PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram
Search the site

 

Download our free e-book! Overcoating bridges and other structures.

Coatings Industry News

Main News Page


Contractor Barred for Wage Fraud

Wednesday, June 4, 2014

Comment | More

An Arizona subcontractor is banned from federal projects for three years and is repaying nearly $200,000 in back wages after federal prosecutors found falsified payroll records on a highway project.

The U.S. Department of Labor recovered $198,085 in back wages for 23 workers from Tierra Contracting Inc., based in Glendale, AZ, for willful violations of the Davis-Bacon and Related Acts and the Contract Work Hours and Safety Standards Act.

The company and owner Richard Juarez Sr. have also been debarred from seeking federally funded contracts for three years because of the "egregious nature" of the violations.

mcdot.maricopa.gov

"This employer intentionally omitted from payroll records hours employees worked beyond 40 in a workweek to skirt payment of overtime rates," said Eric Murray, district director for the Wage and Hour Division in Phoenix.

Calls to the company Monday (June 2) were repeatedly met with a busy signal.

Failing to Pay

According to investigators, Tierra Contracting failed to pay the required prevailing wage rates and fringe benefits to power equipment operators, water truck drivers, pipe layers, grade setters and laborers working on the federally funded Northern Parkway highway project in Maricopa County.

Tierra Contracting was hired by Lawrence Construction Co. as a subcontractor to perform excavation and installation of water and sewer lines for the project.

Lawrence Construction was awarded the prime contract for the project by the Maricopa County Department of Transportation.

Construction of the Northern Parkway will result in a 12.5-mile corridor with six lanes of traffic. The total projected cost of the project is $612.6 million and construction on planned improvements will last through 2026.

The Northern Parkway is partially funded by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). The act incorporates the provisions of the Davis-Bacon and Related Acts, which requires prevailing wages and fringe benefits be paid to laborers and mechanics working on federally funded projects.

glendaleaz.com

Construction of the Northern Parkway will result in a 12.5-mile corridor with six lanes of traffic. The total projected cost of the project is $612.6 million and construction on planned improvements will last through 2026.

The Contract Work Hours and Safety Standards Act also applied to this project and requires contractors and subcontractors to pay laborers and mechanics for federally funded projects one and one-half times their basic pay rate for all hours worked beyond 40 hours per work week.

Skirting Overtime

The company routinely submitted certified payroll records that did not accurately reflect the hours employees had worked, according to the DOL.

Employees were paid for overtime hours with separate checks, off-the-record and at straight-time rates, without the additional time-and-a-half, investigators said.

"This employer intentionally omitted from payroll records hours employees worked beyond 40 in a workweek to skirt payment of overtime rates," said Eric Murray, district director for the Wage and Hour Division in Phoenix.

"As a result of the willful violations found, Tierra Contracting has been determined ineligible to apply for federally funded projects," Murray said.

   

Tagged categories: Contractors; Ethics; Funding; Government contracts; Roads/Highways; Subcontractors

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Detail Masters
 
Overspray Removal
 
We offer professional, turnkey service and unparalleled quality!
Our process can save hundreds— even thousands of dollars. It's fast, environmentally safe and 100% guaranteed.
 

 
SAFE Systems, Inc.
 
Portable Dust Collectors for Tough Environments
 
Trailer and skid-mounted models in numerous sizes, powered by electric and/or diesel. Sloped roofs, multiple dust inlets, high static, dampered fans. Lockable power & drive compartments.
 

 
Industrial Vacuum Equipment Corp.
 
Hurricane Vacuums
& Dust Collectors
 
Vacuum and dust collector hose, filters and related accessories.
IndustrialVacuum.com
 

 
Clemco Industries Corp.
 
Maximum Dust Suppression Systems Start at $14,950
 
The system comprises proven technology and equipment with user-friendly flexibility in mind. See it in action.
 

 
SSPC: The Society for Protective Coatings
 
http://www.sspc.org/
 
Join SSPC and Enhance
Your Career !
 

 
Fischer Technology Inc.
 
NEW Protective Coating Inspection Website
 
Click Here!
 

 
PreTox Products - NexTec, Inc.
 
GOT LEAD? Specify Pretox System products
 
The ONLY Lead Stabilizer Compatible with All Paint Removal Methods. Works with all Blast Media: Grits | Recyclable Abrasives | CO2 | Water | Power Tools | Etc. Call Dave Steffen at 800.338.8296.
 

 
KTA-Tator, Inc. - Corporate Office
 
KTA Analyzes
Coating Failures
 
• Field Diagnosis
• Lab Diagnosis
• Determination of Cause
• Recommendations
www.kta.com
Call 1-800-245-6379
 

 
Atlantic Design, Inc.
 
CLICK TO SEE...
 
what we did to this machine! Let ADI upgrade your machine, extending the life, efficiency, and value. Any make. Like new, but better! 866.Call.ADI
 

 
 
 

Technology Publishing Co., 2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us