|
 Printer-Friendly Version
ESA-WHD New Release: [05/24/1996]
Contact Name: Brad Mitchell or Deirdré Zongker
Phone Number: (312) 353-6976
Release Number: V-193
U.S. LABOR DEPARTMENT REQUESTS FORMAL HEARING ON ALLEGED VIOLATIONS OF DAVIS-BACON ACT BY VILLA PARK, ILL. FIRM
Chicago — The U.S. Department of Labor has requested a final determination regarding alleged prevailing wage, overtime compensation and recordkeeping violations by Merchant Construction Company, 723 N. Addison, Villa Park, Ill., and its president, Hasan Merchant.
The firm contracted with the U.S. Government to perform landscaping at the Air Force Reserve military facility at O'Hare, Ill.
The Labor Department's Wage and Hour Division alleges that the firm violated the Davis-Bacon Act by failing to pay prevailing wage rates to employees working under the federal contract. The department also alleges that the firm violated the Contract Work Hours and Safety Standards Act by failing to pay employees overtime compensation of one and one-half the regular rate of pay for all hours worked on the project in excess of 40 per week. The department found a total of $21,666.81 in back wages due to eleven employees.
In addition, the Wage and Hour Division alleged that the firm violated Labor Department recordkeeping requirements as included in the contract. Regulations require the firm to submit weekly a certified copy of all payrolls to the contracting agency affirming that the payrolls were correct and conformed to the terms of the contract. The department alleges that the firm submitted falsified certified payroll records to show compliance.
The request for a formal hearing was filed with the Labor Department's Chief Administrative Law Judge in Washington, D.C. A determination will be made regarding back wages due. Also, the firm and its president may be debarred from any federal contracts for three years.
The Wage and Hour Division enforces the Davis-Bacon Act (DBA) and the Contract Work Hours and Safety Standards Act (CWHSSA), which apply to federal contractors. The DBA requires contractors to pay employees working under a federal contract the prevailing wage as determined by the Labor Department. The CWHSSA requires federal contractors to pay employees overtime compensation at one and one-half the regular rate of pay for all hours worked under the contract in excess of 40 per week.
The investigation was conducted by the Wage and Hour District Office, 230 S. Dearborn, Room 412, Chicago, under the supervision of Jules Van Rengen, district director.
# # #
This information will be made available to sensory impaired individuals upon request. Voice phone: (312) 353-6976; TDD Message Referral Phone: 1-800-800-4571.
| 
