Ruling against Glenn O. Hawbaker Inc. finds PennDOT can move to bar it from state work
Pennsylvania’s highest court handed a victory Wednesday to the state’s highway agency, finding it has the authority to pursue a potential suspension of a major construction contractor based in Centre County after it was accused of millions in theft from employees.
The Pennsylvania Supreme Court reversed a prior statewide appeals court ruling in a unanimous 37-page opinion that marked a victory for the state Transportation Department.
In a written statement, PennDOT championed the decision as a win for workers’ rights, as well as its ability to hold contractors accountable. Messages left with attorneys that represent Glenn O. Hawbaker Inc. were not immediately returned.
“PennDOT’s partnership with the construction industry is critical to delivering a better, safer transportation system and we must continue ensuring that all contractors follow the same rules,” the agency wrote in a statement. “This is a good day for Pennsylvania and continues this Administration’s track record of championing workers’ rights and opportunities, while ensuring a level playing field in procurement.”
PennDOT moved in 2021 to prevent the Hawbaker company from doing state work for up to three years after it pleaded no contest to theft in a case that was the largest of its kind. The company was accused of illegally diverting millions of dollars and other benefits from its workers to pad its profits, undercut competitors and pay for internal projects and company bonuses.
It agreed to pay more than $20 million to workers and submitted to oversight by a corporate monitor at its own expense to ensure compliance with state and federal laws. In exchange, state prosecutors agreed to not bring criminal charges against Hawbaker or any of its shareholders, officers and employees.
The business is one of the top employers in Centre County, one that booked $1.7 billion in state transportation construction contracts between 2003 and 2018.
It has been pre-qualified to bid on PennDOT projects for decades, a status the agency sought to suspend because of the conviction. The company received temporary relief from a statewide appeals court, but the state’s high court reversed that decision after a review of what justices described as a “procedurally and substantively complex matter.”
It’s unclear when PennDOT’s administrative hearing, which could lead to Hawbaker’s suspension, may be scheduled.
“It is our expectation that PennDOT will discharge its adjudicatory functions in good faith by allowing Hawbaker to raise and develop every issue it chooses to advance and by giving each issue its due consideration, so that an adequate record is created should appellate review become necessary,” Justice Kevin Brobson wrote on behalf of all six justices.
