A Huntington Station, NY construction company reached a settlement with the U.S. Department of Labor after their subcontractors were found to have violated numerous laws, including failure to pay proper wages and having inaccurate payroll records.

MDG Design & Construction LLC will have to pay nearly five million dollars in back wages and benefits. The violations took place on the Grand Street Guild Project, which was a federally assisted HUD project to refurbish three apartment buildings on the Lower East Side of Manhattan. The $60,000,000 contract included rehabilitation of bathrooms, kitchens, and exterior and common areas. Asbestos removal was also included. As part of the settlement, MDG also agreed to implement proper internal control measures to prevent future violations.

Carl P. Smith, an administrator of the Labor Department said, “Failure to adhere to this agreement and obey wage laws can result in the debarment of MDG and its affiliates from seeking and obtaining future federal contracts”.

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