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MISSOURI DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS
FOR MORE INFORMATION CONTACT: Tammy Cavender (573)
751-7500
FOR IMMEDIATE RELEASE: August 30, 2005
PREVAILING WAGE CASE RESULTS IN FINDINGS OF OVER $500,000 IN RESTITUTION DUE WORKERS
Jefferson City, MO – The Department of Labor and Industrial Relations’ Division of Labor Standards announced the settlement of prevailing wage violations occurring on the Northwest Missouri State University Residence Hall construction project. Investigations were initiated after receipt of complaints alleging the majority of workers on the project were not being paid the appropriate prevailing wage rates. In addition, some contractors classified workers as “independent contractors.” Investigative results revealed numerous instances of under payment of wages and that there were workers who were not legitimately classified as independent contractors and should have been paid the appropriate prevailing wage rate. Ultimately, the findings of this investigation resulted in determinations of back wages owed to 255 workers. Two Hundred and six workers are still due restitution in a total amount of $529,534. The University received in excess of $30,000 in penalties.
The case involved numerous subcontractors found to be in violation. Prime contractors are ultimately responsible for compliance with the law for all subcontractors. The prime contractor on this project, MW Builders, Inc. of Overland Park, Kansas, was determined to be the ultimate responsible party. A settlement between the University, the Department and MW Builders was reached in order to address all the issues in the case, including the inability to locate workers to deliver restitution. Both the Department and MW sent letters to reach as many workers as can be found. In addition, since many of the workers were not fluent in English the company also provided letters and notifications in Spanish.
“The prevailing wage law is intended to assure public works projects are performed by qualified workers and make certain those workers receive wages that are representative of the local economy,” said Tom Deuschle, director of the Missouri Department of Labor. “This requirement applied to all contractors who bid the work on this project. It is only fair that the contractors completing the work are made to pay what other contractors based their bids on as required by the law.”
Anyone knowing of others who worked on this project should have them contact MW Builders at (913) 345-0007 to determine if the worker has funds due them.
Information regarding Missouri’s Prevailing Wage Law is available at www.dolir.mo.gov/ls. For further assistance, contact the Division of Labor Standards at (573) 751-3403.
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· P.O. Box 1958 · Jefferson City, MO
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