WASHINGTON —
The U.S. Department of Labor has recovered $596,443 for 31 workers who were denied their full wages and fringe benefits by a Maryland-based subcontractor involved in a kickback scheme during the construction of two affordable housing developments funded by the District of Columbia.
The department’s Wage and Hour Division investigated J. Solano HVAC LLC —
an air conditioning, heating, and ventilation company based in Silver Spring, Maryland —
and its owner, Jose Williams Solano, and found they violated the Davis-Bacon and Related Acts while working as a subcontractor on the Carl F. West Estates and Northwest One Phase 2 projects, both located in northwest Washington, D.C.
The department determined J. Solano HVAC and Solano made verbal agreements with sheet metal workers and pipefitter mechanics that they would receive the full prevailing wage rate via check but then required workers to return any wages they received that exceeded $30 per hour. Additionally, the department found the employer wrongly classified some workers as lower-skilled laborers. In doing so, the employer did not pay the proper prevailing wage rates, including the basic hourly rate, holiday pay, and fringe benefits, in violation of the DBRA.
The division debarred J. Solano HVAC LLC and its owner from bidding on federally funded construction projects for a period of three years because of the willful nature of the violations.
“By uncovering this scheme, the department ensured that workers were paid fairly, received their full fringe benefits, and that competing contractors were not disadvantaged for appropriately bidding for work based on the required prevailing wage rates,” said Wage and Hour Division district director Nicholas Fiorello, in Baltimore. “Employers that don’t abide by federal contract requirements may end up being debarred from future government contract work.”
The Carl F. West Estates will create 179 affordable units reserved for seniors and grandfamilies. Northwest One Phase 2 is a six-story multifamily housing development. Both received funds from the District of Columbia.
Learn more about the Wage and Hour Division and the DBRA. Employers and workers can call the division with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243).
Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain potential violations under the Family and Medical Leave Act.
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