The Department of Labor reached a settlement in Davis-Bacon dispute.
In February, pursuant to an investigation conducted by the U.S. Department of Labor, the agency approved a settlement agreement in which Georgia-based contractor Schadsons Corporation (“Schadsons”) agreed to pay $195,000 to 21 workers for alleged violations of the Davis-Bacon Act (“DBA”). The DBA is a federal law that requires contractors and subcontractors on certain federal projects to pay construction workers at least the locally going rate, known as the federal prevailing wage.
The agency’s determination letters alleged that the contractor had failed to pay the proper prevailing wage rate, failed to pay overtime, and failed to keep accurate certified payroll reports in violation of the DBA. According to DOL, Schadsons committed the underlying violations while performing HVAC work on two federal projects at Fort Benning, Georgia – the Basic Training Complex Barrack and McBride Elementary School under general contractor Caddell Construction, Inc. The approved agreement also debarred Schadsons for 1.5 years.