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Pennsylvania Electrical Contractor Agrees To Pay $400,000 in Civil Settlement

On July 7, 2022, the U.S. Attorney's Office for the Western District of Pennsylvania entered into a civil settlement agreement with Dixon Electric, Inc. (Dixon), of Claysburg, Pennsylvania. Dixon agreed to pay $400,000 to resolve False Claims Act allegations that the company, either as a prime or subcontractor on federally funded highway construction projects, failed to pay the appropriate prevailing wage and benefit rate for the performed work, in addition to submitting false certified payrolls.
According to the settlement agreement, the United States contends that it has civil claims against Dixon on seven Pennsylvania Department of Transportation (PennDOT) contracts from 2013 through 2018, which were partially funded by the Federal-Aid Highway Program. Of the $400,000 Dixon agreed to pay, $155,272.04 constitutes restitution and will be distributed to current and former Dixon employees who were underpaid for their work. Dixon further agreed to comply with the Davis Bacon and Related Acts (DBRA) on all ongoing federally funded and federally assisted construction projects that are subject to Federal prevailing wage laws. Additionally, Dixon agreed to assign both a DBRA Project Manager and a DBRA Compliance Officer; provide training for the DBRA Project Manager and DBRA Compliance Officer; and conduct bi-annual audits of each DBRA project and submit reports reflecting the results of the audits to Department of Labor (DOL), Wage and Hour Division, through 2025.
DOT-OIG conducted this investigation with DOL-OIG.