DOL Recovers More than $700,000 in Wages for BSC Workers

After reviewing a contract with a building services contractor (BSC) maintaining a federal building, the U.S. Department of Labor (DOL) discovered the BSC failed to fully pay and provide benefits to 14 workers. The DOL’s Wage and Hours Division recovered US$783,616 in wages and benefits for the workers and their union following litigation.

Dellew Corp. was under contract with the U.S. Social Security Administration to provide HVAC services and other general maintenance to the Joseph P. Addabbo Federal Building in New York City. The contract was worth $3.4 million in its final year.

However, Dellew Corp. failed to pay 14 workers their prevailing wages for the jobs they performed and did not pay proper fringe benefits to the International Union of Operating Engineers Union Local 30, per a collective bargaining agreement. Specifically, the Wage and Hour Division determined that the contractor failed to pay the employees $47,705 in wages and $1,102,288 in required health and welfare fringe benefits.

The Wage and Hour Division credited Dellew for $366,377 in payments made during its investigation and requested that the Social Security Administration withhold $783,616 in contract payments to cover the balance.

“The U.S. Department of Labor is committed to ensuring employees are paid the wages they have rightfully earned, and Federal contractors comply with the law. When employers fail to do so, we will pursue appropriate legal means on behalf of the workers and the law,” said Regional Solicitor of Labor Jeffrey Rogoff.