Labor & Employment Law Daily Wrap Up, EEOC NEWS—$429K awarded to NJ workers for Davis-Bacon Act violations; $2M grant will help dislocated Ohio workers, (Sep 26, 2025)
Organizations Mentioned:Above All, Inc. | American Postal Workers Union | American Postal Workers Union Local 95 | Office of Labor-Management Standards | Pixelle Specialty Solutions LLC | Regiment Construction Corp. | Seawolf Construction Corp.
By Pamela Wolf, J.D.
After pleading guilty to three criminal counts related to abuse of her position as treasurer for her own financial benefit, a postal workers union official was sentenced to probation, community service, and restitution.
In separate developments, the DOL announced an ALJ ruling to recover $429,846 in back wages and benefits for 12 workers on federal construction projects in New Jersey; the criminal sentencing of a postal workers union’s former treasurer to four years’ probation, 100 hours’ community service, and restitution of $40,100; and the award of $2 million to support employment and training services for workers affected by the closure of an Ohio papermill.
Prime contractors liable for subcontractor’s prevailing wage violations. An ALJ ordered New Jersey-based contractors Above All, Inc.; Regiment Construction Corp.; and Seawolf Construction Corp. to pay $429,846 in back wages and fringe benefits to 12 workers employed on multiple federal construction projects. The DOL’s Wage and Hour Division had found that Above All, which was subcontracted by the other two companies as prime contractors, violated the Davis-Bacon Act while working on new construction and renovation projects for the VA Medical Centers in Lyons and East Orange. The subcontractor paid carpenters less than the required prevailing wage (between $59.08 to $68.23 per hour, depending on the project and timeframe) on multiple projects, and instead paid workers an average of $32 per hour.
The ALJ also found that Above All intentionally falsified records to hide underpayments. The ALJ’s decision and order found that, in addition to Above All, prime contractors Regiment and Seawolf are also liable for full payment of back wages and fringe benefits owed to workers on their respective projects as a result of Above All’s Davis-Bacon Act violations.
The three contractors have filed petitions for review of the decision with the DOL’s Administrative Review Board.
Former union treasurer sentenced after abusing position for financial benefit. After pleading guilty in March 2025 to one count of embezzling labor union assets, one count of falsifying a labor union annual report, and one count of falsifying financial records, a former American Postal Workers Union Local 95 treasurer was sentenced to four years’ probation, 100 hours’ community service, and ordered to pay $40,100 in restitution. A DOL Office of Labor-Management Standards investigation found that, while serving as treasurer, she signed and cashed at least 137 unauthorized checks worth $68,818 between December 2019 to December 2022. The unauthorized checks were drawn on the union’s account and made payable to the treasurer for her personal benefit. During that same time, she also made at least 128 unauthorized credit card transactions totaling $5,441 on her union-issued credit card, which were for her personal benefit.
The former official served as treasurer of the Lancaster, Pennsylvania-based labor union from at least 2011 through December 2022. In this position, she served as the union’s principal fiscal officer and the custodian of Local 95’s financial books and records. The $40,100 of restitution ordered at sentencing is in addition to $34,159.68 she has already repaid. As a result of the criminal conviction, the former treasurer is barred from holding union office or employment for 13 years.
$2 million ETA grant will help workers displaced by Ohio papermill closure. The Employment and Training Administration (ETA) awarded $2 million to the State of Ohio to support employment and training services for workers affected by the closure of the Pixelle Specialty Solutions LLC paper mill located in Chillicothe, Ohio. The company initially announced it would permanently cease manufacturing operations on June 13, 2025. State and local government officials partnered with Pixelle to try to find a buyer for the facility, but when those efforts were unsuccessful, Pixelle announced a new closure date of August 10, at which time it would lay off the remaining 780 workers.
Administered by the ETA, the National Dislocated Worker Grant allows the Ohio Department of Job and Family Services to provide retraining and skills development services for dislocated workers seeking assistance in Fairfield, Hocking, Jackson, Pickaway, Pike, Ross, Scioto, and Vinton counties. Supported by the Workforce Innovation and Opportunity Act of 2014, National Dislocated Worker Grants provide a state or local board with funding for direct services and assistance in areas experiencing a major economic dislocation event that leads to workforce needs exceeding available resources.
Companies: Above All, Inc.; Regiment Construction Corp.; Seawolf Construction Corp.; American Postal Workers Union Local 95; Pixelle Specialty Solutions LLC
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