“Contractors bid on government-funded contracts knowing their responsibilities. Failing to pay employees for work performed is unacceptable,” said George Victory, director of the Wage and Hour Division’s Columbus District Office. “When working on a federally funded project, financed by taxpayers’ money, this is inexcusable. This case should serve as a warning to other contractors performing work on these projects. Prime contractors need to be aware of the actions of all layers of contractors below them. When a subcontractor fails to comply, the prime contractor bears full responsibility.”
The employees completed approximately nine weeks of work on the contract without receiving pay. Contract Support Services was subcontracted to perform demolition work. Bamko LLC, the prime contractor on the project, paid the unpaid wages totaling $52,005 to the 10 employees. On a project subject to DBA requirements, the prime contractor is responsible for the compliance of all subcontractors. Contract Support Services had submitted falsified payroll records to Bamko showing payment of proper wages.
The Government Accountability Office has entered the debarment. Contract Support Services will not be allowed to compete on a federally funded contract for a minimum of three years. The company claimed they underbid the contract and did not have funds to pay the workers; it did not contest the debarment.
Contract Support Services was investigated by the division in 2011 and was found to have had similar violations of the DBA. As a result of the investigation, the prime contractor on that project paid 14 Contract Support Services workers $36,240 in back wages.
The DBA requires all contractors and subcontractors performing work on federal and certain federally funded projects to pay their laborers and mechanics the proper prevailing wage rates and fringe benefits, as determined by the secretary of labor. For more information about the DBA and other federal laws, contact the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.
Source: DOL
This information is intended to be
educational and should not be considered legal advice on any specific matter.
