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Wage Underpayment Withholding Upheld Termination-default

Tuesday, February 03, 2004 11:57 am

Wage Underpayment Withholding Upheld Termination-default

The U.S. Court of Appeals has ruled that an agency's withholding of $37,635 for wage underpayments that were ultimately determined to total $3,951 was reasonable at the time and did not excuse a failure to make progress with the work.

The U.S. Forest Service awarded a contract to Bill J. Copeland for improvements to trails and comfort stations in the San Bernadino National Forest in California. During contract performance, Copeland fired several employees who then complained to the Department of Labor regarding alleged Davis-Bacon Act wage underpayments.

A DOL investigator recommended that the Forest Service withhold $37,635 f [...]

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