Labor Department Recovers $878,000 in Back Wages for Construction Workers in New York City

Three contractors agree to comply with the Davis-Bacon Act and Davis-Bacon and Related Acts

SHEET METAL WORKERS: MEP contractors Discover Electric Inc., EMG Industrial Chimney Inc. and QNCC Electrical Contracting Corp. have been cited for failing to pay prevailing wages. (Courtesy of the White House)

The U.S. Department of Labor has recovered $877,866 in back wages and benefits for 36 workers who were underpaid by contractors on federally funded projects in New York City. The Wage and Hour Division found that three Long Island contractors misclassified employees and failed to pay prevailing wages and benefits as required by the Davis-Bacon Act.

Discover Electric Inc. improperly classified 11 electricians as laborers and maintenance workers, resulting in underpayment of wages and benefits. EMG Industrial Chimney Inc. misclassified 21 insulators and sheet metal workers as service fitters, and QNCC Electrical Contracting Corp. failed to provide full fringe benefits to four apprentices. The violations were identified at worksites located at 463 West St. and 10 Monroe St. in New York City.

"The Wage and Hour Division works closely with agencies such as the Department of Housing and Urban Development and the New York City Department of Housing Preservation and Development to enforce the Davis-Bacon and Related Acts and ensure that workers are paid full wages and benefits," said Wage and Hour Division District Director Jorge Alvarez in New York. "These cases demonstrate that employers cannot circumvent their legal obligations or avoid paying the wages and benefits rightfully due to their employees on federally funded construction projects."

"Workers deserve fair compensation for their labor," said U.S. Department of Housing and Urban Development Regional Administrator Alicka Ampry-Samuel in New York. "HUD works closely with federal, state, and local agencies to ensure that companies receiving federal funds comply with Davis-Bacon wage requirements. Everyone deserves to be paid fairly. At a time when we face a housing shortage, it's crucial to support workers who are helping to expand the supply of affordable housing."

The three contractors have agreed to comply with the Davis-Bacon Act and Davis-Bacon and Related Acts in all future contracts that are subject to the acts. The DOL's New York City District Office conducted the investigations.

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Austin Keating is the special section editor of SNIPS NEWS at The ACHR NEWS. He covers sheet metal, mechanical contractors, duct cleaning, testing and balancing, steel, building information modeling (BIM) and architecture, engineering and construction (AEC). Prior to joining BNP Media, he served as field editor for Prairie Farmer and media specialist at the National Center for Supercomputing Applications. Email him at keatinga@bnpmedia.com.