Delco Construction Firm Bosses Violated Labor Laws: DA

HAVERTOWN, PA — The heads of a Delaware County construction firm are being charged with labor violations and more after local and state authorities said they misclassified employees.

Pennsylvania Attorney General Josh Shapiro and Delaware County District Attorney Jack Stollsteimer announced the filing of charges against Brian McGarrity, 40, of Havertown and Christopher Flanagan, 45, of Upper Darby, both of the Havertown firm Mid Ulster Construction, LLC, for violations of Act 72, which penalizes the misclassification of employees as independent contractors.

Authorities said employee misclassification exploits and endangers workers, cheats the public of important tax revenues and insurance funds, and disadvantages businesses that follow the law while violators pocket substantial money gaming the system.

Charges filed against McGarrity and Flanagan include the Act 72 violations, theft, fraud, possession of stolen property and related offenses.

Many employees of the company were exploited and victimized, and two such workers also suffered grievous physical injuries at a worksite accident, according to authorities.

One of the workers is comatose and in hospice care after falling of an unsecured lift in Delaware, Stollsteimer said.

Stollsteimer also said the company store from the Delaware County Pandemic Relief Fund.

"They lied to acquire $10,000 from the Delco Strong program," he said.

Shapiro called these allegations part of the "rip-off economy" that treat workers as expendable.

"Misclassification prevents workers from making a living," he said.

This is the second prosecution to be initiated in Delaware County under the law this year.

Both defendants are out on 10 percent of $200,000 bail, Stollsteimer said.

Magisterial District Judge Wendy Roberts also imposed additional conditions to ensure that the defendants would not continue their unlawful labor practices as this case moves forward to resolution.

Preliminary hearings are scheduled for June 21.