Fringe Benefit, Payroll Reporting Violations Cost Contractor $67K in Back Wages
An investigation into a public works project in Lake County turned into a costly lesson on certified payroll compliance.
The Illinois Department of Labor’s (IDOL) Wage Transparency and Construction Compliance Division investigated Absolute Home Improvements & Cleaning Service over its work on a publicly funded construction project. Investigators found the company failed to pay required fringe benefit rates to eight employees and didn’t comply with the certified payroll reporting requirements under the Illinois Prevailing Wage Act.
The IDOL recovered $67,494.28 in back wages for the eight affected employees. The company also paid $6,794.48 in penalties, bringing the total cost to more than $74,000.
Payroll Takeaways
Public project work adds a layer of complexity that standard payroll processes don’t always account for.
- Confirm employee classifications and wage rates against the prevailing wage determination for the specific county before work begins
- Verify fringe benefit calculations match what’s required for that county, not just what’s typically offered, and
- Review certified payroll reports against actual payroll records before submission, not after a complaint triggers an audit.
More info: IDOL press release
Free Training & Resources
Further Reading
Missed payroll is more than a cash flow problem – it’s a federal wage violation. A Newport Beach construction contractor learned th...
Employers have new details on how to report qualified overtime compensation on 2026 Forms W-2. On Aug. 6, the IRS issued updated guidance i...
Does a 30-minute unpaid meal break still qualify under the FLSA if employees can barely leave the building? A new DOL opinion letter says y...
A new opinion letter looked at whether one company needed to add bonuses into its overtime calculations under federal law. The answer fr...
The IRS has released two revenue procedures, containing info employers need to ensure Affordable Care Act (ACA) compliance next year. Th...
Does dual-role scheduling put your overtime compliance at risk? A new DOL opinion letter says it depends on the specific facts of the arran...