Delaware News

AG Jennings protects Delaware workers from unlawful payroll deductions 

Department of Justice | Department of Justice Press Releases | Newsroom | Date Posted: Wednesday, July 2, 2025


Navy blue background featuring the Delaware state seal in the center
Attorney General Kathy Jennings announced that her office’s White Collar Crime Unit has resolved a case against a Delaware contractor investigated for false statements and unlawful deductions from payroll reports. 
“When contractors bid on government contracts, they have a legal and a moral obligation to do right by workers and the public,” said Attorney General Jennings. “Unfortunately, some contractors try to underbid their competitors by cutting corners on funds owed to their workers. That’s illegal. My office is cracking down on businesses that violate workers’ rights.”
The settlement agreement follows an investigation by the Delaware Department of Labor and the DOJ into Delaware-based contractor Diamond Materials’ deduction of thousands of dollars from its workers’ wages on public construction projects where the Delaware Prevailing Wage Law applies. Certified payroll reports submitted to the State by the contractor claimed that these deductions were used to pay “training benefits” for the workers. In actuality, the funds unlawfully paid for the contractor’s membership in a contractor association.
Under the terms of a settlement agreement with the Delaware DOJ, the contractor will immediately end this practice and pay $100,000 to the State. The Delaware Department of Labor also resolved claims against the contractor, obtaining $3,733.54 in restitution for the workers and additional payments to the agencies.
AG Jennings’ White Collar Crime Unit continues to investigate false statements on certified weekly payroll reports. The team also continues to investigate incidents of worker underpayment for possible criminal Wage Theft charges.
Anyone suspecting wage theft or other violations of Delaware labor laws is encouraged to contact the Delaware Department of Labor at (302) 761-8200.
image_printPrint

Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.

AG Jennings protects Delaware workers from unlawful payroll deductions 

Department of Justice | Department of Justice Press Releases | Newsroom | Date Posted: Wednesday, July 2, 2025


Navy blue background featuring the Delaware state seal in the center
Attorney General Kathy Jennings announced that her office’s White Collar Crime Unit has resolved a case against a Delaware contractor investigated for false statements and unlawful deductions from payroll reports. 
“When contractors bid on government contracts, they have a legal and a moral obligation to do right by workers and the public,” said Attorney General Jennings. “Unfortunately, some contractors try to underbid their competitors by cutting corners on funds owed to their workers. That’s illegal. My office is cracking down on businesses that violate workers’ rights.”
The settlement agreement follows an investigation by the Delaware Department of Labor and the DOJ into Delaware-based contractor Diamond Materials’ deduction of thousands of dollars from its workers’ wages on public construction projects where the Delaware Prevailing Wage Law applies. Certified payroll reports submitted to the State by the contractor claimed that these deductions were used to pay “training benefits” for the workers. In actuality, the funds unlawfully paid for the contractor’s membership in a contractor association.
Under the terms of a settlement agreement with the Delaware DOJ, the contractor will immediately end this practice and pay $100,000 to the State. The Delaware Department of Labor also resolved claims against the contractor, obtaining $3,733.54 in restitution for the workers and additional payments to the agencies.
AG Jennings’ White Collar Crime Unit continues to investigate false statements on certified weekly payroll reports. The team also continues to investigate incidents of worker underpayment for possible criminal Wage Theft charges.
Anyone suspecting wage theft or other violations of Delaware labor laws is encouraged to contact the Delaware Department of Labor at (302) 761-8200.
image_printPrint

Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.