AZ contractor ordered to pay $48K in worker misclassification case

Posted by National Alliance for Fair Contracting on

By Kim Slowey
July 28, 2016

Dive Brief:

  • The U.S. Department of Labor has ruled that Arizona homebuilder DCO Custom Builders must pay $48,000 in back wages and penalties for misclassifying workers as independent contractors and not paying employees at overtime rates when required – in violation of the Fair Labor Standards Act, according to the Arizona Republic.
  • The DOL investigated DCO for two years and ordered the contractor to pay 31 employees $24,255 in unpaid overtime, additional penalty wages and restitution in the amount of $4,604.
  • Despite DCO’s actions, a DOL spokesman said the company is now in compliance with fair labor standards, and DCO managing owner Daniel Osete said the company was unaware it was violating a law and has taken internal measures to make sure the same situation doesn’t happen again.

Dive Insight:

Eric Murray, director of the DOL’s Phoenix Wage and Hour Division office, said misclassifying workers as independent contractors “cheats” employees and taxpayers alike. Murray told the Arizona Republic, “As this outcome shows, we are committed to protecting the rights of construction workers and will use every tool available to hold employers accountable.”

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PA military contractor pleads guilty in $1.4M fraud case

Posted by National Alliance for Fair Contracting on

By Kim Slowey
August 18, 2016

Dive Brief:

  • A Pennsylvania contractor has pleaded guilty to fraud and to receiving kickbacks in connection with $1.4 million in losses at two New Jersey military facilities, according to the Times Leader.
  • Prosecutors allege that while managing military construction work, James Conway awarded his own company subcontracts for services that were never performed or only partially completed and concealed the fact that he owned the company by using an alias to sign project paperwork.
  • Authorities also maintain that Conway took more than $180,000 in kickbacks from other subcontractors in exchange for “favorable treatment.” .

Dive Insight:

A U.S. District judge ordered Conway to make full restitution, but he still faces up to $500,000 in fines and a maximum prison sentence of 30 years.

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Loretto Man Gets 22 Months For Lying About Employee Wages

Posted by National Alliance for Fair Contracting on

March 3, 2015 3:26 PM

 

 

MINNEAPOLIS (WCCO) – A 52-year-old Loretto man was sentenced Tuesday in U.S. District Court to nearly two years federal prison for lying about employee wages for a company that assisted with state highway and road construction projects.

Jeffery John Plzak was ordered to serve 22 months in prison, pay $240,000 in restitution along with a fine and will be on one year of supervised release after serving his term. He pleaded guilty to one count of false statements on July 8, 2014.

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Construction boss convicted of not paying fair

Posted by National Alliance for Fair Contracting on

1:23 PM, NOVEMBER 20, 2014 

Attorney General Eric T. Schneiderman today announced the conviction and sentencing of Leonid Fridman for failing to pay legally required wages to his workers on a Port Authority of New York and New Jersey construction project.

Fridman pled guilty to the felony crimes of grand larceny in the second degree and violation of prevailing wage requirements of New York State Labor Law.  As a condition of the plea, Fridman agreed to pay $200,000 in restitution to underpaid workers and prohibition from working on public works projects for five years.  Fridman was sentenced to five years of probation.

“Mr. Fridman is being held accountable for stealing wages from workers who renovated parts of JFK,” Attorney General Schneiderman said. “My office will continue to take strong action, including filing criminal charges, against employers who violate New York’s labor laws, steal taxpayer dollars and violate the public trust.”

Based upon court filings and statements in court, Fridman, 60, owned and operated Millennium Commercial Corp., a Brooklyn-based company that performed tile work.

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