Americans can expect to see more orange cones as construction workers begin to tackle $1.2 trillion in infrastructure investments approved by Congress and signed into law by President Joe Biden late last year.
The Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, provides funding for rebuilding roads and bridges, replacing lead pipes and providing high-speed internet to more Americans, among other priorities. It is also expected to provide employment to tens of thousands of Americans across the country.
The creation of so many new jobs is good news for hourly workers but raises the potential for a variety of wage-and-hour issues, including prevailing wage disputes. It’s important for workers to understand what prevailing wages are, how they work and remedies available to them if they’re not being paid what they’re owed.
What are prevailing wages?
The Davis-Bacon Act is the federal law requiring any contractor on a government contract to pay workers a prevailing wage. Congress enacted the law in 1931 to prevent non-local contractors from obtaining federal construction contracts by underbidding local workers.
Under the Davis-Bacon Act, contractors and subcontractors are required to pay individuals performing work on federally funded construction projects a wage that is comparable to work on similar projects in their area which is a prevailing wage.
How do prevailing wages work?
The law applies to every federal government contract exceeding $2,000 for the construction, alteration, or repair of public buildings or public works. The U.S. Department of Labor uses local surveys to set prevailing wages, and prevailing wages take both union and non-union labor into account.
When contractors or subcontractors with federal infrastructure contracts subject to the Davis-Bacon Act fail to pay prevailing wages, they run the risk of being sued by employees under the Act.
Failing to pay prevailing wages can also get these contractors in trouble under another law: the False Claims Act. Contractors are required to certify to the federal government that workers have not been paid less than prevailing wages. Failing to do so can open them up to liability for submitting false claims for payment to the government.
What remedies are available to me?
The False Claims Act includes a way for someone with knowledge of a fraud on the government to report it and to secure recovery of the money to the government. By statute the whistleblower is entitled to between 15-30% of any successful recovery.
If you are working one of the federal government’s infrastructure contracts and you believe you are not being properly compensated for your work, you may have a claim against your employer. Additionally, if you know your employer is reporting false wage information to the federal government, like reporting that it is paying workers prevailing wages when it isn’t, you may have grounds for a whistleblower action.
Consulting with an employment attorney is important to ensure your rights are protected and to determine whether you have a basis for a lawsuit. If you are considering reporting any wrongdoing to the government, it’s critical to consult with a knowledgeable attorney to better understand your rights and the potential outcomes of becoming a whistleblower.
In either situation, the attorneys of Keller Grover are here to help. With more than 30 years combined experience in both fraud and employment law, Keller Grover is uniquely positioned to help clients with both types of claims. The firm has helped its clients recover billions of dollars.
Keller Grover is committed to helping whistleblowers report wrongdoing and helping workers get the pay they are owed. If you want to report wrongdoing or discuss a potential prevailing wage claim, contact us today for a free, confidential consultation.