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 | Dec 8, 2021
Proposals to add more multifamily to Atlanta prompt drive for Buckhead to secede
City aims to increase housing as projections point to sharp population increase.
Codes and Standards | Dec 7, 2021
Design problems now the primary cause of construction claims and disputes
More likely to occur due to more tight timescales imposed upon third parties engaged in design.
Codes and Standards | Dec 5, 2021
New standard for Phase I environmental reports requires more research work on many sites
Update affects around 250,000 commercial real estate transactions a year.
Codes and Standards | Nov 30, 2021
Dept. of Energy publishes RFP for technical assistance on supporting better building codes
Addresses advanced standards to reduce energy consumption and GHG emissions.
Codes and Standards | Nov 29, 2021
Ithaca, N.Y., votes to electrify, decarbonize all its buildings
First initiative of its kind in U.S.
Codes and Standards | Nov 29, 2021
FAA seeking design of air traffic control towers of the future
Call for design submissions for safe, efficient structures.
Codes and Standards | Nov 28, 2021
Efficient electric water heaters in multifamily buildings significantly reduce carbon emissions
In buildings with 5+ units, water heating uses more energy than space heating, cooling, or lighting.
Codes and Standards | Nov 23, 2021
New York’s Labor Law Section 240 and how it affects general contractors
The ‘Scaffold Law’ was first enacted by the New York State Legislature in 1885 and is one of the single most-used laws in construction accident cases.
Codes and Standards | Nov 22, 2021
ABC’s Construction Technology Report finds focus on solving operational problems
More than half rely on project management software.
Codes and Standards | Nov 22, 2021
Contractors say 811 utility location system has significant flaws
More than half of firms in survey report damages, near misses because lines were unmarked or marked incorrectly.