EMPLOYMENT AND LABOR LAW: NY-based Construction Contractor Found Violating Labor Laws, Debarment Sought

March 3, 2011

Washington – The US Department of Labor is seeking debarment of a New York-based construction contractor on taking future federally-funded contracts after it was found violating wage, benefits, certified payroll and other requirements while working on a federal project in Manhattan, a statement release in its website said.

The department’s Wage and Hour Division investigation showed that Lettire Construction Corp. had willfully violated several labor laws and recommended debarment to ensure that employees working on the federally-funded projects are properly compensated under the law.

In addition to this, the company also failed to monitor its lower level subcontractors to ensure that they complied with prevailing wage, fringe benefits, and overtime requirements. The company also failed to post wage decisions, among others.

As a result, nearly 290 employees of the subcontractors were deprived of a total of about $1.4 million in back wages.

Labor Secretary Hilda Solis said they will not hesitate to file legal in the company fails to comply with the law.