US LABOR DEPARTMENT RECOVERS $431K FOR WORKERS ON MANHATTAN’S FEDERALLY FUNDED PECK SLIP PROJECT

Litigation alleged prevailing wage, overtime violations

WHD News Release: 07/14/2016

Release Number: 16-1203-NEW

NEW YORK – Thirty-one workers employed on the federally funded cobblestone reconstruction project on Manhattan’s Peck Slip will receive $431,715 in back wages and interest following an investigation and litigation by the U.S. Department of Labor.

The department’s Wage and Hour Division found that the workers did not receive the proper prevailing wages and fringe benefits required under the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act.

Sam Schwartz Engineering, a first-tier subcontractor under prime contractor MFM Contracting Corp. employed the workers. Investigators found that the employees who worked as flaggers on the project were incorrectly classified. The division alleged that – between August 2011 and January 2014 – they were paid $15 to $25 per hour instead of the prevailing wage rate of $44.49 per hour. The investigation also found workers did not receive all the overtime they were due under CWHSSA when they worked more than 40 hours in a week, did not receive holiday pay and that they were not paid on a weekly basis, as required.

The department’s Office of the Solicitor filed an administrative proceeding in 2015 against MFM Contracting and Sam Schwartz Engineering. The case is now being resolved with a consent findings and order approved by the department’s Office of Administrative Law Judges. Under the order, workers from the Peck Slip project will receive $431,715 in unpaid wages.

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US LABOR DEPARTMENT RECOVERS $189K IN WAGES ON BEHALF OF 28 UNDERPAID WORKERS ON FEDERALLY FUNDED MANHATTAN CONSTRUCTION PROJECT

SJ Insulation debarred from future government contracts following joint enforcement effort with New York Attorney General

WHD News Release: 05/25/2016
Release Number: 16-0804-NEW

NEW YORK – The U.S. Department of Labor has recovered $189,000 in unpaid wages and overtime for 28 carpenters and laborers who worked on the federally funded West 131st St. Cluster Project in Harlem between April 2009 and April 2010. This was the result of a joint enforcement effort with the office of New York Attorney General Eric Schneiderman in which the two agencies shared information and worked collaboratively on behalf of workers in New York. The attorney general’s investigation continues.

“Contractors on federally funded construction projects commit to paying their workers the required wages and fringe benefits when they bid these contracts. When, as in this case, they cheat their workers, they are also cheating the taxpayers who ultimately fund these jobs,” said Wage and Hour Division Regional Administrator Mark Watson, Jr. “As the resolution of this case demonstrates, we will not tolerate such illegal behavior.”

“We thank Attorney General Schneiderman and his staff for working jointly with us during the prosecution of this case. We have the mutual goals of ensuring that employees in our jurisdictions are paid and treated properly and employers who underpay their workers do not secure an unfair advantage over law-abiding employers,” said Jeffrey S. Rogoff, the department’s regional solicitor in New York.

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