As part of a state crackdown on prevailing wage theft and worker misclassification, Pennsylvania Attorney General Josh Shapiro has charged Glenn O. Hawbaker Inc., a longtime state Dept. of Transportation contractor with four counts of theft for allegedly diverting $20 million from hourly craft worker pensions from 2015 to 2018 to profitsharing funds for other employees and top managers of the company.
An April 8 criminal indictment accuses the State College, Pa.-based contractor of misrepresenting amounts it paid workers for fringe benefits, which were higher and would count toward meeting prevailing wages set by the state or federal government, and how those totals differed from what was recorded in the company's payroll and accounting systems.