More Certified Payroll Blues
OK, just when I thought I had heard it all, the following little gem is offered for your consideration and amusement.
A subcontractor's certified payrolls for a particular project showed approximately $15 more per hour paid to its workers each week than the combined wage and cash supplement amount for the work classification in issue.
When the subcontractor's attorney was asked why his client paid about $15 more per hour than required, he responded: "Because the workers were at other jobs each week and my client listed those payments on the project's certified payroll." What? Are you kidding me? Surely, you jest! When the subcontractor's attorney was informed that such a practice was wholly unacceptable, and that the certified payroll had to be limited to payments made for the single project only, he replied: "you just don't get it, pay my client immediately." When he was informed further that if he backed out the amount paid on the other projects, there would likely be an underpayment to the workers, he said: "That's not the GC's problem." Uh, excuse me? It most certainly is the GC's problem as the general contractor is strictly liable for all underpayments by its subcontractors of prevailing wages and prevailing supplemental benefits. So, now the subcontractor is all bent out of shape because it won't be paid until satisfactory proof is submitted that its workers received all prevailing wages and benefits mandated by statute.
Oy vey! Can someone pass the Pepto, please?
A subcontractor's certified payrolls for a particular project showed approximately $15 more per hour paid to its workers each week than the combined wage and cash supplement amount for the work classification in issue.
When the subcontractor's attorney was asked why his client paid about $15 more per hour than required, he responded: "Because the workers were at other jobs each week and my client listed those payments on the project's certified payroll." What? Are you kidding me? Surely, you jest! When the subcontractor's attorney was informed that such a practice was wholly unacceptable, and that the certified payroll had to be limited to payments made for the single project only, he replied: "you just don't get it, pay my client immediately." When he was informed further that if he backed out the amount paid on the other projects, there would likely be an underpayment to the workers, he said: "That's not the GC's problem." Uh, excuse me? It most certainly is the GC's problem as the general contractor is strictly liable for all underpayments by its subcontractors of prevailing wages and prevailing supplemental benefits. So, now the subcontractor is all bent out of shape because it won't be paid until satisfactory proof is submitted that its workers received all prevailing wages and benefits mandated by statute.
Oy vey! Can someone pass the Pepto, please?
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