Trucking company investigated for alleged payroll fraud

| 2/5/2008

Federal officials have searched the offices of a St. Cloud, MN, trucking company and the company owner’s home to investigate alleged payroll fraud.

Watab Hauling is being investigated for not paying the prevailing wage on federally funded highway work as required by law and for not paying overtime, according to the Minneapolis-St. Paul Star-Tribune.

According to one investigator, Watab’s office manager filled out payroll records showing one truck driver was paid nearly $22 in straight-time pay, though he was actually paid $12 dollars.

Contractors working on federal projects must be paid a prevailing wage, The Associated Press reported, and must also be paid overtime when working more than 40 hours per week.

Investigators searched Watab Hauling offices and owner Gary Bauerly’s home.

Some employees told investigators that Bauerly made them forfeit prevailing wages or sign checks back to the company owner.