What are the possible penalties for a contractor found in violation of the prevailing wage law?
The penalties range from restitution to employees and civil penalties to referral to the State’s Attorney’s Office for criminal prosecution. Failing to file the required certified payroll, or knowingly filing a false certified payroll, is a class D felony for which the employer may be fined up to $ 5,000, imprisoned up to five years, or both. Department of Labor officials note that it requires most low-level violators to pay restitution to the employee for back pay or benefits and pay a fine ($ 300 per violation, per employee). In more serious cases, typically where the violations are wanton or the unpaid wages and benefits amount to $ 50,000 or more, the department seeks debarment. A debarred contractor cannot obtain any state contracts for three years.
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