settlement also requires that the company create a “compliance plan” to address issues identified by the agency and the NLRB.
The company, Greyline Auto Parts, pleaded guilty in June to seven criminal counts and agreed to pay $7.3 million to the NLR and $2 million to former workers.
The agreement was announced by U.S. Attorney Paul J. Fishman and the Office of the Comptroller of the Currency.
The UAW, which represents auto workers, said in a statement the settlement is a victory for workers who deserve fair compensation.
The agency said it will also “work with the UAW to address any remaining issues identified in the settlement.”
Greyline agreed to a $2.6 million fine, and the company will pay a $1 million civil penalty.
The federal government will pay $3 million toward the workers’ compensation program and $1.4 million toward a worker compensation fund to reimburse the company for workers’ medical bills.
The NLRB said it has not yet determined how much it will be able to recover from the settlement.
The deal requires Greyline to provide workers with information on the “accuracy of its claims, including the accuracy of the claims made by employees, and ensure that the claims are substantiated by a third party,” the agency said in its announcement.
“The company must also ensure that it is properly trained on its claims and its compliance plans,” the statement said.