Thinking of avoiding the Pa. Prevailing Wage Act? Think again! An intentional violation of the Wage Act can and will result in a debarment for three years.
Section 11(e) of the Wage Act provides:
(e) In the event that the secretary shall determine, after notice and hearing as required by this section, that any person or firm has failed to pay the prevailing wages and that such failure was intentional, he shall thereupon notify all public bodies of the name or names of such persons or firms and no contract shall be awarded to such persons or firms or to any firm, corporation or partnership in which such persons or firms have an interest until three years have elapsed from the date of the notice to the public bodies aforesaid. The secretary may in addition thereto request the Attorney General to proceed to recover the penalties for the Commonwealth of Pennsylvania which are payable under subsection (f) of this section.
The Pa. Department of General Services maintains a list of debarred contractors, nearly all of whom landed on the list due to intentional violations of the Wage Act. Don’t end up the list!
If you are a public contractor performing construction, reconstruction, demolition, alteration, or repair work, other than maintenance work, under a public contract in excess of $25,000 paid for with public funds, you must follow the Wage Act. If you don’t, the potential consequences will be harsh and will far outstrip any savings you might enjoy by underpaying your workers.
If you have questions about compliance with the Wage Act, feel free to contact me for further assistance.
Christopher I. McCabe, Esq.
