HR Management & Compliance

Why Vallejo Contractor Was Barred From Public Works Contracts




The California labor commissioner has barred Lee’s
Sheet Metal, Heating and Cooling, Inc., a Vallejo-based contractor, from
bidding on or receiving any public works contract for three years because the
company didn’t pay prevailing wages. The sanction, officially known as a “debarment,”
grew out of Lee’s work on several public works projects in Vacaville. The commissioner determined that
Lee’s didn’t pay prevailing wage rates and overtime premium rates on those
projects and didn’t maintain accurate payroll records. At the debarment
hearing, evidence was presented that the company demanded kickbacks from
employees to keep working on the projects. Lee’s also paid out $61,000 to
settle penalty assessments.

 

“This company purposely tried to deceive its employees
and the state of California,”
Labor Commissioner Angela Bradstreet said. “We will take strong action against
anyone who operates outside the law which creates an unfair business advantage
over others who follow the public works laws as required.” For information on
prevailing wage requirements, go to www.dir.ca.gov/dlse/dlsePublicWorks.html.

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