Federal officials confirmed Monday that they are investigating the labor practices of the Atlantic City Housing Authority.

An audit two weeks ago by the U.S. Department of Labor revealed the authority had paid 79 workers less than minimum wage for 16 months, authority Executive Director Richard Fox said Monday.

The department audits entities randomly, as part of a major initiative, or in response to a complaint, according to spokeswoman Leni Forston.

Forston confirmed the investigation Monday but could not release specific details because the case is still open.

The probe, which Fox described as random and routine, prompted the authority to reimburse employees - mostly security staff - on Jan. 22 for the difference between what they should have been paid and actually were paid: 30 cents less than the minimum hourly wage from July 2008 to July 2009 and $1 less from July 2009 to November 2009, Fox said.

During that time, state and federal minimum hourly rates increased from $6.55 to $7.25, according to the Department of Labor Web site.
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