Request for Reconsideration Concerning Violation of the Davis-Bacon Act

B-200299.2: Oct 9, 1981

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A company requested reconsideration of a GAO decision which affirmed a determination that the firm had underpaid one of its employees, violating the Davis-Bacon Act, during the performance of an Army contract. The employee contended that he had worked on the Army contract for the month of March 1979 and was not paid at the prevailing wage rate as prescribed by law. A labor standards investigation by the Army revealed that the employee had been underpaid by $626.28. This money was withheld from payments owed to the company. GAO subsequently determined that the employee had actually been underpaid by $650. The difference was never forwarded to GAO. The company requesting reconsideration contended that the Department of Labor had also conducted an investigation into the same alleged underpayments and that, on the basis of Labor's findings, the company had agreed to pay a certain sum of money in settlement of the employee's wage claim. This amount was substantially lower and was rejected by the employee. GAO reconsidered the case on the basis of additional information and concluded that the existing record was sufficient to substantiate the employee's claim that he was not paid the prevailing wage rate for work performed as a carpenter and painter. This part of the original decision was affirmed. However, the original ruling was modified to the extent that new evidence established that the agreement between the company and Labor covered work performed in March 1979 as contended by the employee, and not May 1979 as contended by the company. The employee will be paid from the funds held by GAO, and the remainder will be refunded to the company.