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Construction work: a profitable industry with a high risk of wage theft

WE HAVE RECOVERED THE WAGES OF MORE THAN 2,000 WORKERS

the Auditor at your service

Timothy M. O’Brien, CPA, Auditor of Denver

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While wage theft can affect anyone, my Denver Labor team has identified several industries with higher rates of minimum wage and wage theft violations. One is the construction industry.

City contractors and subcontractors involved in public construction work on behalf of the City and County of Denver must pay their workers at least the prevailing wage. This is a combination of an approved hourly wage rate and fringe benefits that is assigned based on the type of work being performed.

My analysts audit 100% of payrolls submitted by city contractors to ensure payment according to the law. In some instances, we also receive wage complaints that allow us to identify additional compliance issues and underpayments.

For example, recently, my team received a wage complaint because workers under a duct and coil cleaning services contract at the Denver International Airport were misclassified and paid at the common or general laborer rate. Upon our investigation, we confirmed the workers had been misclassified for more than a year and were significantly underpaid. The case closed with Denver Labor recovering $185,539.50 in restitution for 24 employees.

This is not an isolated case. In 2024, my staff helped 2,107 workers in public construction projects recover a total of $1,050,605 in Denver.

Denver Labor protects the rights of all workers, including those at strip clubs Denver Labor helps 4,500 people recover more than $2M in restitution Shelter security and financial disorganization highlight Housing Stability issues My office recovers $500,000 for workers to start the year Auditor's Office Works for You

National award-winning work

My staff is result-oriented and delivers impact for the people we serve: residents, businesses, and workers in Denver. Not only does Denver Labor keep increasing the amount of wages recovered for workers year after year, but my Audit Services division continues to be recognized as one of the top audit shops in the country. In April, we earned a Distinguished Knighton Award from the Association of Local Government Auditors for the “City Shelters Audit Report.” The report assessed how Denver’s Department of Housing Stability’s oversaw homeless shelter providers. Since 2015, my office has received eight Knighton Awards — more than any other audit shop in the United States, proof that we keep producing high-quality work on behalf of the people of Denver.

The audit of homeless shelter providers was conducted due to high public interest. People asked our office to look into these programs, and we listened. If there’s a city department we should audit, let us know, by emailing Auditor@DenverGov.org.