The Department of Labor Employment Standards Administration recommended that a firm and its owner and secretary be placed on the ineligible bidders list for violations of the Davis-Bacon Act. As a result of an investigation, Labor found that the firm had not paid its employees the minimum wages or proper overtime compensation pursuant to the act and had falsified payroll records. The act provides that the Comptroller General can debar persons or firms that have disregarded obligations to their employees. GAO has held that violations which were intentional as demonstrated in bad faith or gross carelessness in observing obligations to employees are basis for debarment. Accordingly, the firm will be included on the list of ineligible bidders.
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