Purdue News

Statement from Purdue concerning IPFW student housing construction project

Statement from Purdue University legal counsel concerning the Indiana Department of Labor audit of contractor wage payments for IPFW student housing construction project.

By statute, Purdue is required to determine a common construction wage for each major construction contract; to award that contract to the lowest and best bidder; and to require the successful bidder to file a schedule of the wages it will pay. The common construction wage was properly determined by Purdue and each successful low bidder and sub filed certified wage schedules that complied with the prior common construction wage determination.

A contractor who knowingly fails to pay the common construction wage to its workers commits a Class B misdemeanor, a criminal offense, and the Indiana Attorney General has indicated that in such situations the aggrieved workmen are to be referred to the prosecuting attorney in the county where the alleged offense occurred for possible criminal prosecution. Purdue possesses no power or authority to commence or maintain a criminal prosecution for violation of the statute. It will fully cooperate with the Allen County prosecutor in this matter if called on to do so.

Under Indiana law, a worker who is not paid the agreed upon wages by the employer has a wage claim for those unpaid sums. That claim is personal to the employee and cannot be enforced by Purdue against the contractor. The Indiana wage claim statute and other laws regulating the relationship between the contractors and their workers are enforced by the Indiana Department of Labor. IDOL is investigating claims that workers have not been paid the common construction wage by some contractors on the project. Purdue has been contacted by IDOL and is cooperating fully in that investigation, but is not privy to the details of the ongoing IDOL investigation and is unable to comment on any aspect of it.

As the owner of this public works project, Purdue has and will continue to comply with its statutory obligations. Purdue is interested in seeing that workers on its projects are paid the wages due them, but has no legal authority to take direct action against contractors or subs to recoup sums they allegedly failed to pay to workers. Purdue expects its contractors and subs to fully comply with all agreements and obligations to pay proper wages to workers on the project and will cooperate and assist those who are authorized by law to enforce those agreements and obligations.