The Pennsylvania Department of Transportation is determining how to move forward after one of its biggest contractor’s over the past two decades, State College-based Glenn O. Hawbaker Inc., pleaded no contest and accepted a plea agreement related to wage theft charges brought by the state Attorney General’s Office.
PennDOT temporarily suspended the company from bidding on projects in April, but that was lifted in June when the Commonwealth Court ruled the department violated due process by implementing the ban before a hearing was scheduled.
Communications Director Erin Waters-Trasatt said PennDOT is aware that Hawbaker entered a no contest plea to the attorney general’s charges.
“We are reviewing the details of the plea and determining appropriate next steps,” Waters-Trasatt said, but noted it was premature to speculate on a potential course of action.
The 70-year-old, family-owned company is one of the largest construction contractors in Pennsylvania and, between 2003 and 2018, it was awarded $1.7 billion in contracts from PennDOT alone.
Attorney General Josh Shapiro said at a press conference after the plea that his office has no role in whether the company can bid on state-funded projects and that the decision would be up to the procurement agencies.
The Attorney General’s Office charged Hawbaker Inc. in April with four felony counts of theft by failure to make required disposition of funds following a three-year investigation into the company’s prevailing wage practices.
The company was accused of violating the Pennsylvania Prevailing Wage Act and the federal Davis-Bacon Act, laws that require companies hired for public projects to pay workers a set rate determined by state and federal agencies.
Hawbaker Inc. Executive Vice President D. Michael Hawbaker entered the plea on Aug. 3 on behalf of the company in the Centre County Court of Common Pleas.
A plea of nolo contendere, or no contest, means the defendant does not admit guilt but agrees to accept the penalties.
“We are fully committed to the agreement reached with the attorney general’s office and doing what is right for our employees now and in the future,” Hawbaker said.
As part of the plea agreement, the company agreed to pay $20,696,453 in restitution within 120 days to 1,267 current and former workers for prevailing wage violations that occurred between 2015 and 2018. Deputy Attorney General Philip McCarthy said the amount represents full restitution.
As part of the plea agreement, the Attorney General’s Office agreed to not bring any additional charges related to the case against GOH or any of its shareholders, officers or employees.
Hawbaker Inc. also will pay $240,562 in investigative costs and will serve five years of probation. During that time, the company will be subject to oversight by a corporate monitor. Alfred B. Robinson, an attorney and former wage and hour administrator for the U.S. Department of Labor, will act as monitor, providing quarterly reports in the first year and as needed for the remaining years.
Centre County President Judge Pamela Ruest imposed no additional fine, saying she was satisfied with the restitution amount.
“Hawbaker is pleased to bring this process to a conclusion and focus on the future,” a statement from the company said. “Our company’s decision to plead no contest avoids protracted litigation, which could have jeopardized the livelihoods of our dedicated employees.”
StateCollege.com’s Geoff Rushton contributed to this story, which appears in the Aug. 12-18 edition of the Centre County Gazette
