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CONTRACTOR'S KICK-BACK SCHEME EXPOSED

Prevailing Wage

Contractor engaged in kick-back scheme, violated prevailing wage law.

The Comptroller's Office (petitioner) charged a contractor and its sole owner (respondents) with engaging in a kickback scheme and failing to pay prevailing wages and benefits to eleven employees who worked on two public works contracts. Petitioner showed that the employees were required to sign payroll checks reflecting a higher rate of pay and then had to return the money to the owner who paid them less than the prevailing wage.

Office of the Comptroller v. Colortech Inc. (in PDF), OATH Index No. 1777/13 (Aug. 1, 2013).

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