U.S. Department Of Labor Reaches Settlement Resulting in Contractor Paying $52,969 in Back Wages Owed to Employees Working On San Diego Area Federal Construction Projects

SAN DIEGO, CA – After a U.S. Department of Labor Wage and Hour Division investigation, the Department has reached a settlement with A&D General Contracting Inc., the prime contractor on two federally funded local projects, to pay 16 landscaping employees $52,969 in back wages after its subcontractor Amigos Design Build Landscapes Inc. failed to pay legally required prevailing wages and later declared bankruptcy.

Wage and Hour Division investigators found that Amigos Design Build Landscapes Inc. violated the Davis-Bacon and Related Acts (DBRA) during work as a subcontractor on two projects: a control gate at the Marine Corps Recruiting Depot in San Diego, and at the Combat Training Tank and Instruction Facility at Camp Pendleton. The projects’ prime contractor, A&D General Contracting Inc., entered into the settlement after the subcontractor filed for bankruptcy.

The Division found Amigos Design Build landscapes Inc. failed to pay legally required health and welfare rates to its employees, and incorrectly categorized some employees in job classifications that paid rates lower than those required for the work actually performed. The contractor also improperly classified some of its employees as apprentices and paid them less than the required prevailing wage rates when, in fact, they were not enrolled in apprenticeship programs. Additionally, investigators found the contractor falsified its certified payroll reports.

“No contractor should gain an economic advantage by paying workers below the wages and fringe benefits required on a prevailing wage project,” said Rodolfo Cortez, Wage and Hour Division Director in San Diego. “Not only does this practice undercut what the workers involved are legally owed for their work, it results in unfair competition for contractors who play by the rules.”

The DBRA applies to contractors and subcontractors working on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works. 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. On a covered project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors.