LCPtracker Blog

39 Employees + Misclassification = $87,239 in Back Wages

Prevailing wage has been set into place in many states to ensure that workers are receiving the amount due to them for the scope of work they are performing. The Davis-Bacon and Related Acts assure fairness in bidding and promote economic growth by supporting the middle class which then returns their profits back to the economy through consumption of goods.

When a contractor fails to comply with these regulations they effectively cheat their own employees and gain an unfair advantage over other companies that are in compliance as they are able to submit lower bids.

Sierra Construction Co. has done just that. A little over a year after construction was completed on The Prescott Apartments in North Portland, Oregon the company and two subcontractors were found to be non-compliant.

The firm and subcontractors violated prevailing wage laws by improperly classifying workers in positions that did not cover the full scope of work. The total amount of back wages owed by the organization totaled $87,239 and, while not every employee will be receiving the same amount, that averages to $2,237 per person.

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