FOR MORE INFORMATION CONTACT: Amy Susan 573-751-1518
FOR IMMEDIATE RELEASE: December 9, 2011
St. Louis Contractor Caught Violating the Prevailing Wage Law
Workers owed more than $21,000 in overtime
St. Louis— After receiving a verbal complaint, the Missouri Department of Labor’s Division of Labor Standards (DLS) conducted an investigation and found that a St. Louis Contractor, Gateway Construction Services Inc., was in violation of the state’s prevailing wage law.
Gateway was hired as the subcontractor to do the lead abatement on one of the three public school projects in the St. Louis School District. Because this was a public works project, employers are required to pay the prevailing wage rates applicable to the specific county and occupations employed on the project for the county in which the work is done.
“The law requires that workers employed on public construction projects paid from tax dollars, receive wages that are compatible to the wage rates for similar work done in that county. Prevailing wages support local businesses and the local economy-- workers use those wages to pay taxes, mortgages, and buy goods in the community.” Department Director Larry Rebman said.
In this case, 18 workers were not paid the correct overtime rate (1 ½ times their basic hourly rate for work outside the regular work day) throughout the duration of the job that began in December 2009 and ended in June 2010. Consequently, Gateway Construction Services Inc. collectively owed the workers $21,146.21 in backwages to workers. Because Gateway cooperated and paid full restitution, the DLS did not pursue any monetary penalties. If Gateway failed to comply, they faced $34,000 in penalties ($100 per day, per worker) for a grand total of $55,146.19.
During the fiscal year 2011, the Department has received 308 prevailing wage complaints as well as collected more than $1,104,000 in restitution. If you have any questions regarding prevailing wage laws contact the DLS at 573-751-3403, or visit http://www.labor.mo.gov/DLS/PrevailingWage/ for more information.
421 East Dunklin Street, P.O. Box 504, Jefferson City, MO 65102-0504
Phone: 573-751-7500 Fax: 573-751-6552