Labor Department Announces Settlement in Davis-Bacon Violations

The Labor Department's Wage and Hour Division (WHD) recently announced a settlement in a case involving violations of several labor laws.

An electrical contractor performing work for the Army Corps of Engineers has agreed to pay $83 thousand in back wages and fringe benefits to seventeen employees after a Labor Department investigation found that the employer had violated requirements of the Davis-Bacon and Related Acts (DBRA), the Contract Work Hours and Safety Standards Act (CWHSSA) and the Fair Labor Standards Act (FLSA).

Investigators found that the contractor had failed to pay some employees required prevailing wage and overtime rates on a project subject to DBRA requirements by inaccurately classifying those employees as laborers instead of electrician apprentices and subsequently failed to pay them the correct wages.

The investigation further disclosed that the contractor violated the DBRA fringe benefits requirements by claiming that it had made contributions to a 401(k) plan for the benefit of employees when it had not. Additionally, the contractor claimed credit for vacation benefits but failed to meet the criteria required for such credit. Finally, the investigation disclosed that the contractor had falsified "certified payroll" records by claiming contributions to the 401(k) plan that were never made.

This case was classified as an investigation rather than the result of a routine audit which most likely means that the Labor Department was tipped off on possible DBRA violations. You can read the full Labor Department press release here.