A Pennsylvania-based federal contractor has been the subject of court action that resulted in a $85k bill to pay back out-of-pocket employees.
JRW Service Group LLC (JRW) was based in Keystone State and owned by Jason Winters. It was alleged to have failed to pay prevailing wages, fringe benefits, and overtime pay to employees working on multiple federal construction projects.
“This decision and debarment should make clear that the U.S. Department of Labor will pursue all necessary legal actions to ensure that employers are held accountable when they violate federal prevailing wage laws,” said Regional Solicitor of Labor Jeffrey S. Rogoff in New York.
The case was referred to the Labor Department’s Office of the Solicitor when JRW Service Group refused to pay the workers’ back wages. The Hours and Wage Division’s New York City District Office conducted the investigation.
Federal contractor to pay back to employees
Three worksites included ongoing labor and construction for the U.S. General Services Administration and the U.S. Coast Guard. It was alleged that the company and Winters violated the Davis-Bacon Act by “classifying and paying six workers as laborers improperly when they did the work of carpenters, pipefitters, and other trades.”
The locations involved in the case included multiple federal court buildings in Brooklyn and Central Islip and the U.S. Coast Guard training center in Cape May, New Jersey.
The presiding judge also discovered that Winters and JRW failed to pay employees the required overtime rates for hours over 40 in a workweek at all three worksites, violating the Contract Work Hours and Safety Standards Act.
JSW and Winters are now disbarred from working on future federal and federally-funded construction projects for three years.
“Employers who fail to pay required prevailing wages and fringe benefits because they classify employees improperly cause financial harm to workers on government-funded projects,” said Wage and Hour Division District Director Jorge Alvarez in New York. “The Wage and Hour Division is committed to ensuring that these employees are made whole using all available enforcement tools.”
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