Sacramento electrical contractor to pay workers on federal projects in California, Washington $385K after failing to pay prevailing wages

Employers: Harold E. Nutter & Son Inc., an electrical federal contractor

Sites: Napa Valley Wine Train Relocation Project, Napa, California
Beale Air Force Base, Child Development Center, Beale AFB, California
Folsom Dam Project, Folsom, California
Beale Air Force Dock 4 Repair, Beale AFB, California
Beale Air Force Base Dock 1, Beale AFB, California
Ft. Irwin Barracks Complex, Ft. Irwin, California
U.S. Armed Forces Reserve Center, Vancouver, Washington

Investigation findings: An investigation by the U.S. Department of Labor’s Wage and Hour Division found that Harold E. Nutter & Son Inc. failed to pay the prevailing wages required by the Davis-Bacon Act to 58 employees working on seven federally funded construction projects, six in California and one in Washington. The electrical contractor also failed to meet the terms and conditions of the apprenticeship training plan, which required Nutter & Son to enroll apprentices in a health insurance plan. Additionally, the firm improperly charged training program costs to the journeymen working on the projects.

Resolution: Nutter & Son will pay $385,000 to 58 workers to remedy the violations. The contractor also has agreed to comply with all applicable labor standards in any future contract.

Quote: “In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the required wages and fringe benefits on a prevailing wage projects,” said Rick Newton, district director for the Wage and Hour Division in Sacramento. “Government contracts specify in detailed language how pay and benefits are to be determined, and employers are required to follow these rules so workers are paid correctly.  Contractors are well aware of these obligations when they bid, and when the contracts are awarded. Enforcement of the prevailing wage laws levels the playing field for all contractors.”

Information: The Davis-Bacon Act 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 Davis-Bacon Act project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors. For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.