Published date: 10/23/2025
An administrative law judge has ordered three New Jersey-based federal construction contractors to pay $429,846 in back wages and fringe benefits to 12 workers following a U.S. Department of Labor investigation.
The contractors were found to have violated the Davis-Bacon Act by paying carpenters significantly below the required prevailing wage—averaging $32/hour instead of the mandated $59.08 to $68.23/hour, depending on the project and timeframe. The violations occurred during work on construction and renovation projects for Department of Veterans Affairs Medical Centers in Lyons and East Orange.
The judge also determined that one subcontractor intentionally falsified payroll records to conceal underpayments. As a result, both the subcontractor and the prime contractors were held jointly liable for the full amount owed.
Petitions for review of the decision have been filed with the Department of Labor’s Administrative Review Board.
Learn More: US Department of Labor recovers $429K in wages, benefits for 12 employees underpaid by contractors on federally funded projects in New Jersey | U.S. Department of Labor
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