Two Florida companies underpaid workers $175,000. Now, one can’t bid on federal contracts
Two Florida electrical contractors paid $175,413 in back wages and fringe benefits to workers after they violated numerous federal guidelines while working on a West Palm Beach apartment building.
The Department of Labor said Monday the back compensation went to 46 workers or $3,813.32 per worker of Tampa’s Southern Integrated Systems and subcontractor West Palm Beach’s J & Brothers Electrical Corp. This all happened while working on Royal Palm Place in West Palm Beach.
Also, Southern is debarred or banned from bidding on federal contracts for three years.
The company run by manager Jason Dinger, according to state of Florida records, didn’t pay electricians overtime when they earned it, Labor said.
On top of that, Southern “submitted falsified certified payroll records that failed to report accurately all the hours employees worked on the project. Although the employees worked overtime every workweek, the certified payroll did not reflect those hours.”
J & Brothers, run by Juan Vincente Escalante, also tried some shucking and jiving with payroll records. Labor’s Wage and Hour Division investigators saw records that said overtime hours had been paid properly, “despite the employer’s admission that they paid their workers at straight-time rates for all the hours that they worked.”
When some workers spent part of the day or week on other projects, J & Brothers didn’t keep a proper record when they were working on the Royal Palm, a federal project — thus requiring paying the area’s prevailing wages and fringe benefits — and when they were on another project. There was no way for J & Brothers to pay employees accurately.
The “prevailing wages” requirement comes from Davis Bacon and Related Acts. Paying straight time for all hours worked, when there should’ve been overtime violates the Fair Labor Standards Act and the Contract Work Hours and Safety Standards Act (CWHSSA).
“All contractors and sub-contractors must ensure they are thoroughly aware of all requirements associated with performing work on federally funded projects,” Miami-based Wage and Hour Division District Director Tony Pham said. “Failing to pay employees the wages they have rightfully earned under federal law shorts the workers and undercuts other employers competing for federal contracts.
“We encourage all employers to contact us for guidance to avoid violations and ensure workers receive the wages they have earned.”
