Government Contract Fraud

The Davis-Bacon Act and the Service Contract Act are two federal laws that deal with businesses that provide construction and other services to the government. Davis-Bacon Act applies to the construction of federal buildings such as offices and prisons, as well as road crews who work on interstate highways. Service Contract Act applies to the companies that provide services such as laborers, mechanics, and guards. Both of these laws require payment of prevailing wages, overtime and fringe benefits for employees working on government contracts. Sometimes contracting companies submit false certified payroll to the government attesting to proper payment to their employees when they have been paying less than the required amounts. In some cases, employers actually pay the required amount and then demand cash back from their employees. Whisteblowers in these cases may be current or former employees of the companies with government contracts, or payroll service providers who notice the problem.

Davis- Bacon Act information can be found here –https://www.dol.gov/agencies/whd/government-contracts/construction

Service Contract Act information can be found here – https://www.dol.gov/agencies/whd/government-contracts/service-contracts