Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Department of Labor says contractors violated wage and hour law

Many Georgia construction contractors work on projects that include some sort of federal money. When this happens, it is essential for general contractors to ensure that workers are paid for the work they do -- both their employees and the employees of any subcontractors used on the job. Otherwise, the general contractor could find itself in violation of at least one wage and hour law, which could cost the company a significant amount of money.

For example, a large construction firm on the East Coast took on a project to refurbish and renovate three apartment buildings. It turns out that a large number of workers did not receive the correct pay. The Department of Labor became involved, and a settlement was recently reached regarding the issue. The company and others will pay nearly 200 of its own employees approximately $3.8 million in unpaid wages and benefits. Moreover, several subcontractors will pay $1.1 million to approximately 300 workers.

In addition to the monetary compensation, the settlement includes several oversight requirements with respect to MDG Design & Construction, a New York-based general contractor. This includes the responsibility to ensure subcontractors also stay in compliance with federal, state and local wage and hour laws. If the company and its subcontractors do not adhere to the terms of the settlement, it could cost them future contracts with the federal government.

Lawsuits and other actions regarding wage and hour law violations seem to be on the rise. Georgia companies can protect themselves from these actions by having clear contracts with their subcontractors and overseeing their payment processes to ensure employees are receiving all of the pay to which they are entitled. Further, it is important to keep up with any changes in these laws to avoid being out of compliance.

Source: betterroads.com, "Contractor must pay $5 million in back pay", Tina Grady Barbaccia, June 11, 2014

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.