Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: April 22, 2013
Contact: Scott Allen or Rhonda Burke
Phone: (312) 353-6976
U.S. Department of Labor
Wage and Hour Division
Release Number: 13-609-CHI
Truckers on Interstate 55 project due more than $25,000 in back wages following US Labor Department investigation
Wage and Hour Division finds violations of Davis-Bacon Act by subcontractor on federal prevailing wage projects
CHICAGO -- The U.S. Department of Labor has recovered $25,476 in back wages for 10 truck drivers who delivered construction materials for a federally funded highway project near Chicago. An investigation by the department’s Wage and Hour Division found that Allied Landscaping Corp., who employed the drivers, violated provisions of the Davis-Bacon and Related Acts. The Joliet-based company is a subcontractor on an Illinois Department of Transportation Project for Interstate 55 in Will County.
“In this competitive contracting environment, no contractor should gain an economic advantage by paying workers below the required wages and fringe benefits on a prevailing wage project. Not only does this practice undercut what is legally owed to the workers involved, it results in unfair competition,” said Thomas Gauza, director of the Wage and Hour Division’s Chicago District Office. “Enforcement of the prevailing wage laws evens the playing field for all contractors.”
Wage and Hour Division investigators found truck drivers were paid $11 to $13 per hour less than the required prevailing base wage rate in violation of the Davis-Bacon Act. Under the terms of a consent finding and settlement agreement approved by a Labor Department administrative law judge, prime contractor Elwood-based Austin Tyler Construction LLC, has agreed to pay the $25,476 in back wages.
The DBRA requires all contractors and subcontractors performing work on federal and certain federally funded projects to pay their laborers and mechanics the proper prevailing wage rates and fringe benefits as determined by the secretary of labor. On a Davis-Bacon Act project, the prime contractor is responsible for the compliance of subcontractors and lower-tier subcontractors.
For more information about the Davis-Bacon Act and other federal laws, contact the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at http://www.dol.gov/whd.
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