US Department of Labor recovers more than $1.2M for 142 workers on Pabst Farm housing construction project in Oconomowoc

OCONOMOWOC, WI – A U.S. Department of Labor investigation has found 21 construction companies working on a federally assisted construction project violated federal laws, leading to the recovery of more than $1.2 million in prevailing and overtime wages for 142 construction workers who built a 302-unit housing development in Oconomowoc.

The Wage and Hour Division investigated the Pabst Farm housing development project, which is insured by the U.S. Department of Housing and Urban Development and is subject to the Davis-Bacon and Related Acts. The DBRA requires that workers on federally assisted construction projects are paid not less than local prevailing wages. 

The division found the prime contractor for the project, McShane Construction Company LLC of Rosemont, Illinois, violated the Davis-Bacon and Related Acts by failing to provide subcontractors with accurate information on wage rates to pay workers in certain job classifications. 

The division investigated a total of 23 subcontractors on the project. Investigations of 13 of these subcontractors resulted in the recovery of $1.2 million in prevailing wages and an additional $30,472 in overtime back wages for 142 workers. 

“Our recovery of an average of $8,694 per worker will benefit these workers and their families financially and make a positive economic impact in their communities,” explained Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago. “Employers on a federally funded project must comply with all federal guidelines for prevailing wages and benefits.”

The division recovered wages from the following companies: 

In addition to enforcing against violations of the DBRA, the division is conducting extensive outreach on prevailing wage compliance in coordination with HUD’s Office of Davis-Bacon and Labor Standards. The agencies provide outreach and training to employers through the Associated General Contractors of Wisconsin, Wisconsin Builders Association, Associated Builders and Contractors of Wisconsin and the National Association of Minority Contractors-Wisconsin Chapter. They will reach workers through advocacy groups such as the University of Wisconsin-Madison School for Workers program, Voces De La Frontera, Workers for Justice Wisconsin and through the Mexican Consulate in Milwaukee. 

“Unfortunately, we often see violations in the construction industry related to employee misclassification, prevailing wages, overtime pay and the use of subcontractors and laborers who may not understand their rights,” explained Wage and Hour Division District Director Kristin Tout in Minneapolis, whose office conducted the investigations. “The payment of Davis‐Bacon prevailing wages reduces pay discrimination in construction, provides workers with fair wages and better benefits, and promotes economic prosperity in the region.”

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish – to ensure hours and pay are accurate.