The U.S. Department of Labor has successfully recovered $596,443 for 31 workers who were denied their full wages and fringe benefits by J. Solano HVAC LLC, a subcontractor based in Maryland. The company was involved in a kickback scheme during the construction of two affordable housing projects funded by the District of Columbia. An investigation by the department's Wage and Hour Division revealed that J. Solano HVAC LLC and its owner, Jose Williams Solano, violated the Davis-Bacon and Related Acts (DBRA) while working on the Carl F. West Estates and Northwest One Phase 2 projects in Washington, D.C.
The investigation found that verbal agreements were made with sheet metal workers and pipefitter mechanics to pay them the full prevailing wage rate via check. However, workers were then required to return any wages exceeding $30 per hour. Additionally, some workers were wrongly classified as lower-skilled laborers, resulting in improper payment of prevailing wage rates including basic hourly rate, holiday pay, and fringe benefits.
Due to these violations, J. Solano HVAC LLC and its owner have been debarred from bidding on federally funded construction projects for three years. Nicholas Fiorello, Wage and Hour Division District Director in Baltimore, said: "By uncovering this scheme, the department ensured that workers were paid fairly... Employers that don’t abide by federal contract requirements may end up being debarred from future government contract work."
The Carl F. West Estates project will provide 179 affordable units for seniors and grandfamilies while Northwest One Phase 2 is a six-story multifamily housing development. Both projects received funding from the District of Columbia.
For more information about compliance assistance or inquiries regarding wage laws enforced by the division, employers and workers can contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). The department also offers a free Timesheet App for tracking hours and pay on iOS and Android devices.
