Construction firm accused of stealing $20M from workers

HARRISBURG >> A major Pennsylvania construction contractor was charged Thursday with stealing tens of millions of dollars from its own workers by systematically violating state and federal prevailing wage laws on taxpayer-funded public infrastructure projects.

Glenn O. Hawbaker Inc. of State College, a 70-year-old company that booked $1.7 billion in state transportation construction contracts between 2003 and 2018, was charged with four counts of theft.

The state’s top prosecutor called it a “massive, unprecedented fraud” and the largest case of its kind nationally.

“The guys doing the backbreaking work on Pennsylvania’s roadways had their retirements stolen from them in order to go into the pockets of the C-suite executives,” Attorney General Josh Shapiro said at a news conference. He said there were thousands of victims.

Hawbaker said in a written statement that “while we believe that we have always acted in accordance with all state and federal laws, in an abundance of caution, the company immediately changed its prevailing wage practices” after learning of the attorney general’s probe.

The company said it will “continue to do what’s right for our employees, both past and present,” and seeks a “swift resolution” of the case. Shapiro said Hawbaker is cooperating.

The attorney general’s office said Hawbaker stole more than $20 million from workers’ fringe benefits such as retirement and health insurance, using the money to pad its bottom line, undercut competitors, and fund internal projects and company bonuses.