The Department of Labor recovered almost $200,000 in back wages for 37 workers of a subcontractor on a federal project in Providence, Rhode Island. The subcontractor, Stone Art, is now prohibited from working on any federal contract that is subject to Executive Order 13706 for three years. Interestingly, the back wages were paid by the project’s prime contractor, not the subcontractor. This convoluted case demonstrates the importance of adhering to federal laws when it comes to payroll.
Failing to pay prevailing wage rates and fringe benefits
Stone Art was a subcontractor for a project at the Department of Veterans Affairs medical center in Providence, Rhode Island. The project’s prime contractor was Carrigg Commercial Builders LLC of Manchester, New Hampshire. Investigators with the DOL’s Wage and Hour Division found that Stone Art, Inc. did not pay proper overtime, nor did they pay their carpenters and laborers who installed drywall the prevailing wage rate and fringe benefits as required by the Davis-Bacon Act.
They also falsified payroll records and did not maintain accurate payroll records. Under Executive Order 13706, which is for federal contracts, employees accrue one hour of paid sick leave for every 30 hours worked. Stone Art did not allow their employees this benefit.
Wage and Hour Division District Director Carlos Matos in Boston said, “The Wage and Hour Division will not tolerate contractors violating their legal responsibilities under federal law.
Carigg Commercial Builders covered the $199,433 in back wages that the DOL. Employers should take notice that not paying overtime and not following the law pertaining to wages, whether working on a federal contract or not, violates federal law.
Employers and workers can call the Department of Labor
The Wage and Hour Division can help both employers and employees with resources to help them understand their rights and responsibilities under federal law. Workers of any immigration status can call the division and get confidential information. The WHD has the capacity to speak with callers in more than 200 languages.
Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.
