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USDOL/OALJ Reporter

B&B CONTRACTORS, INC., 89-04 (ALJ Aug. 1, 1988)


CCASE: B&B CONTRACTORS, INC. DDATE: 19880801 TTEXT: ~1 [1] [89-04 ATTACHMENT] U.S. Department of Labor Office of Administrative Law Judges 211 Main Street, Suite 600 San Francisco, California 94105 DATE: AUG 01 1988 IN THE MATTER OF Disputes concerning the payment of prevailing wage rates and overtime by: B&B CONTRACTORS, INC. Prime Contractor With respect to laborers and mechanics employed by the contractor under Bureau of Land Management Contract No. YA-552-CT2-23 (Riparian Fencing, Rich County, Utah) Appearances: Ann B. Noble, Esq. For the U.S. Department of Labor James A. Barrett, Jr. Pro Se Before: JAMES J. BUTLER Administrative Law Judge DECISION AND ORDER This case arose under the provisions of the Davis-Bacon Act (40 U.S.C. [sec] 276(a) et seq.) and the regulations promulgated thereunder at 29 C.F.R. Part 5. James Barrett, doing business as B&B Contractors, Inc., held contract number YA-552-CT2-23 with the Bureau of Land Management for the installation of riparian fencing in Utah near the Wyoming border in 1982 and 1983. The primary issue is the amount of back wages due seven employees who worked on the project. The inquiry at hand was made most difficult by the habit of Barrett to first record the hours worked on the back of snuff cans, which were discarded after the payroll records were turned in to the contracting agency. Further, the information provided by these payroll records was incorrect in that one employee's (Velvick) Pay was actually only $5.00 Per hour rather than the $11.00 specified on the payroll record furnished and her hours were incorrectly reported to match sums received. [1] ~2 [2] Barrett also deducted $132.00 per week from employees Gonzales, Yarbrough and Kyro, for room and board. The "room" was a wall tent set up in some remote location near the job site. The compliance officer testified that the employees who responded to her requests for information all indicated that they had not been paid for all hours work. Respondent produced an unsworn statement from employee Kyro, that the hours on the payroll records he saw were correct and that he had been paid for the hours reflected on the payroll record he saw. No employees involved here testified at the hearing. Indeed, none could be timely located. FINDINGS OF FACT AND CONCLUSIONS OF LAW 1. Respondent was a contractor within the meaning of the Davis-Bacon Act, during all relevant times. The contract was for an amount in excess of $2,500.00 and was for the purposes of construction or reconstruction. He employed persons to assist him in performing the work required by the contract he sought and accepted. 2. Respondent violated the Davis-Bacon Act by failing to keep accurate and adequate records in that he did not properly record the correct number of hours worked by employees. His records lacked the requisite information on some employees, including addresses, social security numbers, and, in one case, the correct spelling of an employee's name. He also failed to pay his employees the requisite predetermined wage as required by the contract. 3. The evidence regarding the hours worked by the employees as presented by the compliance officer, although hearsay, is clearly admissible in administrative hearings. Matter of Encarnacioan S. Rodriguez, CCH-Labor Law Report, Administrative Rulings, [par] 31,392, Case No. 80-FLCRA-395P (1981). There is no evidence as to which payroll records Kyro saw and neither he nor Hagen said that they had been paid all their wages. In light of any contrary evidence, therefore, I find that the compliance officer thoroughly weighed the facts presented to her and made logical choices, giving respondent as much of the benefit of the doubt as possible, in determining the back wages due. Although respondent insinuated that employees exaggerated their hours of work, he never actually stated that the hours claimed by the employees were incorrect. Since he failed to report other items correctly and since all the employees the compliance officer was able to contact stated that they had not been paid for all hours worked, it is logical to conclude that respondent failed to report the hours worked by employees as accurately as he should have. In [2] ~3 [3] the absence of the original records, I am constrained to make this determination. The violations are provable by a "just and reasonable inference," Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946), and must be accepted unless rebutted by respondent. He has failed to rebut the inference. 4. Consequently, I find that respondent owes the following wages to the employees listed below: Dan Cairo [Kyro] $ 30.85 David Chandler 325.73 Mike Gonzales 619.62 Ron Haviland 104.06 Robert Thompson 46.00 Shelli Velvick 396.41 Roger Yarbrough 672.24 Thus, it is hereby ordered that respondent pay the employees listed in paragraph 4, above. Such payment shall first be satisfied by release of the funds withheld by the contracting agency to the Department of Labor for disbursement to these employees. Should the liability be unsatisfied by the withheld funds, respondent is directed to pay to the Department of Labor the balance thereof, which shall be distributed to the employees as their interests may appear. Debarment is not sought and no recommendation is made in that respect. JAMES J. BUTLER Administrative Law Judge JJB:brt [3]



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