DOL Recovers More than $400,000 for Workers Underpaid Under Federal Contract
On September 22nd, 2025, the United States Department of Labor (DOL) announced that it has recovered more than $400,000 in compensation for 12 workers at three different New Jersey-based contractors. These firms were paid under a federal contract. In this article, our New Jersey wage and hour attorney provides a more comprehensive overview of the case.
An Overview of the DOL Enforcement Action (Wage Violations)
As confirmed by the DOL, an administrative law judge has ordered three New Jersey contractors (Above All Inc., Regiment Construction Corp., and Seawolf Construction Corp) to pay $429,846 in back wages and fringe benefits to a dozen employees, all of whom were carpenters. The federal agency determined that the companies violated the Davis-Bacon Act in relation to federal projects at Veterans Affairs Medical Centers in Lyons, New Jersey and East Orange, New Jersey. Investigators determined Above All paid workers about $32 per hour instead of the required $59-$68 rate. Further, the contractors reportedly falsified payroll records. All three contractors were held jointly liable. They have all submitted the petition for appeal with the Administrative Review Board
Understanding Davis-Bacon Act Requirements (Federal Contractor Wages)
Companies that are contracted to work on federally-funded projects are required to follow a law called the Davis-Bacon Act (DBA). It requires contractors and subcontractors performing on federally funded or federally assisted construction projects exceeding $2,000 to pay laborers and mechanics no less than the locally prevailing wage rates and the locally prevailing fringe benefits. Prevailing rates are determined by the DOL through wage determinations specific to the project’s county and classification of work. The law applies to projects for construction, alteration, or repair of public buildings and public works. Further, it includes projects that are managed by state and/or local governments if they received specific federal funding for the project.
One key point to know is that compliance requires contractors to submit certified payroll records. Those records document wages and benefits paid to each worker. The failure to pay the required prevailing wage rate constitutes a violation. It is a serious matter as it exposes contractors to liability for back wages. Beyond that, it could also lead the federal government to order contract termination and potentially even to move for debarment from future federal contracts. The law holds that prime contractors are jointly liable for violations by subcontractors. That was one of the issues that arose in this case. The regulation effectively prohibits contractors from protecting themselves against prevailing wage liability by using subcontractors.
Call Our New Jersey Wage and Hour Claims Attorney Today
At Poulos LoPiccolo PC, our New Jersey wage and hour lawyer has the experience that you can trust. If you are a worker under a federal contract who was underpaid in violation of the law, please do not hesitate to contact us today for a fully confidential case review. We represent employees in Monmouth County and throughout the State of New Jersey.
Source:
dol.gov/newsroom/releases/whd/whd20250922
