Prime Contractor on New York Federal Reserve Bank Project Pays $420,335 in Back Wages After U.S. Department of Labor Investigation

NEW YORK, NY – Tishman Interiors Corp. - the prime contractor for a renovation project at the Federal Reserve Bank of New York - has paid $420,335 in back wages to resolve violations of federal wage laws following a U.S. Department of Labor Wage and Hour Division (WHD) investigation.

WHD found Tishman, which served as the bank's construction manager on the federally funded project, violated the Davis-Bacon and Related Acts (DBRA), the Contract Work Hours and Safety Standards Act (CWHSSA), and the Copeland Act. The company subcontracted electrical and cable installation work to subcontractors Alan Joel Communications, Crewforce, and Teksystems Management.

Investigators found the bank failed to include DBRA provisions and required wage rates in its contract with Tishman. This omission led to Tishman and the three subcontractors paying their employees at hourly rates lower than the prevailing wages for the work they performed, a DBRA violation. WHD also found all four employers violated the CHWSSA when they failed to pay required prevailing wages for overtime when employees worked more than 40 hours in a workweek. Their failure to prepare and maintain certified payroll records and to sign compliance statements in the payrolls resulted in Copeland Act violations.

Under the settlement, Tishman has paid $194,822 to seven Allan Joel employees, $120,560 to 10 Crewforce employees, $104,064 to six Teksystems Management employees, and $888 to seven of its own employees and pledged future compliance with the DBRA, CWHSSA, and Copeland Act.

"Any party who advertises for federally funded construction bids must include all applicable rates and requirements," said Wage and Hour Division Deputy Regional Administrator Maria Rosado. "Contractors also bear a responsibility to exercise due diligence when bidding and working on federal contracts. We will continue our education and enforcement efforts to level the playing field for contractors who follow the rules."

The Wage and Hour Division engages in a robust educational outreach program, including an annual series of Prevailing Wage Seminars, to ensure federal contractors and contracting agencies have the tools they need to comply with applicable laws.

For more information about the DBRA, CWHSSA, Copeland Act, and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.