[Recommendations for Placement on the Debarred Bidders List]

B-217344: Jun 7, 1985

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The Employment Standards Administration recommended that a firm and its owner be placed on the debarred bidders list for violations of the Davis-Bacon Act. The Department of Labor found that: (1) employees were not paid the minimum wages required pursuant to the Davis-Bacon Act; (2) certified payrolls were falsified and incomplete; and (3) employees were not paid overtime compensation under the Contract Work Hours and Safety Standards Act. GAO noted the difference between technical violations which result from inadvertence or legitimate disagreement concerning classification and substantial violations which are intentional in not observing obligations to employees with respect to minimum wage provisions. GAO found that: (1) the Comptroller General has authority to debar persons or firms who disregarded their obligations to employees; (2) the falsification of payroll records is a basis for debarment; and (3) the underpayment of employees was intentional. Accordingly, the firm and its owner will be debarred.