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Highlights

The Employment Standards Administration recommended that a firm and its executive officers be placed on the ineligible bidders list for violations of the Davis-Bacon Act. The Department of Labor found that: (1) employees were not paid the minimum wages and overtime compensation required pursuant to the Davis-Bacon Act; (2) certified payrolls were falsified; (3) employees were misclassified; and (4) the contractor employed apprentices in excess of the ratio allowed. GAO noted the difference between technical violations which result from inadvertence or legitimate disagreement and substantial violations which are intentional as demonstrated by carelessness in observing obligations to employees. GAO found that the violations of the act were substantial, since the underpayment of employees and falsification of payroll records was intentional. Accordingly, the contractor and its executive officers will be debarred.

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