An administrative law judge has ordered JRW Service Group LLC, a federal contractor based in Pennsylvania, to pay $85,284 in back wages. This decision follows an investigation by the U.S. Department of Labor into the company's failure to pay prevailing wages, fringe benefits, and overtime to workers on federal construction projects.
The Office of Administrative Law Judges determined that JRW Service Group and its owner, Jason Winters, violated the Davis-Bacon Act. The company misclassified six workers as laborers when they performed tasks associated with carpenters and pipefitters at three worksites for the U.S. General Services Administration and the U.S. Coast Guard. These sites included federal court buildings in Brooklyn and Central Islip, New York, and a training center in Cape May, New Jersey.
Additionally, the judge found that JRW Service Group did not pay required overtime rates for hours worked beyond 40 per week at all three locations. This action contravened the Contract Work Hours and Safety Standards Act. The case was escalated to the department’s Office of the Solicitor after JRW Service Group refused to compensate workers' back wages.
“Employers who fail to pay required prevailing wages and fringe benefits because they classify employees improperly cause financial harm to workers on government-funded projects,” stated Jorge Alvarez, Wage and Hour Division District Director in New York.
The ruling also prohibits JRW Service Group and its owner from participating in future federal or federally funded construction projects for three years.
“This decision and debarment should make clear that the U.S. Department of Labor will pursue all necessary legal actions to ensure that employers are held accountable when they violate federal prevailing wage laws,” said Jeffrey S. Rogoff, Regional Solicitor of Labor in New York.
The investigation was conducted by the division’s New York City District Office. Trial attorneys Susannah Kroeber, Susan Jacobs, and Stacy Goldberg from the regional Office of the Solicitor litigated the case.
For more information about wage laws or to report violations confidentially, individuals can contact the Wage and Hour Division's helpline at 866-4US-WAGE (487-9243). Assistance is available in over 200 languages.
