Natick Labs construction workers will get $500,000 after labor law violations found

NATICK — Workers at a construction site at the U.S. Army Soldier Systems Center will receive more than $500,000 in back wages after a New Hampshire-based drywall company was found to be violating labor laws, according to the U.S. Department of Labor.

The Department of Labor recovered a total of $518,446 in back wages for 54 construction employees working on a federally-funded project at the Natick Soldier Systems Center, aka Natick Labs. Workers were contracted by Ecostructive LLC, a Nashua, New Hampshire-based drywall installation company doing business as Ecostructive Pro Builders.

The Labor Department's Wage and Hour division found that Ecostructive Pro Builders violated the Davis-Bacon Act by not paying employees wages or fringe benefits. The division also found that Ecostructive falsified payroll records and did not create and maintain accurate payroll and basic records; failed to pay overtime; and did not allow employees to accrue one hour of paid sick leave for every 30 hours worked on or in connection with a federal contract, as federal law requires.

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The company was the subcontractor for the Natick project. The prime contractor, Waltham-based CTA Construction Manager, LLC, paid back wages to workers as laid out in the case settlement.

Ecostructive Pro Builders has resolved the violations, but is now barred from working on federal contracts for three years.

Representatives from Ecostructive Pro Builders and CTA Construction Manager did not return requests for comment.

Dept. of Labor stresses 'strong enforcement of prevailing wage requirements'

Carlos Matos, district director for the Department of Labor's Wage and Hour Division, said in a prepared statement that the government has "taken a strong stance against the employer’s failure to provide employees with the prevailing wages and benefits as the laws require."

“The Wage and Hour Division will not tolerate any contractors who falsify certified payroll records and will hold them accountable," Matos said. "Strong enforcement of prevailing wage requirements ensures that federal investments result in the creation of good jobs.”

In addition, CTA Construction and Ecostructive are being sued by Florida-based Herc Rentals in U.S. District Court for breach of contract. Herc has two branches in Massachusetts: one in Boston and another in Shrewsbury.

According to the suit, Herc Rentals contracted with and provided rental equipment to Ecostructive for use at a federal project at Natick Labs, but was not fully paid. Documents state that Ecostructive was subcontracting under CTA Construction.

In addition, Herc Rentals is also suing Nationwide Mutual Insurance Company because it allegedly failed to make payment under the Miller Act Bond Nationwide provided. The Miller Act requires that prime contractors for the construction, alteration or repair of federal buildings furnish a bond for contracts in excess of $100,000.

According to court filings, Ecostructive has paid Herc about $31,000 of an over $44,000 rental agreement. Herc is asking CTA, Ecostructive and Nationwide to pay the remaining over $13,000.

Herc is represented by Brittany Darcy, of Southborough-based Kenney & Sams. She did not return a request for comment.

Natick Labs is dedicated to researching and developing support systems, including food, clothing, shelters and airdrop systems, for the military.

This article originally appeared on MetroWest Daily News: Workers get $500K in back wages for Natick Labs construction project