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State Contractor Sentenced for Wage Theft, Pays $20 Million in Employee Compensation

  • Pennsylvania AG Josh Shapiro announced that state contractor Glenn O. Hawbaker, Inc. (“Hawbaker”) pleaded nolo contendere to 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, the federal Davis-Bacon Act, and/or the Davis-Bacon Related Acts.
  • As previously reported, the complaint asserted theft by failure to make required deposition of funds because Hawbaker allegedly 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, and also 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.
  • Under the terms of the plea, Hawbaker will pay $20.7 million in compensation for stolen wages to 1,267 employees, will reimburse the AG’s office for over $240,000 in costs, will be sentenced to five years’ probation, and its compliance with all state and federal prevailing wage laws and regulations will be overseen by a corporate monitor, among other things.