Possible worker exploitation at University Heights development

CINCINNATI - What's going on at the U Square construction site next to the University of Cincinnati?

Enough to alarm council members Wendell Young and Cecil Thomas.

They say they personally toured the development after hearing allegations of worker exploitation and they didn't like what they found.

"[The workers] said they were made to sign a sheet that indicated they were being paid the prevailing wage," said Young. "They were told if they did not sign that sheet, they would not be paid."

When the workers were paid, Thomas said they got $500 for 60 hours of labor.

"If they didn't work the 60 hours, they were only paid $400," he said.

And often paid in cash, with no taxes withheld, said both council members.

"We've lost a tremendous amount of revenue that could have been applied to our budget," Thomas said.

"The estimated loss, we are told is somewhere in the neighborhood of $500,000," added Young.

Neyer Project Manager Justin Hartung says the general contractor takes the allegations seriously.

"No one out here should be paid under the table, should... not be paying taxes," he said. "That would be something we would be concerned about."

Three of the subcontractors weren't even registered to do business in the city until this Thursday, according to council members.

There was also some confusion regarding whether those working on the residential units of the development would get prevailing wages.

Council members initially thought they were, but a letter from their own Economic Development Director indicated prevailing wages do not apply to that portion of the project, because public funds are not being used for that.