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Buckeye Electric Company, Inc., Issue No. 2

April  2001

The Contractors Critic
Buckeye Electric Company, Inc
Reporting on Safety, Productivity, and Honesty in the Construction Industry.

Supreme Court Upholds

Criminal Charges Against Buckeye

BUCKEYE SCOFFS AT STATE LAW

Most companies who cheat their employees out of money are gambling that they won’t be scrutinized and that the employees won’t know any better.

Usually, it’s a state agency that is notified by competing contractors or a disenchanted employee, and a cumbersome auditing process occurs that costs taxpayers thousands of dollars to recover back wages for employees. 

     

After repeated violations, the state gets very angry. That was the case with Buckeye Electric, a small contractor with a long history of litigation, liens and legal problems.

Buckeye Electric’s repeated violations of Ohio state law earned the scrutiny of criminal prosecutors and the state’s highest court.

And despite extensive legal maneuverings by the scofflaw company, the Ohio State Supreme Court ruled that the company could be charged in criminal proceedings for repeated, flagrant violations of the state’s prevailing wage law.

In a precedent-setting case that originated in Butler County and ultimately involved the Ohio State Attorney General’s Office, Buckeye Electric was charged with criminal violation of the state’s prevailing wage law. Prosecutors claimed that Buckeye Electric’s repeated failures to pay prevailing wage could be charged as criminal acts.

Buckeye’s legal team appealed the criminal filings, claiming that only the Ohio Department of Industrial Relations has jurisdiction when a company fails to pay its workers in accordance with the law. The company got a local judge and an appellate court to agree.

SUPREME COURT ALLOWS CHARGES

The Supreme Court, however, reversed the lower court rulings and

said that prosecuting attorneys could pursue criminal charges against Buckeye Electric and other companies who violate Ohio’s prevailing wage law.

That paved the way for criminal proceedings against Buckeye Electric and any other company that the state viewed as engaging in criminal behavior when it refused to pay employees according to state law.

Unfortunately, the legal action hasn’t stopped Buckeye from violating the law. They are repeatedly the subject of determinations by the state that they failed to pay prevailing wage on public works jobs. These determinations have caused delays in some projects while potential customers wait for Buckeye Electric to pay off their bad debts to employees.

From ‘School Of Hard Knocks’

"Buckeye Electric continues to be uncooperative and extremely difficult to work with on scheduling of work and coordinating with other contractors and the engineers. Most change order prices are inflated. " -- Miami University of Ohio, Physical Plant Director in a report to the State of Ohio.

As of publication, Buckeye has not made any suggestions or refuted any of the information in this publication.

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