News Release

Detroit contractor pays $82K in back wages, fringe benefits to 19 laborers after US Department of Labor finds federal violations

Army arsenal renovation project’s subcontractor violated Davis Bacon Act

WARREN, MI – The Davis Bacon and Related Acts require contractors on federally funded projects to pay all laborers on site prevailing wage rates and benefits, and mandates that prime contractors make sure their subcontractors follow the rules.

An investigation by the U.S. Department of Labor’s Wage and Hour Division found Premier Office Installations of Flat Rock, a subcontractor installing furniture as part of a renovation project at the U.S. Army Contracting Command-Detroit Arsenal in Warren, failed to pay workers the prevailing wages and fringe benefits required for carpenters. In turn, the project’s prime contractor – Ambica JV LLC of Livonia – paid the $82,700 in back wages due to 19 employees after the department found the prime contractor failed to advise its subcontractor of the DBRA requirements.

“This investigation demonstrates the department’s commitment to ensuring that employees are paid the wages they have rightfully earned and to leveling the playing field among all employers who do business with the government,” explained Wage and Hour Division District Director Timolin Mitchell in Detroit. “Employers awarded federal contracts are aware of these requirements and must evaluate their pay practices to ensure all employees on the job site receive the wages and benefits they are due.”

Contractors and subcontractors on federally funded projects are required to pay covered workers weekly and submit weekly certified payroll records to the federal agency contracting the work. They are also required to post the Davis-Bacon poster (WH-1321) on the job site so that workers are aware of their protections.

For more information about the DBRA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). 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.

Agency
Wage and Hour Division
Date
May 24, 2021
Release Number
21-820-CHI
Contact: Scott Allen
Phone Number
Contact: Rhonda Burke
Phone Number
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