Settlement in Case Against Delaware Contractor Investigated for False Statements and Unlawful Deductions from Payroll Reports

Delaware Attorney General Kathy Jennings announced a settlement with Diamond Materials, a contractor found to have made unlawful payroll deductions from workers’ wages on public construction projects. An investigation revealed the company falsely claimed deductions were for worker training benefits, when in fact the money was used to pay for a contractor association membership.

As part of the settlement:

• Diamond Materials must immediately stop the illegal deductions.
• The company will pay $100,000 to the state.
• It will also provide $3,733.54 in restitution to affected workers and additional payments to the agencies. 

AG Jennings emphasized the state’s commitment to protecting workers and cracking down on wage theft and false payroll reporting. The White Collar Crime Unit continues to investigate such violations.