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State Contractor Criminally Charged for Alleged Underpayment of Fringe Benefits to Prevailing Wage Workers

  • Pennsylvania AG Josh Shapiro charged state contractor Glenn O. Hawbaker, Inc. (“Hawbaker”) with four counts of theft relating to Hawbaker’s alleged underpayment of more than $20 million to its employees in violation of the Pennsylvania Prevailing Wage Act and the federal Davis-Bacon Act.
  • The complaint alleges, among other things, that Hawbaker routinely miscalculated and wrongly claimed fringe benefit credits by using money intended for prevailing wage workers’ retirement funds to contribute to the retirement funds of all Hawbaker employees, including its owners and executives. Similarly, Hawbaker allegedly used funds intended for prevailing wage workers’ health and welfare benefits to subsidize the cost of the self-funded health insurance plan that covered all employees.
  • The complaint alleges four counts of theft by failure to make required deposition of funds.