$586,000 Citation for Prevailing Wage Shenanigans
The federal Wage and Hour Division has cited Maryland construction company J. Solano HVAC LLC $586,000 for a payback scheme by which it paid pipefitter mechanics and sheet metal workers prevailing wage, but had them return everything over $30/hour. The company also misclassified some workers as less skilled to pay them lower prevailing wage rates.
Under federal law, “A prevailing wage is the combination of the basic hourly wage rate and any fringe benefits rate, paid to workers in a specific classification of laborer or mechanic in the area where construction, alteration, or repair is performed, as determined by the Secretary of Labor. “ Workers on federal construction projects are entitled to receive prevailing wage rates.
Baltimore Wage and Hour Division District Director Nicholas Fiorello said:
“By uncovering this scheme, the department ensured that workers were paid fairly, received their full fringe benefits, and that competing contractors were not disadvantaged for appropriately bidding for work based on the required prevailing wage rates. Employers that don’t abide by federal contract requirements may end up being debarred from future government contract work.”
The citation bars Solano from bidding on any federal projects for three years.
California Labor Code 221 also bars paybacks: “It shall be unlawful for any employer to collect or receive from an employee any part of wages theretofore paid by said employer to said employee.”
TAKE-AWAYS:
Employers must follow all laws requiring that certain wages be paid to their employees, whether minimum wage, overtime, prevailing wage, or laws prohibiting paybacks.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- California Minimum Wage Rates as of January, 2026 (December 19 2025)
- Find Out What’s New In 2026 – For A Happi(er) New Year (November 2025)
- The Basics of Overtime: Five Rules for California (April 27, 2018)
Helena Kobrin
December 23, 2025