Federal Contractor Pays $213,282 in Back Wages After Investigation Finds Wage and Fringe Benefits Violations

PITTSBURGH, PA – A federal contractor that serves as the prime contractor for repair and renovation projects at federal buildings in West Virginia and Kentucky, has paid $213,282 in back wages to seven employees to resolve violations of federal law found by the U.S. Department of Labor.

An investigation conducted by the Department’s Wage and Hour Division found B&F Contracting Inc. violated the Davis-Bacon and Related Acts (DBRA) by paying employees less than the prevailing wages required by law, and failing to provide required fringe benefits. Investigators also found the company failed to pay overtime to one employee in violation of the Contract Work Hours and Safety Standards Act (CWHSSA), and failed to maintain required payroll records. The company has paid all back wages in full.

“We are committed to providing information to federal contractors on their legal responsibility to pay prevailing wages and fringe benefits,” said District Director John DuMont, in Pittsburgh. “The resolution of this case helps to level the playing field for federal contractors who play by rules and must not be underbid by those who do not.”

In addition to paying the back wages, the company has agreed to hire a certified public accountant to oversee its compliance with the DBRA and to provide the Division with copies of certified payroll records and corresponding time records on a semi-annual basis for a one-year period. The agreement also states that if B&F Contracting violates DBRA requirements in the future, it will be debarred from bidding on federal contracts for three years. 

DBRA covers contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. DBRA contractors and subcontractors must pay their laborers and mechanics no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. CWHSSA requires prime and subcontractors to pay laborers and mechanics – performing on a federal service contract and federal and federally assisted construction contract over $100,000 – one-and-a-half times their basic rate of pay for all hours worked over 40 in a workweek.

The Division is committed to providing companies with the tools they need to understand and comply with the variety of labor laws the Division enforces. It offers useful resources ranging from an interactive Employment Laws Assistance for Workers and Small Businesses advisor to a complete library of free, downloadable workplace posters. In addition, Community Outreach and Resource Planning specialists conduct ongoing activities to educate stakeholders, including employers, employees, business and labor groups, and professional associations.

For more information about federal wage laws, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.