DE Attorney General Jennings protects Delaware workers from unlawful payroll deductions

Published Date: Jul 2, 2025

DE 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. 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. “When contractors bid on government contracts, they have a legal and a moral obligation to do right by workers and the public. 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.” – AG Jennings

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