Monday, July 11, 2016

US Labor Department recovers $147K in back wages for 21 Ohio trade workers employed under federal contract


JULY 11, 2016

CINCINNATI, Ohio – Pipefitters and bricklayers constructing the Viking Village Shared Facility Pool in Sharonville under a federal contract will recover a total of $147,000 in back wages and benefits following an investigation by the U.S. Department of Labor’s Wage and Hour Division.

Federal investigators found Gall Construction of America LTD underpaid the workers up to $17 per hour in salary and benefits, and violated provisions of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act, which govern wage rates for projects receiving federal funds. The company operates as Acapulco Pools.

The division determined the company classified 21 bricklayers and pipefitters as general labors and failed to pay prevailing wages, fringe benefits and overtime at the rate due for their job titles. Gall also failed to keep accurate time and payroll records for employees. To resolve these violations the company agreed to pay the workers the monies owed in back wages and benefits.

“When companies fail to follow the guidelines to which they agree when bidding a federal contract, they gain an unfair advantage,” said George Victory, director of the Wage and Hour Division’s Columbus District Office. “The payment of these hard-earned back wages will make a big difference in the lives of these workers and their families.”

The pool construction was funded by The American Recovery and Reinvestment Act.

Gall Construction was the project’s prime contractor. The Canadian company is based in Kitchener, Ontario.

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. On a DBA project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors

The CWHSSA applies to federal service contracts and federal and federally assisted construction contracts over $100,000. These require contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rates of pay for all hours worked over 40 in a workweek.

For more information about the DBA, the CWHSSA and other federal laws, contact the Wage and Hour Division’s Columbus District Office at 614-469-6944 or call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.
WHD News Release:
07/11/2016