Paterson-based Railroad Posillico JV is under investigation after one of its subcontractors was cited for wage violations on a public works project, according to the New Jersey Department of Labor.
Railroad Posillico, general contractor on the project, hired Bensalem, Penn-based subcontractor Men of Steel to build reinforcing steel cages for a Passaic Valley Sewerage Commission project in Newark.
Men of Steel allegedly violated New Jersey prevailing wage and worker misclassification laws while fabricating custom parts for the project.
Off-site fabrication of component to be used in public works projects are covered under state prevailing wage laws, according to the labor department. A state audit of hours worked and payroll records found that Men of Steel allegedly owed six workers a total of nearly $8,300 in unpaid wages.
Two of the six workers were also misclassified as independent contractors, according to the state.
“Our goal is to ensure that each worker is treated fairly at every level,” said assistant commissioner of wage and hour compliance Joseph Petrecca in a statement last Wednesday. “I hope this case serves as a reminder to all public works contractors of their obligations under the law.”
State agents also found Men of Steel was not a registered New Jersey Public Works Contractor. Men of Steel is also accused of obstructing/hindering the enforcement of prevailing wage laws.
Railroad Posillico JV, an unregistered public works contractor, is being investigated for hiring unregistered subcontractor, according to the state.
Railroad Posillico did not respond to a call for comment. A woman answered the phone at the firm and hung up when a reporter identified himself and sought a response for this story.