|
 Printer-Friendly Version
ESA-WHD New Release: [08/20/1998]
Contact Name: Brad Mitchell or Juan Solano
Phone Number: (312) 353-6976
Release Number: V-227
GERLACH LANDSCAPING & GRADING INC., STERLING HEIGHTS, AND MACOMB CONTRACTING CORP., ST. CLAIR SHORES, MICH., AGREE TO PAY BACK WAGES OF $57,257 TO 97 EMPLOYEES FOR FEDERAL CONTRACT VIOLATIONS
Chicago — The U.S. Department of Labor announced today that Gerlach Landscaping & Grading Inc., 37328 Utica Rd., Sterling Heights, Mich., and Macomb Contracting Corp., 20816 Eleven Mile Rd, St. Clair Shores, Mich., have agreed to pay $57,257 to 97 employees for federal contract violations.
The two corporations agreed to entry of consent findings issued by Administrative Law Judge Robert Hillyard of the Labor Department’s Office of Administrative Law Judges in Cincinnati under the National Housing Act. The Labor Department alleged that workers employed by Macomb Contracting Corp. were not paid prevailing wages. Some workers were not paid time and one-half after 40 hours in a week. The investigation covered the period from December 1991 to December 1993.
Gerlach Landscaping & Grading Inc., was the prime contractor for street improvements in the Eagle-Picher District, Inkster, Mich., under a contract funded by the U.S. Department of Housing andc Urban Development. Gerlach Landscaping & Grading Inc. failed to ensure that its subcontractor, Macomb Contracting Corp., paid proper wages to workers on the government contract.
Wage and Hour District Director James Smith in Detroit said, "This case exemplifies the Labor Department's efforts to protect employees who work on government construction contracts and ensure that contractors fulfill their legal obligations."
Macomb Contracting Corp. failed to pay prevailing wages to laborers, cement masons, power equipment operators, and truck drivers. Seven of 97 workers were not paid time and one-half after 40 hours in a week.
Macomb Contracting Corp. allegedly failed to submit certified payrolls to the contracting agency after October 3, 1992. Federal contractors are required to submit certified payrolls showing that all workers were paid prevailing wages and overtime.
The National Housing Act requires wage and fringe benefit payments to employees who work under government contracts of $2,000 or more. Contractors and subcontractors must pay prevailing wages and fringe benefits established by the Labor Department's Wage and Hour Division.
The Contract Work Hours and Safety Standards Act requires federal contractors and subcontractors to pay time and one-half to laborers and mechanics.
The legal action resulted from an investigation by the Wage and Hour Division, 211 W. Fort Street, Detroit, Mich., under the supervision of James Smith, district director.
ALJ Case No: 95-NHA-2
| 
