As widespread bridge repair and replacement effort continues in Oklahoma the US Labor Department steps up labor law education and enforcement

OKLAHOMA CITY — Heavy construction in Oklahoma continues to boom as the state's Department of Transportation repairs or replaces aging bridges and roads. An influx of contractors brings new jobs and often a host of labor law violations that apply to these projects.

Virtually all contracts to update bridges and roads are subject to the Fair Labor Standards Act, which contains minimum wage, overtime, record-keeping and anti-retaliation provisions. Projects with federal agency funding are generally subject to the Davis-Bacon and Related Acts, which requires payment of prevailing wages and certification of payrolls.

"The construction industry is one of many that have become fissured, and the traditional employer-employee relationship has changed. While there have always been subcontractors on large projects, now we see situations where individual workers are misclassified as independent contractors," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "This business model often creates downward economic pressure throughout the levels of subcontractors, creating conditions ripe for wage violations. Workers in these situations are often left without the wage and benefits protections to which employees are entitled."

The division's Oklahoma District Office is conducting an enforcement and education initiative to address typical construction industry problems. These problems include the following:

• Misclassifying employees as independent contractors.
• Banking of overtime hours or payment of overtime in the form of compensatory time.
• Paying day rates or piece rates without regard to hours worked, often resulting in minimum wage and overtime violations.
• Failing to pay legally required prevailing wages on federally financed construction projects.

In addition to its investigations, the division has provided presentations about labor law to contractors, subcontractors, local union employees and contracting officers at Oklahoma DOT locations and will continue to do so. The division will also work with prime contractors to conduct targeted presentations for their subcontractors and workers at bid and safety meetings.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers also are required to maintain accurate time and payroll records.

The DBRA requires all contractors and subcontractors performing work on federal and certain federally funded projects to pay their laborers and mechanics the proper prevailing wage rates and fringe benefits, as determined by the secretary of labor. On a DBA project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors.

For more information about federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or its Oklahoma District Office at 405-231-4158. Information also is available at http://www.dol.gov/whd/.