An administrative law judge has upheld the findings of a U.S. Department of Labor investigation into the labor practices of a concrete subcontractor from Bowie, Maryland, and its owners. The investigation found that the employers had misclassified workers on a federally funded affordable housing project in the District of Columbia, thereby violating federal regulations.
The action follows an investigation by the department's Wage and Hour Division into V&V Construction Inc. and its owners, Carlos and Cristina Vicente. The investigation determined that the employers incorrectly classified master laborers as laborers, thus paying them less for overtime hours. The employers also paid workers a split rate of 25 hours per week as master laborers and 15 hours per week as laborers, failing to pay workers their correct prevailing wages or fringe benefits. Investigators also discovered that V&V Construction submitted falsified payroll records and failed to demonstrate that it displayed required posters at the workplace.
The company's workers performed a concrete installation in August 2018 as part of the construction of Liberty Place Apartments in Northwest Washington as a subcontractor for Hamel Builders of Washington LLC, the project's main contractor.
The division determined that V&V Construction and its owners owed $195,492 in back wages to 55 workers for violations of the Davis-Bacon Act and Related Acts but made no payment and requested a hearing before the Office of Administrative Law Judges. The department's Solicitor's Office reached an agreement with the employers to resolve the matter without further litigation.
"The employers misclassified and underpaid master laborers as if they were laborers, then inaccurately segregated work hours, denying workers a significant amount of wages and additional benefits," explained Roberto Meléndez, district director for the Wage and Hour Division in Richmond, Virginia. "The Department of Labor is committed to ensuring that federal investments in construction projects result in good jobs defined by strict labor standards. We encourage employers who are awarded federal contracts to contact us for compliance assistance and to avoid violations like those in this case."
Consent findings issued by Judge Theodore Annos of the Office of Administrative Law Judges in Washington upheld the investigation's conclusions and ordered V&V Construction and its owners to pay $186,124 in back wages to affected employees. As part of the agreement, the employers agreed to improve compliance, including 18 months of independent monitoring of contracts under the Davis-Bacon Act and Related Acts to ensure future compliance.
"Federally funded projects require employers to comply with the law. If they do not comply, we will hold them legally accountable to ensure that workers are properly classified and not deprived of hard-earned wages and benefits," said Acting Regional Solicitor of Labor Samantha Thomas in Philadelphia.
Completed in 2020, the Liberty Place Apartments project relied on funds that the U.S. Department of Housing and Urban Development awarded to the District of Columbia's Department of Housing and Community Development.
For more information about the Wage and Hour Division, including a search tool that you can use if you believe you are owed back wages collected by the division, workers and employers can call the division confidentially if they have questions or concerns (regardless of their origin) and the department can speak with callers in more than 200 languages at its toll-free number, 1-866-4-US-WAGE (487-9243). Help ensure that work hours and payment are accurate by downloading the department's Android and iOS timesheet app for free in English or Spanish.
