A recent intervention by the U.S. Department of Labor (DOL) highlights the critical need for employers to comply with federal wage regulations, particularly concerning workers on federally funded projects. The DOL’s Wage and Hour Division secured $224,113 in lost wages and benefits for 37 electricians employed by a communications and electric services business in Florida.
37 Electricians Denied Full Wages
These recoveries came as a result of investigations into violations of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act during construction work on a Veterans Affairs multi-specialty outpatient clinic in Florida.
The investigations revealed that the communications and electric services business failed to compensate electricians appropriately. They neglected to provide fringe benefits and paid less than the prevailing wage for the hours worked. Moreover, the company used a lower rate than required for computing overtime pay, resulting in inadequate overtime compensation. Additionally, they failed to track and compensate accrued sick leave for their workers.
The Outcome
The DOL’s intervention recovered $42,729 for eight workers affected by the communications and electric services business’ violations. Similarly, another communications and electric services business neglected to provide fringe benefits and prevailing wages for all hours worked, also failing to track and compensate sick leave hours. The division recovered $181,384 from the communications and electric services business, addressing violations involving 29 workers.
Wage and Hour Division Deputy Regional Administrator Wildalí De Jesús in Orlando stressed the significance of employers fulfilling their obligations regarding wages and benefits on federally funded projects. De Jesús highlighted the availability of resources for employers and workers to understand their rights and responsibilities under the law, emphasizing that these violations are preventable.
The Department of Labor conducts online compliance seminars aiming to educate contracting agencies, contractors, workers, and other stakeholders on the evolving regulations governing employment practices for federally funded contracts.
Conclusion
This case underscores the crucial necessity for businesses, especially those involved in government-funded projects, to adhere to federal wage regulations. Compliance is not just a legal requirement but a moral responsibility to ensure fair compensation and uphold workers’ rights. Employers are urged to prioritize understanding and complying with these regulations to avoid legal penalties, protect their workforce, and maintain ethical employment practices.