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Wage and Hour Division (WHD)

Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 12-2197-CHI

Date: 

Nov. 19, 2012

Contact: 

Scott Allen or Rhonda Burke

Phone: 

(312) 353-6976

US Labor Department recovers more than $212,000 in back wages for 40 construction workers employed on renovation project in Cleveland

P.S. Construction Group violated prevailing wage law, has been debarred from federal contracts for 3 years

CLEVELAND -- The U.S. Department of Labor has recovered a total of $212,269 in back wages for 40 employees of Copley-based P.S. Construction Group LLC. An investigation by the department’s Wage and Hour Division found that the employees had been underpaid while performing general construction work on a renovation project for the city of Cleveland involving St. Luke’s Hospital on Shaker Boulevard. The project was funded under an agreement with the U.S. Department of Housing and Urban Development.

Investigators found that P.S. Construction Group and its principal, Peter G. D’Agostino Jr., violated provisions of the Davis-Bacon and Related Acts as well as the Contract Work Hours and Safety Standards Act by paying workers less than required prevailing wages. The company also falsified payrolls to create an appearance that workers had received the correct wages. The company and D’Agostino have been debarred from competing for federal contracts for three years.

“Not only does the practice of skimping on required wages and fringe benefits shortchange the workers involved, it results in unfair competition,” said George Victory, director of the Wage and Hour Division’s Columbus District Office. “Enforcement of prevailing wage laws levels a competitive playing field for all contractors, some of whom are tempted to gain an advantage by cheating. Our investigation and debarment of this company demonstrate the Labor Department’s commitment to enforcing laws that protect both employers and employees. We will continue to use all of the tools at our disposal to ensure that taxpayer dollars are properly spent.”

The DBRA requires all contractors and subcontractors performing work on federal and certain federally funded projects to pay their laborers and mechanics proper prevailing wage rates and fringe benefits as determined by the secretary of labor.

The CWHSSA applies to federal service contracts and federal and federally assisted construction contracts exceeding $100,000. It requires contractors and subcontractors on covered contracts to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rate for all hours worked over 40 in a week.

For more information about the DBRA, the CWHSSA or other federal wage laws, contact the Wage and Hour Division’s Columbus office at 614-469-5678 or its toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd.

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