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Two contractors accused of wage violations accept plea deals

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The Marion County Prosecutor's Office has reached plea agreements in two cases in which a contractor was accused of paying workers less than the required wage on publicly financed projects.

Art Rafati, who owns Artistic Construction Inc., allegedly underpaid four employees on a curb and sidewalk project in Center Township. Rafati, 64, pleaded guilty to one count of theft, a class D felony, and four counts of Common Construction Wage violation, a class B misdemeanor.

In a separate case, drywall contractor David Roark pleaded guilty to a theft charge for underpaying for work on the Barton Towers remodeling project in downtown Indianapolis.

The Marion County Prosecutor's Office has pursued three cases alleging Common Construction Wage violations since 2011. The Common Construction Wage is a rate of pay specified by local committees for any state or locally funded projects over $350,000. Rates are set for three classes of worker: skilled, semi-skilled and unskilled.

“The significance of this is not only individual employees not getting paid what they’re owed, but the contractors and subcontractors who play by the rules can’t effectively bid against those who go into it knowing they’re going to cheat,” said Marion County Prosecutor Terry Curry.

A contractor can afford to under-bid for a project knowing they are going to make that money back by not paying their employees the Common Construction Wage, Curry said.

In 2011, the Marion County Prosecutor's Office obtained the state's first conviction in a common-wage case, against White River Mechanical, a subcontractor for two Indianapolis Public Schools projects.

Prosecutors in 2013 brought charges against Roark, who has agreed to pay the workers $24,311 in restitution. His company, D. Roark Drywall LLC, landed a $417,607 contract on the project. He allegedly paid some employees as little as $12 per hour, when his contract required he pay a minimum common wage plus fringe benefits of $39.91 per hour.

The County Prosecutor’s Office alleges Rafati failed to pay four employees the Common Construction Wage on a city project for curbs, sidewalks and ramp replacement and repair in Center Township.

Rafati is scheduled for an initial hearing this week. As a part of his plea agreement, he has agreed to pay $9,175 in restitution to the victims.

Each town or county is responsible for setting the Common Construction Wage at a publicly held committee hearing. As of July 1, 2011, the wage scales adopted by the local committees cover all construction projects within three months of the scale's adoption.

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  • Not a federal matter
    1. How do you know the rates are "artifically inflated"? Do you really think the construction industry has no say in the rates? Secondly, absent a written agreement with the granting agency or a statute to the contrary, the Common Construction Wage Act does not apply to public projects in Indiana that are to be paid for in whole or in part with funds granted by the federal government.
  • Whatever happened to Supply and Demand?
    This is just another example of how the government overpays for goods and services. If a vendor has the qualifications, experience, provides adequate customer service, is financially stable, AND can provide goods or services for less than the artificially inflated rates of pay determined by the government, why should they be penalized?? I agree it should be a level playing field for all bidders. But, does the government know contractors' business better than they do? Let supply and demand forces determine what hourly rates need to be. Having this administrative requirement not only adds unnecessary cost to the contractor but creates more federal bureaucracy as well.
    • Embarrassing
      Make sure this doesn't happen to us.

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    1. Aaron is my fav!

    2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

    3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

    4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

    5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

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