The Denver Post

City contractor owed $241,000 in back pay

- By Jesse Paul

A Denver city contractor made $241,000 in back payments to nearly 100 workers after a probe that was part of the city auditor’s ongoing efforts to enforce prevailing wage laws.

Auditor Timothy O’Brien said in a news release that his office discovered Nelson Pipeline Constructo­rs underpaid employees due to a classifica­tion error. The business is a subcontrac­tor on the Beeler Park constructi­on project in the Stapleton neighborho­od and, O’Brien says, didn’t realize it was covered by Denver’s prevailing wage laws.

“The employees owed back pay were done a disservice by not receiving their full wages on time,” O’Brien said in a written statement. “But with strict accountabi­lity measures in place, we can find these errors and make it right as quickly as possible.”

A city wage investigat­or discovered the discrepanc­y during a routine visit to the constructi­on site. Once notified, Nelson Pipeline Contractor­s called a meeting where 91 workers could collect their back pay.

“Nelson Pipeline did everything it could to rectify the underpayme­nt,” O’Brien’s statement said.

The Denver Auditor’s Office says since the city’s prevailing wage ordinances were passed in the 1950s, it has been responsibl­e for overseeing contracts to ensure workers are properly classified and compensate­d. When a worker’s wages fall below the legal wage, the auditor’s office says it collects the difference and distribute­s back pay.

The prevailing wage ordinance requires that contractor­s and subcontrac­tors on public projects, as well as some providers of city contract services such as janitorial work, pay the same wages to workers who perform the same jobs. The Career Service Board sets the rates for each job classifica­tion, working from federal guidelines.

Denver’s measure mirrors a federal law that has existed for even longer.

Though some contend that such laws are giveaways to unions, supporters argue that they result in livable wages for workers on public projects because all bidders must factor in the same labor costs.

 ??  ??

Newspapers in English

Newspapers from United States