US Labor Department recovers nearly $3M in back wages for workers on federally funded construction projects in New York City

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Larino Masonry Inc. and owners debarred from bidding on federal contracts 

U.S. Department of Labor, Wage and Hour Division
Release Number: 14-2057-NEW, Date: Nov. 25, 2014

NEW YORK — The U.S. Department of Labor has secured $2,904,000 in back wages for laborers and mechanics who worked on federally funded construction projects in four New York City boroughs.

A federal administrative law judge approved a settlement requiring Larino Masonry Inc., based in Newark, New Jersey, to pay $1,945,000 in back wages to workers at projects in Manhattan and the Bronx for violating the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act. In a separate, but related case, Larino also agreed to an order to pay $959,000 to workers at projects in Brooklyn and Queens.

Larino admitted that it failed to pay its workers the legally required prevailing wage, fringe benefits and overtime, and submitted falsified certified payrolls to a contracting agency. In addition to paying back wages, Larino and its company president Juan Luis Larino and vice president Maria Larino have been barred from bidding on federal contracts for the next three years.

“Taxpayers should expect that federal contractors understand their obligations and comply with the law,” said Maria Rosado, director of the Wage and Hour Division’s New York City District Office, which investigated the federally funded projects. “When Larino Masonry or any other employer violates labor laws, they cheat their employees and gain an unfair advantage over employers who obey the law. We will hold them accountable.”

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City dinged on state audit for work with federal grant

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By Cecilia Garza,  Bainbridge Island Review Staff Writer 

Oct 9, 2014 at 1:23PM

According to a recent review by the Washington State Auditor’s Office, the city of Bainbridge Island is not meeting wage requirements set by one of its federal grant programs.

For the most part, the city complied with state laws and its own policies, the report said.

The audit, however, found that Bainbridge did not quite meet the requirements set by a federal grant for highway planning and construction.

The city’s practices “were inadequate to ensure compliance with federal Davis-Bacon Act (prevailing wage) requirements,” the report said.

The Davis-Bacon Act relates to contractors and subcontractors performing federally-funded projects. It requires that laborers employed under the contract be paid no less than the local prevailing wage and fringe benefits that is paid for similar projects in the area.

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Arizona Utility Subcontractor Debarred From Federally Funded Projects

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PHOENIX — The U.S. Department of Labor has recovered $198,085 in back wages for 23 workers employed by Glendale-based Tierra Contracting Inc. for willful violations of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act. Tierra Contracting and its owner, Richard Juarez Sr., also have been debarred from applying for federally funded contracts for a period of three years because of the egregious nature of the violations found.

Investigators with the department’s Wage and Hour Division in Phoenix established that Tierra Contracting failed to pay the required prevailing wage rates and fringe benefits to power equipment operators, water truck drivers, pipe layers, grade setters and laborers working at the federally funded Northern Parkway highway project in Maricopa County. Tierra Contracting routinely submitted certified payroll records that did not accurately reflect the real hours worked by the affected employees. Employees were paid for overtime hours with separate checks, off-the-record and at straight-time rates, without the additional time-and-a-half, as required.

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Prevailing Wage Bill Sent to Appropriations In Unusual Last-Minute Switch

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In a surprise move just before a full House vote Wednesday, a bill to align construction workers’ pay on some state projects with federal wage standards was bumped to another committee.

H.878 would replace Vermont’s prevailing wage statute with the federal Davis Bacon Act. State and federal rules apply only to certain government-funded projects. The law does not affect public construction or private enterprises.

Unions and labor advocates, backed by the Democratic caucus this session, support the switch. They say adopting the federal standard would “level the playing field” for union shops and contractors who pay benefits.

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ACT pickets local health center

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August 24, 2013

By Wendy Holdren Register-Herald Reporter
A group of pickets with Affiliated Construction Trades Foundation were gathered on the roadway outside the Beckley VA Medical Center this week, holding signs that read “Demand Local Jobs for Local Workers.”

Representative Wayne Rebich said his group is concerned that the company hired to build an MRI center and an adult day care center at the VA, Seawolf Construction, is not following the same laws that West Virginia contractors are obligated to follow.

Seawolf Construction is a GSA-approved contractor, according to a representative for the Beckley VA Medical Center, and is based in Jersey City, N.J.

Rebich explained that Seawolf was the lowest bidder for both of the VA projects, so his organization contacted Seawolf to encourage them to hire local subcontractors.

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Three Recent Polls Show Strong Support for Prevailing Wage Policies

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SACRAMENTO, Calif. /California Newswire/ – According to Smart Cities Prevail, three recent polls conducted in California show broad support for prevailing wage policies on both the state and local level. Prevailing wages help create a stable middle class in local communities, strengthening neighborhoods and allowing people to invest in their towns – but they are frequently opposed by out of town special interest groups looking to profit at taxpayer expense.

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