The U.S. Department of Labor and MDG Design & Construction LLC have reached a settlement over wage violations atthe federally-assisted 26-story Grand Street Guild rehab project in New York City’s Lower East Side. MDG and other firms involved will pay $3.8 million in back wages and fringe benefits to about 200 of MDG’s subcontractors’ construction workers.
Previous investigations led to the repayment of more than $1.1 million in back wages to 300 laborers and mechanics who worked for MDG’s subcontractors.The contractors have also agreed to expansive compliance measures to prevent future violations.
The labor department’s Wage and Hour Division found numerous Davis-Bacon and Related Acts violations by MDG subcontractors, including failure to pay required prevailing wages and submitting inaccurate or falsified payroll records to the government. As part of the settlement, MDG will retain an independent monitor for three years with responsibilities for conducting regular reviews of the company and its subcontractors to confirm compliance with applicable wage and hour laws on all prevailing wage and federally-assisted projects.
In addition to MDG, the settlement agreement includes Charis Consulting LLC, Kona Contracting LLC, as well as Michael Rooney and Nicola DeAcetis — owners of all three companies — and Neys Escobar, an owner of Kona. All of the companies are based in Huntington Station, N. Y.
Related Stories
Codes and Standards | May 13, 2020
Researchers flag insufficient training for construction workers on healthcare projects
May contribute to fungal disease outbreaks that endanger patients
Codes and Standards | May 8, 2020
New NIBS report evaluates natural disaster mitigation strategies
Document examines strengthening buildings for flood, wind, wildfires, and earthquakes.
Codes and Standards | May 6, 2020
A few ways contractors can manage COVID-19 risks
Staggered start times, rigorous tool cleaning, virtual training among the strategies.
Codes and Standards | May 5, 2020
NAHB loses influence in 2021 IECC building code development
Despite objections from the National Association of Home Builders (NAHB), the development of the 2021 International Energy Conservation Code (IECC) is nearing conclusion. NAHB objected to several more stringent energy efficiency provisions.
Codes and Standards | May 5, 2020
2020 IECC will lead to significant carbon emissions reductions
New model building code nearly finalized.
Codes and Standards | May 4, 2020
New York expands prevailing wage law
Now includes private projects with 30% or more of public subsidies.
Codes and Standards | May 1, 2020
OSHA says most employers don’t have to track worker COVID-19 infections
Agency clarifies responsibility for contractors, others.
Codes and Standards | Apr 29, 2020
New York City tightens restrictions on construction during pandemic
Dept. of Buildings has issued more than 100 violations and stop-work orders.
Codes and Standards | Apr 28, 2020
ASHRAE, WELL panels to tackle revising standards to limit spread of viruses in buildings
Will examine ways to reduce infectious threats through building designs and operations.
Codes and Standards | Apr 24, 2020
Dept. of Labor issues guidance for respiratory protection during N95 shortage
Elastomeric respirators or powered, air-purifying respirators, and expired N95s are allowable alternatives
