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Labor Department Recovers Back Wages From Federal Contractor

LOUISVILLE, KY — A Kentucky-based non-residential construction company and federal contractor recently agreed to pay back hundreds of thousands of dollars in wages to workers in order to resolve claims that the company broke federal labor and wage laws. Under the terms of the settlement, B&F Contracting Inc. agreed to pay $213,282 to seven employees and institute internal reforms to ensure the company complies with wage laws for employees working on future federal contracts.

An investigation by the Department of Labor’s Wage and Hour Division found B&F Contracting Inc. violated the Davis-Bacon and Related Acts (DBRA) by paying employees less than the prevailing wages required by law, and failing to provide required fringe benefits. Furthermore, federal investigators determined that the company violated the Contract Work Hours and Safety Standards Act (CWHSSA) by not paying workers overtime and keeping accurate payroll records.

“We are committed to providing information to federal contractors on their legal responsibility to pay prevailing wages and fringe benefits,” said District Director John DuMont, in Pittsburgh. “The resolution of this case helps to level the playing field for federal contractors who play by rules and must not be underbid by those who do not.”

To prevent future wage theft from occuring, B&F Contracting Inc. also agreed to hire a CPA to ensure compliance with the DBRA and to provide the Labor Department with copies of certified payroll records and time records twice a year for the next year. Should the company commit any future violations of the DBRA, it will be banned from bidding on any future government contracts.

Under the DBRA, contractors working on federal projects over $2,000 must pay laborers and mechanics no less than the prevailing wage for the worker’s industry on similar projects. Like the Fair Labor Standards Act (FLSA), the CWHSSA creates a 40-hour work week for laborers on federal contracts and requires workers earn one and a half times their average hourly rate of pay for overtime hours.

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