News Release

U.S. Department of Labor Investigations Find Federal Contractors Owe $255,474 to Employees Working on Indiana Housing Project

One Contractor Debarred as a Result of Investigation

GARY, IN – After a U.S. Department of Labor’s Wage and Hour Division investigation, four contractors working on the federal Housing and Urban Development (HUD) Village of Hope housing project in Gary, Indiana, will pay 53 current and former employees a total of $255,474 for violating the Davis-Bacon and Related Acts (DBRA).

WHD investigators determined the contractors failed to pay the correct prevailing wages and fringe benefits.

The project’s prime contractor TWG Construction LLC – based in Indianapolis, Indiana – has paid $82,477 to 20 employees. TWG Construction LLC sub-contracted with a temporary staffing company that failed to pay cleaning service crews in accordance with DBRA requirements. The temporary employees were misclassified and not paid the required prevailing wage rates.

8 Aces Construction Inc. – based in Lansing, Illinois – has paid $69,022 to 19 employees. Investigators found the company failed to pay finishers, painters, and carpenters prevailing wage rates required by the DBRA. The employer also failed to pay required fringe benefits to employees. Due to the repeat and willful nature of these violations, 8 Aces Construction Inc. and owner Jose “Tony” Ochoa have been declared ineligible to bid on federal DBRA contracts for a period of 3 years. A 2017 investigation found 8 Aces owed back wages totaling $99,313 to 95 employees.

KJB Drywall LLC – based in Indianapolis, Indiana – will pay $98,367 to eight employees after one of its subcontractors failed to pay employees required prevailing wage rates and fringe benefits.

DLW LLC - operating as Drexel Interiors and based in Indianapolis, Indiana – has paid $5,608 to six flooring installers after one of its subcontractors incorrectly classified flooring installers and paid them at rates below those required for the work they performed.

“Government contractors receive detailed agreements that include prevailing wage and fringe benefits rates, required to be paid by all contractors working on a federally funded project. Prime contractors must assure that their subcontractors adhere to these rules as well,” said Wage and Hour Division District Director Patricia Lewis, in Indianapolis. “Violations can easily be avoided, and we encourage all employers to come to us for confidential assistance to understand their responsibilities under the law.”

For more information about the DBRA or other federal labor laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available athttps://www.dol.gov/whd.

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Agency
Wage and Hour Division
Date
February 14, 2019
Release Number
19-56-CHI
Contact: Scott Allen
Phone Number
Contact: Rhonda Burke
Phone Number