A Beckley man has pleaded guilty to requiring illegal kickbacks from former employees, the U.S. Attorney's office announced June 28.
Alfred Williams, 72, is a former operator of Beckley-based Williams Mechanical, which performed work as a plumbing subcontractor for numerous public works projects financed with government funds.
State and federal law require the company to compensate employees with prevailing wages and to report wages paid on certified payrolls.
The prevailing wage established by the government is an hourly wage, which also includes benefits and overtime compensation for particular work performed. Williams admitted that he required employees to return cash to him from their paychecks, which hid the fact that he was paying less than the prevailing wage, according to the news release.
Williams also misreported the hours employees actually worked and paid them based upon improper job classifications, the release stated.
The release states Williams admitted he was aware of legal requirements yet failed to meet those obligations.
Williams admitted he routinely required at least one-third of his employees to return cash to him from their paychecks as a condition of their continued employment with the company.
Federal prosecutors say Williams did this for approximately 10 years.
The news release states Williams received between $600 and $1,000 each week from employees.
In 1998, the West Virginia Division of Labor forced Williams to pay 13 employees more than $25,000 for failure to pay prevailing wages to which they were entitled, the release states.
Williams could face up to five years in prison and a $250,000 fine when he is sentenced Oct. 25. At the plea hearing, Williams agreed to pay restitution of up to $520,000.
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