Prevailing Wage Fraud
Federal government contractors that perform construction or service work must pay workers “prevailing wages” under the Davis Bacon Act or the Service Contract Act. “Prevailing wage” refers to the wage rates and fringe benefits that the federal government determines are appropriate for different classes of laborers and mechanics in a given geographic area. The requirement to pay prevailing wages is included in all federal government construction and service contracts. Prevailing-wage determinations may be viewed at https://www.wdol.gov/.
Because construction and service contractors and subcontractors must certify to the government that they are paying workers certain wages required by law, they can be sued under the False Claims Act when they do not actually pay workers the required wages and benefits. Murphy Anderson’s qui tam relators have blown the whistle on federal contractors and subcontractors who exploit immigrants, non-English speakers, or other vulnerable populations by paying substandard wages while falsely certifying compliance with prevailing-wage laws.