New York State Department of Labor - LABOR DEPARTMENT RECEIVES NEARLY $50,000 FOR PREVAILING WAGE VIOLATIONS

Albany, NY (November 29, 2007) - The New York State Labor Department has received $49,698.37 from Schultz Industries, Inc. of Hewitt, Texas as restitution for their subcontractor McCoy Contractors LLC of Perrysville, Ohio after McCoy failed to pay its workers prevailing wage under a public work contract for the Jamestown School District. The case was initiated after a random site visit by investigators from the Buffalo District of the department’s Bureau of Public Work.

A follow-up investigation by the department showed that McCoy had willfully violated prevailing wage provisions of the law. The company brought in workers from Ohio and paid six employees below the prevailing wage for a period of about five months. The company was working on an athletic field bleacher project at Jefferson Middle School in Jamestown, as a subcontractor to Schultz Industries.

The majority of the workers were paid $10 an hour, when the public work rate for for ironworkers and masons is more than three times that amount. Most received $15 for overtime work, rather than the required time and a half. In some cases, the workers also put in hours on Sunday -- which should be paid at double time -- and were not paid at that rate.

“The Labor Department has a deep commitment to protect worker rights, along with the rights of legitimate contractors who perform under the law on public work projects,” said Labor Commissioner M. Patricia Smith.“ We will not tolerate willful exploitation of the public work statutes, with low bidders basing their costs on subpar wages, when New York State firms that bid correctly lose out on the contracts. These violators will absorb the cost of the back pay plus civil penalties.”

Commissioner Smith issued her findings in an order and determination signed in late September, in which she ordered McCoy to make restitution to the State Labor Department for funds the company had underpaid its workers.

Along with the $49,698.37 collected from the company, the State Labor Department has added $1,230.33 in interest and has reimbursed the workers. Additionally, $7,639.31 has also been collected from the company to cover civil penalties.

The prevailing wage law requires that workers on public work projects be paid at rates equal to the wage and benefit rates established under union contracts for the types of work they perform. In this case, the workers were paid without regard to the applicable rates.

The public work projects covered by the law are construction projects performed by private contractors for state or local government to further a public purpose, such as the school construction work in this case.

The department’s Bureau of Public Work inspects construction projects at the state and local levels to make sure that contractors comply with state law covering wages, fringe benefits and hours of work. The bureau has jurisdiction throughout the state except for certain projects in New York City. This case was investigated by Ted Murphy, now retired, Matt Stern and Tim Hoak, all of the department’s Buffalo office.

Contractors that willfully violate the law by failing to pay prevailing wages or benefits twice in six years are barred from bidding on or being awarded public work contracts in New York State for five years. In addition, a contractor will be debarred for five years if the company falsifies payroll records or engages in a wage-kickback scheme even once.

The prevailing wage schedules can be found on the State Labor Department’s web page at
www.labor.state.ny.us/workerprotection/publicwork/PWContents.shtm.



LABOR DEPARTMENT RECEIVES NEARLY $50,000 FOR PREVAILING WAGE VIOLATIONS FROM TEXAS CONSTRUCTION FIRM
Albany, NY (November 29, 2007) - The New York State Labor Department has received $49,698.37 from Schultz Industries, Inc. of Hewitt, Texas as restitution for their subcontractor McCoy Contractors LLC of Perrysville, Ohio after McCoy failed to pay its workers prevailing wage under a public work contract for the Jamestown School District. The case was initiated after a random site visit by investigators from the Buffalo District of the department’s Bureau of Public Work. A follow-up investigation by the department showed that McCoy had willfully violated prevailing wage provisions of the law. The company brought in workers from Ohio and paid six employees below the prevailing wage for a period of about five months. The company was working on an athletic field bleacher project at Jefferson Middle School in Jamestown, as a subcontractor to Schultz Industries. The majority of the workers were paid $10 an hour, when the public work rate for for ironworkers and masons is more than three times that amount. Most received $15 for overtime work, rather than the required time and a half. In some cases, the workers also put in hours on Sunday -- which should be paid at double time -- and were not paid at that rate. “The Labor Department has a deep commitment to protect worker rights, along with the rights of legitimate contractors who perform under the law on public work projects,” said Labor Commissioner M. Patricia Smith.“ We will not tolerate willful exploitation of the public work statutes, with low bidders basing their costs on subpar wages, when New York State firms that bid correctly lose out on the contracts. These violators will absorb the cost of the back pay plus civil penalties.” Commissioner Smith issued her findings in an order and determination signed in late September, in which she ordered McCoy to make restitution to the State Labor Department for funds the company had underpaid its workers. Along with the $49,698.37 collected from the company, the State Labor Department has added $1,230.33 in interest and has reimbursed the workers. Additionally, $7,639.31 has also been collected from the company to cover civil penalties. The prevailing wage law requires that workers on public work projects be paid at rates equal to the wage and benefit rates established under union contracts for the types of work they perform. In this case, the workers were paid without regard to the applicable rates. The public work projects covered by the law are construction projects performed by private contractors for state or local government to further a public purpose, such as the school construction work in this case. The department’s Bureau of Public Work inspects construction projects at the state and local levels to make sure that contractors comply with state law covering wages, fringe benefits and hours of work. The bureau has jurisdiction throughout the state except for certain projects in New York City. This case was investigated by Ted Murphy, now retired, Matt Stern and Tim Hoak, all of the department’s Buffalo office. Contractors that willfully violate the law by failing to pay prevailing wages or benefits twice in six years are barred from bidding on or being awarded public work contracts in New York State for five years. In addition, a contractor will be debarred for five years if the company falsifies payroll records or engages in a wage-kickback scheme even once. The prevailing wage schedules can be found on the State Labor Department’s web page at www.labor.state.ny.us/workerprotection/publicwork/PWContents.shtm. Share: Email More...