The U.S. Department of Labor’s Wage and Hour Division (WHD) has announced a settlement with federal contractor MDG Design & Construction, the prime contractor on the Grand Street Guild public housing construction project on New York’s Lower East Side.
MDG and several subcontractors failed to pay the prevailing wage as required by the Davis-Bacon Act.
A previous WHD investigation ended with subcontractors on the project paying $1.1 million to 300 mechanics and laborers to resolve compliance issues. MDG will pay $3.8 million to 200 employees to settle allegations it failed to pay proper wages and benefits, and submitted false and inaccuraterecords to government agencies.
MDG will hire an independent WHD-approved monitor to ensure that it and its subcontractors comply with all relevant labor laws during the consent decree’s three-year term.
Note: Government contracts bring a heightened level of scrutiny and requirements.