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New York State
Department of Labor
David A. Paterson,=20
Governor Colleen C. Gardner, =
Commissioner=20
VIDEO: Erie County Construction Company Guilty of Cheating Workers = out of=20 Hard-Earned Wages
Trac Construction, Inc. underpaid 11 workers on public work = projects; firm=20 to pay more than $444,000 in back wages, interest and penalties
Albany, NY (December 01, 2010) -
State=20
Labor Commissioner Colleen C. Gardner and Erie County District Attorney =
Frank=20
Sedita III announced today that Trac Construction, Inc., dba Municipal =
Milling=20
& Mix-In-Place, pleaded guilty in Erie County Supreme Court to a =
felony=20
charge for its violation of New York State's prevailing wage laws. As =
part of a=20
plea agreement announced today in Court, the company and its owners have =
agreed=20
to pay 11 workers $312,280 in unpaid wages. They will also pay $131,890 =
in=20
interest and penalties.
Trac Construction pleaded guilty to PL =C2=A7175.35, False Filing in = the First=20 Degree, a class E felony, before Hon. Russell P. Buscaglia, for filing = documents=20 containing false wage information with the government.
In July 2009, the Department was alerted of Trac Construction's = alleged=20 failure to pay employees the prevailing wage at regional public work=20 projects. Union members contacted the Department after attending a = labor=20 law enforcement group presentation, sponsored by the agency's Office of = Special=20 Investigations, where regional labor-related issues were discussed. The=20 Department's Bureau of Public Work commenced an investigation, which = uncovered=20 evidence that the Angola NY-based company performed road milling work = from=20 2007-2009 for a number of municipalities and agencies without paying = workers=20 appropriate wages. On average, Trac's workers earned $8-$13 per = hour when=20 they should have earned approximately $40 per hour. The company filed = false=20 documents stating workers were paid prevailing wages, when in fact they = were=20 not.
"This employer showed a blatant disregard for his workers by = willingly=20 cheating them out of their hard-earned money," said Commissioner = Gardner. =20 "Imagine going to work at a set wage and being paid less than half the = money=20 you're owed. That's what 11 Western New York workers had to deal = with for=20 three years. With this guilty plea, the days are over for Trac=20 Construction's fleecing of worker wages and the public trust."
Commissioner Gardner continued, "Prevailing wage laws are in place to = level=20 the playing field and protect workers and the integrity of public work=20 projects. I thank District Attorney Sedita, Assistant District = Attorney=20 Gary Ertel and their staff for their cooperation in prosecuting this = case. This=20 plea sends a clear message: if you violate state labor law we will find = you and=20 you will suffer the same fate as Trac Construction."
As part of agreements between Trac Construction, its owners, and the=20 Department of Labor announced today in Court, the company and its owner = Christ=20 Pappas (who signed payroll records submitted to the government) will be = debarred=20 from performing public work in New York State for five years. In = addition,=20 two other owners - C. Richard Pappas and Timothy J. Pappas - will each = have=20 willful violations imposed upon them. If they have another willful = violation within the next six years, they will be automatically debarred = from=20 performing public work in New York State. The company and its = owners have=20 also agreed to execute documents within the next two weeks that will = result in=20 payment in full of more than $444,000 in back wages, interest and = penalties,=20 which were identified in the Bureau of Public Work's = investigations/audits.
Under New York State's prevailing wage laws, wage schedules for = workers on=20 all public work projects are set by the Department of Labor. = Contractors=20 must file certified payrolls with the contracting agency on each = project. =20 These documents must include accurate information about who performed = the work,=20 and how much each employee was paid in wages and benefits.
The wages to be paid to the 11 workers result from work performed for = the=20 following municipalities and agencies:
- Town of West Seneca
- Town of Amherst
- Town of Hamburg
- Town of Tonawanda
- City of Tonawanda
- City of North Tonawanda
- Town of Kenmore
- Town of Grand Island
- South Park High School (Buffalo)
- NYS Department of Transportation
The New York State Labor Department's Bureau of Public Work Senior=20 Investigator Edward C. Scheuer handled the investigation.
The State Labor Department encourages employers and workers to =
contact the=20
department about wage and hour issues. More information about prevailing =
wage=20
laws and public work projects, including a list of debarred contractors, =
is on=20
the department's
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