NEWS RELEASE: BOLI recovers nearly $200,000 in wages for 46 workers on taxpayer-funded projects

[Burr, Charlie]

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For Immediate Release
November 25, 2015
CONTACT:           Charlie Burr, BOLI, (971) 673-0788

BOLI recovers nearly $200,000 in wages for 46 workers on taxpayer-funded projects
Agency will now determine whether to seek additional penalties and debarment for Cornerstone

PORTLAND, OR-The Oregon Bureau of Labor and Industries has secured nearly $200,000 for 46 workers not paid wages to which they were entitled, the agency announced today.

The prevailing wage investigations stem from work performed by Cornerstone Janitorial Services on five taxpayer-funded projects in Portland, Eugene, Stayton, Junction City and Salem. Cornerstone also agreed to pay more than $31,000 to workers on other public projects around the state.

Public Project

Number of workers

Total paid

CASANOVA EXPANSION AND SOCCER/LACROSSE RELOCATION (University of Oregon)

22

$121,485.63

CASCADE CAMPUS BOND PROJECT UNDERGROUND PARKING GARAGE, (Portland Community College)

9

$10,406.89

OREGON STATE HOSPITAL REPLACEMENT PROJECT-JUNCTION CITY SITE

11

$10,932.10

OREGON STATE HOSPITAL REPLACEMENT PROJECT-SALEM

8

$13,136.44

STAYTON HIGH SCHOOL ADDITION/RENOVATION CMGC

8

$4,981.44

VARIOUS

21

$31,720.33

(Note: Some employees performed work on multiple projects.)

In addition to the alleged violations of prevailing wage regulations, investigators found evidence of unlawful failure to properly pay overtime wages, failure to file timely, accurate and complete payroll statements, falsification of certified payroll statements, failure to maintain proper employment records, and failure to post prevailing wage rates in a conspicuous location at each job site.

The case will now move to the agency's administrative prosecution unit, which may seek civil penalties and debarment for the firm, making it ineligible to work on public projects for three years.

Currently, the agency has 58 contracting firms and individuals on the debarment list<http://www.oregon.gov/boli/whd/pwr/docs/debar_list.pdf>.

The agency has already paid out more than $160,000 in unpaid wages to affected workers and expects to direct an additional $32,000 by the end of the month after BOLI deposits the final wage payments.
The agency launched the investigations after receiving a complaint from Hoffman Construction. Labor and Industries Commissioner Brad Avakian praised the firm for contacting the Prevailing Wage Rate Unit and urged any other workers or contractor to contact BOLI if they believe that workers are being denied wages to which they are entitled.

Employees with prevailing wage issues may contact the Prevailing Wage Rate Unit by calling (971) 673-0839 or emailing pwremail at boli.state.or.us<mailto:pwremail at boli.state.or.us>.

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Charlie Burr
Communications Director
Oregon Bureau of Labor and Industries
800 NE Oregon Street, Suite 1045
Portland, Oregon  97232
Tel:  971-673-0788
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