Under New York Labor Law §220, workers who labor on public works projects are guaranteed prevailing wages and related fringe benefits. If it is discovered a contractor knowingly violated state and/or federal laws regarding prevailing wage rates and underpaid employees, the penalties they face are serious.
If a contractor is found to have ignored their legal duty to their workers regarding their prevailing wage rates, or if the contractor has committed willful violations while laboring on a job that is classified as a Davis-Bacon and Related Acts (DBRA) project, their contract may be terminated. They may also be excluded from other Davis-Bacon covered project contracts in the future for up to three years. Contract payments owed to contractors in violation may be withheld "in sufficient amounts" to meet liabilities for unpaid wages owed to underpaid workers as well as liquidated damages that resulted from overtime violations of the Contract Work Hours and Safety Standards Act, if applicable.
If it is discovered that a contractor falsified certified payroll records, they may also be subject to civil or criminal persecution, the penalties of which may include fines and/or imprisonment.
If a contractor violates the McNamara-O'Hara Service Contract Act (SCA), the penalties are similar. Their contract may be terminated, liability will be assessed for any resulting costs to the government, and contract payments due to the contractor in violation may be suspended to cover wages and related benefits owed to workers as well as legal action to recover wages that were not paid to workers. Contractors found in violation may also face disbarment from future contracts for up to three years.
Additionally, contractors who violate prevailing wage laws may be fined interest of up to 16 percent from the date of a worker's underpayment to the date of restitution. They also face a penalty of up to 25 percent of the wages, supplements, and interest that is owed to an underpaid worker.
In order for penalties to be enforced, it must be concluded that a contractor was in "willful violation" of state and/or federal laws regarding prevailing wage rates and related benefits. Several instances are deemed "willful behavior" which includes, but is not limited to:
If a contractor does not pay their workers what they are legally due under state and federal laws regarding prevailing wage rates and related fringe benefits, they can be seriously penalized for their unlawful actions. If you have labored on a public works project in New York but were not paid the prevailing wages you are legally owed, contact a NY prevailing wage law attorney from Wingate, Russotti, Shapiro, Moses & Halperin, LLP. Call (212) 986-7353 to learn more about your legal rights and how justice can be brought against your employer.