Prevailing wage penalties are mandatory

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When the Ohio Department of Commerce determines that there has been an underpayment of prevailing wages on a public improvement, the contractor liable for the underpayment may also be assessed a penalty equal to 100 percent of the amount of the underpayment. The Prevailing Wage Law provides that an employee on a public improvement who is paid less than the prevailing wage amount may recover the difference between the prevailing wage and the amount actually paid to the employee and, in addition, a sum equal to 25 percent of that difference. The liable party shall also pay a penalty to the Director of Commerce of 75 percent of the difference.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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