Hailey
Kansas City has taken a strong stand to protect workers’ rights by officially banning CJR Construction Group from working on city-funded projects for the next two years.
This action, called debarment, comes after repeated incidents where the company failed to pay its employees the correct wages on multiple construction sites.
This decision sends a clear message to all contractors — if you cheat workers out of their pay, there will be serious consequences.
What Is Debarment?
Debarment is a process where a company is legally banned from bidding on or working on city-supported projects for a set period.
In this case, CJR Construction will not be able to work on any city-funded projects or developments that receive tax abatements in Kansas City for two years.
This rule exists to make sure taxpayer money is spent on companies that follow the law and treat workers fairly.
Why CJR Construction Was Banned
The ban came after investigators found that CJR failed to pay the correct wages on three major projects:
- Jazz Hill Homes Project – The company did not pay five employees the required wages. This project received a 25-year property tax break and exemption from sales tax on building materials. The city recovered over $36,000 for workers and charged more than $17,000 in penalties.
- Three Light Luxury Apartments – Investigators found that 14 workers were not paid the required prevailing wage.
- One Nine Vine Development – A worker was underpaid, and an apprentice’s job was misclassified so they were paid less than they should have received.
What Is the Prevailing Wage?
The prevailing wage is the minimum hourly pay set for workers on public projects. In Missouri and Kansas City, contractors must pay this rate on all projects worth more than $75,000 or those receiving city funding or tax benefits.
It ensures fair pay and prevents companies from undercutting wages to win contracts cheaply.
City’s Efforts to Protect Workers
Kansas City Council member Kevin O’Neill, a strong supporter of fair pay and unions, said banning CJR shows the city is serious about protecting workers and public money.
“We are watching these job sites,” O’Neill stated. “If you break the law, we will find out and stop you from working on city contracts for two years.”
Missouri law and Kansas City’s code require contractors to pay fair, prevailing wages on any city-supported development.
Past Investigations into CJR
While the city found no major issues with CJR before 2023, the company has been under federal investigation.
In 2021, the Occupational Safety and Health Administration (OSHA) investigated safety concerns at a CJR worksite in Independence. The U.S. Department of Labor also looked into wage-related violations.
Other Companies Under Scrutiny
CJR is not the only contractor facing action. Kansas City is also investigating two other projects for labor violations:
- Saxon at Midland Development (Cordish Companies) – Violated the rights of 19 workers. The city is seeking more than $460,000 in unpaid wages and $275,000 in penalties.
- Wonderland at 1923 (Lux Living) – Violated the rights of four workers. The city will collect about $5,200 in back pay and $400 in penalties.
Violations and Penalties
| Project Name | Company | Violation | Restitution | Penalties |
|---|---|---|---|---|
| Jazz Hill Homes | CJR Construction | Wage theft (5 workers) | $36,000+ | $17,000+ |
| Three Light Apartments | CJR Construction | Underpayment (14 workers) | Not disclosed | Not disclosed |
| One Nine Vine | CJR Construction | Underpayment, misclassification | Not disclosed | Not disclosed |
| Saxon at Midland | Cordish Companies | Wage theft (19 workers) | $460,000+ | $275,000 |
| Wonderland at 1923 | Lux Living | Wage theft (4 workers) | $5,200 | $400 |
Why This Matters
This move shows that Kansas City is committed to protecting workers and ensuring public money is spent responsibly. Wage theft not only hurts employees but also creates unfair competition for honest businesses.
By banning CJR and investigating other companies, Kansas City is warning contractors that dishonest practices will not be tolerated.
Kansas City’s decision to ban CJR Construction Group for two years is a major victory for workers’ rights. It proves that the city will take strong action to stop wage theft and ensure that public projects are carried out by honest contractors.
With ongoing investigations into other companies, Kansas City is making it clear that any contractor found breaking labor laws will face serious penalties. This step could encourage other cities to take similar actions, leading to fairer treatment for workers nationwide.