The Bridge project subcontractor payroll falsification and wage-theft case
Risk Mechanism
Opaque labour subcontracting and weak payroll controls enabled subcontractors to underpay workers, omit them from certified payroll records, and falsify payroll documentation during project execution.
Case Summary
In 2023, the U.S. Department of Labor reported that investigations of subcontractors working on The Bridge project in Washington, DC identified wage theft, worker misclassification, omissions from certified payroll records, falsified payroll documentation, and failures to report workers supplied through labour brokers on weekly certified payrolls. The investigation resulted in the recovery of back wages for 84 workers.
Risk Lesson
This case demonstrates how weak controls over labour subcontracting chains can conceal wage theft, payroll falsification, and unreported workers during project execution. It highlights warning signs such as workers missing from certified payrolls, labour misclassification, use of labour brokers without clear reporting, payroll records inconsistent with site headcounts, and repeated discrepancies between weekly payroll submissions and actual workforce deployment.
Reference
U.S. Department of Labor. (2023). US Department of Labor recovers $633K in back wages for 84 workers for violations by District of Columbia development site’s subcontractors. Available from: https://www.dol.gov/newsroom/releases/whd/whd20230320-2