Postal Fleet Defeats Fraud Suit Alleging Underpayment of Wages

Postal Fleet Services Inc. won the dismissal of a whistleblower suit alleging that the surface transportation services contractor for the US Postal Service violated the False Claims Act by not paying adequate wages.

Whistleblower Rodney Stahl alleged that Postal Fleet didn’t compensate employees in accordance with rates required by the Service Contract Act—which says federal contractors must pay service employees no less than the wage rates and fringe benefits prevailing in a locality—and falsely certified to USPS that it did.

But his complaint didn’t adequately allege that Postal Fleet had the requisite intent to defraud, US Magistrate Judge Amanda M. ...