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Dive brief:
- The US Department of Labor has recovered more than $1.5 million back wages and damages for 413 workers on construction projects at a naval base in Ridgecrest, Calif., according to a statement.
- Investigations of 35 contractors on federally funded projects at Naval Air Weapons Station China Lake over two years found that the contractors had violated the Davis-Bacon and related laws; the Law on working hours by contract and safety rules; the Service Contract Act and the Fair Labor Standards Act.
- The contractors named in the launch cover the full range of sectors including security, recruitment and construction. The highest-paying offenders were largely subcontractors on two contracts as part of an earthquake recovery program led by Burlingame, Calif.-based Environmental Chemical Corp., a design-build firm, although the general contractor was not cited for any violations and did not have to pay any back wages.
Diving knowledge:
Wage theft and unfair labor practices are a widespread problem in the construction sector. In fiscal year 2023, the DOL recovered more than $35.5 million in back wages for construction workers in 2,134 cases, the highest dollar amount of any industry.
Of the 35 companies listed across various industries for project violations in China Lake, the top construction-related companies ordered to pay the most back wages were:
- Greeley, Colo.-based Hensel Phelps, which paid $184,172 in back wages to 37 workers. According to the statement, Hensel Phelps did not pay prevailing wages, health and welfare benefits or overtime compensation.
- ATCO, a Spring, Texas-based manufacturer of prefabricated wooden buildings that built living units for construction workers, paid seven workers $104,935.21 in back wages. According to the release, ATCO failed to pay prevailing wage rates and overtime pay.
- Next Century Rebar Inc., a Henderson, Nev.-based fabrication and assembly contractor, paid $59,351.32 in back wages to eight workers.
- Pacific Steel Group, a rebar manufacturer based in San Diego, which paid $41,003.95 in back wages to 11 workers.
- Baker Electric & Renewables, an Escondido, Calif.-based solar contractor, paid $39,508.07 in back wages to 31 workers.
Hensel Phelps told Construction Dive in a statement that it values its workers, but discovered discrepancies between how it paid its union-classified workers for the project and the overall Davis-Bacon Act classifications on China Lake projects.
“We have ensured that all employees have been properly compensated and the Department of Labor recognized Hensel Phelps for its transparency and cooperation in correcting the discrepancy,” the statement said.
None of the other companies responded to Construction Dive’s requests for comment.
In addition to the $1.5 million in back wages, the DOL secured $32,291 in liquidated damages, and three of the 35 companies, Pacific Coast Contracting Services Inc., Temecula Valley Drywall Inc. and Rutt Fence, faced a collective $14,020 in civil penalties. to the violations.
