US Department of Labor recovers $155K in wages, benefits for 19 employees underpaid by Colorado contractor on federally funded project

DENVER – The U.S. Department of Labor recovered a total of $155,066 in back wages and fringe benefits for 19 employees who were underpaid for their work on a project funded by the U.S. Department of Housing and Urban Development. 

The department’s Wage and Hour Division found that AAA Fire Protection Inc. was contracted to install sprinklers at a newly constructed mixed-use apartment and retail complex in Denver. The company incorrectly classified 16 employees as apprentices and failed to provide fringe benefits and proper prevailing wages in violation of the Davis-Bacon and Related Acts. AAA Fire Protection also neglected to pay overtime premiums to employees working more than 40 hours in a workweek and failed to keep proper records, both violations of the Fair Labor Standards Act.

“An employer cannot simply classify workers as apprentices and pay them a lower rate. Any workers classified as apprentices must be part of a registered apprenticeship program,” explained Wage and Hour Division District Director David Skinner in Denver. “Contractors can contact us for compliance assistance to learn how to properly classify workers to meet their legal obligation to pay them the wages and benefits they are rightfully due.”

Located in Commerce City, AAA Fire Protection Inc. is a specialty contractor focusing on fire suppression. In addition to the $155,066 in back wages and fringe benefits, the employer agreed to comply with the Davis-Bacon Act and Davis-Bacon and Related Acts in all future contracts that are subject to the acts. 

The Wage and Hour Division offers free virtual prevailing wage seminars to provide training and outreach on topics such as the Davis-Bacon Act, the Service Contract Act, Executive Orders 13658 and 13706, wage determinations and conformances, and compliance assistance and enforcement processes.

Learn more about the Wage and Hour Division and the Davis-Bacon and Related Acts, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). 

Download the agency’s free Timesheet App for iOS and Android devices to ensure hours and pay are accurate.