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
School Construction | Jul 11, 2016
Fight over school funding in Arizona headed to court
Legislature accused of ignoring 1994 ruling ordering state to pick up some of the costs.
Green Specifications | Jul 8, 2016
World Green Building Council sets goal of 100% net-zero buildings by 2050
All new buildings and major renovations to be net-zero by 2030.
Market Data | Jul 7, 2016
Airbnb alleged to worsen housing crunch in New York City
Allegedly removing thousands of housing units from market, driving up rents.
Urban Planning | Jul 7, 2016
Y Combinator project would build new city using new technology, urban policies
Zoning, property rights, building codes all could be re-imagined.
Green | Jul 6, 2016
U.S. healthcare system’s GHG emissions rise 30% in past decade
If U.S. healthcare were a country, it would rank 13th in GHG emissions.
Codes and Standards | Jul 5, 2016
State legislature fails to pass law to extend design-build for New York City projects
Would have allowed five city agencies to use alternate delivery method.
Energy | Jun 30, 2016
Energy Department partnership with CoStar Group will study sustainability impact on property valuation
Database will offer rich data set on energy-efficient buildings in the U.S.
Contractors | Jun 30, 2016
Chicago contractor found guilty of fraud on city’s requirement on minority-owned businesses
Alleged to have been sham business in bid to win city public works contract.
Codes and Standards | Jun 29, 2016
OSHA starts evaluation of construction industry noise standards
New studies indicate significant number of construction workers suffer hearing loss.
Seismic Design | Jun 28, 2016
ASTM International updates seismic risk standards
Expected to improve consistency of risk evaluation on commercial real estate transactions.