Feds Order Alabama Contractor to Pay $82K in Back Wages to 17 Employees

Article

An Alabama company has paid $82,515 in back wages and fringe benefits to 17 employees following a federal investigation into labor law violations.

Al.com reports Marathon Electrical Contractors, based in Irondale, was contracted to renovate the clinic at Tyndall Air Force Base in Panama City, Florida, on a project funded by the U.S. Army Corps of Engineers. Federal law requires contractors and subcontractors performing work on federal projects to pay workers prevailing wage rates and fringe benefits.

According to labor department investigators, Marathon didn’t pay some employees the required rates and inaccurately classified them as laborers rather than electrician apprentices. As a result, the workers didn’t receive the required journeyman wage.

The investigation also found Marathon violated fringe benefit requirements by incorrectly claiming it had made contributions to 401(k) funds.