City Plan Development, Inc. v. Office of the Labor Commissioner

**City Plan Development v. Office of the Labor Commissioner (Nevada, 2005)** This case involved a construction company, City Plan Development, that failed to pay proper wages to eight workers on a public project. Nevada law requires employers to pay "prevailing wages" (higher, standard rates) to workers on government construction projects. The state Labor Commissioner investigated and found that City Plan had underpaid these employees and owed them back wages. The court largely sided with the workers and the Labor Commissioner. It confirmed that City Plan had violated Nevada's prevailing wage laws and legitimately owed the unpaid wages to all eight employees. The evidence clearly showed the company had not followed the required wage standards for public projects. However, the court did give City Plan a partial victory on one issue. The Labor Commissioner had imposed a "double penalty" on top of the back wages owed, essentially doubling the amount the company had to pay. The court found this penalty was improperly applied and reduced it. **What this means for workers:** If you work on government construction projects, your employer must pay prevailing wages. State labor agencies have the authority to investigate wage violations and order employers to pay what they owe, even if some penalties might be reduced.