This story has been updated throughout with comments from Scott Good.
A State College-based mechanical contractor and the company’s owner are facing charges after a statewide grand jury investigation allegedly found they operated a scheme to underpay workers on a public works project.
Attorney General Josh Shapiro said Goodco Mechanical and owner Scott Good violated the state’s prevailing wage law by underpaying wages and unlawfully claiming benefits credits while working on a Pennsylvania Department of Transportation project in 2014 in Clearfield County, as well as on public projects in other counties, including Centre, since 2010. The alleged underpayments for which Good and Goodco were charged totaled $64,000, according to Shapiro.
Good, 56, turned himself in on Friday and was charged with 108 felony and misdemeanor counts including deceptive business practices, theft, receiving stolen property, perjury, tampering with public records and false swearing. The company was charged with 109 counts, including deceptive business practices, theft and receiving stolen property.
Good was arraigned by Clearfield County District Judge Joseph Morris and released on $50,000 unsecured bail. A preliminary hearing is scheduled for Oct. 23.
In a statement on Friday afternoon, Good said the charges are without merit.
‘I was disappointed to learn of the charges brought against my company and myself and want to say clearly, and without equivocation, that they are without merit,’ he said. ‘Throughout my more than 35 years in the contracting business, I’ve committed myself to one overarching principle: Treat your customers and employees with respect, honesty and fairness.’
Shapiro said in a news release that the grand jury found that ‘Good directed journey electricians and plumbers to record portions of their work hours as lower paid laborers.’ As an example, Shapiro said a certified electrician who worked 10 hours would be told to record nine hours as an electrician and one hour as a laborer, a position that is reportedly paid $20 an hour less than an electrician.
‘The workers reported that if they did not change their timesheet accordingly, Good would ask them to change it or someone would change it for them,’ the news release said.
The Pennsylvania Prevailing Wage Act requires contractors on public projects to pay the same hourly wages and benefits based on region and job classification.
Goodco is also accused of crediting itself hourly vacation benefits employees did not use in order to reduce the amount the company had to pay toward fringe benefits.
‘As a result, workers were not only paid the incorrect rate, but they also had money withheld from their benefits,’ the news release said.
Shapiro said the grand jury believed Goodco underpaid employees by more than $200,000 since 2010 but because of statutes of limitations, was charged for alleged underpayments of $64,000 over a five-year period. The grand jury also accused Good of providing false statements while under oath.
Good said that since it was founded in 2008 his company has had hundreds of contracts with area municipalities, school districts and Penn State and has always complied with the prevailing wage set by the Department of Labor and Industry.
‘We have never pressured or directed any workers to falsify the hours they work at the higher skilled tradesman rate as opposed to tasks that fall under the lower-paid laborers’ rate,’ he said. ‘In determining the proper pay rate, or classification, we rely on the state Department of Labor & Industry’s guidelines. Sometimes disputes over work classification arise and, when they do, Pennsylvania law calls for cases to go before an L&I hearing officer as a civil matter.
Good said this is the first time prosecutors have used criminal charges in a Pennsylvania prevailing wage dispute.
‘The Attorney General’s unprecedented action in this case is troubling not just for the impact it may have on my business, but for all firms that handle government contracts,’ he said. ‘These cases are handled as civil matters for good reason: L&I’s guidelines are not clear-cut. It is not uncommon for cases to be dismissed in the employer’s favor or a settlement reached due to an honest misinterpretation of the guidelines.’
Good was previously vice president at Allied Mechanical and Electrical, which in 2006 was found to be in violation of Pennsylvania prevailing wage laws and was sanctioned by the state Department of Labor and Industry for using practices similar to what Goodco is accused of doing, according to Shapiro.
“Pennsylvania’s prevailing wage laws are designed to protect workers and ensure an even playing field in the bidding process for government contracts,” Shapiro said. “The defendants are charged with violating these laws and cheating our hardworking laborers out of thousands of dollars in wages and benefits. Scott Good already knew that his conduct was illegal because his former company was sanctioned for similar violations more than a decade ago, yet he brazenly flouted the law again and continued the scheme at Goodco.’
The case will be prosecuted by Clearfield County District Attorney William Shaw with assistance from the Attorney General’s Office.
“Clearfield County laborers deserve to be paid fairly for their hard work,” Shaw said. “The defendants allegedly took advantage of their workers and violated prevailing wage laws by operating a misclassification scheme inside the company. My office will work alongside the Attorney General’s Office to hold Scott Good and Goodco accountable for their crimes and deliver results for the workers he underpaid.”
Good said he believes he ultimately will be vindicated.
‘Throughout my 25 years working in the State College area, I’ve prided myself on having a reputation for honesty and integrity,’ he said. ‘As a couple of strong faith, my wife and I believe and trust that God’s will, and the truth, will ultimately be revealed and that Goodco will be fully vindicated.’
