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Workers on Federally Funded NYC Housing Project Receive $792K in Back Pay for Employee Misclassification

March 28, 2011

Our California employment lawyers blog recently discussed the problem of employment misclassification in the workplace--where workers are often misclassified and robbed of employee benefits like overtime, minimum wage and meal periods when employers violate state and federal wage and hour laws.

In a related investigation led by the U.S. Department of Labor's Wage and Hour Division, that our Santa Ana employment lawyers have been following, the department's Administrative Review Board has recently ordered the Long Island City construction contractor, Pythagoras General Contracting Corporation to pay over $769,000 in back wages to nearly 80 workers for engaging in employee misclassification.

According to the DOL's Wage and Hour Division investigation, Pythagoras was found to have violated benefit and wage requirements of the Davis-Bacon Act (DBA) and the Contract Work Hours and Safety Standards Act (CWHSSA) while working on the New York City Housing Authority project at Vladeck Houses--a project that receives partial funding from the U.S. Government.

Due to the misclassification of its employees under the Davis-Bacon Act, Pythagoras reportedly failed to compensate workers at the prevailing wage rate for the skilled labor that was actually performed, and also consistently failed to compensate some employees for all of the hours worked on the project. Pythagoras and the company's president Stanley Petsagourakis are also reportedly banned from working on future contracts that receive federal funding for three years, after Pythagoras' willful underpayment of employee wages and failure to compensate employees for all hours worked.

Under the DBA, all contractors and subcontractors who perform work on projects that are federally funded are required to compensate their workers with the DOL's prevailing wage rates and employee fringe benefits. Under the CWHSSA, contractors and subcontractors are required to pay workers who are employed on federal contracts one and one-half times their regular pay rate for any hours worked beyond forty in a workweek.

At Howard Law, PC, our team of California Labor and Employment Attorneys are experienced in understanding employee misclassification and other federal and state violations of employment and labor laws. In Orange County, California, contact us today to discuss your wage and hour issues.

Review board affirms US Labor Department recovery of more than $792,000 in back wages for 79 employees on New York City's Vladeck Houses project, U.S. Department of Labor, March 15, 2011

Related Web Resources:

Department of Labor (DOL): Wage and Hour Division (WHD)

Related Blog Posts:

U.S. DOL Recovers $339K in Back Wages for Electrical Mechanics, California Employment Lawyers Blog, December 7, 2010

Construction Company Pays Back Wages After DOL Wage and Hour Division Probe, California Employment Lawyers Blog, August 10, 2010