L&I Cites Construction Company that Built the HUB

The Washington State Department of Labor & Industries has cited the construction company that built the HUB Center for Senior Services in Belfair for shorting workers’ wages. According to an L&I investigation, six construction workers were shorted more than $155,000 in wages.

The workers are owed about $25,000 each for wood framing at the Belfair Senior Center. Their employer, Integrity Construction LLC, was on the project from May to August 2015. L&I recently notified the company of the violation.

“Integrity vastly underpaid its employees for the work they did,” said Elizabeth Smith, assistant director for L&I’s Fraud Prevention and Labor Standards division. “By making sure contractors pay their workers fairly, we are creating a level playing field for firms in the construction industry.”

L&I’s investigation found the Tacoma company owes $156,692.48 in wages and more than $30,000 in fines and penalties. Integrity did not appeal the violation and is barred from bidding on future public works projects until the money is paid.

The Belfair project received $1.86 million from the state’s capital budget. That meant Integrity was required to follow the state’s prevailing wage law. L&I enforces the law, which protects workers by setting the wages for specific work.

Because the project owner was a non-profit and not a public agency, the organization was not required to post a performance bond or hold money aside until the project was completed, called retainage, for situations like this.

“It’s important that agencies and non-profits understand that using public money on a project means it’s covered under prevailing wage,” Smith said. “The law’s safeguards would have assured protection for the workers’ wages.”

Belfair’s Hospitality, Unity, and Belonging (HUB) Senior Center, valued at a reported $3.5 million, opened in May 2016. At 15,000 square feet, the structure houses a thrift store, meeting space, and kitchen. PHC Construction of Bainbridge Island was the prime contractor.

One thought on “L&I Cites Construction Company that Built the HUB”

  1. Faith In Action fulfilled all of its obligations under the state contract. Faith In Action paid our general contractor, PHC for the work completed. It was PHC’s legal obligation to pay the prevailing wage to their subcontractors. Our organization has complied with all state and federal laws in the building process. We have also worked with Department of Labor and Industries in their investigation of PHC.

    We are saddened that there is any issue with the workers not being paid while on the project. We are a community organization that “Supports Independent Living for Our Senior and Disabled Neighbors” and we are saddened by any issue that takes focus off of all of the positive things that we do in our community. Our sincere hope is that PHC upholds their legal obligations and pays all wages associated with the subcontractor’s wages.”

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