HUD Project Contractor in Indiana Pays Back Wages to Workers

CARMEL, IN – An Indiana construction contractor has paid $103,788 in back wages to 29 employees working on a U.S. Department of Housing and Urban Development project to renovate the Flagstone Village apartment complex in Hammond.

An investigation by the U.S. Department of Labor’s Wage and Hour Division determined CRG Residential, the prime contractor, failed to incorporate the required Davis-Bacon and Related Acts (DBRA) and Contract Work Hours and Safety Standards Act (CWHSSA) stipulations into the contracts of its subcontractors – Hubinger Landscaping of Crown Point and 8 Aces Construction of Lansing, Illinois. CRG is based in Carmel.

“Federal contractors owe it to taxpayers to comply with all applicable laws, including paying their workers fairly and fully,” said Wage and Hour District Director Patricia Lewis, in Indianapolis. “Prevailing wage laws level the playing field for all contractors.”

The Wage and Hour Division determined that CRG Residential failed to pay one employee for time spent transporting other workers to the job site at the start of the week and home from the job site at the end of the week. The company also classified the worker improperly and paid him a lower rate than required for his job classification when operating heavy equipment. Hubinger Landscaping classified a heavy equipment operator improperly and paid the worker a lower rate than his job required. And, 8 Aces Construction failed to pay required fringe benefits and paid less than the required hourly rates to finishers, painters, and carpenters. As the prime contractor, CRG was responsible for all violations and back wages owed because the subcontracts did not include the contract stipulations.

The DBRA requires that all contractors and subcontractors performing work on federal and certain federally funded construction projects pay their laborers and mechanics at least the prevailing wage rates associated with their occupation, as determined by the Secretary of Labor.

The CWHSSA applies to contractors and subcontractors with federal service contracts and federally funded and assisted construction contracts exceeding $100,000. It requires contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one-and-one-half times their basic rate of pay for all hours worked over 40 in a work week.

For more information about the DBRA, the CWHSSA, and other federal laws, contact the Wage and Hour Division’s Indianapolis District Office at 317-808-7910 or call the division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.