Davis-Bacon and Related Acts are Serious Business - Know the Rules or Face the Consequences

02-Jan-2019 to 15-Jan-2019

All CDOT federal-aid projects are subject to various labor and compliance regulations. Many contractors are familiar with these requirements and submit weekly certified payrolls but they may not know the consequences of failing to be in compliance. Below is a recent case from Alabama that highlights the importance of proper employee classification and payment.

Maldonado Roofing LLC based in Tuscaloosa, Alabama will pay $57,428 in back wages, overtime, and fringe benefits to 41 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated requirements of the Davis- acon and Related Acts (DBRA), the Contract Work Hours and Safety Standards Act (CWHSSA), and the Fair Labor Standards Act (FLSA). WHD investigators found that Maldonado Roofing LLC failed to pay one employee for overtime hours worked on a Davis-Bacon Act covered project, resulting in a violation of the CWHSSA. The employer also failed to pay several employees overtime when they worked more than 40 hours in a workweek on a commercial project as required by the FLSA. Additionally, Maldonado Roofing failed to submit accurate certified payroll records and maintain accurate records of the number of hours employees worked, as required by the Davis-Bacon Act. Investigators also found the employer violated FLSA recordkeeping requirements by failing to maintain accurate daily records of the number of hours employees worked.

How can you avoid this scenario?