Construction firms to pay $1.2M over wage violations at Pabst Farms

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The U.S. Department of Labor (DOL) on Monday announced construction firms will pay more than $1.2 million to 142 workers at the Pabst Farms housing development in Oconomowoc.

The workers were owed prevailing and overtime wages after building 302 housing units for the Hackney House Apartments, according to DOL officials. Because the project is insured by the U.S. Department of Housing and Urban Development, it is subject to the Davis-Bacon and Related Acts, officials noted.

The Davis-Bacon Act applies to contractors and subcontractors working on jobs that are federally funded or assisted. The act requires construction workers in those jobs to be paid the local prevailing wage.

Investigators found Illinois-based primary contractor McShane Construction Company violated the Davis-Bacon and Related Acts by not providing subcontractors with the correct wage information for specific job roles.

Mathew Dougherty, president of McShane, said the company has fully cooperated with the investigation, and added there were discrepancies in the reporting and payment around prevailing wage for workers under several project subcontractors.

“McShane is an equal opportunity employer and is committed to creating a workplace in which all employees are treated with respect, dignity, and are paid a fair wage. We mandate the same from our subcontractors,” Dougherty added.

The DOL’s Wage and Hour Division investigated 23 subcontractors on the project, DOL officials said. Investigators recovered $1.2 million in prevailing wages from 13 contractors. That included an additional $30,472 in overtime wages found, officials added.

Michael Lazzeri, the Chicago regional administrator for the Wage and Hour Division, said the department recovered an average of $8,694 per worker. “Employees on a federally funded project must comply with all federal guidelines for prevailing wages and benefits,” he added.

“Our recovery of an average of $8,694 per worker will benefit these workers and their families financially and make a positive economic impact in their communities,” explained Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago. “Employers on a federally funded project must comply with all federal guidelines for prevailing wages and benefits.”

The division will perform outreach and training with local associations such as the Associated General Contractors of Wisconsin, Wisconsin Builders Association, Associated Builders and Contractors of Wisconsin and the National Association of Minority Contractors – Wisconsin Chapter, officials said.

The department will also reach workers through advocacy groups such as the University of Wisconsin – Madison School for Workers program, Voces De La Frontera, Workers for Justice Wisconsin and the Mexican Consulate in Milwaukee, officials added.

Kristin Tout, the district director for the Wage and Hour Division office in Minneapolis, said in a statement the construction industry has been hounded by violations around misclassification, prevailing wages, overtime pay and use of subcontractors and laborers who might not understand their rights. Tout’s office conducted the investigations.

“The payment of Davis‐Bacon prevailing wages reduces pay discrimination in construction, provides workers with fair wages and better benefits, and promotes economic prosperity in the region,” Tout added.

Here is a list of subcontractors the department collected wages from.

• Midwest Heritage based in Arthur, Ill. DOL recovered $297,322. 34 employees
• Southern Mechanical LLC based in Nashville, Tenn. DOL recovered $264,521. 12 employees
• C&T Drywall LLC based in Cecil, Wis. DOL recovered $244,968 for 28 employees
• RHD Plumbing based in Stoughton, Wis. DOL recovered $136,719 for 18 employees
• NexGen Exteriors based in Anoka, Minn. DOL recovered $118,418 for nine employees
• Total Trim based in Florence, Ala. DOL recovered $101,713 for three employees
• Fox Valley Contractors based in Batavia, Ill. DOL recovered $39,921 for six employees
• Northland Door Systems Inc. based in Prairie du Sac, Wis. DOL recovered $11,020 for five employees
• Miguel Cardona LLC based in Indianapolis, Ind. DOL recovered $8,897 for 15 employees
• V&J Trim based in Lawrenceville, Ga. DOL recovered $5,472 for three employees
• A-1 Concrete based in Helenville, Wis. DOL recovered $3,690 for six employees
• On-Site Staffing Services based in Milwaukee, Wis. DOL recovered $1,148 for two employees
• Trujillo Drywall based in Franklin, Wis. DOL recovered $758 for one employee