Date: February 9, 2015
U.S. Department of Labor
Wage and Hour Division
Release Number: 14-2268-SAN
SAN FRANCISCO — An investigation by the U.S. Department of Labor’s Wage and Hour Division discovered that Napa-based Avcon Constructors Inc. did not make timely benefit plan payments on behalf of 19 employees working at the San Francisco Veterans Affairs Hospital and the Training Exercise Warehouse at Fort Hunter Liggett. Employees on these projects were working on federally financed contracts subject to Davis-Bacon and Related Acts regulations. The DBRA requires that contributions to funds for bona fide fringe benefits must be made at least quarterly.
“Taxpayers have the right to expect that federal contractors understand their obligations and comply with the law,” said Susana Blanco, director for the department’s Wage and Hour division in San Francisco. “The department works to ensure workers are paid proper wages and benefits in a timely manner. The agency will take action to recover payment when workers are denied their rightful compensation. We do so to create a level playing field for employers, ensuring those who shortchange workers do not gain a competitive advantage.”